Grey Market Informatics

Abstract

International outsourcing often involves virtual communities in which globally dispersed co-workers use online media to collaborate on projects. Such virtual work communities are associated with reduced production costs and quicker times to market. These work relationships, however, also bring with them certain detriments. While critics have focused on job losses related to international outsourcing, few individuals have examined outsourcing’s other great drawback: diminished control over information. This reduced control creates an opening for the misuse of personal data through a series of processes collectively referred to as grey market informatics. This article overviews how grey market informatics works and examines the effects it can have on organizations that use international outsourcing. The article then concludes with strategies for avoiding such misuses of data. By realizing and addressing grey market informatics, organizations can enhance the success of their future outsourcing activities.