International Sourcing Survey 2018-2020

Strategic decisions the most important motivation to international sourcing 

More than half (55.6%) of enterprises that engaged in international sourcing reported strategic decisions taken by the group head as a very important motivating factor. Almost half (49.8%) of sourcing enterprises indicated that focussing on core business was a very important motivating factor. A reduction of labour costs (29.7%) and access to specialised knowledge/technologies (28.8%) were also very important motivating factors.

Favourable regulation abroad affecting the enterprise was not an important motivating factor for almost a third (32.6%) of enterprises that engaged in international sourcing. A quarter (24.6%) of sourcing enterprises reported that access to new markets was not an important motivating factor, while for 21.7% of enterprises a lack of qualified labour in Ireland was not important. See Figure 3.1 and Table 3.1.

Legal or administrative barriers the most important barrier to international sourcing 

Almost two in five (38.5%) sourcing enterprises reported that legal or administrative barriers as being a very important barrier to international sourcing. Tariffs and trade barriers were a very important barrier for 34.4% of sourcing enterprises. The uncertainty of the quality of the products/services to be supplied abroad (33.5%) and taxation issues (32.9%) were also very important barriers for sourcing enterprises.

Linguistics or cultural barriers was not an important barrier for 28.7% of sourcing enterprises. The need for proximity to existing clients in Ireland was also not important for 28.1% of enterprises engaged in international sourcing. More than a quarter (27.9%) of sourcing enterprises indicated access to finance or other financial constraints as not being an important barrier while for 22.9% of enterprises a lack of qualified labour abroad was not an important barrier to sourcing. See Figure 4.2 and Table 4.2.