The global outsourcing of information technology (IT) activities, has received increased attention recently, given the controversy it generates. Differing views on IT offshoring prevail. One view claims IT offshoring steals jobs away from the United States economy, while another view maintains IT offshoring creates jobs and improves the overall Unites States economy. Despite the controversy created by IT offshoring, the ethical issues related to IT offshoring have received little attention. In this paper three major normative theories of business ethics: stockholder, stakeholder, and social contract theory will be introduced to examine the impact of IT offshoring from an ethical perspective. The application of these theories to a specific example of IT offshoring is presented in detail. This research represents an early attempt to examine the ethics of IT offshoring and could provide early insights into the IT offshoring decision.