Outsourcers warned 'go green or get dumped'

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.

A fifth (21 per cent) of US and European companies that already outsource have added green policies and performance indicators to outsourcing agreements during 2007, according to the research.

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Almost half (43 per cent) of first time outsourcing customers also added green issues in their selection process and 18 per cent included them as contractual goals in agreements.

Nearly all (94 per cent) of the companies surveyed plan to add green clauses to outsourcing contracts during renegotiation but only 36 per cent are planning a move to greener outsourcing in the next year.

Brown-Wilson 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 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 there will soon be a flurry of activity among offshore companies in China and India aimed at improving their green credentials.