Factors affecting suppliers' capacity in outsourcing: a study of the Water and Wastewater Company of Iran

Abstract

What are the major factors able to increase the capacity of suppliers in outsourcing processes? To answer this research question, a three-round Delphi survey was administered to an expert panel composed of 50 industrial experts of the Water and Wastewater Company (WWC) in Iran. The administered questionnaire - based on 50 items categorised into four groups: judicial-legal, contract, management and financial - was developed based on prior literature and experts' answers. Respondents have been asked to evaluate each item with regard to the capacity of suppliers in outsourcing processes on a five-point Likert scale. Factor analysis, one-sample t-test and the Friedman test were used for data analysis. Results show that the factor categories able to increase the capacity of suppliers in outsourcing processes at WWC are the following, in order of importance: financial, judicial-legal, contracts and management. The findings help to focus on shortcomings and deficiencies of current outsourcing processes.