A ‘model’ employee outsource his software job to China

Description: Bob was his company’s best software developer, got glowing performance reviews and earned more than $250,000 a year.

Source: www.theglobeandmail.com

Date: Jan 17, 2013


Bob was paying a Chinese firm about $50,000 a year to do his work, then spent the day surfing the web, watching cat videos and updating his Facebook page.

“This particular case was pretty unique,” computer security investigator Andrew Valentine, who helped uncover Bob’s scheme, said in an e-mail to The Globe and Mail. “We thought it was actually pretty clever.”

Mr. Valentine made Bob’s tale public in a blog post on Monday and it has since been the talk of tech websites.    Read Rest of Story 

 Questions for discussion:

1. Is there an ethical dilemma in what Bob was doing at his place of work?  Why or Why Not??

2.  What benefits can you see with outsourcing as a company?

3.  What pitfalls can you see a company risking by outsourcing?


28 thoughts on “A ‘model’ employee outsource his software job to China

  1. Xiao Yang

    This is an ethical issue. Bob outsource his software job to China. In my opinion, Outsourcing opens up nowadays. More and more corporations eager to turn over an organizational activity to an outside supplier that will perform it on behalf of the focal firm. They usually choose some developing countries because of the low wage. In addition, most of the workers are high educated and skilled. They are experts in some particular area which can improve the quality and efficient of product. In this case, Bob hired a Chinese to do the work for him. I think this is neither legal nor ethical. First, he was not hired to find another one do his work, exploit and design software is his duty. He does not have right to do that. Second, he spent his time on facebook,Reddit, Ebay,and LinkedIn and watching cat videos. The worst thing is that he earned more than $250,000 a year. This is unfair to the Chinese who he hired in low salary.
    In my opinion he broke the company’s rule and regulation. He lost his reputation with violating many security issues. Other people who are not the member of the company have access to company’s internal records which may cause a problem. So he deserved to be fired.

  2. Amber Siemens

    In my opinion, what Bob was doing was definitely an ethical dilemma at his place of work. It is not ethical to be paying someone ( in or out of the same country) a cut of your salary to do your job. in which you are getting paid that full amount to do your job 100% on your own. He had also violated security protocol with giving someone who is not an employee of the business access to the company’s system. On the other hand, I will say it was quite ” clever” for him to do something like this.

    The benefits that I see with outsourcing as a company, is that you can cut back on expenses, especially employees’ salaries as you could be paying someone in China ( or where ever) to do the work. As well, the work could possible be done more efficiently, as long as they have the knowledge and skills to perform the work.

    The pitfalls that I can see a company could risk would be how protected is the security within the company, when they are able to outsource. You could also risk, not hiring someone with the right qualifications. I also believe that a lot of businesses take pride in hiring people within their location. It could also put a strain in the employment of the country that the business is within as well.

  3. ...

    What Bob did in the work place is not ethical. He should not use the work time for surfing the network and watching the video all the time. He can choose to play instead of work after his working time. He worked for a company. Therefore, he did not do any contributions to the company. He cheated in his job and that is a good behavior.

    Bob did not do his work at his work time. That means, other workers would do their jobs. That is unequal. Others might do the similar behavior, too. Finally, these workers may cause the problem in the company. The company paid their employees salary. The responsible of the emplyees is to make contributions for their company.

    To maximum the social profit and minimum the cost of its stakeholders, each person need to work hard and efficient. Making the accountability of every person’s work is a good way to management the employee.

  4. Samantha Mazury

    I believe what Bob was doing was a matter of an ethical dilemma. I believe that paying someone 1/5 of what you’re being paid, to do the job you’re being paid for, is very unethical. While I do give him credit for being clever and demonstrating the efficiency and effectiveness of outsourcing, it is unethical for a couple main reasons. One main reason being the money aspect in which Bob was profiting an exponential amount more for doing an exponential amount less of the work that the company hired from China. And the second reason being that he took credit for the work someone else did.

    I see one main benefit from outsourcing as a company, proven by Bob’s case, as being reduced costs. By outsourcing, hypothetically, Bob’s company could have eliminated Bob and his job and cut their costs from 250,000 to 50,000. Another benefit from outsourcing could be efficiency and effectiveness of labor. By outsourcing you may be able to find expertise laborers whom could increase efficiency and effectiveness of the desired job responsibilities.

    One main pitfall I see a company risking by outsourcing would be loss of jobs within their country of operation. As more companies seek cutting costs by outsourcing (internationally) because labor is cheaper there, then unemployment rates will rise, which also is bad for the economy. Another pitfall of outsourcing would be compromising companies’ reputations. There are certain ethical standards upheld by society that places an importance on increasing labor directly within our own economy and not seeking cheaper labor internationally where working conditions are far less safe and quality is sacrificed. Therefore this could immensely affect a company’s reputation and in turn negatively affect their future profits.

  5. Brendan Paiha

    There is only one thing that seems unethical in this case, And that is that the employee submitted another person’s work without giving notification to the company and without giving due credit to the man working out of Shenyang. The act itself seems clean to me. The worker in China is being paid, generously, and the worker in the States gets to come to work and do what he enjoys doing even if it is browsing the internet. The company also achieves the same end result, in fact, they got a higher quality of work then they would have if the Bob did it himself. Though the smart thing for the company to do would be to replace Bob with the Chinese programmer.
    Outsourcing definitely cuts costs since labor is significantly cheaper in countries like china for monotonous work. It is also a way of dodging more stringent labor laws in North America though this leads to an ethical debate. We have those laws for a reason.
    Outsourcing has drawbacks that can be seen both at home and across the globe. It takes jobs away from North America while causing economic uses like a shrinking middle class. And because of the lenient labor regulations in third world countries, work environments are pretty ugly. Its heartwrentching to see what some factories pay their workers to work in dangerous and grueling conditions. Outsourcing domestic jobs also pegs companies with bad reputations. Companies like Nike or Apple may save hundreds of millions, if not more, but a stigma is attached to what they are doing. They’ve just weighed the costs and decided they’re making more money outsourcing than they would having a conscience.

  6. Rémi Cizeron

    I don’t think that is an ethical dilemma in what was doing Bob. It is quite funny and rare to see this kind of persons. Finally it is quite smart from Bob. Because the only thing that he did wrong is the fact that he shared some private information to an other company. No one was suspecting him from anything. So finally he was not disturbing anyone in the company. It can be an ethical dilemma if they others know what he was doing.
    You have many advantages to do some outsourcing:

    – You can do more tasks in less time, and several tasks at the same time, so you can do other task and be more concentrate.
    – Sometimes it could be less expensive.
    – They can also be expert in the task you ask them.
    – They are also more reactive so you avoid some problem of cheeping.
    – You can also have some advantages with your staff. It will give you more flexibility when you have more or less work to do so you don’t have fire employees.

    But you also have a lot of disadvantages for outsourcing:

    – You loose a lot of management control: You don’t have a direct link to the workers so you cannot see the mistakes and readjust it.
    – You may loose quality in your product. They may don’t have the same knowledge that the company has.
    – You completely depend on the company. If they have delay or some financial problems you will directly be impact.

  7. Jessica Larsen

    What Bob was doing was certainly unethical. Even though what he did didn’t hurt anyone as the work he was getting paid for was done well, he was not the one doing what he was paid for. Getting someone else to do the work he was paid for while he was just sitting around watching cat videos, while his company thought he was doing his work is very unethical. To begin with Bob was not honest with his employers, his coworkers, and anyone else that he worked with. The email sent at the end of every day to update management about the work he had done was very misleading.
    Another reason that what Bob did was unethical is the fact that to outsource his job to the person in china he had to give out his security codes so that the person could have access to the company’s network. By doing this he was providing secure information to people who were not supposed to have access to the information. The company security protocols like the changing PIN number were made basically useless because Bob allowed the person doing his job to have the PIN number. If the person who the job was outsourced to had malicious intent the company could have been in a lot of trouble. Business secrets could have been stolen and sold to competitors, client’s supposedly secure information was not actually secure anymore, and any number of viruses, spyware, or numerous other things could have been installed on the network using Bob’s access codes that could hurt the company.

  8. Janine Hawkins

    Bob’s idea to outsource his job while still getting his usual salary was unethical. He should not have been taking money from the company that he wasn’t doing any work for. Although his plan was quite smart, he was being deceitful. Bob had many opportunities to come clean about his work during times like performance reviews. It would have been more ethical for Bob to inform the company that the development work he was doing could be done for much cheaper. But instead, Bob happily went home with $200,000 a year that he did not deserve.
    The biggest benefit to outsourcing is the reduction of cost to the firm. Many companies outsource to emerging economies which allows them to pay workers less for doing the exact same amount of work as the home countries’ workers. When companies do decide to outsource, it takes large amounts of time to decide what and where to outsource. When deciding what to outsource, the company should stick with outsourcing commodities such as IT or HR services. This is because the price of commodities is cheaper and more people have the expertise needed to complete the job. Outsourcing can provide a large potential risk for a company. Although the company will have done extensive research about where to outsource to, they still may not completely understand the foreign market they are entering. Aspects such as the quality of work and culture of the new foreign employees may not be what the firm expects.

  9. Bailey Bruised head

    What Bob was doing in his workplace was completely unethical, maybe if Bob went the professional route and had meeting with his workplace to ask if they could outsource their work then maybe it would be ethical to do so, it would save them lots of money and the workload wouldn’t be so much. However, because Bob outsourced his work without the consent from his workplace, really put him in a bad spot. The work handed to him was getting done, and it was outstanding work, however, Bob was getting paid for it and he never even did anything to accomplish it. The benefits that I can see with outsourcing is, a company can save lots of money, they don’t have to have someone sitting at a desk doing nothing, instead they can send their work away and have it done correctly and maybe even better then what they can do. The pitfalls I see is that the company has to have a lot of trust with the person who is getting the work to be completed, if they are on other parts of world you have to try work with them on their time, and if they speak a different language you may have to hire another person to help you work with them, so you both understand clearly.

  10. Melanie Scheffelmair

    This is an ethical issue because Bob was not given permission to outsource his work. Is Bob cleaver? Yes. Was it wrong? Yes. Working for a firm that has security log in codes you would assume there is a reason and most likely the employees had to have signed a document regarding confidentiality. Another reason Bob’s actions were unethical is he was hired to complete a job by the employer and he misrepresented his work. taking credit for this Chinese mans work is unethical. Some benefits of outsourcing are clearly shown in this article. One it is cheaper, Bob was making more than $50,000 a year and someone else was willing to do his work for that amount. Two the Chinese worker that Bob had hired was the best worker at the company. By outsourcing you can potentially gain the best person for the job at a cheaper price. Some pitfalls of outsourcing is the loss of jobs in the current operating county and the security of information. People who work for you current would lose their jobs if the you decided to outsource. Another area of concern is the difference in security laws in different areas of the world. Bob could have given access to vital company information by outsourcing his work. Like every decision in business there are pros and cons to each side of the argument. For this specific company it would be hard to say if they should or shouldn’t outsource.

  11. Stacey Ridler

    What Bob was doing was completely unethical and illegal. The work he was hired for and had a mandate for he was outsourcing without company knowledge and providing secure information to someone he most likely never met. The secure codes to log onto the companies systems being given out and to pay that person out of his own pocket was very sneaky and deceitful. Personally when I worked for the Royal Bank to provide secure information, printouts, to look at someone’s profile in which you knew personally was an immediate dismissal. I also signed many documents stating I would never do such things. This article is the very definition of breaking a code of conduct.

    Outsourcing can provide benefits such a streamlining, more efficient practices, and technological advances. A company could see increases of sales, deliveries, faster solutions to complaints, and more real time feedback in order to cut costs and streamline such processes.

    Although with as many benefits to outsourcing there might be just as many pitfalls but the main one I can foresee is the management and control in how the outsourcing is ran. With outsourcing the team is not local resulting in cultural differences, time differences, and language barriers. To implement an outsourced team I would expect a company to implement a pilot program to work out errors that surface and to make process for resolution and solution practices.

  12. Kyle Dalton

    There are multiple ethical problems with what Bob was doing at his workplace. The first ethical problem was that Bob was not completing the work that he was being paid for. Certainly the work was being completed, but the company may not have felt that the outsourcing was an acceptable way of doing so. Bob is serving a contractual obligation to perform the duties required of him as the company’s software developer. Had the company wished, they could have probably taken Bob to court over the issue rather than simply terminating him. Another ethical problem that arises from this is whether or not the company that Bob sent his work to was “friendly” toward Bob’s company. The company in China could have been using the information obtained from Bob for malicious or illegal purposes. Outsourcing has its benefits. It can reduce or eliminate costs for a company in a variety of ways (like reducing wages, taxes, cost advantages, etc.). It can also give your company a competitive advantage by going to where the best technology or employees or resources are located. Some disadvantages of outsourcing include misunderstanding between parties involved, potential extra fees if working between countries, and limited control or ability to interact with employees (due to reasons like time differences or distance between). A major problem people have with outsourcing is when it happens offshore (usually out of country) as many people believe it to be “bad” to give jobs to people not of their own country.

  13. Arlene Across The Mountain

    If Bob would have went about “outsourcing” in a professional manner and worked alongside the Chinese firm, then what he was doing would have been ethical. There are many company’s who outsource because it reduces costs substantially, as bob proved. Outsourcing also enables companies to focus more on problematic departments. However, Bob was not focusing on other departments, instead he was more involved in his social media life. Bob was simply taking someone else’s work and claiming it as his own. Upon accepting a job, there are strict policies and procedures that one must adhere by. I believe what Bob was doing was going against policies and procedures. If Bob’s vision for the company is to merely just pass the work on to someone else, then why be a part of the company? Honesty is a big plus in any business, he was obviously not honest!

  14. Dani Rasmussen

    This is an unethical situation for sure; Bob was not honest with his employers or any of his coworkers, everything he did was basically a lie. Although no one was harmed in this case, it is certainly not acceptable behavior. Bob was lying everyday to his Management team for stating that he was doing work that was in fact someone else’s that he was paying for. This is a security breach of the company’s information that the Chinese outsourcing company could have sabotaged or damaged the company in numerous different ways. Bob was benefiting by receiving a major salary for work he was not even doing, so he was essentially cheating the organization and tricking the system. There are major benefits to outsourcing as a company, you can get work done at a way cheaper cost and still reap the full rewards without even doing the work. There can be pitfalls to this because outsourcing is normally done in countries far from where the business is located and there is sometimes a large culture distance. Practices in the United Sates of America and Canada can be substantially different then practices say in Asia and/or India. If outsourcers are not following their client’s guidelines it could reflect poorly in the work done. Depending on where and to whom you get to outsource for your company, some countries and outsourcing organizations provide very poor working environments and even unsafe conditions to its employees. As well as some of these organizations employ children labors, which is unethical in North America. This could poorly reflect the company’s image and reputations, such as Nike taking huge hits because of the conditions of workers who were doing Nike’s outsourcing.

  15. ornella cleone

    What is certain is that what bob did was unethical but it was with no harm, since he delivered appropriate report at the right time and effectively terminated with the work handed to him. Though he was not responsible for the excellent performance qualifications received, at least his unethical behavior did not hinder the business progress and most importantly did not hand over the company’s personal information to another company. I believe the only real thing he violated is the company’s internal policy. On the question of whether outsourcing should be encouraged or not by companies, I will say it depends. Outsourcing could be an efficient tool in a company which has conscious employees who take in heart their responsibility and are much organized. Such employees who have the company’s interest at heart will always work hard in achieving the company’s objective no matter their work location. Most often, such employees even go as far as increasing their hours of work as compared to when they had to work in their offices at the company. Therefore, in one way, outsourcing could be profitable for a company depending on the extent to which employees feel involved in the company’s objectives, since that would imply increase productivity, output, efficiency and a reduction in cost. On the other hand, a company with less integrated workers shouldn’t go for outsourcing since that will instead help in reducing employee performance, leaving room for an increased laxity thereby downsizing the company’s performance. Outsourcing could also be dangerous for a company concerning the security information.

  16. Donggu Kang

    There is an ethical dilemma in what Bob was doing at his work place because he was paying a Chinese firm about $50,000 to do his work. While he was watching videos about cats, web-surfing and checking Facebook and EBay, the Chinese company was doing his work. It is the same as paying a friend to write an essay and take an exam for me in the university and it is very serious in universities and unethical behaviour for people to do. However, Bob paid the Chinese firm about six months to do his job. The benefit of outsourcing as a company is that the company could save costs and when the company saves costs, the company could use the saved cost to improve the quality of the company. In my opinion, what Bob did no harm to Bob’s company and made Bob the best software developer in the company. It is a good side on outsourcing a company’s work. On the other hand, when a company outsources, they could be in a risky situation as entrusted company may use or sell the company’s precious information and technology to benefit themselves and the company will end up losing many valuable things. Also when companies outsource their work, the unemployment will increase significantly as the cheap labour countries will get jobs. Paying cheap labour to other companies is good for the company but for those who worked for the company will lose jobs. Therefore, outsourcing work to other firms should be limited.

  17. mina omidian

    There is an ethical issue with the way Bob went around doing his job. He was hired to do the work himself but instead he went ahead and hired someone else to do the job for him. This might not have been illegal but it was definitely immoral and a form of dishonesty. He was given the job to do himself instead he gives it to someone else. Another issue arrises from this situation, which is that he breached security by giving a non-employee access into the company’s. The person doing the outsourcing had access to everything that he had access to on the server including all internal records. He also got paid a substantial amount which he did not give a fair amount to the sub contractor.
    by outsourcing you open up a whole new world to the company because you can get things done cheaper and faster and many when outsourcing the people doing the job may have way more knowledge and experience dealing with certain aspects of what they are outsourcing.
    there are also pitfalls in outsourcing such as people having access to record within the company which could be looked as a security threat. you also may hire someone who is not qualified to do the job intended which puts the companies reputation at stake

  18. Paul Hruby

    1.) Wow, I almost just want to say Bob is a really smart guy! I honestly don’t think he should have been allowed to be fired for what he did. Because Bob was able to recruit excellent talent at a cheaper rate than what he himself was being paid, he gets fired? If Bob was a recruiter for the company and they had incentives in place where you would get paid more if your hired employees did better, then Bob would totally deserve a piece of the cake right? I don’t see how this is any different.

    2.) I think the company should take a look at this as an example and hire MORE people like Bob. If Bob could find someone who can do “his” work at the highest level of anyone in that company, then they should definitely see this as something they should be doing.

    3.) I don’t see any pitfalls with a company outsourcing, besides backlash from members of the public feeling like again, the jobs are going to people other than those of the country they live in, but if Bob was paying paid exactly the way he was, then I don’t see any problems with it.

  19. Jericka Versikaitis

    I think this is an ethical issue as when you are hired for a job you are hired because they think you can perform the basic duties of the job while increasing the companies earnings. He also had given his I.D and security info to someone not in the company that could have easily taken that info and hacked the companies servers to access more confidential information that has a potential to ruin the company.
    Outsourcing their work would cut costs substantially for the company so it would a major benefit. They would be able to allocate the saved costs somewhere else more important while till accomplishing all the required work. However, there are downsides to outsourcing as well. There are obviously reasons as to why the country it is outsourced can do the same job for less money. If human rights are being overlooked in that country to do your companies work, than that doesn’t put a good public image on your company. It would also take away from creating jobs for your company and for your own country.

  20. Julie Anderson

    This article creates an ethical dilemma. Bob has essentially made himself his own middleman outsourcing company, but without his own company knowing. Sure, the work is still being completed (and is probably better quality than Bob’s own work), but Bob has created a giant security breach by lying to his employer. He actually shipped his security token to China to keep the arrangement going. A Chinese worker now has access to all of this company’s secure files, and there is no way to monitor their use. All of this happens while Bob sits at his computer, taking credit for someone else’s work, and watches cat videos. I am sure that Bob knew that it was unethical to be paid to do nothing, but he got away with it for so long that it became normal. This company might want to monitor their employees’ activity more closely to minimize the Facebook-ing and the cat video watching. Though Bob was a mastermind on how to be lazy, what he was doing was quite unethical.
    If the company were to legally outsource some of their jobs, they would be able to cut costs, just like Bob did. Labour costs much less in many other countries than in the USA and Canada. The pitfall of outsourcing work to other countries is that there are fewer jobs in the home country. The unemployment rate is significant in the States right now, and by outsourcing, there are fewer opportunities for people to find jobs. If a company chooses to outsource, it must also pay attention to the rights of individuals in the country to ensure they are being treated ethically.

  21. Ryan Parks

    The main ethical problem with what Bob was doing is that he was allowed an outside entity access to private corporate information. Had that entity been malicious, it could have sold the information it gained or wrote malicious software into the programming or otherwise hindered that profitability of the business. Also, he was lying.
    There is much to be gained, however, by outsourcing. As Bob shows, a job can be completed in another country for a fraction of the cost and at the same or better quality. One cannot ignore the aforementioned danger that exists when a company allows an outsider access to its records and programs. Controls need to be set up to prevent disaster.

  22. Jonathan Linowski

    If Bob had been a sub-contractor to this company, instead of a salaried employee, I really don’t think there would have been an ethical issue at all. I find it amazing that for at least six months, and likely much longer, this out-sourcing had caused absolutely no problems, and had placed Bob at the top of the company in respect. I have to wonder if there had been no security breaches, and people found out, would anyone really care if the work was solid and getting done on time?

    Although I applaud Bob’s creativity in devising this scheme, unfortunately, I think Bob’s actions were unethical due to the fact that his company had hired him, personally, to do the work it needed done. Additionally, the company had placed their trust in him to maintain the integrity of their information systems, which he did not do. I feel that if Bob had placed himself into more of an intermediary role in this situation, if he had reviewed the code that the Chinese developers were creating carefully, and uploaded it himself without allowing the uncleared Chinese developers access to the secure systems, he may have been on the right side of the ethical line. After all, if an employee is allowed to utilize every tool they have at their disposal in accomplishing a given task, and seeking outside information and consultation is included in this toolkit, isn’t that what would be occurring? A website or magazine may have lots of different photographs in them, they don’t necessarily hire a photographer to take every single image. Sometimes they buy them from a photographer or image seller. Software may have lots of different pieces of code in them, they don’t necessarily write every single line themselves. Sometimes they utilize plug-ins, or sections from libraries or other development companies. If Bob had made the code he sourced his (and better represented his companies security interests), a distinct parallel could be drawn between this situation and the normal occurrence of image sourcing or plug-in utilization.

  23. yuxuan.hou

    based on information from this article . bob’s behavior is both unethical and illegal, bob employs
    someone else to do his work that applied by bob’s company. however, the guy who hired by bob does not under the recognize by bob’s company, the guy who hired by bob does not fit bob company’s requirement, bob’s behavior would make some loss and potential safety hazard for his company. however, in the world area range , lots of companies and individuals’ do same thing like bob does. they epiboly work to someone else in order to control cost .

  24. Kerri Ross

    Is there something immoral here? Yes, of course. Bob was being paid to do work that he wasn’t even doing. He would show up and act like he was working , get paid, and call it a day. We do not know what type of work he was doing and sending off to China, but this could be a serious security issue! However, this story is a lot like the first article about the software that can mark students paper, and no one seems to have an ethical issue there. Is it because in that article it was a software and here it is a person handing off potentially private information to another person? Seems like it is the same to me, almost.

  25. Adam Houtekamer

    The question as to whether or not this is ethical depends on your beliefs. For example, if you are extremely right wing then you can argue that it is simply survival of the fittest and this gentleman made the best move because he is able to thrive. However most normal sane people would argue that this is unethical because he is being paid for work he is not doing.
    However from the standpoint of a company outsourcing can make a lot of sense and be a great choice to cut down your costs. This is because you can get the same work done for cheaper in other countries. Be this through the accessibility of resources, lower tax rates, and lower minimum wages. However there are many issues to consider with maintaining corporate social responsibility. For example, are you outsourcing to a country that violates human rights? Also does your own country agree politically with that which you are outsourcing to? There are a number of advantages when outsourcing however it can be considers treading on thin ice.
    For example many electronics companies outsource their production. In the United States this is often associated with lower quality and many companies who produce things internally like to strongly push the fact that their products are “made in USA”. This is result of a culture counteracting outsourcing regardless of whether or not it’s the right thing to do. But the advantages of outsourcing are apparent and companies that are practicing continue to thrive despite cultural disapproval.

  26. Simone Olmstead

    Is there an ethical dilemma in what Bob was doing at his place of work? In my opinion yes, yes, yes. That is so morally, ethically and legally wrong. I can’t believe someone could actually live with themselves. The company he is working for is trusting him that he is doing his job from home and he is being completely deceitful. Who know what this other person that he has contracted out to do his job is doing with the information that he knows. This other person could be using the information or knowledge about what they know about the company in other criminal ways. He could be putting critical information into the hands of criminals and paying them to have it. In my opinion that is breaking the companies trust and violating many security issues not to mention ethical wrong. Like we learned in class most of the security breaches that happen within a company usually happen from an inside source.

  27. Jaden Evanson

    To start, I think that Bob was brilliant. That said, it is an ethical issue. The main thing is that Bob was taking credit for the work of someone else. This is a form of dishonesty and shows that Bob lacks integrity. It may not have been necessarily illegal: Bob was getting his work done and was paying the individual. But it was dishonest, thus making it unethical. In addition to this, Bob put his company in needless danger due to shipping his security token to the company. The tokens were meant to increase security of the system, but Bob did not respect that and sent it away to someone who did not belong to the company.

    However, backed with a proper security system, I think outsourcing is great and should be used more extensively by companies for which it is useful. Especially if Bob was getting paid 5 time the amount he was paying the other company.

  28. Jodi Berry

    This is an ethical issue. “Bob” was hired to do the work himself. He was not hired to find another person to do it. If it was in Bob’s job description to find developers to outsource to and keep watch of them then he would not be in any violation but it was Bob’s job and in his job description to do the developments himself. The biggest issue for me is that he breached security by giving a non-employee entrance into the company’s servers. The person doing the outsourcing had access to everything that Bob had access to on the server including internal records. Bob also got paid tons of money without giving much to the sub-contractor, who was doing the work.
    Outsourcing opens up an entirely new perspective for companies. Work can often be done cheaper and faster. As well many of them have better knowledge and skills in that particular area so that the work can be done by professionals that are highly knowledgeable in whatever is being outsourced.
    There creates a security issue when you allow the work to be outsourced. Other people have access to your company’s internal records which may cause a problem. Also, you may be hiring someone who is not fully qualified so the quality could decrease depending. This also could create a negative connotation on your company name or brand. People like to hear about local companies doing things on their own, and on their native soil, and usually are not overly fond when these companies outsource and move jobs into other countries.


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