Sustainability Issues impacted by Global Sourcing
- Expertise loss in key areas like engineering, IT, business process operations and others
- Impact on company's ability to innovate - develop new products, find new markets or identify new business and operating models.
- Loss of apprenticeship opportunities for younger employees to learn the trade.
- Less internal employees ready for promotion to senior ranks.
- Loss of control over outsourced functions.
- Log term dependence on outsource companies for company success.
- More susceptible to disasters in offshore countries.
- Impact on employee morale, employee loyalty and employee turnover.
- Impact on wealth disparity between rich and poor and size of middle class in the offshore country.
- Impact on wealth disparity between rich and poor and size of middle class in the US.
Issues to handle to make outsourcing sustainable for your company
- Operational - quality, cost and effectiveness
- Strategic - competency, innovation, dependence
- Organizational - employee morale, talent availability, organizational structure
- Company image/reputation
- Societal Issues - unemployment, gap between rich and poor
