What is impact sourcing?

What is impact sourcing?

Impact sourcing is a hiring model that gives jobs to people from disadvantaged backgrounds, mostly through BPO and IT work, so firms gain skilled talent and drive real social good.

• It opens jobs for marginalized people who lack access to work.
• It gives firms a skilled, loyal workforce at a lower cost.
• It creates social impact while meeting business goals.

More businesses now champion inclusivity through shared values and social responsibility. As a result, more of them turn to impact sourcing.

Impact sourcing is a rising practice that delivers strong financial results and great social good. So find out more about it and how it can help your business in this guide. To see why it is gaining ground, read why impact sourcing matters.

Impact sourcing defined

Impact sourcing is a hiring model that gives opportunities for the marginalized people in the services sector.

This model brings new offerings to clients who want innovation and sustainability. It also aims to create jobs, mostly through IT solutions and business process outsourcing (BPO).

Impact sourcing gives firms wider access to untapped talent and new skills. On the other hand, it also delivers learning and career growth to workers with few resources.

To create impact, firms should focus on sustainable programs and solutions. This can mean many things. For example, it may mean a shift to local hiring or a push to empower marginalized people.

How can impact sourcing benefit your business?

Firms that use impact sourcing believe it is not just about cutting costs. It is also about real social change in the lives of many people. So here are the major benefits it can offer your team.

Save on costs

BPO is an ever-growing industry. It has brought many jobs to developing countries. However, BPO service providers also face cost and staffing challenges.

Impact sourcing offers a fix with a higher-quality workforce. In fact, impact workers show higher engagement and lower churn rates. Labor costs for impact workers also tend to run lower than for average in-house and offshore staff.

Hire disadvantaged yet talented people

Back in 2019, for example, the Philippines’ Department of Information and Communication Technology (DICT) launched a new skills training program called Rural Impact Sourcing (RIS).

The project aims to bring digital access and skills to underserved communities. So it gives workers skills and knowledge that help them and their towns.

Through impact sourcing, local government units can reach communities that never had the chance to train and work before. As a result, this counters the talent shortage and can lower unemployment. It also supports inclusivity at work across the labor force.

Reliable service delivery

Firms that use impact sourcing feel confident about service quality. They lower the risk of talent gaps, data issues, and errors tied to infrastructure.

These firms make sure every worker is trained and oriented before service begins. So skills and training programs give staff the right competencies and clear guides. This way, they watch and manage risks closely. Many pair this with ethical talent outsourcing to keep standards high.

Great social impact

Socially responsible sourcing helps more than just employers and providers. It also opens work to underserved members of society. So it gives millions of people decent-paying jobs and skills growth. This ties closely to corporate social responsibility goals.

Impact sourcing with social purpose lifts a country’s economy. In addition, it improves the lives of workers and their communities. The model has shown strong results in many regions, such as impact sourcing in South Africa.

Sourcing with impact

With new sourcing models, more firms now embrace shared values and a more socially responsible form of hiring.

Impact sourcing can reshape a country’s social and economic outlook by empowering its people. So it gives leaders worldwide more reason to rethink the role they can play. In turn, they can bring real opportunity to underserved communities.

If the goal is genuine social impact, firms should rethink their purpose. Local industries, manpower, and decent jobs should sit at the top of their core goals. For a broader look, explore the case for sustainable outsourcing.

Frequently asked questions about impact sourcing

What is the goal of impact sourcing?

The goal is to give jobs to people from disadvantaged backgrounds. It uses BPO and IT work to reach them. So it creates both business value and social good.

How does impact sourcing help businesses?

It gives firms skilled, loyal workers at a lower cost. In addition, impact workers show higher engagement and lower turnover. As a result, service quality stays strong.

Is impact sourcing the same as outsourcing?

Not quite. Outsourcing sends work to an outside provider. Impact sourcing goes further by hiring people who often lack access to jobs. So it adds a clear social purpose.

Which industries use impact sourcing most?

BPO and IT services use it the most. These sectors need many entry-level roles. So they can train and employ workers from underserved areas.

Key takeaways

• Impact sourcing hires people from disadvantaged groups through BPO and IT work.
• It gives firms skilled talent, lower costs, and lower turnover.
• Training programs help workers gain lasting skills and steady jobs.
• The model drives real social change in underserved communities.
• It aligns business goals with social responsibility and sustainability.