There has been a huge furore over outsourcing of business processes in countries like the US and the UK. The western world has been upset over the years as companies have decided to shift their work bases to countries like India, China, Malaysia, Philippines etc. Layoffs in large numbers have become an easy way for companies to save costs and move work to their outsourcing partners.

There has been disappointment and anger amidst employees and customers of such companies. For example when Lloyds TSB Bank UK, moved their contact centre services to India by closing one of their own in the UK, there were mails and letters sent from customers and employees alike to the bank conveying their dissatisfaction over the quality of service and concerns over the security of their bank details.

Keeping this in mind, firms are looking at newer avenues in outsourcing. Socially responsible outsourcing is one such option. It is a means through which firms outsource contracts to social enterprises. These are small businesses in poor countries (identified by the IMF), companies with fewer number of employees in such regions or companies employing socially disadvantaged people. With the economic meltdown making most of the world economy weak, this is the way forward.

There are over 170 million skilled workers available in countries like Africa and rural Asia living in the world’s poorest regions. The perception of the western countries is that such countries are open for aid but not for trade. This initiative helps promote economic development and reduce unemployment in these underprivileged areas. For example Digital Divide Data, a non-profit data entry firm in Cambodia employs more than 500 socially disadvantaged people.

For years companies have made contributions and have taken initiatives to support social causes such as eradicating poverty, making education available to the underprivileged, providing health care services in rural areas, go green initiatives etc. These have been a part of their corporate social responsibility calendar for years. Socially responsible outsourcing takes these initiatives a step further. It makes sure that outsourcing wealth is directed to high poverty regions.

For these countries the difference in their currency and that of the companies wanting to outsource makes socially responsible outsourcing economically viable for both the parties. Besides saving on the dollars, it enhances the company’s public image as being committed towards the benefit of the society as a whole, while coexisting in a capitalist environment. For example California based Samasource has pioneered the cause of using untapped talent across the world through socially responsible outsourcing.

Governments in the west support the idea of socially responsible outsourcing. The public pressure on outsourcing reduces once the word socially responsible is added to it. So socially responsible outsourcing is here to stay as the pros outweigh the cons. Some companies will take an undue advantage of this form of outsourcing to make their tax registers lighter and to minimise resistance from customers.

Hence tighter laws and gaps in the legalities need attention. Will socially responsible outsourcing be fruitful in the long run? It sure will, if it focuses on raising the economic standard of developing and underdeveloped countries, provides employment, contributes to the community and the environment and establishes high ethical standards within the industry.

The future is bright as it offers companies a competitive advantage, builds their brand and also brings in tax and capital gains. Socially responsible outsourcing is the way ahead.