Very few of us have heard the term impact sourcing, but it is an innovative model that is being championed in the outsourcing space. In this article, we outline its benefits to Caribbean countries, especially to those who want develop their offshore outsourcing industries.

 

Across the Caribbean region, many countries are eager to develop their offshore outsourcing industries as a means of tackling the high unemployment that exists, especially among the youth, and to jumpstart their slowing economies. Some countries, such as the Dominican Republic, Jamaica, and Trinidad and Tobago, are recognisable names in the space, and their governments have been actively supporting the continued growth of their industries.

However, whilst offshore outsourcing has been good for may countries’ economies, one of the criticisms levelled at it is, especially in the Caribbean, that it is a dead-end job. As a result, people do not see themselves having a career in that industry. Essentially, working in the outsourcing industry is an means to an end, but not something to which an individual should aspire.

However, it is worth noting that business process outsourcing (BPO) – which includes call/contact centre operations, and is one of the many outsourcing segments that exist that the Caribbean is especially eager to develop ­– is considered high-end work, as its requires require high levels of education and language literacy. Unfortunately, and across the region, we still have relatively few high-school graduates meeting the minimum education qualification: Caribbean Examination Council examination passes in at least three subjects, in including Mathematics and English.

We also still have a relatively large proportion of our populations that are functionally illiterate, and in English-speaking territories, they struggle to speak standard English. These citizens tend to be socioeconomically disadvantaged, and are at the bottom of the pyramid. More importantly, they are unable to break the cycle of poverty without significant and external intervention.

Impact sourcing

Marrying the pursuit of offshore outsourcing, and BPO in particular, with the need to help those towards the base of the pyramid, is an increasingly important arm of outsourcing called impact sourcing. In summary, in impact sourcing, BPO companies focus on employing the socioeconomically disadvantaged. However, an essential precursor element is the extensive training and upskilling that is needed.

Typically, BPO companies might offer a couple of weeks of in-house training to ensure new recruits understand the basics of the position, and are oriented with important client-specific requirements. Under impact sourcing, the training is considerably more and cab last several months, as there are gaps in the candidates’ (basic) education that must be addressed, in addition to furnishing them with the skills they will need for entry-level BPO positions.

Limited highly qualified labour

To varying degrees, Caribbean countries that have been serious about developing their BPO industries have had to put systems in place to train and upskill those who otherwise might be considered unemployable. Frequently, what many of us do not readily appreciate is that although the unemployable are consider part of the national labour pool, relatively speaking, the pool of ‘highly qualified’ labour is small. More importantly, all sectors of the country are drawing from that same, small pool for skilled labour: which means very quickly, demand can exceed supply. Hence to broaden (and deepen) that pool, it is crucial to improve the skills and qualifications of those who might be considered unemployable.

Further, we ought to address the elephant in the room, albeit in summary:  BPO offers dead-end jobs. That is not the case, as there is considerable scope for upward mobility. More importantly, for those who have limited prospects. The discipline, skills developed, compensation packages offered, and scope for professional growth, have the potential to help lift BPO employees and their families out of poverty, which for many at the bottom of the pyramid is an important and long-held goal.

Final thoughts

Although the impact sourcing model has been spearheaded and championed in the outsourcing space, there is scope for it to be replicated in other industries, as not everyone – independent of skills and qualifications – is suited to work in BPO. To work well, impact sourcing requires the participation and support of the private sector, which can consider such activities as part of its corporate social responsibility to foster inclusive business practices. Government could also support such initiatives, as impact sourcing increases a country’s labour pool of suitable talent, thus allowing the local outsourcing industry to grow, which not only redounds to the benefit of those employed, but also to the country as a whole.

 

 

Image credit:  Richard Blank (flickr)