IT Outsourcing and SDGs III: SDG 8 – Decent Work and Economic Growth:
What do companies actually gain when they opt for responsible, sustainable IT outsourcing that complies with supply chain legislation?
(For the question of what actually constitutes responsible outsourcing, we recommend our blog post “Five questions for BitKollegen co-founder Franziska: What is responsible offshore IT?”)
Companies can also achieve significant cost benefits in the area of responsible IT outsourcing and avoid disadvantages such as a shortage of skilled workers and increased salaries in Germany.
Although the hourly rates of providers who do not focus on sustainability may in some cases appear lower than the hourly rates of sustainable providers at first glance, these additional benefits should not be ignored.
Below we list some important aspects of responsible outsourcing that can have long-term economic benefits for the outsourcing company compared to “conventional” outsourcing without regard to social aspects:
Positive corporate reputation and customer loyalty
Consumers and business customers are increasingly interested in ethical business practices and tend to favor brands that share their values.
They are increasingly scrutinizing the social and environmental sustainability of services and consumer goods.
Customers and business partners are therefore increasingly favoring companies that are actively committed to social responsibility and sustainability – sometimes despite higher prices (see organic products).
Proof of social sustainability will also have an increasingly positive effect on purchasing decisions in the future.
By partnering with an IT outsourcing company that is committed to social and sustainable principles, companies that offer services to their customers can strengthen their own reputation and ultimately their economic success.
High availability and long-term retention of highly qualified and motivated talents in the team
Outsourcing companies that take their social responsibility seriously often attract specialists in the target country who are not only highly qualified and the best in their professional group, but also have a strong set of values of their own.
Values such as equality for employees of all genders and a good and positive working atmosphere are also important to our team members and one of the reasons why they work with us.
This makes it possible to form committed and motivated teams that identify more strongly with the corporate vision.
This avoids high team turnover and reduces the need for frequent onboarding and learning phases.
Risk mitigation with increasing compliance and reputational risks
By working with a partner that strictly adheres to social standards and follows sustainable practices in terms of working conditions, environmental protection and human rights, companies can reduce potential reputational and compliance risks.
Social and sustainable IT outsourcing also reduces the risk of violating existing and upcoming voluntary or mandatory social standards.
These include, for example
These include, for example, the supply chain legislation widely used in Europe or the CSRD as well as other requirements already announced at EU level.
By cooperating with responsible outsourcing companies, companies can ensure that they adhere to all relevant guidelines.
Promotion of a sustainable corporate culture
By supporting social and sustainable IT outsourcing, companies not only signal their values to the outside world, but also promote a culture of social commitment and sustainability internally.
In addition to the customer loyalty already mentioned above, this can also send an important signal to (current and future) local employees.
As a result, social and sustainable IT outsourcing leads to a win-win situation for companies and outsourcing employees.
It shows that utilizing the advantages of global supply chains does not necessarily have to lead to structural disadvantages for certain groups, but that everyone involved can benefit from it.
