Outsourcing has raised certain ethical concerns which need to he considered. In search of
cheap labour, manufacturing processes are being outsourced to developing countries where they use child labour/women in the factories and working conditions are unhygienic and even unsafe. The companies cannot do so in their developed home countries due to stringent laws forbidding use of child labour.
This raises the ethical concern whether this sort of cost cutting by using child labour justified. Similarly, there is a concern over the ethical aspect of outsourcing the work to countries where gender-based wage discrimination is done and hence women are paid lower wages.