TOWARDS SUSTAINABLE OUTSOURCING

The report argues that the ITES sector has missed previous opportunities to drive sustainable development and must now adopt an 'Outsourcing 3.0' model. This framework moves beyond simple cost-cutting (Outsourcing 1.0) and high-value job relocation (Outsourcing 2.0) toward a model where companies, cities, and countries compete responsibly. The authors identify six drivers for this transition: creating a responsible business climate, smart philanthropy at the base-of-the-pyramid, building talent, improving business standards and compliance, fostering product and service innovation (such as 'tribesourcing'), and contributing to low-carbon prosperity. The report emphasizes that the 2009 economic downturn provides a critical window to reset the industry's approach to corporate social responsibility and environmental impact.

• The report defines 'Outsourcing 3.0' as a shift toward 'responsible competitiveness,' where an integrated approach replaces piecemeal efforts to ensure that companies, cities, and countries do not engage in a 'race to the bottom.'
• The ITES sector has a significant environmental footprint, accounting for 2% of global carbon emissions in 2007, with projections that this will increase by 40% by 2020.
• There is a critical gap in the talent pipeline; while countries like India produce large numbers of engineers, a very small percentage are directly employable by the industry due to a mismatch between academic curricula and business requirements.
• Base-of-the-pyramid (BoP) BPO ventures in rural areas can be successful by focusing on low-end data projects, sourcing clients locally, and leveraging lower attrition rates compared to urban hubs like Bangalore.
• The report identifies 'tribesourcing'—long-term collaborations by close-knit groups of online collaborators—as a way to access untapped global talent and foster entrepreneurship.
• Investment policies in ITES often suffer from 'bidding wars' where destinations offer excessive incentives that result in few positive externalities for the host economy beyond basic employment.
• Green building standards are being adopted in major hubs, such as the Energy Conservation Building Code (ECBC) in India and the Green Building Evaluation System (GBES) in China, to reduce the energy footprint of commercial offices.
• The ITES sector can contribute to low-carbon prosperity by providing the architecture for smart grids, carbon trading platforms, and tools for forest preservation through remote sensing.
• Corporate Social Responsibility (CSR) in the ITES sector is currently underdeveloped, with many firms treating sustainability as a distraction rather than a core business opportunity.

APA

Perera, O., Begley, P., MacGillivray, A., & Dossani, R. (n.d.). TOWARDS SUSTAINABLE OUTSOURCING. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/towards_sustainable_outsourcing.pdf

Chicago

Perera, Oshani, Paul Begley, Alex MacGillivray, and Rafiq Dossani. TOWARDS SUSTAINABLE OUTSOURCING. International Institute for Sustainable Development, n.d. https://www.iisd.org/system/files/publications/towards_sustainable_outsourcing.pdf.

Wikipedia

{{cite report |last1=Perera |first1=Oshani |last2=Begley |first2=Paul |last3=MacGillivray |first3=Alex |last4=Dossani |first4=Rafiq |title=TOWARDS SUSTAINABLE OUTSOURCING |publisher=International Institute for Sustainable Development |url=https://www.iisd.org/system/files/publications/towards_sustainable_outsourcing.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pererandtowards, author = {Perera, Oshani and Begley, Paul and MacGillivray, Alex and Dossani, Rafiq}, title = {{TOWARDS SUSTAINABLE OUTSOURCING}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/towards_sustainable_outsourcing.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }