Tuesday, September 30, 2008

Outsourcing


Did you know when you call jetBlue to make flight plans, the person you are talking to you on the other end of the line is working from his or her house? Yes, jetBlue has a completely home-based reservation system.

Just think, if a company as large as jetBlue can outsource some of their departments, why shouldn’t you consider it?

Merriam-Webster Dictionary:

“Outsource
: to procure (as some goods or services needed by a business or organization) under contract with an outside supplier

Outsourcing should not be confused with offshoring, which is the transfer of an organizational function to another country, regardless of whether the work is outsourced or stays within the same corporation/company.

Law firms looking to cut costs by outsourcing/offshoring their legal support services overseas could be jeopardizing their client confidentiality. Joseph Hennessey, a Maryland attorney, is in the process of preparing a class action lawsuit on the outsourcing of privileged client data which may be subject to eavesdropping by the U.S. government.

Hennessey says foreign companies have no presumption of privacy because the National Security Agency is free to spy on them without constitutional constraints.

The American Bar Association released its formal opinion on August 5, 2008, as to Lawyer’s Obligations When Outsourcing Legal and Nonlegal Support Services. http://www.abanet.org/cpr/08-451.pdf

Stay Tuned.

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