Ethics of Outsourcing

Ethics of Outsourcing
Many times business organizations encounter the dilemma of ethical decision making. “If a CIO says I’ve never faced an ethical issue they’re not living in the real world” says Larry Ponemon chairman and founder of the Ponemon Institute a security and privacy research think tank based in Arizona.
Though business relationships are more economic in nature their moral and ethical dimensions have an equal impact on profitability. When it comes to the ethics of outsourcing matters become more complicated as parities involved are continents away. A judicious choice between the right and the wrong person to do business with will determine the future of your outsourcing venture. Why is it important to do business with organizations that are ethical?
Ethical compliance presents a strong public image and upholds the integrity and character of an organization. Whether personal or professional not many of us will want to associate with unethical individuals. It makes a lot more sense to do business with ethical organizations as it has a direct influence on the overall functioning of a business.
When things go wrong!
This is the acid test. The way your outsourcing partner reacts during a crisis is the best indicator of whether it is ethical or unethical. When there is mutual trust and responsibility towards each other a crisis management mechanism will automatically evolve. Ethics creates a space for itself and in ensuring the smooth running of businesses.
Legal aspects
Legal perceptions may differ from one nation to the other and ambiguity could arise when a dispute occurs leaving both parties in a fix. The association becomes easier when the parties have a legal moral and ethical obligation to comply with the agreement with due respect to international law.
Information Security
The core concern of outsourcing ethics is confidential information security. Privacy and security fall under the no compromise zone. Sujoy Chohan a consultant at IT research specialists Gartner Company says “If there is any industry which is investing in security tremendously it is the offshore industry whether it is India or elsewhere”.
Chief Privacy Officers are highly concerned about proper information security practices. If your outsourcing partner does not have adequate information security measures it might be wise to stay clear of them.
How does an outsourcer identify organizations which are doing ethical business?
Everyone claims to be ethical. Though a clear definition of the parameters for identifying organizations with ethical conscience will be a difficulty some factors are vivid.
Vendor reliability
It is nothing but trust that makes someone want to outsource. Weigh the dependability and reliability of the organizations to which you want to outsource.
A clear definition and practice of the ethical rules and privacy policies of the organization like non-disclosure of trade secrets secrecy and non-disclosure contracts with staff third party service providers and visitors is a prerequisite. This will reassure the outsourcer that it is safe to do business with a partner who is miles away. Employee Credibility
Information security will largely depend on the people who handle the information. Organizations that implement tough employee credibility measures have a direct implication on its outsourcing ethics.
Communication
Clear and open communication channels are another sign of an ethical company. When a project does not go the right way an ethical partner will always keep you informed of the problem and possible solutions and time needed.
Inquiry
A thorough enquiry should be made about the organization and their nature of work management. Talking to the employees and references will give a clear idea about the professional approach of an organization. Check if the following requirements are met by your outsourcing partner:
•Proper information security systems
•Appropriate quality certifications such as ISO 9000 or SEI CMM
•Appropriate programs to protect the trade secrets of its clients partners and their customers
•Infrastructure
•Training and upgrading the security skills and awareness of employees.
•Safety of electronic data storage
•Presence of a whistleblower
•Proper arrangement with third party service providers
How does being ethical help in reducing the risks of offshore outsourcing?
You can always find companies that offer services at very low costs. An ethical concern might seem to be a costlier choice. However the price difference could be deceptive as the variation will only be in the initial cost. In the long run the overall cost will prove to be much lower when you are working with an ethical partner.
Ethical vs. Unethical partnership
Unethical partnership:
•The cost of maintaining the project and the relationship will be high
•Lack of trust
•Strained relationship
•Non disclosure of facts
•Lack of transparency
Ethical Partnership:
•Reduced costs
•Reduced risk
•Common focus
•Relationship equilibrium
•Knowing the risks and managing them together
•Proper management systems
Client responsibilities
Before making an outsourcing decision the outsourcer should also be clear about the responsibilities that he should share. This will help in building a healthy relationship base.
•willingness to discuss
•manage expectations
•last agreed document should be the basis
•build flexibility to contracts
•openness to intermediate scope and price review
Make sure that all the loop holes which can disrupt the outsourcing process are dealt with. The benefits of outsourcing are sure to show up with safe outsourcing practices.

13 Comments »

  1. Hi! I know this is somewhat off topic but I was wondering which blog platform are you using for this
    website? I’m getting fed up of WordPress because I’ve had problems
    with hackers and I’m looking at alternatives for another platform. I would be great if you could point me in the direction of a good platform.

  2. This blog was… how do you say it? Relevant!! Finally I have found something
    which helped me. Many thanks!

  3. When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a
    comment is added I get several e-mails with the same comment.
    Is there any way you can remove me from that service?
    Thanks!

  4. Everyone loves it when folks get together and share opinions.

    Great site, stick with it!

  5. Hey! I just wanted to ask if you ever have any problems
    with hackers? My last blog (wordpress) was hacked and I ended up losing
    months of hard work due to no back up. Do you have any
    solutions to stop hackers?

  6. I love your blog.. very nice colors & theme. Did you create this
    website yourself or did you hire someone to do it for you?
    Plz answer back as I’m looking to construct my own blog and would like to find out where u got this from. cheers

  7. webpage said

    Hi, just wanted to tell you, I loved this post. It was helpful.
    Keep on posting!

  8. I all the time emailed this blog post page to all my contacts, because if like to read it
    after that my friends will too.

  9. Hi there very nice website!! Man .. Beautiful .. Amazing ..

    I will bookmark your web site and take the feeds
    additionally? I’m satisfied to seek out numerous helpful information here within the post, we want work out more strategies on this regard, thank you for sharing. . . . . .

  10. At this time it appears like Drupal is the best blogging platform out there right now.

    (from what I’ve read) Is that what you’re using on your blog?

  11. My partner and I absolutely love your blog and find
    many of your post’s to be exactly what I’m looking for. Would you offer guest writers to write content available for you?
    I wouldn’t mind composing a post or elaborating on most of
    the subjects you write in relation to here. Again, awesome site!

  12. Very quickly this site will be famous amid all blog viewers,
    due to it’s good articles or reviews

  13. Hello very nice website!! Guy .. Excellent .. Superb ..

    I will bookmark your blog and take the feeds additionally?
    I am satisfied to search out so many useful info here within the submit,
    we want develop extra strategies on this regard, thanks for sharing.
    . . . . .

RSS feed for comments on this post · TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: