Ethical Consulting services

A New debate which has been a top news in the US & European market is the ethical dilemma in offshore outsourcing. The critics mentioned their concerns. It was about the job loss in their countries as more and more processes move to low cost countries like India, Philippines & Brazil. Due to which the company had to decide that would they incur their cost in their current employees by retaining them with high cost or they outsource the same task to cheaper locations where they can be done just as well.

The primary consideration of corporate leadership is to keep their company competitive. Offshore outsourcing helps companies to make substantial savings on costs, improve profitability and add value to shareholders. Not surprisingly then, most global corporations have adopted outsourcing in a big way. The few that have held out are joining the bandwagon as they find it increasingly difficult to stay competitive without outsourcing.

The Offshore Outsourcing Ethical Dilemma

Poor Work Environment at Vendor Location: Concerns about poor work environment and exploitative HR policies in Indian BPOs (Business Process Outsourcing) may have been the reason why the earliest outsourcing vendors were described as ‘sweat shops’. However, these concerns are all but gone now as more and more customers visit vendor locations in India and see the reality of comfortable and state-of-the-art work centres in India.

Most companies that decide to outsource have to appease widespread concern of employees and shareholders about drops in quality. Can services delivered from half-way across the globe by a set of people who are culturally removed from the parent company meet quality expectations?

With rising environmental consciousness in U.S. and UK outsourcing companies are concerned that vendor companies may practice environmentally damaging processes.

The cultural differences between the two countries is often cause for worry in any outsourcing venture. Companies in the U.S. are greatly concerned that they may have to deal with governmental issues, bribes and language barriers in the country where they wish to outsource.

Measures for Companies considering Outsourcing Companies deciding to outsource can take the following steps to ensure that they manage the tightrope walk between ethics and outsourcing.

Companies that decide to cutback or outsource jobs need to take several proactive measures to make the transition as easy as possible for affected employees:

  • Be open and communicative about the decision to outsource
  • Plan the outsourcing strategy well in advance
  • Give affected employees early notice so that they have enough time to find replacement work
  • Provide a "safety net" for employees who are losing jobs
  • Work out severance packages
  • Devise opportunities for retraining and transfer of employees into alternative roles
  • Alternative recruitment and placement assistance
  • Detailed Vendor Research: Companies wanting to outsource should make a thorough inquiry into the track record of the vendor, network and infrastructure security systems in place, security awareness of employees, safety of electronic data storage, NDA and SLA formats in use etc. they must also make a detailed investigation of the vendor’s past projects, technical competencies and outsourcing ethics.
  • Audit Vendor Operations: Outsourcers should impose stringent standards on the offshore vendors and conduct intermittent audits on the work conditions, HR policies and environmental practices of the vendor company.

At SAPXTRA, we are completely attuned to our customers’ concerns about ethics in outsourcing. For this reason we have put in place, a variety of measures at our Development Centre located at Hyderabad which make our commitment to ethics in outsourcing amply clear.

Data privacy and Confidentiality Measures at SAPXTRA: We have invested in firewall protected networks, encrypted servers, VPN (Virtual Private Network) and password protected systems that ensure complete confidentiality of customer information. Our work spaces are further protected by the use of swipe cards and cutting edge security devices. These have helped us gain customer confidence in key areas such as outsourcing of healthcare processes and financial services.

Even as talks progress to finalize the outsourcing relationship, SAPXTRA establishes clear lines of communication with the customer. SAPXTRA lays down unambiguous definitions and schedules on transition, pricing, outsourcing partnership, privacy policies and outsourcing ethics.

All legal aspects of the outsourcing relationship are covered in detailed Service Level Agreements (SLAs) with customers. We enter into meticulous Non Disclosure Agreements with employees and third party service provider’s tax preparation protect customer interests.

Ion Measures:At SAPXTRA we believe that a company’s reputation is only as good as the people they hire. We conduct thorough background checks on our employees and follow tough selection processes to ensure that honest and responsible individuals committed to ethics in outsourcing form part of our team.