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Evaluation Of Banks Decision Through Shareholder Theory Economics Essay
Since the last two decades, the increasing trend of IT off-shoring growth has never been stopped. This phenomenon is accompanied with globalization. On account of billions of people participated globalization which is a free market world, industries and countries agreed to IT off-shoring activities which is underlined by (William, Frank,& Moshe,2006). It also happens in Australia. Australian banks paid lots of efforts to participate IT off-shoring activities.
The interaction of different economies lead IT off-shoring generates huge economic benefits to both off-shoring country and the country of off-shoring contractor. However, each action or incident will evoke two-way effects, and that may lead an ethical issue occur. This is evidenced by (Jensen, Kirkegaard& Laugesen, 2006).The negative effects which are brought by off-shoring are troubling the sacrificed group of people, such as job losses, over-educated problem, inequality of community.
What benefits and profit can off-shoring bring and who will oppose this activity? Who should come up to solve this problem and establish a fair regulation system to provide the equality to all parties? Obviously the answer should be government. The IT off-shoring will continue to increase within the country. Hence government should take the responsibility with this circumstance. Otherwise, the negative effects will erode chronologically the benefits and finally the unpredictable outcome will occur.
Definition of off-shoring:
In regarding to the term "off-shoring", is a type of outsourcing. To simply explain off-shoring, it means industries within domestic country outsourced business functions to foreign country due to cost reduction reason or strategic reason to enter a new market. In virtue of the difference of labor costs between two different countries, industry which provide off-shoring functions is often from country that has higher labor cost such as USA, Australia, European countries, off-shoring provider comes from low labor cost country for instance India. Higher labor cost industry can save different sorts of cost such as wage expense. Banks or businesses can prefer intelligent and splendid staff from lower labor cost country.(责任编辑:BUG)

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