Menu
Outsourcers face green pressures from clients

Outsourcers face green pressures from clients

Nine out of ten say outsourcers' green credentials are crucial

Green policy credentials are high on the agenda of companies looking for outsourcing partners and outsourcing vendors -- and those that fail to demonstrate environmental policies risk being dumped, according to a report by outsourcing consultancy Brown-Wilson Group.

Corporations are shifting their responsibility for environmental concerns to the supply chain, said the firm in its report, "Black Book of Outsourcing: 2007 Green Outsourcer Report".

The report is based on an independent study of outsourcing industry decision makers and analysts with a survey of 20,000 outsourcing users. Almost half -- 43 percent -- of companies choosing to use a supplier for the first time included green factors in their decision making process for choosing suppliers. And more than 94 percent of executives from listed companies are planning to add "green" clauses in their renegotiation processes, compared with only 36 percent of privately owned companies.

More than 88 percent of executives said that the environmental commitment of suppliers would influence their outsourcing selection process. And 21 percent of U.S. and European companies that already outsource have added green policies and performance indicators to outsourcing agreements this year, according to the research.

Almost 25 percent of companies are asking their vendors to reduce their carbon footprint to have "zero impact." Further, 45 percent of companies expect suppliers to assure public trust by tracking and demonstrably measuring green effectiveness. Over 40 percent want outsourcers to develop new green technologies, products and services, which reduce wastes, save energy and increase efficiency.

Brown-Wilson said in the report that the increasing popularity of green policies benefits investors that purchase stocks in green outsourcing companies, as stocks will go up. Similarly "socially responsible companies can gain a competitive advantage over their peers through cost reductions, quality improvements, increased profitability and access to new and growing markets. Environmentally responsible companies also have less risk of environmental liability, which could have a major impact on future stock prices."

The report states, "We predict that the next few years will be critical for firms to establish their roadmap to green leadership, not only for their clients but as global businesses impacting the entire earth." And it said the impact of an outsourcer on the environment is becoming an "increasingly critical" issue for companies.

The Brown-Wilson report also ranked the top 50 green suppliers. The top ten were: Accenture & Accenture HR, CSC, Hewlett Packard, SAIC, Logica CMG, IBM Global, Pitney Bowes, UPS Supply Solutions, Johnson Controls, and Unisys.

Many US and European-based suppliers already have demonstrable green policies. However, as more outsourcing moves to developing markets that have less restrictive and loosely enforced environmental laws, suppliers in India and China face pressures to respond to demands for environmentally sound practices.

Scott Wilson, partner at Brown-Wilson and co-author of the report, said: "While many outsourcing vendors, particularly European and US based vendors have already established proactive green corporate policies, there will be a flurry of activity among offshore firms from India and China to retain competitive appeal. The offshore perspectives of these suppliers, traditionally focused on cheaper and faster, did fortify the strategic importance of the environment on the decision-makers within North American and European clientele, hence the frantic catch-up mode to set green agendas."


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments