Outsourcing no longer just arm’s length, buyer-of-services process

Codes of conduct help employers avoid becoming (bad) front-page news
By By Jagdish Dalal
|Canadian HR Reporter|Last Updated: 01/13/2014

Outsourcing used to be viewed as a desperate act to fix a problem or a “necessary nuisance.” But that’s no longer the case. Many employers have adopted it as a strategy to refocus their business model and become more competitive and agile.

In the wake of this change, the importance of outsourcing and the complexity of managing relationships have advanced the notion that outsourcing is a profession and engaging in outsourcing is a business imperative. Outsourcing can no longer be viewed as an arm’s length, buyer-of-services process, devoid of the usual business controls and disciplines.

In fact, many key outsourcing relationships are classified as material to business results and fall under various governmental regulations (such as the privacy act). A buyer of outsourcing services cannot hide behind a statement that it is not affiliated with the outsourcer.