Ethical outsourcing: what does that mean in practice?

Outsourcing has a reputation problem. And that’s not entirely unwarranted. There are plenty of examples of companies that move work to low-wage countries purely to cut costs, without considering what that means for the people doing the work. Anonymous teams, high workloads, few rights, and no connection whatsoever to the company that hires them.

Smartshore does things differently. Not as a marketing message, but as a daily choice.

What does ethical outsourcing actually mean?

Ethical outsourcing starts with a simple question: Do you treat the people who work for you the same, no matter where in the world they are? Not in theory, but in everyday practice.

For Smartshore founder and CEO Jelke Schippers, the answer is clear.

“Good employment practices don't stop at the border.” 

That may sound obvious, but in the outsourcing industry, it is far from the norm. Many companies in India hire external staff through staffing agencies, without taking direct responsibility for their well-being, professional development, or working conditions.

Smartshore employs permanent staff in Ludhiana and Panaji. No intermediaries, no freelance arrangements. People who are part of the company, with the rights, attention, and investment that come with it.

Small cities, a conscious choice

One of the most striking decisions Jelke made was to avoid setting up shop in major Indian tech hubs like Bangalore. Most IT companies flock to those cities, which means developers have to leave their families and familiar surroundings behind for work.

Jelke deliberately chose smaller cities. By doing so, Smartshore gives local talent the opportunity to work close to home, near their families, in an environment that feels familiar. Family ties are particularly important in India. Any employer who ignores this is missing something essential.

The results speak for themselves. In its first eight years, Smartshore had zero employee turnover in India. It remains below five percent, while the industry average is over twenty percent.

Well-being as a strategic pillar

“Well-being isn't a checklist; it's a personalized approach.” 

It’s a phrase that perfectly captures Smartshore’s approach. There are no set working hours. Employees can work out at the office. Partners and children are welcome in the workplace. The idea is simple: work is a major part of your life, so it needs to fit into that life in a healthy way.

This applies just as much in Utrecht as it does in Ludhiana or Panaji. The details may differ, but the intention is the same.

In addition to the concrete facilities, Smartshore also actively monitors workloads. Signs of burnout are picked up early, so that problems don’t go unnoticed. “If someone is sidelined by stress, it affects the entire team and the progress of projects,” explains Jelke. Well-being and performance are therefore not opposites. They reinforce each other.

Culture as a daily practice

Ethical outsourcing is also about how you deal with cultural differences. The Netherlands and India have fundamentally different communication styles, and anyone who ignores or brushes that aside will run into problems sooner or later.

Jelke sums it up succinctly:

You can’t just arrive in India and say that everyone is now Dutch. 
You have to become a bit Indian yourself. That requires curiosity, 
patience, and a willingness to question your own assumptions.

Specifically, Smartshore invests in intercultural coaching for teams. Dutch Scrum Masters facilitate day-to-day collaboration. Local holidays are celebrated; people eat together and share stories. That may sound informal, but it lays the foundation for the mutual understanding that drives effective collaboration.

Here’s an example of how cultural differences can easily be resolved: Dutch people often feel that Indian colleagues say “yes” to everything. But you can resolve that by rephrasing the question. Instead of asking, “Do you agree?” ask, “Can you name three drawbacks of this idea?” A small adjustment in communication makes a big difference in the conversation that follows.

Autonomy as a foundation

In addition to well-being and culture, autonomy is a third pillar of Smartshore’s approach. Employees are given the freedom to organize their own work. No micromanagement, no unnecessary hierarchy. Trust is the starting point.

That trust has a direct impact on how long people stay and how engaged they are. You build loyalty by taking people seriously, respecting their social context, and allowing work to fit naturally into their lives. This applies just as much to a developer in Panaji as it does to a Scrum Master in Utrecht.

What this means for clients

When your organization partners with Smartshore, you’re not working with an anonymous offshore factory. You’re working with a team of people who have been with the same company for years, know the codebase, understand the context, and will still be there tomorrow.

That is the direct result of ethical employment practices. Stable teams deliver better work, experience less disruption, and build something for the long term. For clients, low staff turnover at a software partner isn’t a minor issue; it’s one of the strongest indicators that a company has its affairs in order.

Ethical outsourcing is therefore not just the right thing to do. It simply works better.