Legal Law

Ethics of outsourcing

Many times, business organizations are faced with the dilemma of ethical decision making. “If a CIO says ‘I’ve never faced an ethical problem,’ they are not living in the real world,” says Larry Ponemon, president and founder of the Ponemon Institute, an Arizona-based group of security and privacy research experts. .

Although business relationships are more economical in nature, their moral and ethical dimensions have the same impact on profitability. When it comes to the ethics of outsourcing, things get more complicated as the parities involved are continents apart. A wise choice between the right and wrong person to do business will determine the future of your outsourcing company.

Why is it important to do business with ethical organizations?

Ethical compliance presents a strong public image and upholds the integrity and character of an organization. Whether it’s personal or professional, not many of us will want to associate with unethical people. It makes much more sense to do business with ethical organizations, as it has a direct influence on the overall operation of a company.

When things go wrong!

This is the litmus test. How your outsourcing partner reacts during a crisis is the best indicator of whether it is ethical or not. When there is mutual trust and responsibility for each other, a crisis management mechanism will evolve automatically. Ethics creates a space for itself and to guarantee the proper functioning of companies.

Legal aspects

Legal perceptions can differ from nation to nation and ambiguity can arise when a dispute occurs, leaving both parties to a solution. Association becomes easier when the parties have a legal, moral and ethical obligation to comply with the agreement, with due respect for international law.

Information security

The primary concern for the ethics of outsourcing is the security of confidential information. Privacy and security are included in the “non-compromised zone”. Sujoy Chohan, IT Research Specialist Consultant, Gartner Company, says: “If there is any industry that is investing heavily in security, it is the offshore industry, whether in India or elsewhere.”

Privacy officers are very concerned about proper information security practices. If your outsourcing partner does not have the proper information security measures in place, it would be wise to steer clear of them.

How does a subcontractor identify organizations that conduct ethical business?

Everybody claims to be ethical. While a clear definition of the parameters for identifying ethically conscious organizations will be a challenge, some factors are vivid.

supplier reliability

It is nothing but trust that makes someone want to outsource. Weigh the reliability and trustworthiness of the organizations you want to outsource to.

A clear definition and practice of the organization’s ethical rules and privacy policies, such as trade secret nondisclosure, confidentiality agreements, and nondisclosure with staff, external service providers, and visitors, is a prerequisite . This will assure the subcontractor that it is safe to do business with a partner miles away.

Employee credibility

Information security will depend largely on the people who handle the information. Organizations that implement strict employee credibility measures have a direct stake in their outsourcing ethics.

Communication

Clear and open communication channels are another sign of an ethical company. When a project is not on the right track, an ethical partner will always keep you informed of the problem and possible solutions and the time required.

Query

A thorough investigation should be conducted on the organization and its management nature of the work. Talking to employees and references will give a clear idea of ​​an organization’s professional approach. Check if your outsourcing partner meets the following requirements:

o Adequate information security systems

o Appropriate quality certifications such as ISO 9000 or SEI CMM

o Appropriate programs to protect the trade secrets of its clients, partners and its clients.

oInfrastructure

oTrain and update the safety and awareness skills of employees.

oSecurity of electronic data storage

o Presence of the complainant

o Appropriate agreement with external service providers

How does ethics help reduce the risks of outsourcing abroad?

You can always find companies that offer services at very low costs. An ethical concern may seem like a more expensive option. However, the price difference could be misleading as the variance will only be in the initial cost. In the long run, the total cost will turn out to be much less when you work with an ethical partner.

Ethical vs. Unethical association

Unethical association:

o The cost of maintaining the project and the relationship will be high

o Lack of confidence

o Forced relationship

o Non-disclosure of facts

o Lack of transparency

Ethical association:

reduced costs

reduced risk

o Common approach

o Balance of relationships

o Knowing the risks and managing them together

o Appropriate management systems

Responsibilities of the client

Before making an outsourcing decision, the subcontractor should also be clear about the responsibilities to share. This will help build a foundation of healthy relationships.

willingness to argue

Manage expectations

o last agreed document should be the basis

generate flexibility in contracts

opening to intermediate scope and price review

Make sure any loopholes that can interrupt the outsourcing process are fixed. The benefits of outsourcing are sure to manifest themselves with safe outsourcing practices.

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