night if necessary….the school [CSR]
thing is just a little part of that—it just
builds that.”
Similarly, this was mirrored by the
provider: “People stay longer, some-
times they’re investing a lot of their
time and it’s not paid, I won’t neces-
sarily see it on my bottom line, but you
will see it on the productivity of that
project, of hitting targets, etc.”
For the outsource provider and buy-
er, the enhanced trust improves organi-
zational and individual interpersonal
communications. CFS managers told
us that joint CSR agendas can be anoth-
er tool in building effective communi-
cations and business relationships. As
one CFS executive explained: “I would
just say it massively helps with our rela-
tionship and how we work together, and
what it does when you’re working with
people painting a classroom or clearing
a play area, you also bring in teamwork
and there’s so many other things that
come into it, other skills, communica-
tion. You really get to know the people
who you’re working with, and when you
see them out of a techie environment, it
makes a huge difference.”
Social networks established outside
of the formal work environment on
CSR projects tended to lead to esteem
between individuals and friendly re-
lationships. Subsequently, staff from
both buyer and provider organizations
felt able to cut through the formal orga-
nizational communications hierarchy
to solve problems rather than resort-
ing to formal contractual resolution. A
Steria executive echoed a similar senti-
ment: “So when you’ve been to these
places and shared the experience with
people, it does help form a very close
relationship…Let’s face it, in outsourc-
ing things don’t go perfectly well over
time, they don’t and that’s the real-

opportunities for
buyers to work
cooperatively with
providers on CsR
initiatives will grow.

ity of it. You’re in a world where you’re delivering projects and services. It’s a fast-moving world and not all projects go perfectly well. Good relationships get you through those situations…you keep the clients that you have, and that’s about strong relationships.”

 

Directions on CsR for Gito Buyers and Providers

What lessons does our research provide for buyers and providers of outsourcing services? We have three suggestions.

˲ ˲ More providers should explore the collaborative CSR option, and seek to match CSR projects with buyers in order to build trust and commitment, reduce attrition, improve productivity, and increase organizational and interpersonal communications. In addition to shared views on CSR, buyers should expect CSR leadership from their outsourcing providers.

˲ ˲ Buyers will increasingly demand evidence of compliance with global CSR standards such as the GRI and the UN Global Compact. In a review of outsource provider public profiles we found that the large global providers demonstrated mature CSR capabilities in terms of meeting global standards, while the mid-tier or smaller outsourcer providers are still building their CSR capability. 2 We also found that buyers infrequently validate the provider CSR claims. So a caution to outsource buyers: beware of unsubstantiated CSR claims, particularly from small and mid-tier providers. Several independent consultancies are able to assist buyers with CSR audits of potential outsourcing providers.

˲ ˲Although our case example focused on social responsibility, environmental responsibility is also a component of CSR concern for global IT outsourcing buyers. Providers with data centers and related technologies must be able to demonstrate energy efficiency that exceeds the levels set by buyers and required by governments. For example, a provider should be able to demonstrate reduced carbon emissions through power management that is more efficient than the buyer could achieve. In accordance with environmental responsibility, outsource providers must increasingly comply with government and industry standards.

Conclusion

In light of the benefits reported in this research, opportunities for buyers to work cooperatively with providers on CSR initiatives will grow. There will be continued uptake of CSR practices by providers, and buyers will need to determine their individual appetite and focus for working collaboratively on such projects.

Finally, we should note that this research is indicative of the reported benefits of collaborative CSR but there are many factors at play. The research has highlighted potentially significant business benefits. However, isolating and quantifying the value of collaborative CSR in substantiated financial terms has not been fully proven. Our research is continuing to examine collaborative CSR at CFS and at other organizations. We welcome comments and contributions from other organizations with similar CSR experiences.

 

References

1. babin, r. and nicholson, b. Corporate social and environmental responsibility in global it outsourcing. MIS Quarterly Executive 8, 4 (Dec. 2009), 123–132.

2. babin, r. and nicholson, b. how green is my outsourcer: Measuring sustainability in global it outsourcing. Strategic Outsourcing, International Journal 4, 1 (Jan. 2011), 47–66.

3. babin, r. and nicholson b. sustainability Practices in global it outsourcing. Manchester business school research Paper 602, university of Manchester u. K. (June 2010); http://papers.ssrn.com/ abstract=1683288

4. elkington, J. towards the sustainable corporation: Win-win-win business strategies for sustainable development. California Management Review 36, 2 (Feb. 1994), 90–100.

5. emerson, J. the blended value proposition: integrating social and financial returns. California Management Review 45, 4 (apr. 2003), 35–51.

6. Porter, M. and Kramer M. Creating shared value. Harvard Business Review 89, 1/2 (Jan.–Feb. 2011), 62–77.

7. Porter, M. and Kramer M. strategy and society: the link between competitive advantage and corporate social responsibility. Harvard Business Review 84, 12 (Dec. 2006), 78–92.

8. Willcocks, l.P. and lacity M. The Practice of Outsourcing: From I TO to BPO and Offshoring. Palgrave, london, 2009.

 

Ron Babin ( [e-mail] ) is an assistant professor and associate director at the ted rogers school of it Management at ryerson university in toronto and a doctoral candidate at the Manchester business school, u.K.

Steve Briggs ( [e-mail]) is the head of strategic Partnerships at Co-operative Financial services (CFs) in Manchester, u. K., where he has managed several major outsourcing relationships, and is also a director of the u.K. national outsourcing association.

Brian nicholson ( [e-mail] ) is a senior lecturer at Manchester business school and has been involved in teaching, research, and consultancy projects in the broad area of global outsourcing of software and other business processes since 1995.

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