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

Overview of Ethics in IT Outsourcing: An Oxymoron?
Building a Framework for Ethical Discussion
     The Macro View: Follow the Money
Outsourcing Fundamentals: The Egoless IT Manager
Ethical Hypotheses: Guideposts on the Investigative Journey
The Internet: A New Level of Personal and Public Transparency
     The New Level of Internet Fueled Transparency Reveals the Ethical Underpinnings of Business
The Molar (Corporate) View: Worker as Expense Precludes Effective Pro-Active Resource Management and Development
Change Management: A Limited Framework for Enabling Ethical Change
Analytical Methodology of Ethics: Validation of Personal Observation
Historical and Academic Context: Is a Corporation a Moral Entity?
Summary
References
Appendix: 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 Practices
Today We are Confused
Macro Level Costs of Ethical Compromise
Molar Level Costs of Ethical Compromise
     Does Molar (Corporate) Ethical Compromise Pay?
Micro Level: Cost of Ethical Compromise for Individuals
Statistics, Facts and Views of the Ethics of Economic Distribution and Inequality
Summary
References
Appendix: Relevant Quotes

A Checklist for New Offshore Programs
Alignment of Organizational Structures to Manage Ethical Decision Making Effectively
     Define IT Ethics Program Management Office (Ethics PMO)
     Defining an Effective Ethics PMO
Key to Ethics PMO Success: C-Level Standing
      Empowerment of C-Level Ethics PMOs across Organizational Silos
Roles and Responsibilities of Ethics PMO Team
     Team Members
     Executive Sponsor and Steering Committee
     Ethics Program Manager
     Ethics Project Managers
     Specialized Contributors and External Stakeholders
Setting Realistic Goals in Preparation for Executing EthicsPMO Methodology
     Analyze Potential Impact
Case 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 PMO
Summary

Alignment of Existing IT Offshore Programs
Applying 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 Management
Global Strategic Sourcing: Definition and Benefits
     Skill Planning
     Skill Sourcing
     Geographic Placement
     Strategic or Competitive Significance of Skills
     Global Staff Development
     Resource Management
Summary
References
Appendix: Sample Ethics Program Charter Table of Contents

The Ethics of the Personal: Avoidable Ethical Compromise
Ethics of the Personal in the Cross-Cultural Melting Pot
Applying 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 Organization
Applying Personal Code of Ethics in Daily Business Life
     Communications Integrity
     Active Support of Values
     Equality
     Abuses of Power
Leader’s Role in the Micro Realm of the Personal
References
Appendix: Digital Equipment Corporation: Creating an Environment for Ethics of the Personal

Minimizing Negative Impact
Basic Building Blocks of Corporate Offshore Programs: A Brief Review
Applying 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 Questions
Summary
References
Appendix: Excerpt from Sama Code of Conduct

Recalibrating the Reality
The Reality of Outsourcing According to the American Public
Macro 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 Behavior
Utilizing Offshore Outsourcing to Address Gaps in Strategic Alignment across Business and IT
     The Cost of Dampening the Strategic IT Voice and Partnership
     High Performance Organizations
Conclusions from Chapter 1: Macro Level Revisited
Case Study: Industry Specific Commitment to Ethics—What Changes would accru

Tandy Gold is an Outsourcing Consultant in Sanford, Florida.