Factors Affecting Growth of Logistics Outsourcing: A Perspective of Third-party Logistics Providers in Pakistan

Logistics outsourcing markets are globally expanding at a breakneck pace. Like other industries, the demand and supply forces of the logistics service industry are also affected by external determinants. The primary objective of this research is to evaluate the behavior patterns of Logistics Outsourcing Market (LOM) in Pakistan in contrast to global demand and supply patterns of the logistics industry and find out the major factors, drivers and obstacles which impact the growth of logistics outsourcing in Pakistan. For statistical analysis, this study solely relied upon the perspective of logistics service providers. A sample of 180 logistics service providers was surveyed to gather information through a semi-structured questionnaire. Results confirmed that the behavior of the logistics outsourcing market in Pakistan is tilted towards local business needs and customer demands. Statistical analysis also proved that, as far as the growth of logistics market is concerned, the internal industry factors along with national business environment have more impact on the growth of logistics outsourcing than global drivers and challenges.