Making the Case for Impact Sourcing - Samasource

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Impact Sourcing is a new type of business process outsourcing (BPO) that aims to create jobs for individuals with limited opportunity in rural or economically depressed communities. There are a number of new studies which show the significant business benefits for companies that partner with Impact Sourcing providers, including significant cost savings and proven social benefits. Additionally, Impact Sourcing can provide high-quality, reliable services at prices that are at least competitive with traditional BPO centers and, in some cases, almost 40 percent lower than what traditional providers can offer. It is estimated that 40% of companies currently outsourcing to traditional BPOs will allocate at least 25% of their budget toward Impact Sourcing providers by 2015. As a pioneer in Impact Sourcing, Samasource has connected over 3,700 poor women and youth across 9 countries to nearly $3 million in living wages. This work is sourced from some of the world's biggest enterprises including Google, Microsoft, Intuit, and LinkedIn. In this presentation, we explain what Impact Sourcing is, the benefits to clients and beneficiaries, and the forecasted growth of the industry.

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Making the Case for Impact Sourcing - Samasource

  1. 1. MAKING THE CASE FOR IMPACT SOURCINGVictor Neeley, Vice President of Sales14 February 2013samasource.org
  2. 2. TABLE OF CONTENTS The Problem: Global Job Shortage The Solution: Impact Sourcing The Samasource Model 2
  3. 3. THE PROBLEM: GLOBAL JOB SHORTAGEOf the 3 billion people aroundthe world looking for work, “Six years into our global data collection effort, we may have already found the single most searing, 40% clarifying, helpful, world-altering fact. What the whole world wants is a 60% good job.” Jim Clifton, Chairman, Gallup The Coming Jobs War (2011)1.8 billion of them are jobless. 3
  4. 4. THE SOLUTION: EMPLOYMENT BY IMPACT SOURCINGPoverty causes avoidable human suffering.Formal work is the most effective way to reduce poverty, but is hard tocreate in poor places due to infrastructure barriers.Internet technology skips over those barriers and can link poor peopleto formal work, thereby bringing them into the global economy. 4
  5. 5. WHAT IS IMPACT SOURCING? “Impact Sourcing is outsourcing that benefits disadvantaged individuals in low employment areas. It looks beyond the common source of supply for traditional outsourcing to provide higher-income employment and access to new income opportunities to individuals that might not otherwise be employed in this sector. These individuals are typically people who are at a unique disadvantage and lack access to traditional employment. They include those living in rural areas of developing countries or in slums, those without access to secondary or tertiary education, and educated individuals in areas of high unemployment.”Source: Accenture, Exploring the Value Proposition of Impact Sourcing from the Buyer’s Perspective. October 2012:http://www.accenture.com/us-en/Pages/insight-exploring-value-proposition-impact-sourcing.aspx 5
  6. 6. THE BUSINESS VALUE OF IMPACT SOURCINGWHY CLIENTS AND BPOS ARE MOVING TOWARD IMPACT SOURCING 6
  7. 7. WHAT BPO CLIENTS VALUE THE MOST Most Important 5.00 4.51 3.75 3.89 2.97 2.50 2 1.7 1.25 Least Important 0 st ty s ion s e ive ali Co urc ns iat Qu pa so nit Ex Re RI al Up CS ob g Gl einSource: Accenture Analysis, Impact Sourcing Feasibility Study, 2012 FreBased on 322 respondents across 29 countries and multiple verticals 7
  8. 8. THE GLOBAL IMPACT SOURCING MARKET SIZE % Impact Sourcing Represents of Outsourcing Market Share Impact Sourcing Market Size ($ Billions) 12% $30 9% $23 6% $15 3% $8 0% $0 2010 2011 2012 2013 2014 2015Source: Avasant GSC - December 2011 Newsletter 8
  9. 9. IMPACT SOURCING IS GROWING QUICKLY 780,000 10% $ - OR - 40% $ $ IMPACT SOURCING PROVIDERS WORKERS EMPLOYED BY 2015 OF CURRENT BPO WORKFORCE EXPECT TO GROW MORE THAN 50% 11% 48% OF EXECUTIVES$20 BILLION REVENUE WOULD DEDICATE IMPACT SOURCING BY 2015 Impact Sourcing as 1/4 OF BPO BUDGET a Percentage of TO IMPACT SOURCING* $ $ $ $ $ $ Outsourcing by 2015 Sources: Accenture, Avasant *Based on 322 respondents across 29 countries and multiple verticals 9
  10. 10. IMPACT SOURCING OPPORTUNITIES FOR INDIA WHY INDIA? INDIA? WHY TOP 3 BENEFITS FOR BPOs • The BPO industry currently employs 1.2 million people in India1 • Low-income people are already Lower employment costs for BPOs performing this work in India; 77,500 current BPO workers can be classified as a part of the impact sourcing sector2 Leverage existing infrastructure • India has a well-developed education system; ability to leverage those with secondary school level education or below3 Less sales / marketing required for established BPOs • There are already a few champion states who have rural BPO policies in place (such as Karnataka and Tamil Nadu) • Avasant estimates impact sourcing providers could employ over 251,000 poor in IndiaSource: Avasant GSC - December 2011 Newsletter 10
  11. 11. CHALLENGES & RECOMMENDATIONS IMPACT SOURCING CHALLENGES RECOMMENDATIONS • More difficult for impact sourcing • Invest in replicable technology providers to scale; easier for BPOs • Invest in standardized, systematic training • Requires up-front education/training for up-front to reduce long-run costs workers • Articulate the cost savings and quality • Sales/marketing is required to standards to prospects communicate business value • Establish impact criteria for hiring to • Challenging to measure impact or limited ensure impact is met impact • Lobby local government for tax incentives • Policy implications / government or stipends; job creation will help local regulations economies • Quality must remain consistent • Investment in training, technology and processes will help maintain high quality • Lack of infrastructure may exist in rural areas • Partner with existing impact sourcing providers in rural areas to leverage existing infrastructure; work in champion states already familiar with impact sourcing 11
  12. 12. BPO IMPACT SOURCING INVESTMENT CURVECOST/BENEFIT INITIAL INVESTMENT IN EDUCATION & INFRASTRUCTURE BENEFIT COST SHORT-TERM MID-TERM LONG-TERM TIME IMPACT SOURCING PROVIDER TRADITIONAL BPO PROVIDER Source: Accenture Analysis, Impact Sourcing Feasibility Study, 2012 12
  13. 13. THE BENEFITS OF IMPACT SOURCING TALENT POOL / WORKERS IMPACT SOURCING PROVIDER • Gain employment • Cost & quality objectives met • Valuable skills training • Satisfied clients • Break the cycle of poverty • Strengthened relationship with • Access to healthcare & education local communities IMPACT SOURCING ECOSYSTEM SERVICE BUYER / CLIENT GREATER COMMUNITY • Significant cost savings • Positive impact on the economy • Growth objectives met • Increased purchasing power • Enhanced CSR • Happier and healthier community • Strengthened relationship with members local communitiesSource: Accenture Analysis, Impact Sourcing Feasibility Study, 2012 13
  14. 14. THE MICROWORK MODELOUR MODEL FOR IMPACT SOURCING 14
  15. 15. OUR MISSION SAMASOURCE CONNECTS WOMEN AND YOUTH LIVING IN POVERTY TO DIGNIFIED WORK THROUGH THE INTERNET http://youtu.be/s9nVNrV5jS8Samasource worker, Martha Kerubo Ombwere pictured outside of Nairobi, Kenya 15
  16. 16. OUR PROGRESS TO DATECUMULATIVE WORKERS TRAINED AND PAID 4,000We’ve paid $3M in wages toover 3,700 workers in 6countries. 3,000 2,000 1,000 0 2008 2009 2010 2011 2012 2013 PROJECTED 16
  17. 17. HOW WE WORK 17
  18. 18. HOW WE WORK 18
  19. 19. OUR CLIENTSLeading technology and data institutions around the world counton Samasource for digital projects AdviceCompany 19
  20. 20. HOW WE LEVERAGE TECHNOLOGY FOR OUR CLIENTS 1 DESIGNAccount Manager in SF sets up project on theSamaHub and trains local teams. 2 STAFF 3 WORK 4 QA 5 REVIEWTasks are loaded into our Workers complete Local teams leads Samasource completesSamaHub technology tasks, known as conduct QA on the a final quality check.platform, and sent to microwork, with full SamaHub.delivery centers in a web project managementinterface. from the head office. 6 DELIVER We return answers to clients via API or as CSV, with real time or batch delivery. 20 7
  21. 21. SAMASOURCE PROJECTS BY VERTICAL Data augmentation, research,Data collection and data mining Transcription Machine Learning SEO tagging, unique contentOnline creation, product catalogContent Data enrichment and image tagging Video and audio transcription services, document indexing,Transcription classification and search engine optimization Online Content Sentiment analysis, custom dataMachine sets, quality reviews, data cleanupLearning and image tagging *2012 REALIZED AND CONTRACTED SALES (EST.) 21
  22. 22. THANK YOU 22
  23. 23. INTERESTED IN PARTNERING WITH US?Victor Neeley, VP of Salesvictor.neeley@samasource.orgwww.samasource.org/servicesOffice: (800) 521 67172017 Mission Street, Suite 301San Francisco, CA 94110 23

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