Sustainable Global Outsourcing: Achieving Social and Environmental Responsibility in Global IT and Business Process Outsourcing

173 Pages·2012·0.8 MB·English

by  Ron Babin

Sustainable Global Outsourcing
Technology,WorkandGlobalization
The Technology, Work and Globalization series was developed to provide policy makers,
workers,managers,academicsandstudentswithadeeperunderstandingofthecomplex
interlinks and influences between technological developments, including information
andcommunicationtechnologies,workorganizationsandpatternsofglobalization.The
mission of the series is to disseminate rich knowledge based on deep research about
relevantissuessurroundingtheglobalizationofworkthatisspawnedbytechnology.
Alsointheseries:
RonBabinandBrianNicholson
SUSTAINABLEGLOBALOUTSOURCING
AchievingSocialandEnvironmentalResponsibilityinGlobalITandBusiness
ProcessOutsourcing
MaryC.LacityandLeslieP.Willcocks
ADVANCEDOUTSOURCINGPRACTICE
RethinkingITO,BPO,andCloudServices
CarstenSørensen
ENTERPRISEMOBILITY
TinyTechnologywithGlobalImpactonInformationWork
LeslieP.WillcocksandMaryC.Lacity
GLOBALSOURCINGOFBUSINESSANDITSERVICES
FrancescoContiniandGiovanFrancescoLanzara
ICTANDINNOVATIONINTHEPUBLICSECTOR
NikiPanteliandMikeChaisson
EXPLORINGVIRTUALITYWITHINANDBEYONDORGANIZATIONS
JuliaKotlarsky,IlanOshriandPaulC.vanFenema
KNOWLEDGEPROCESSESINGLOBALLYDISTRIBUTEDCONTEXTS
EdgarWhitleyandIanHosein
GLOBALCHALLENGESFORIDENTITYPOLICIES
ShirinMadon
E-GOVERNANCEFORDEVELOPMENT
AFocusonIndia
MaryC.LacityandJosephW.Rottman
OFFSHOREOUTSOURCINGOFITWORK
IlanOshri,JuliaKotlarskyandLeslieP.Willcocks
OUTSOURCINGGLOBALSERVICES
Knowledge,Innovation,andSocialCapital
ChrisanthiAvgerou,GiovanFrancescoLanzaraandLeslieWillcocks
BRICOLAGE,CAREANDINFORMATION
ShirinMadon
E-GOVERNANCEFORDEVELOPMENT
MaryC.Lacity,LeslieP.WillcocksandYingqinZheng
CHINA’SEMERGINGOUTSOURCINGCAPABILITIES
JannisKallinikos
GOVERNINGTHROUGHTECHNOLOGY
InformationNetsandSocialPractice
Sustainable Global
Outsourcing
Achieving Social and Environmental
Responsibility in Global IT and Business
Process Outsourcing
Ron Babin
RyersonUniversity,Canada
and
Brian Nicholson
ManchesterBusinessSchool,UK
©RonBabinandBrianNicholson2012
Foreword©SteveBriggs2012
Softcover reprint of the hardcover 1st edition 2012 978-0-230-28507-1
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LibraryofCongressCataloging-in-PublicationData
Babin,RonaldP.
Sustainableglobaloutsourcing:achievingsocialandenvironmental
responsibilityinglobalITandbusinessprocessoutsourcing/by
RonBabin,BrianNicholson.
p. cm.
1. Computersoftwareindustry—Subcontracting. 2. Computer
software—Development—Management. 3. Informationtechnology—
Management. 4. Sustainabledevelopment. 5. Globalization—
Economicaspects. I. Nicholson,Brian,1967– II. Title.
HD9696.63.A2B332012
658.4(cid:2)058—dc23 2012024027
10 9 8 7 6 5 4 3 2 1
21 20 19 18 17 16 15 14 13 12
Contents
ListofFigures vi
ListofTables vii
SeriesEditors’Preface viii
Acknowledgments xiv
Foreword xvi
SteveBriggs
GlossaryofTerms xviii
Introduction:AchievingSocialandEnvironmentalResponsibility
inGlobalOutsourcing 1
1 WhyIsSustainableOutsourcingImportant? 10
2 IntegratingSustainabilityandOutsourcing 35
3 MeasuringSustainability 47
4 CollaboratingforSharedValue 78
5 LeveragingSustainabilityinRelationships 103
6 SteeringaCourseonSustainability 116
Notes 129
References 138
Index 144
v
Figures
I.1 TheriseofGITOandsustainabilityreporting 2
I.2 OverlapofCSR,environmentalresponsibilityandsustainability 6
1.1 ThePyramidofCSR 12
1.2 Responsive/strategicCSRmodel 13
1.3 Comparingsustainability’sstatedimportancewith
sustainabilityaction 28
3.1 SustainabilitymaturityofGITOproviders 51
3.2 ThePorterandKramerresponsive-strategicCSRframework 59
3.3 TheevolvingCSRmodelfromCarrolltoPorterandKramer 61
3.4 StrategicCSRinoutsourcing 61
3.5 SustainableGITOmodel 70
4.1 Outsourcingrelationshipgovernanceframeworkandthe
roleoftrust 79
4.2 Hierarchyoftrust 80
4.3 Hierarchyofsustainabilityinoutsourcing 81
4.4 Sharedsustainabilityvalue 81
4.5 SteriasustainabilityprojectsinIndia 84
4.6 Steria–Corporateresponsibilityorganization 87
4.7 Internalreportingrelationshipsandoutsourcingrelationship 90
4.8 Inter-firmsustainabilityrelationships 91
4.9 LessonsfromCFS–Sterialinkedtoresponsive-strategicconcepts 101
5.1 Collaborativesustainabilityquadrants 110
5.2 ExamplesofcollaborationsustainabilityinGITO 110
5.3 Exampleofnon-collaborationsustainabilityinGITO 112
6.1 Thelearningcycle,appliedtosustainabilityprojects 117
6.2 Thecapabilitiesapproach 119
6.3 Changingfromlow-trusttohigh-trustrelationship 126
vi
Tables
1.1 Sevenreasonswhysustainabilityisimportantinoutsourcing 21
1.2 Summaryofmanagers’viewsonsustainabilityinoutsourcing 26
1.3 Surveysummary–Sustainabilityinoutsourcing 28
A.1 Summaryofsustainabilitysurveydatacollection 32
2.1 SustainabilityguidelinesforGITO 45
3.1 SustainabilityprofileoftopGITOproviders 49
3.2 KeysustainabilitycharacteristicsforGITOproviders 53
3.3 ExamplesinthesustainableGITOmodel 76
4.1 ElementsofSteria–CFSsustainabilityprojectatMedavakkam
HighSchool 85
4.2 FivemanagementlessonsfromtheSteria–CFScase 89
5.1 Reasonsforsustainabilitycollaboration 105
5.2 Definingrelationshipmaturity 107
5.3 Levelsofpersonalinteraction 108
5.4 Levelsofsustainabilitycollaboration 109
6.1 Steria–CFSOSOCOSimpacts 120
vii
Series Editors’ Preface
We launched this series in 2006 to provide policy makers, workers,
managers, academics and students with a deeper understanding of the
complex interlinks and influences among technological developments,
including in information and communication technologies (ICT), work,
organizationsandglobalization.Wehavealwaysfeltthattechnologyisall
too often positioned as the welcome driver of globalization. The popular
pressneatlypackagestechnology’sinfluenceonglobalizationwithsnappy
sound bites, such as: “Any work that can be digitized will be globally
sourced.”Mostglossycoverstoriesassumethatallglobalizationisprogres-
sive, seamless and intractable, and that it leads to unmitigated good. But
whatweareexperiencinginthetwenty-firstcenturyintermsoftheinterre-
lationships between technology,work and globalizationis bothprofound
andhighlycomplex.
The mission of this series is to disseminate rich knowledge based on
deepresearchaboutrelevantissuessurroundingtheglobalizationofwork
that is spawned by technology. To us, substantial research on globaliza-
tion considers multiple perspectives and levels of analyses. We seek to
publish research based on in-depth study of developments in technol-
ogy, work and globalization and their impacts on and relationships with
individuals,organizations,industriesandcountries.Wewelcomeperspec-
tives from business, economics, sociology, public policy, cultural studies,
law and other disciplines that contemplate both larger trends and micro-
developmentsfromAsian,African,AustralianandLatinAmerican,aswell
asfromNorthAmericanandEuropean,viewpoints.
Asofthiswriting,wehave16bookspublishedorundercontract.These
booksareintroducedbelow.
1) Global Sourcing of Business and IT Services, by Leslie P. Willcocks and
MaryC.Lacity,isthefirstbookintheseries.Thebookisbasedonover
1,000 interviews with clients, providers and advisers, and 15 years of
study.Thespecificfocusisondevelopmentsinoutsourcing,offshoring
andmixedsourcingpracticesfromclientandproviderperspectivesin
aglobalizingworld.Theauthorsfoundmanyorganizationsstruggling.
They also found some organizations adeptly creating global sourcing
networks that are agile, effective and cost-efficient. But they did so
viii
SeriesEditors’Preface ix
onlyafteratremendousamountoftrialanderrorandcloseattention
to details. All our participant organizations acted in a context of fast-
moving technology, rapid development of supply-side offerings and
ever-changingeconomicconditions.
2) Knowledge Processes in Globally Distributed Contexts, by Julia Kotlarsky,
IlanOshriandPaulvanFenema,examinesthemanagementofknowl-
edgeprocessesofglobalknowledgeworkers.Basedonsubstantialcase
studies and interviews, the authors – along with their network of
co-authors – provide frameworks, practices and tools that consider
howtodevelop,coordinateandmanageknowledgeprocessesinorder
to create synergetic value in globally distributed contexts. Chapters
address knowledge-sharing, social ties, transactive memory, impera-
tivelearning,workdivisionandmanyothersocialandorganizational
practices to ensure successful collaboration in globally distributed
teams.
3) Offshore Outsourcing of IT Work, by Mary C. Lacity and Joseph
W.Rottman,exploresthepracticesforsuccessfullyoutsourcingITwork
from Western clients to offshore providers. Based on over 200 inter-
views with 26 Western clients and their offshore providers in India,
China and Canada, the book details client-side roles of chief infor-
mation officers, program management officers and project managers
and identifies project characteristics that differentiate successful from
unsuccessful projects. The authors examine ten engagement models
for moving IT work offshore and describe proven practices to ensure
that offshore outsourcing is successful for both client and provider
organizations.
4) ExploringVirtualitywithinandbeyondOrganizations,byNikiPanteliand
MikeChiasson,arguesthattherehasbeenalimitedconceptualization
ofvirtualityanditsimplicationsforthemanagementoforganizations.
Basedonillustrativecases,empiricalstudiesandtheorizingonvirtual-
ity,thisbookgoesbeyondthesimplecomparisonbetweenthevirtual
andthetraditionaltoexplorethedifferenttypes,dimensionsandper-
spectives of virtuality. Almost all organizations are virtual, but they
differ theoretically and substantively in their virtuality. By exploring
andunderstandingthesedifferences,researchersandpractitionersgain
adeeperunderstandingofthepast,presentandfuturepossibilitiesof
virtuality.Thecollectionisdesignedtobeindicativeofcurrentthink-
ing and approaches, and it provides a rich basis for further research
andreflectioninthisimportantareaofmanagementandinformation
systemsresearchandpractice.