1. OFFSHORING ETHICAL ISSUE (CCI410) PERTEMUAN 11 IR. NIZIRWAN ANWAR, MT
PROGRAM STUDI TEKNIK INFORMATIKA
FAKULTAS ILMU KOMPUTER

2. Describe the Sourcing Decision Cycle Framework.
Explain the differences between - insourcing and outsourcing, inshoring and offshoring, and nearshoring and farshoring.
List the major drivers for outsourcing.
Describe how offshoring must be managed.
Understand the difference between full and selective outsourcing.

3. Real World Examples
Ketika JP Morgan memutuskan untuk mengalihkan TI ke IBM pada tahun 2002, dia menandatangani kontrak 7 tahun, dengan tujuannya adalah untuk memperbaiki infrastruktur teknologi perusahaan.
JP Morgan mengakhiri kontrak outsourcing hanya 21 bulan kemudian. Alasannya termasuk stagnasi TI di perusahaan, dan merger dengan Bank One di tahun
Pasar outsourcing global mencapai $ 9 miliar pada tahun 1990, namun telah meningkat menjadi $ 256 miliar di tahun 2008.

4. Offshoring Short for outsourcing offshore Definition:
Substantial potential cost savings through reduced labor costs.
Some countries offer a very well educated labor force.
Implementation of quality standards:
Six Sigma
ISO 9001

5. Selecting Offshoring Destination
About 100 countries are now exporting software services and products.
What makes countries attractive for offshoring?
High English language proficiency.
Countries that are politically stable.
Countries with lower crime rates.
Countries with friendly relationships.
Security and/or trade restrictions.
Level of technical infrastructure available.
Once a country is selected which city in that country needs to be assessed as well.

6. Selecting Offshoring Destination [2]
Countries like India make an entire industry of offshoring.
Software Engineering Institute’s Capability Maturity Model (CMM).
Level 1 means that the software development processes are immature, bordering on chaotic.
India is well known for their CMM Level 5 software development processes, making them extremely reliable, and, thus, desirable as vendors.

7. Selecting Offshoring Destination [3]
Level of development of a country will determine if the location is appropriate.
Carmel and Tjia suggest that there are three tiers of software exporting nations:
Tier 1: Mature Software Exporting Nations.
Highly industrialized nations (US, UK, Japan, India, etc.)
Tier 2: Emerging Software Exporting Nations
Up-and-comers, small populations, political instability (Brazil)
Tier 3: Infant Stage Software Exporting Nations
Not significantly impacted the software industry (Cuba, Jordan)

9. Social Responsibility
Software defects may cost lives or tremendous business losses
we should try to prevent them
we should study them when they occur, to avoid failures in the future
Software creates new opportunities for increasing productivity and services, but also opportunities for criminal fraud and sabotage (e.g., viruses)
Building reliable software is not only a technical goal; it has ethical and social implications for the serious professional

10. Code of ethics
The ACM and IEEE Computer Society have developed a “Software engineering code of ethics and professional practices”
The “public interest” is central to the code, which emphasizes the professional’s obligation to the public at large
primary concern for the health, safety, and welfare of the public

11. Code of ethics principles
Public
Software engineers shall act consistently with the public interest
Client and Employer
Software engineers shall act in a manner that is in the best interests of their client and employer, consistent with the public interest
Product
Software engineers shall ensure that their products and related modifications meet the highest professional standards possible
Judgment
Software engineers shall maintain integrity and independence in their professional judgment

12. Code of ethics principles
Management
Software engineering managers and leaders shall subscribe to and promote an ethical approach to the management of software development and maintenance
Profession
Software engineers shall advance the integrity and reputation of the profession, consistent with the public interest
Colleagues
Software engineers shall be fair to, and supportive of, their colleagues
Self
Software engineers shall participate in lifelong learning regarding the practice of their profession and shall promote an ethical approach to the practice of the profession

13. Legal Outsourcing Ethics Timeline of Events
Bar Association Opinions (June 2006 – August 2009)
USPTO Notice –
Scope of Foreign Filing Licenses
(July 16, 2008)
NMH vs. Bush and Acumen (June – August 2008)
ABA Formal Opinion Lawyer’s Obligations When Outsourcing Legal and Non- legal Support Services (August 5, 2008)
ABA Summer Issue of International Lawyer – “a lawyer could satisfy her ethical obligations and outsource work offshore.” (June 2009)
Four key issues :
selection and supervision
avoidance of conflicts
maintaining confidentiality
informed client consent
Association of India Lawyers Madras High Court Petition – Re UPL in India (March 2010)
CCBE issues formal statement
(June 2010)
Law Society Committee & Consultation (May-Sept 2010)
ABA Likely to Amend MRPC (1.1 and 5.3) (November 2010)
SRA Handbook
(April 2011)
2006
2009
2011
2007
2008
2010
Law Society practice note
(October 2011)
2012
J-M vs. McDermott
(June 2011)
District of Columbia Opinion 21-12
Applicability of Rule 49 to Discovery Services Companies
(January 2012)
WAPco Wasted Costs Order
(Mar 2012)
ABA amends MRPC ( and 5.5) (August 2012)

14. Paper … VIEWPOINT: Offshoring and the Local Ethics of Engineering
Link paper …

15. KEMAMPUAN AKHIR YANG DIHARAPKAN
Mahasiswa secara aktif, kreatif dan dapat ber- inovasi dalam mengerti dan memahami tentang tentang Offshoring as an Ethical Issue.