Social Impact and Cost Optimization: Two Birds, One Stone with Impact Sourcing

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Impact Sourcing is rapidly gaining traction among Global Business Services (GBS) organizations and Shared Services functions as a transformative outsourcing and workforce strategy. As companies increasingly prioritize Corporate Social Responsibility (CSR) and seek to build sustainable, inclusive supply chains – whilst still achieving cost optimization – Impact Sourcing stands out as a compelling solution that aligns profit with purpose, while fostering economic development in underserved regions, groups and communities.

We’d like to share our experiences from establishing one of our most successful Impact Sourcing initiatives to date – our Impact Sourcing hub in Kenya.

But First, What Do We Mean by Impact Sourcing?

As a concept, impact sourcing goes back to the 1970s (read more about the history of Impact Sourcing here); and as an industry, we’ve been debating its definition for some time now – agreeing on an appropriate definition, in fact, is a hot topic at many of the panel discussions and workshops we attend. But the one we like to use here at ADEC Innovations is that impact sourcing is bringing meaningful work to those who need it most.

It’s the growing interest in outsourcing solutions that encompass Impact Sourcing practices, along with our own brand values, that has prompted us, as a purpose-driven outsourcing organization, to invest more in our Impact Sourcing solutions and in continuously developing impact sourced teams in key destinations around the world.

Addressing Rising Costs Through Strategic Outsourcing

One of the most significant challenges organizations currently face is the rising cost of operations due to inflation. To mitigate these costs and improve their bottom line, organizations are exploring alternative locations for their operations. Impact Sourcing fits neatly into this business imperative.

The other business benefit to customers is risk management – having their outsourced operations handled from different sites or locations makes sense. And for us, as a BPO company with operations across six continents, being able to offer our customers a diversified approach not only enhances their business continuity strategy but solidifies our position as a reliable BPO partner.

 

The Social Benefits of Impact Sourcing

As our CEO James Donovan has previously reflected, is Impact Sourcing about numbers or about pure philanthropy? We believe that Impact Sourcing is a classic case of ‘two birds/one stone’.

While the business case for Impact Sourcing is compelling, there are added benefits – providing employment opportunities in regions where traditionally fewer routes to employment have existed, contributing to local economic development in these areas, and uplifting the quality of life of entire communities. By expanding their outsourced business functions to these regions, organizations are not only addressing their business challenges but are also making a significant positive social impact.

Why Kenya as an Impact Sourcing Destination?

With our delivery center in the Philippines, ADEC has been practicing responsible outsourcing for decades. Our Kenya project, though, has levelled up our commitment to this principle.

As a BPO provider, our primary goals at the outset were to enhance our operational efficiency, expand time zone coverage, support our business needs by integrating a new, capable workforce, and bring employment opportunities to local populations. We selected Kenya due to its growing pool of educated, English-speaking professionals, and the positive socio-economic impact potential. The country’s stable internet infrastructure also made it a viable choice for outsourcing.

Providing Exemplary Support and Delivering to Exacting Standards

We’ve been operating our Impact Sourcing Hub in Kenya since 2014. Situated a little way out of the capital city Nairobi, our Kenya delivery centre aligns with Impact Sourcing by creating sustainable job opportunities in a rural, economically disadvantaged area.

A recent project saw the Kenya-based team onboarded to an existing client new to Impact Sourcing (they’re a long-standing ADEC Innovations BPO client, but haven’t explored Impact Sourcing before).

The project saw the team providing BPO support to a leading financial institution as part of a multi-site service spanning three locations in the Philippines and Kenya. The team in Kenya successfully completed several months of intensive training and nesting to support the project’s new, complex client process. The training was managed through a structured program that included e-learning modules, classroom learning, hands-on practice, and mentorship. Best practices included regular feedback sessions and tailored coaching to address specific needs.

We’re pleased to say that Team Kenya has integrated seamlessly with our global operations and turned in outstanding results, including consistently exceeding their proficiency targets and demonstrating the fastest speed to proficiency for this complex process.

This team’s outstanding performance is a prime example of the benefits that Impact Sourcing provides, enabling ADEC Innovations and our clients to create meaningful jobs where employment can be scarce, and giving the business access to great talent.

And it’s not just us who thinks so highly of our team’s accomplishments – our client is similarly impressed, giving us nothing but complimentary feedback!

 

The Team that Plays Together Stays Together

Beyond providing on-the-job training, the support offered to our Kenya team members has also included coaching on office etiquette, financial literacy, and digital literacy skills.

Then, there’s the team spirit fostered by activities like playing soccer (go ADEC F.C!), community engagement and outreach, team building outings, and social get-togethers. Recognition in the form of monthly and yearly awards – like best-performing and longest-serving staff – is also part of the plan.

 

Personal Perspectives from Our Impact Sourcing Hub

A theme running through many of our Kenya team’s personal stories is that of assuming responsibility for their extended families as primary breadwinner – supporting elderly parents, putting siblings through school, paying for childcare for young children, and saving for the future.

For three ADEC Innovations team members – Mercy, Maurine and Peter – having the means to be able to provide for their families’ needs through a stable income has been life changing.

Six years ago, Mercy secured a job at our Kenya Impact Sourcing Hub straight from college on her first attempt! Getting the opportunity took a load off her shoulders – and she’s never looked back. Ongoing mentoring and training have allowed her to progress from her entry-level job through a series of promotions – and she’s paying that forward with a passion for motivating team members. Her advice to others when life throws curve balls is simple: Never quit!

In four years, Maurine, a single mother, has – with the support of her colleagues – overcome her shyness to grow into a confident Business Process Associate who looks forward to giving of her best, not just to her job, but to community health and other activities that the team is involved with. Her big life goal: to visit America.

Peter, a keen footballer for ADEC F.C. who dabbles with video editing as a hobby, recently completed four months of intensive training to qualify as an examiner – gaining more knowledge and skills is what gives him purpose. His motto: Be ready when opportunity knocks!

We’re proud to have played a role in contributing positively to their life journeys.

Looking Forward to the Future of Impact Sourcing

The strategic shift to include Kenya in our operations has been well-received, both internally and from our customers. It has enabled us to improve our cost structure, and grow our revenue, helping us remain competitive in a demanding market. This can be passed on to our customers, as we continue to provide them with optimized offers.

More than that, however, we’re happy to be helping our clients make a demonstrable positive social impact.

Which brings us to intentionality. Intentionality is central to Impact Sourcing and sustainable business practices – we are guided in this regard by Everest Group’s Impact Sourcing Playbook for Service Providers, particularly the ATOM process.

The ATOM process helps us think about Impact Sourcing practices holistically. For example, how do we remove barriers that might create challenges for impact workers when they apply for positions or join the company? Crucially, we are intentional about how we upskill people so that they can have more opportunities, both at work and beyond.

A dedicated internal Impact Sourcing Committee drives initiatives such as facilitating access to transport and medical benefits; they also provide ongoing training for hard skills such as digital literacy, soft skills such as office etiquette and life skills such as financial literacy. We’re also exploring how we can better access potential Impact workers (recruitment) and drive awareness of the opportunities available to them.

We look forward to unpacking more about intentionality and how to develop sustainable Impact Sourcing strategies in forthcoming articles.

As Team Kenya continues to develop, we’re excited to see what they will achieve next. We also look forward to expanding on our Impact Sourcing initiatives: watch this space!

Leading BPO and Impact Sourcing Specialist

ADEC is a recognized Impact Sourcing specialist. We’re listed among Impact Sourcing Specialists in Impact Sourcing State of the Market Report 2023, Everest Group, 2023 

We provide high quality BPO, CX and outsourced GBS solutions. Learn more about our outsourcing and impact sourcing solutions or contact us to find out more.