Sustainability Considerations in Global Sourcing

1. Operational:
  1. Cost advantages vanishes over time.
  2. Quality of delivery can not be maintained.
  3. Organizational effectiveness across company employees and outsourced workers suffers.

2. Strategic:
  1. Company looses expertise.
  2. Company looses ability to innovate in new products, new markets and new business and operational models.
  3. Loss of employee depth to train future leaders.
  4. Dependence on outsourcer for survival and growth.
  5. Loss of control over product quality and functions.

3. Company reputation:
  1. Negative public image due to use of offshoring.
  2. Perception of poor quality.

4. Employee:
  1. Low employee morale.
  2. High employee turnover.
  3. Poor employee loyalty.
  4. Loss of organizational effectiveness.

Sustainability Considerations Influence Outsourcing Choices


Sustainability Impacts Every Phase of the Outsourcing Life Cycle