1st Edition

Ethics in IT Outsourcing

By Tandy Gold Copyright 2012
    211 Pages 52 B/W Illustrations
    by Auerbach Publications

    211 Pages 52 B/W Illustrations
    by Auerbach Publications

    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?
    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


    Tandy Gold is an Outsourcing Consultant in Sanford, Florida.

    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: http://blog.thehigheredcio.com/2013/02/17/book-review-ethics-in-it-outsourcing/