Concerns about Ethics in Outsourcing Practices and How to Address Them

Concerns about Ethics in Outsourcing Practices and How to Address Them

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Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

Outsourcing non-core tasks in businesses will improve profitability and save costs in such companies. Outsourcing work is known to be a competitive approach for the success of the company in question. But the issue here is that organizations have concerns when it comes to the ethics of outsourcing practices at the location of the vendor.

What are these concerns?

1. Fall in Service Quality

There is the fear and concern that services provided from half-way all over the world might not measure up to the expected standard and quality. It is therefore recommended that organizations looking to outsource should verify the track record of the vendor and their technical abilities.

2. Security Concerns

The safety of confidential information is the major concern of outsourcing ethics. Businesses must be concerned about the safety systems they have in place and also regarding the security of electronic data storage. It might be a good idea to steer clear of an outsourcing partner that doesn’t have enough information concerning security measures.

3. Environmental Issues

There is fear from companies that vendor organizations may practice environmentally destructive processes. Therefore, they may need to carry out intermittent audits to guarantee compliance.

4. Employee Selection Measures

It is noteworthy that the reputation of a company is just as good as the workforce they hire. To hire good and competent workforce, a companies must carry out meticulous background checks on their employees and follow strong selection processes to employ sincere, ethical, and conscientious individuals, as part of their workforce.

5. Poor Work Environment at Vendor Location

There is pitiable work atmosphere at the vendor location making

Outsourcing to be challenging. To overcome this problem, businesses need to enforce severe standards on the work environment at offshore locations. In addition, they need to review the HR policies and carry out intermittent audits on the work conditions of offshore vendors. How to Address Ethics in Outsourcing

Data privacy and Confidentiality Measures

To address the issue of data privacy and confidentiality measures, companies must have encrypted servers, firewall protected networks, password protected systems and Virtual Private Network (VPN). All these measures will guarantee absolute confidentiality of customers’ information. Cutting edge gadgets and swipe cards should also be used to protect work spaces.

Legal Measures

Companies must endeavor to cover all the legal facets of the outsourcing contract in comprehensive Service Level Agreements with clients. They must enter into thorough Non Disclosure Agreements with third party service providers and workers to protect the interests of the consumers.

Clear Communication

Various organizations engaging in outsourcing practices must establish clear communication lines with their customer. They must be transparent when it comes to schedules on transition and pricing. More importantly, they must make sure that their outsourcing ethics and privacy policies are clearly defined.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

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