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The CEO Network that I facilitate had an FBI agent as a guest speaker in September, so this is fresh on my mind! Just a few interesting things were presented that made me think, such as...

...What do you do when you outsource something to another country, and that country has different (or no) laws that the U.S. has (such as privacy laws)? As an example, while organizations in America have laws that state a company cannot sell personal information (at least without written consent from the person), what if your 'information' is part of the info that is outsourced to a firm in another country...and THEY sell your personal information? That country has no law against it. You'd think that U.S. companies would make this a requirement to do business with them...but it doesn't appear that they are. One reason: Enforcement. As this FBI agent pointed out, it is extremely difficult to track and trace. While it CAN be done (and IS done with regard to natural security, etc.), it is a nightmare for an organization to do...and very, very expensive. Yet, much of the work being outsourced by reputable companies is 'processing' type work...which includes processing your credit card activity, bank accounts, various online applications, etc.

Of course, some of us may think that we'll just STOP doing business online (to solve this problem)! Not so. If you do a paper application or stick with writing checks (vs. using credit cards), you're still stuck. Almost ALL of what we do eventually goes through some form of 'technology' for processing...and you're right back where you started. So, it's as if we're surrounded with no way out. (At the end of the FBI agent's presentation, one of the execs stated, "Is there any good news?" LOL!)

And this was just the beginning of his presentation. Hence, I'm not so sure that companies necessarily 'strategically' choose whom to do business with on an international basis. I think in many instances, they do make a strategic decision. It appears, however, that the nature of the partnership might vary depending on what's being produced or serviced. If it's working with an international company to help produce a 'part' for a production line, for instance, strategic requirements probably play a big role. If, however, it's working with an international company to process information (from customers, other suppliers, etc.), strategy may not play the role we'd like for it to play.

What thoughts might you have?

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The CEO Network that I facilitate had an FBI agent as a guest speaker in September, so this is fresh on my mind! Just a few interesting things were presented that made me think, such as...
...What do you do when you outsource something to another country, and that country has different (or no) laws that the U.S. has (such as privacy laws)? As an example, while organizations in America have laws that state a company cannot sell personal information (at least without written consent from the person), what if your 'information' is part of the info that is outsourced to a firm in another country...and THEY sell your personal information? That country has no law against it. You'd think that U.S. companies would make this a requirement to do business with them...but it doesn't appear that they are. One reason: Enforcement. As this FBI agent pointed out, it is extremely difficult to track and trace. While it CAN be done (and IS done with regard to natural security, etc.), it is a nightmare for an organization to do...and very, very expensive. Yet, much of the work being outsourced by reputable companies is 'processing' type work...which includes processing your credit card activity, bank accounts, ...

Solution provided by:
Hatim Baxamusa, MBA
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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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