Ethics in IT Outsourcing: 1st Edition (Paperback) book cover

Ethics in IT Outsourcing

1st Edition

By Tandy Gold

Auerbach Publications

211 pages | 52 B/W Illus.

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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:


Ethics in IT Outsourcing by Tandy Gold is a surprisingly great read on the ethics in IT outsourcing as well as IT ethics and business ethics more generally. The reason it was a surprise is that the Gold tackles the ethics in IT outsourcing head on. From its roots in US economics and public policy through globalization, quickly linking the issues and trends to corporate ethics and IT ethics. The book is full of thoughtful lessons in ethics and morality faced by CIO’s at an increasing rate.

Book review by The Higher Ed CIO

Read the full review at:

Table of Contents

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?



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



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


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



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


Abuses of Power

Leader’s Role in the Micro Realm of the Personal


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


Results: Answers to Burning Questions



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 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 Nourished



Appendix: Characteristics of High Performance Workplaces

The Future of IT Ethics

Building the Ethical Future

The Molar or Corporate Entity as a Driver of Ethical Change

Drivers 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 Impacts

Distribution 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 Inequality

Ethical 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 Macro

Summary: Change Management for an Ethical Future


Appendix A: Proposed International Charter of IT Outsourcing Ethics (iCIOE)

Appendix B: Creativity Unleashed: Another Look at Digital Equipment Corporation

About the Author

Tandy Gold is an Outsourcing Consultant in Sanford, Florida.

About the Series

Applied Software Engineering Series

Learn more…

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Management Science
COMPUTERS / Information Technology
COMPUTERS / Software Development & Engineering / General