Outsourcing suppliers under pressure to go green
Published: 04 Sep 2007 08:31 BST
Outsourcing vendors are running the risk of being dumped by customers if they don't have any green policies or are perceived as environmentally unfriendly.
Buyers are increasingly including green and environmental criteria in the vendor selection process for outsourcing contracts, according to The Black Book of Outsourcing report from consultancy Brown & Wilson Group.
A fifth (21 percent) of US and European companies that already outsource have added green policies and performance indicators to outsourcing agreements during 2007, according to the research.
Almost half (43 percent) of first-time outsourcing customers also added green issues in their selection process and 18 percent included them as contractual goals in agreements.
Nearly all (94 percent) of the companies surveyed plan to add green clauses to outsourcing contracts during renegotiation, but only 36 percent are planning a move to greener outsourcing in the next year.
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Brown & Wilson Group claims the rise of environmental and green considerations is down to investor and consumer demand, as well as new government regulations, with issues such as energy consumption, alternative energy sources and waste disposal increasingly being incorporated by executives in their decisions.
Scott Wilson, partner at Brown & Wilson Group and co-author of the report, said there are currently very few outsourcers committing to green polices and "making the grade as good stewards of the planet" but he added that there will soon be a flurry of activity among offshore companies in China and India aimed at improving their green credentials.
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