Over 21 percent of publicly traded companies that outsource functions have added “green policies and performance” demands to their vendor contractual arrangements in 2007, and over 94 percent plan on adding clauses or including “green” in their renegotiations processes, according to a recent study by Brown-Wilson Group, authors of The Black Book of Outsourcing. In private companies, 36 percent of executives are currently considering greener outsourcing service agreements in 2008.
Among first time outsourcing clients in 2007, 43 percent included green factors in their selection processes and 18 percent added contractual goals for outsourcers.
The pressure is on for outsourcing suppliers to produce green credentials and adopt green initiatives to meet client demand, yet suppliers must strategize ways in which they can extend such value-adds without significantly increasing costs to stay competitive.
According to the survey, the impact on outsourcing vendors is forcing executives to incorporate issues like hardware energy consumption, alternative energies, waste disposal, use of recycled content products and environmentally preferable products and services, use of biobased products, energy- and water-efficient products, alternate fuel vehicles, products using renewable energy, and alternatives to hazardous or toxic chemicals as well as asset disposal into their sourcing strategies.
Over 88 percent of outsourcing decision-makers indicated that the environmental dedication will influence their selection processes as contracts come up for bid in the next twelve months, but only a mere 7 percent anticipate any increase in passed-along costs from their outsourcing vendors to meet specified green concerns.
Suppliers recommended by Brown-Wilson’s current clients for dedication to greener outsourcing services include:
Information Technology Outsourcers: CSC, Hewlett Packard, IBM, USTechnology, SAIC, EDS, Perot, Unisys, Intelligroup, Atos Origin, Sapient, CIBER, AT&T/USi, Ness, CGI
Business Process Outsourcers: Genpact, Accenture, LogicaCMG, T-Systems, EXL Service, Transworks/Minacs
Financial & Accounting Outsourcers: Deloitte, Pricewaterhouse Coopers, Capgemini, Fiserv
Procurement: Ariba, ICG Global
Facilities Management: EmCor, Sodexho, Johnson Controls, Unicco
Call Centers: TeleTech, SITEL, Convergys, eTelecare
Human Resources Outsourcing: Accenture HR, ExcellerateHRO, Fidelity, ADP
Supply Chain & Logistics Services: UPS Supply Solutions, NAL Worldwide, Fed Ex
Document Process Outsourcing: PitneyBowes, Xerox, Oce Business Services, Ricoh
Knowledge Process Outsourcing: Evaluserve, Integreon
Customer Relationship Management: SAP, Oracle/Siebel
Consultants Who Can Help Get you Green Faster:
Outsourcing Advisors: Gartner, TPI, Equaterra, Ramprate, Everest Group