TotalCIO

Jan 15 2010   3:39PM GMT

Google in China: Drawing lessons for your IT outsourcing plan



Posted by: Rachel Lebeaux
Tags:
CIO
IT outsourcing
outsourcing contracts

Google’s decision this week to stop cooperating with Chinese government censors — and, quite likely, pull its business efforts out of China completely — has lit up the tech sphere, with people around the world debating the human-rights and free-speech elements of the Google-in-China decision. Remember, this is a company branded with the unusual slogan, “Don’t be evil,” and some of its users saw Google’s cooperation with Chinese censors as just that.

Given my recent work covering outsourcing and offshoring plans among enterprise IT organizations, the international element of this brouhaha speaks to the idea of U.S.-based businesses investing in business operations abroad, the due diligence that takes place in assessing IT outsourcing locales, and whether the business should be prepared to accede to the mores of its new base.

Relationship building is a key aspect of outsourcing arrangements. There are often language barriers, time-zone differences and cultural variances to consider, but these are sometimes forgotten as companies draw up outsourcing SLAs and haggle over IT pricing models. Whoever in your organization oversees IT outsourcing arrangements — whether it’s the CIO, procurement or another business executive — needs to know what the company is getting into when it strikes a business deal with a foreign partner.

In the past year, I compared the pros and cons of IT outsourcing in Asia and Latin America, including some of the sociopolitical considerations to take into account. Take these as guidelines, but remember it’s your responsibility to undertake due diligence and understand the inherent risks and rewards of individual offshoring vendors, to avoid getting caught in Google’s current predicament.

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