Each year, Brown-Wilson Group and Black Book Research undertakes an annual survey of outsourcing service providers’ green initiatives from the perspective of their client experience. These research results represent an extensive and representative perception study of outsourcing vendors, validated by 1,338 unique company respondents from service users around the globe earlier this year. Over 7,000 individual nominations were received during the survey. They surveyed outsourcing buyer CIOs, governance, buyers, user managers &
corporate executives uncovered both the progress of suppliers and to determine who are the cream of the crop when it comes to Green IT. Xerox topped the list, followed by Accenture, CSC, Capgemini and IBM Global.
The report includes the following lists of outsourcers: Top Green Technology Outsourcing Vendors, Top Indian Green Technology Outsourcing Vendors, Top European Green Technology Outsourcing Vendors, Top North American Green Technology Outsourcing Vendors; Top Australian Green Technology Outsourcing Vendors; Top IAAS/Cloud Computing Green Technology Outsourcing Vendors; Top Green Ancillary Services
Outsourcing Vendors; Top Business Process Outsourcing; Top Transportation/Supply Chain; Top Document Processing; Top Facilities Management; Top Engineering Outsourcers; Top Green Consultants, Outsourcing; and Advisors and LEED Firms.
Top Green 50 Nominated Outsourcers
The Top Green 50 Sourcing Vendors includes the highest ranking suppliers in all outsourcing domains. Information Technology Outsourcing (ITO), Business Process Outsourcing (BPO), Human Resources Outsourcing/Professional Employer Organizations/Recruitment Process Outsourcing (HRO), Finance and Accounting Outsourcing (FAO), Document Process Outsourcing (DPO), Legal Process Outsourcing (LPO), Facilities Management Outsourcing (FMO), Knowledge Process Outsourcing (KPO), Engineering Services Outsourcing (ESO).
1. Xerox
2. Accenture
3. CSC
4. Capgemini
5. IBM Global
6. Oracle
7. HCL
8. Patni
9. WNS Global
10. Hewlett Packard
11. Aramark
12. Perot Systems
13. Logica
14. Wipro
15. SITEL
16. Mastech
17. Océ Business Services
18. SAP
19. CIBER – Tie
19. SAIC – Tie
View The full list of the Top Green 50 Nominated Outsourcers in the report
The following is a breakdown of the IT outsourcing buyers’ motivation for carrying out green initiatives.
1. High Energy Costs 97% (89% in 2008)
2. Public Opinion 64% (81% in 2008)
3. Client Demand 31% (47% in 2008)
4. Corporate Viability 22% (28% in 2008)
5. New Business Development 24% (14% in 2008)
Black Book’s Green IT Outsourcing survey uncovered that 62 percent of large American corporations have established detailed green IT data center strategies including outsourcing vendor expectations; 54 percent had set policies for non-IT services delivered through ancillary outsourcing vendors; but 88 percent are not entirely sure what constitutes achieving true sustainability. Not much has changed in a year. Half of 1338 companies responding to the survey said they consider green criteria during their IT-procurement process, and four out of five have recycling programs. However, energy costs and reputation impact are still the drivers of choosing a vendor with green options.
The financial results of several sustainability-focused outsourcers and consultants have revealed indications that defend the assertion that outsourcing corporations can do well by doing good. Global technology vendors have demonstrated the power of distinguishing their brands, services and reputations as environmentally, socially and economically responsible for the entire planet. With nearly 90% of buyer CIO’s and executives confused by what is needed and what is fluff, most note that there are no funds budgeted in 2009 or 2010 to pay more for outsourcing suppliers’ green add-ons. The expectation is the outsourcer will deliver such green efforts as value-adds only by 89 percent of survey takers, up seven percent from last year.
Outsourcers that not only preach, but practice measurable environmental, social and economic responsibility have enjoyed considerable fiscal returns on their investments. Others have yet to collect enough data to determine how sizeable their efforts are on the bottom-line or the societies that operate in. Sustainability is driven by customer demands report 98 percent of CIOs (up 4% from last year) who assert that their vendors are reacting only to clients, notc oncern for the planet. The price of energy sends more business to outsourcers than their green credentials confirm 85 percent of CIO’s Outsourcing vendors are not entirely to blame. As with all major initiatives, the environmental agenda has had a rocky ride up until relatively recently. Without clear, adoptable standards to measure, it is difficult to demand adherence as the target is moving.
Only 14% of outsourcing buyers feel vendors are making any substantial improvements in Green Initiatives. This is down from 19% in 2008. Major US and Indian outsourcing vendors are more commonly adding new revenue streams through sustainability options. The reputational risks from contributing excessively to environmental waste and greenhouse gases are shifted to outsourcers with far less concern as outsourcers demonstrate green operations.
Despite the magnitude of the triple bottom line, customers do not expect to pay more for green IT until the global economy is in recovery. Six of seven corporate officers claim the adoption of green technology is more likely a result of escalating energy costs than ecological altruism. 92% of respondents believe the vendors who have initiated green options for clients in the economic downturn will mature products and services that will be the highest in demand in 2010 – 2011.
Users are doubtful about the comprehensive and impact quality of outsourcing green programs but without standards to measure outcomes and energy prices high, 87% of clients are taking a “mostly passive” approach to monitoring vendors, as long as costs are stabilized and a green program is drafted. Competitive Indian IT outsourcing vendors have moved beyond sustainability demands as necessary costs of doing offshore business and are implementing innovative, tangible Green alternatives.
A high proportion of outsourcing buyers feel vendor are not delivering on promised green initiatives. However this number has shrunk from last year’s 93% to 82%. Outsourcing buyers’ top priority of budget cuts/financial concerns have dominated for three years, but this year 96% cited that as a primary concern, up significantly from 61% in 2008, and 59% in 2007.
Another area to experience major gains is outsourcing to control energy costs. In 2008, 12% of respondents reported it as a priority, this year 84% cited it as a priority. In light of the economic challenges ahead for CIO’s and Outsourcing Governance executives through 2010, nine out of ten expect changes in IT and outsourcing spending. Among 460 outsourcing tech operations leaders globally, the majority expressed sustainability initiatives as necessary but not necessarily “front burner” issues
The report also discusses the following topics:
1. How outsourcers achieve sustained economic growth,
2. Social progress and environmental protection simultaneously;
3. The motivation for carrying out green initiatives;
4. Buyers’ perception of whether sustainability is on the outsourcing firm’s radar of concern.
5. Buyers’ degree of trust of outsourcing vendors to be accountable for sustainability
6. Clients recommendations of the top efficiencies outsourcers should take On before their contract ends to preserve likelihood of renewals
7. The measurable goals/outcomes organizations use with regard to green IT initiatives.
8. Outsourcing greenwashing
9. Changes in CIOs’ outsourcing budgeted projects priorities/funds
10. Industry breakdown of how much of a priority of green in initiatives
11. The influence of green initiatives on outsourcing buyer organizational planning
12. Outsourcing clients intent to contractually enforce outsourcers to adhere to green standards
The following trends are also measured in the report.
1. Buyers’ views on the need for government involvement
2. The lack of global standards or regulation impact outsourcing vendors’ environmental accountability
3. Regional responsiveness to the green movement
4. Policing of sustainability clauses
5. Buyer perceptions of vendor environmental responsibilities
6. Vendor/Client Loyalty
7. The impact of green practices on vendor selection
