ABSTRACT
This chapter reviews the basics of the offshore model. The foundation of offshore outsourcing is labor arbitrage—the simple shift of work to those who live in a country with first world skills and education at third world costs and salaries. The chapter looks at the ethics of labor arbitrage at the molar or corporate level. Offshore program governance encompasses initial negotiations, program implementation, performance review, metrics reporting, and change management of global offshore services as they relate to delivery of information technology. An effective program management office, or Program Management Office, can be invaluable in streamlining offshore program implementation. Egoless decision making can be utilized as a personal guiding framework for ethical behavior in a business context. The sense that ethical constructs are growing in importance is not only reflected in the negative impact to firms that fall short; it is also reflected in their choices of offshore business partners.
