Legal dimension of use of offshore labor
Legal Dimension of Use of Offshore Labor
Today, we are living in a swiftly changing world powered by technological development as well as advancement in transportation. As of such, the typical work that is performed by service sector workers has changed dramatically. The past has paved the way for a new technological era in strive for a greater cooperate efficiency (Farrell et al. 96). And since the innovative service functions can be offered virtually with the aid of technological tools. Businesses in industrious nations have more opportunity to leverage on labor cost saving. The act of sending labor function offshore help businesses to reduce cost by avoiding expenses associated with legal employment standards (Shao et al. 90). This problem cannot be associated with breakage of any law nor any regulation. The problem can be attributed to the ever-changing business environment. Due to technological innovation in business today, the existing business structure has responded to such changes by relying on offshore entities to perform different functions (Gnyawali et al. 320).
As of such, there is no likelihood of legal action as a result of the solution. For legal action to be a solution, there is need to develop an entirely new policy regime. In regards to technology, different nations have different technology and infrastructure standards (Zhu et al. 1560). This implies that any legal action must consider issues related to labor right, Privacy, taxation, intellectual property, environmental protection as well as national security.
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To have a common legal action while still considering some important aspect to development such as taxation and national security may be difficult if not impossible. This implies that the solution is not legal. This is because offshore labor involves several jurisdictions and therefore to apply legal action it implies all the involved parties must abide by similar rules and regulation. This is quite difficult to implement as the levels of protection of different nation differs significantly.
Farrell, Diana, Martha A. Laboissière, and Jaeson Rosenfeld. “Sizing the emerging global labor market.” The McKinsey Quarterly 3.2005 (2005): 92-103.
Gnyawali, Devi R., and Byung‐Jin Robert Park. “Co‐opetition and technological innovation in small and medium‐sized enterprises: A multilevel conceptual model.” Journal of small business management 47.3 (2009): 308-330.
Shao, Benjamin, and Julie Smith David. “The impact of offshore outsourcing on IT workers in developed countries.” Communications of the ACM 50.2 (2007): 89-94.
Zhu, Kevin, Kenneth L. Kraemer, and Sean Xu. “The process of innovation assimilation by firms in different countries: a technology diffusion perspective on e-business.” Management Science 52.10 (2006): 1557-1576.
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