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', are 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.

Even if trade relations are more economic in nature, their moral and ethical dimensions that impact on profitability. When it comes to the ethics of outsourcing, things get more complicated, as the same involved are continents away. A judicious choice between the right and the wrong person to do business with your company will determine the future of outsourcing.
Why is it important to do business with organizations that are ethical?

Compliance ethics has a strong public image and support the integrity and character of an organization. Personal or professional, not many of us will want to associate with unethical individuals. He has a lot more sense to do business with ethical organizations as it has a direct impact on the overall operation of a business.

When things go wrong!

This is the test bed. 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 the other, a crisis management mechanism will automatically evolve. Ethics creates a space for themselves and to ensure the smooth running of businesses.

Legal Aspects

Perceptions of laws can vary from country to country, and the ambiguity may arise when a dispute occurs, leaving both parties in a fix. The association becomes easier when the parties have a legal obligation, moral and ethical to respect the agreement, with due respect to international law.

Safety Information

The main 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 one sector that is investing in security tremendously, it is the offshore industry, whether it is India or elsewhere."

Chief Privacy Officer are very concerned about information security good practice. If your outsourcing partner does not have adequate security of information, it might be wise to steer clear of them.

How does an outsourcer identify organizations that are doing business ethically?

Everyone claims to be ethical. Although a clear definition of parameters for identifying organizations with ethical conscience will be a difficulty, some factors are vivid.

The reliability of the supplier

It is nothing but confidence that makes someone want to outsource. Weigh the reliability and the reliability of the organizations they want to outsource.

A clear definition and practice of ethical rules and privacy policies of the organization, such as non-disclosure of trade secrets, confidentiality and nondisclosure agreements with employees, third party service providers and visitors is a prerequisite. In this way reassure the customer that it is safe to do business with a partner who is miles away.
Credibility of employees

Information security will largely depend on the people who manage the information. Organizations that implement tough measures credibility of the workers have a direct implication on its outsourcing ethics.

Communication

Clear and open channels of communication are another sign of an ethical society. When a project does not go the right way, an ethical partner will always keep you informed of problems and possible solutions and the time required.

Investigation

A thorough investigation must be made about the nature of their organization and work management. Talking with employees and references will give a clear idea about the professionalism of an organization. Check if the following requirements are met by your outsourcing partner:

oProper safety information systems

oAppropriate quality certifications like ISO 9000 or SEI CMM

oAppropriate programs to protect trade secrets of its customers, partners and their customers

oInfrastructure

oTraining and updating of skills and safety awareness of employees.

oSafety electronic data storage

oPresence of an informant

oProper agreement with third party providers of services

How ethical is to be of help in reducing the risks of outsourcing?

You can always find companies that offer services at very low cost. An ethical issue may seem like a more expensive choice. However, the price difference could be deceptive as the variation is only in the initial cost. In the long run, the overall cost will prove to be much lower when you are working with ethical partners.

Collaboration Ethics vs Unethical

Collaboration immoral:

othe cost of maintenance of the project and the report will be high

oLack of confidence

Report oStrained

Onon disclosure of facts

oLack of transparency

Partnership Ethics:

Costs oReduced

risk oReduced

oCommon focus

oRelationship balance

oKnowing risks and to manage together

oProper systems management

Client responsibilities

Before making a decision to outsourcing, the outsourcer should also be clear about the responsibilities that would have to share. This will help build a healthy relationship based.

owillingness to discuss

omanage expectations

olast agreed document should be the basis

obuild flexibility to contracts

oopenness the scope of intermediate and repricing

Make sure that all the loopholes that may interfere with the outsourcing process are discussed. The advantages of outsourcing are sure to come up with safe outsourcing practices .......