In a recent report, a number of employees who termed themselves as ‘ethical workers’ alleged that their company may have done some unethical practices to make more profit. This is a worrisome situation and an indication of such possibilities among big-time BPO companies and the entire business communities.
It is no surprise that there is a possibility for some companies to involve themselves in unethical practices during a deal cycle. This, they do in order to illegally increase their revenues.
There are elements that are liable to the risk of unethical financial practices. These include the following:
1. Business Case
Evidently, some Business Process Outsourcing companies have resolved into painting an attractive picture of a business case, which has falsified facts. Their aim of doing this is to seal a deal. Be it as it may, such loopholes will begin to resurface along the course of transactions to the dismay of their clients. For instance, their clients will begin to see the clearer picture that after all the information concerning costs emanating from governance, licensing, assets and HW were incorrect. This misleading act has repeatedly reoccurred from time to time and calls for urgent addressing of the ugly trend.
2. Deal Construct
The term deal construct covers the areas from which the service provider can easily manipulate figures and margins. They de-scope to inferior solutions, provide incorrect sizing and as well as underestimate technology and HW. This is very unfair to their clients. Although a few numbers of individuals are engaged in this practice, it has dented the image of service providers in this industry.
3. Financial Engineering
In dealing with financial engineering, the term involves a wide range of costs as being listed below:
• Assumptions on cash flow
• Cost of asset acquisition
• Interest rates
• Margins
• Mark-ups
• Sub-contracting
• Working capitals
Determining what happens in the above-shortlisted categories of financial engineering becomes a hard task. Everyone seems to be in dark here. The reason for this is that a few authorized individuals closely do such engineering under a restricted atmosphere. This is quite disheartening and poses a great challenge. Clients are advised to seek professional help from experts who would analyze the unsolicited bids offered by IT providers. This will reduce or totally remove BPO’s related shoddy deals.
Conclusion
What the IT and BPO professionals need to do is to have a total review mechanism that will support a re-evaluation of the compliance process. For instance, a complex excel sheet that is filled with heavy numbers and postulations will have to be properly scrutinized.
Presently, there is urgency in placing a reliable compliance team that has the special ability in deal experience, which would be controlled by a self-governing group of experts.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.
Fabrice Beillard says: 
The Importance of Ethics in BPO Pitching
In a recent report, a number of employees who termed themselves as ‘ethical workers’ alleged that their company may have done some unethical practices to make more profit. This is a worrisome situation and an indication of such possibilities among big-time BPO companies and the entire business communities.
It is no surprise that there is a possibility for some companies to involve themselves in unethical practices during a deal cycle. This, they do in order to illegally increase their revenues.
There are elements that are liable to the risk of unethical financial practices. These include the following:
1. Business Case
Evidently, some Business Process Outsourcing companies have resolved into painting an attractive picture of a business case, which has falsified facts. Their aim of doing this is to seal a deal. Be it as it may, such loopholes will begin to resurface along the course of transactions to the dismay of their clients. For instance, their clients will begin to see the clearer picture that after all the information concerning costs emanating from governance, licensing, assets and HW were incorrect. This misleading act has repeatedly reoccurred from time to time and calls for urgent addressing of the ugly trend.
2. Deal Construct
The term deal construct covers the areas from which the service provider can easily manipulate figures and margins. They de-scope to inferior solutions, provide incorrect sizing and as well as underestimate technology and HW. This is very unfair to their clients. Although a few numbers of individuals are engaged in this practice, it has dented the image of service providers in this industry.
3. Financial Engineering
In dealing with financial engineering, the term involves a wide range of costs as being listed below:
• Assumptions on cash flow
• Cost of asset acquisition
• Interest rates
• Margins
• Mark-ups
• Sub-contracting
• Working capitals
Determining what happens in the above-shortlisted categories of financial engineering becomes a hard task. Everyone seems to be in dark here. The reason for this is that a few authorized individuals closely do such engineering under a restricted atmosphere. This is quite disheartening and poses a great challenge. Clients are advised to seek professional help from experts who would analyze the unsolicited bids offered by IT providers. This will reduce or totally remove BPO’s related shoddy deals.
Conclusion
What the IT and BPO professionals need to do is to have a total review mechanism that will support a re-evaluation of the compliance process. For instance, a complex excel sheet that is filled with heavy numbers and postulations will have to be properly scrutinized.
Presently, there is urgency in placing a reliable compliance team that has the special ability in deal experience, which would be controlled by a self-governing group of experts.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.
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