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.

1. MAKING THE CASE FOR IMPACT SOURCING
Victor Neeley, Vice President of Sales
14 February 2013
samasource.org

2. TABLE OF CONTENTS
The Problem: Global Job Shortage
The Solution: Impact Sourcing
The Samasource Model
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3. THE PROBLEM: GLOBAL JOB SHORTAGE
Of the 3 billion people around
the 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.
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4. THE SOLUTION: EMPLOYMENT BY IMPACT SOURCING
Poverty causes avoidable human suffering.
Formal work is the most effective way to reduce poverty, but is hard to
create in poor places due to infrastructure barriers.
Internet technology skips over those barriers and can link poor people
to formal work, thereby bringing them into the global economy.
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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
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6. THE BUSINESS VALUE OF IMPACT SOURCING
WHY CLIENTS AND BPOS ARE MOVING TOWARD IMPACT SOURCING
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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
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ty
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ion
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ive
ali
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iat
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al
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Source: Accenture Analysis, Impact Sourcing Feasibility Study, 2012
Fre
Based on 322 respondents across 29 countries and multiple verticals
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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 2015
Source: Avasant GSC - December 2011 Newsletter
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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
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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 India
1
• 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 sector
2 Leverage existing infrastructure
• India has a well-developed education
system; ability to leverage those with
secondary school level education or below
3
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 India
Source: Avasant GSC - December 2011 Newsletter
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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
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12. BPO IMPACT SOURCING INVESTMENT CURVE
COST/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
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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 communities
Source: Accenture Analysis, Impact Sourcing Feasibility Study, 2012
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14. THE MICROWORK MODEL
OUR MODEL FOR IMPACT SOURCING
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15. OUR MISSION
SAMASOURCE CONNECTS
WOMEN AND YOUTH LIVING IN
POVERTY TO DIGNIFIED WORK
THROUGH THE INTERNET
http://youtu.be/s9nVNrV5jS8
Samasource worker, Martha Kerubo Ombwere pictured outside of Nairobi, Kenya
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16. OUR PROGRESS TO DATE
CUMULATIVE WORKERS TRAINED AND PAID
4,000
We’ve paid $3M in wages to
over 3,700 workers in 6
countries. 3,000
2,000
1,000
0
2008 2009 2010 2011 2012 2013
PROJECTED
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17. HOW WE WORK
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18. HOW WE WORK
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19. OUR CLIENTS
Leading technology and data institutions around the world count
on Samasource for digital projects
AdviceCompany
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20. HOW WE LEVERAGE TECHNOLOGY FOR OUR CLIENTS
1 DESIGN
Account Manager in SF sets up project on the
SamaHub and trains local teams.
2 STAFF 3 WORK 4 QA 5 REVIEW
Tasks are loaded into our Workers complete Local teams leads Samasource completes
SamaHub 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 management
interface. from the head office.
6 DELIVER
We return answers to clients via API or as
CSV, with real time or batch delivery.
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21. SAMASOURCE PROJECTS BY VERTICAL
Data augmentation, research,
Data
collection and data mining
Transcription Machine Learning
SEO tagging, unique content
Online
creation, product catalog
Content Data
enrichment and image tagging
Video and audio transcription
services, document indexing,
Transcription
classification and search engine
optimization Online Content
Sentiment analysis, custom data
Machine
sets, quality reviews, data cleanup
Learning
and image tagging *2012 REALIZED AND CONTRACTED SALES (EST.)
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22. THANK YOU
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23. INTERESTED IN PARTNERING WITH US?
Victor Neeley, VP of Sales
victor.neeley@samasource.org
www.samasource.org/services
Office: (800) 521 6717
2017 Mission Street, Suite 301
San Francisco, CA 94110
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