Ethics in It Outsourcing

In IT divisions and organizations, the need to execute in a competitive and complex technical environment while demonstrating personal integrity can be a significant personal and organizational challenge. Supplying concrete guidelines for those at an ethical crossroads, Ethics in IT Outsourcing explores the complex challenges of aligning IT outsourcing programs with ethical conduct and standards.
This one-stop reference on the ethical structure and execution of IT outsourcing incorporates an easy-to-apply checklist of principles for outsourcing executives and managers. It examines certification programs, such as the online ethics training and certification offered by the Code of Ethics and Business Practice Standards for Outsourcing Professionals established by the International Association of Outsourcing Professionals (IAOP). Based upon significant research on the economic impact of outsourcing at a micro, macro, and corporate level, this volume defines a comprehensive set of ethical program components to ensure your program is aligned with ethical guidelines.


Based on a solid foundation of documented research and analysis
Examines the ethical impact of outsourcing on individuals, corporations, and society
Outlines a new corporate capability—the Ethics PMO
Includes a list of tools to help readers establish their own Ethics PMO
Filled with authoritative insights based on the author’s decades of experience working with large firms in IT and outsourcing, this book is suitable for both veteran IT practitioners and stakeholders new to the topic. A must-read for anyone seeking to understand the underlying issues in this area of growing importance, it will bring you up to speed on the recent developments you need to be aware of to ensure ethical personal, corporate, and societal decision-making.
Readers are invited to participate in the growing dialog of business ethics, and IT outsourcing ethics in particular, at the author’s website: www.ethicsinit.com

Tandy Gold is an Outsourcing Consultant in Sanford, Florida.

Overview of Ethics in IT Outsourcing: An Oxymoron?Building a Framework for Ethical Discussion The Macro View: Follow the MoneyOutsourcing Fundamentals: The Egoless IT ManagerEthical Hypotheses: Guideposts on the Investigative JourneyThe Internet: A New Level of Personal and Public Transparency The New Level of Internet Fueled Transparency Reveals the Ethical Underpinnings of BusinessThe Molar (Corporate) View: Worker as Expense Precludes Effective Pro-Active Resource Management and DevelopmentChange Management: A Limited Framework for Enabling Ethical ChangeAnalytical Methodology of Ethics: Validation of Personal ObservationHistorical and Academic Context: Is a Corporation a Moral Entity?SummaryReferencesAppendix: Looking at Business Ethics through the Lens of Popular Culture and Literature

The Cost of Ethical Compromise: An Overview of Current and Historical Research and Business PracticesToday We are ConfusedMacro Level Costs of Ethical CompromiseMolar Level Costs of Ethical Compromise Does Molar (Corporate) Ethical Compromise Pay?Micro Level: Cost of Ethical Compromise for IndividualsStatistics, Facts and Views of the Ethics of Economic Distribution and InequalitySummaryReferencesAppendix: Relevant Quotes

A Checklist for New Offshore ProgramsAlignment of Organizational Structures to Manage Ethical Decision Making Effectively Define IT Ethics Program Management Office (Ethics PMO) Defining an Effective Ethics PMOKey to Ethics PMO Success: C-Level Standing Empowerment of C-Level Ethics PMOs across Organizational SilosRoles and Responsibilities of Ethics PMO Team Team Members Executive Sponsor and Steering Committee Ethics Program Manager Ethics Project Managers Specialized Contributors and External StakeholdersSetting Realistic Goals in Preparation for Executing EthicsPMO Methodology Analyze Potential ImpactCase Study: Launching a New Offshore Program within the Context of an Ethics PMO Define IT Ethics Program Management Office (Ethics PMO) Analyze Potential Impacts Research Most Effective Options for Impacted Workers Create Program-Specific Pragmatic Ethical Guidelines Factor in Program Costs Establish Community Communications Monitor Effectiveness of Ethical Investment Consider Expanding Reach to Utilize Ethics PMOSummary

Alignment of Existing IT Offshore ProgramsApplying EthicsPMO Methodology: Effectively Aligning Existing Offshore Programs with Ethical Principles Assess Requirements by Departments and Individuals Establish IT Ethics Delivery Organization (Ethics PMO) Establish Scope Document Requirements Establish Process, Communications, and Reporting Standards Risk Assessment and Management Program Expectations and Norms Budget Management Return on Investment (ROI) Estimation and Management Quality Assurance Procurement Management and Vendor Selection Process Change Management Metrics ManagementGlobal Strategic Sourcing: Definition and Benefits Skill Planning Skill Sourcing Geographic Placement Strategic or Competitive Significance of Skills Global Staff Development Resource ManagementSummaryReferencesAppendix: Sample Ethics Program Charter Table of Contents

The Ethics of the Personal: Avoidable Ethical CompromiseEthics of the Personal in the Cross-Cultural Melting PotApplying the Ethics of the Personal within the New Austerity Communications Reflect the Level of Integrity that Meets the Level of Austerity Overt Values Are Actively Supported, Not Passively Drawn Prized Values Are Maintained (or Not Maintained) Bilaterally The Needs and Consequent Responsibilities of the Individual Are Acknowledged within the Whole Raw Abuse of Power Is Perceived as Damaging to an OrganizationApplying Personal Code of Ethics in Daily Business Life Communications Integrity Active Support of Values Equality Abuses of PowerLeader’s Role in the Micro Realm of the PersonalReferencesAppendix: Digital Equipment Corporation: Creating an Environment for Ethics of the Personal

Minimizing Negative ImpactBasic Building Blocks of Corporate Offshore Programs: A Brief ReviewApplying Basic Building Blocks of Corporate Ethical Principles to IT Offshore Outsourcing: A Deeper Look Macro View: Follow the Money Our National Inconsistencies Color Ethical Discussions in Shades of Gray, not Black and White Ethics in IT Outsourcing at Macro Level Egoless Decision Making as a Personal Framework "The Truth Will Out"Another Look at Business Ethics: Bound by Morality?Ethics PMO Revisited: An Outsourcing Fable Implementation Results: Answers to Burning QuestionsSummaryReferencesAppendix: Excerpt from Sama Code of Conduct

Recalibrating the RealityThe Reality of Outsourcing According to the American PublicMacro Offshore Case Study: The Function of the Chief Ethics Officer (CETO) Builds A Strong, Robust Business Based on Honest Growth, Solid Strategy, and Reasonable Shareholder and Profit Expectations Enables new employee on-boarding and employee skill development as an important contribution to a strong ethical culture Actively models Ethical precepts, REPRESENTS ethics in the corporation, and requires the same of all executives, including the CEO Serves as a Whistle-Blower Escalation Point Works with Peer Senior Executives to Establish Guidelines for ethical Transparency and Frequency of reporting Serves as Liaison to Other CETOs in Non-Competing Firms to Develop and Nurture industry-wide Ethical Best Practices Works with Academic Researchers to Sponsor and Benefit from Research on the Cost–Benefit Equation of Ethical BehaviorUtilizing Offshore Outsourcing to Address Gaps in Strategic Alignment across Business and IT The Cost of Dampening the Strategic IT Voice and Partnership High Performance OrganizationsConclusions from Chapter 1: Macro Level Revisited Case Study: Industry Specific Commitment to Ethics—What Changes would accrue? Productivity is boosted Morale Gets a Lift Industries can Self-Police Creativity is Rampant High Focus is Enabled Jobs are Stabilized The Community is NourishedSummaryReferencesAppendix: Characteristics of High Performance Workplaces

The Future of IT EthicsBuilding the Ethical FutureThe Molar or Corporate Entity as a Driver of Ethical ChangeDrivers of Future Ethical Change Definition of Global Outsourcing Industry Standards Commitment to transparency of data sharing and information at industry level Global Review Board for Reporting of Violations and Enforcement Data-Driven Analysis of Economic ImpactsDistribution of Income: Surprising Root Cause of Cycle of U.S. Job Loss Beyond GDP:—Who Receives the Benefit is an Ethical Issue Our Dramatic Income Distribution InequalityEthical Implications of Findings on Distribution of Wealth Support of Economic Bill of Rights Pulling it All Together: Ethics of the Personal as Informed by the Ethics of the Molar and MacroSummary: Change Management for an Ethical FutureReferencesAppendix A: Proposed International Charter of IT Outsourcing Ethics (iCIOE)Appendix B: Creativity Unleashed: Another Look at Digital Equipment Corporation