Published on January 9, 2009
Socially Responsible Outsourcing Case Studies Leila Chirayath Janah Founder & CEO,
The Premise Technology and knowlege jobs can lift entire families out of poverty. Work Home Bombay, India Bombay, India Call center ﬂoor Dharavi, South Asia’s largest slum Many of India’s 1M BPO workers commute Over 2.5M people living on 175 hectares from slum areas
Socially Responsible Outsourcing Talented people in Foreign capital Small ﬁrms poor regions $$$ a small slice of the $160B services outsourcing industry untapped talent micro-, small- and mid-sized businesses Socially responsible outsourcing promotes economic development and reduces poverty
Case Study: Digital Divide Data Location: Phnom Penh, Cambodia and Vientiane, Laos Nonproﬁt social venture led by Harvard • graduate Jeremy Hockenstein Started in Phnom Penh in 2002 with 25 • employees Types of services: form and survey • processing, transcription, digitization Offers education for sex-trafﬁcked women, • on-site medical care, scholarship program (ﬁnanced through donations) Currently employs 500+ people at 3x • Cambodian minimum wage Operationally self-sufﬁcient with revenue from • services for clients including the Harvard Crimson
Case Study: Himalayan Techies Location: Kathmandu, Nepal Social venture led by American Ellie • Skeele and Nepali MIT Grad Rabi Kamacharya Started in Kathmandu in 2000 with 3 • people to provide jobs for educated but underpriviledged Nepalis Types of services: Software and web • application development, IT “I was working in Bangalore before. Now I am consulting home, in Nepal, working on better technology and allowed to give my opinion about how Projects include One Laptop Per • things should be done. I feel like I am Child and Open Learning Exchange respected at HT.” programs Provides training, on-site recreational • Prakash Gautam, Technical Lead at facilities, and direct exposure to Himalayan Techies clients
Case Study: Drishtee BPO Location: Bihar, India Award-winning social venture led by • Satyan Mishra and Kunal Chawla Started in Delhi in 2000 to leverage • technology in rural poverty alleviation Types of services: Transcription, • online research, survey and form processing Distributed rural delivery model • reduces risk and taps into skilled rural workers Provides in-depth training for • workers with little prior experience
Case Study: Daproim Africa Location: Nairobi, Kenya Run by Steve Muthee, a young entrepreneur • from rural Kenya Started in 2006 with 4 people • Types of services: form and survey processing, • transcription, digitization, web development Offers part-time work to local university students • and facilities for disabled workers Plans to grow to 20-30 people • First large project branded as a socially • responsible outsourcing ﬁrm: $13K In pipeline: projects for clients including • Benetech, a Bay Area nonproﬁt, and the African Braille Center
Case Study: Preciss International Location: Nairobi, Kenya Run by two women, Mugure Mugo and • Ivy Kimani Started in 2002 with 5 employees • Types of services: online research, data • processing, subtitling, transcription Offers part-time work and on-site • training to university students, young mothers and recent graduates Planned growth to 70-80 employees • 30% of revenue goes to ﬂoor • employees In pipeline: projects between $10K and • $100K for clients in the US and UK
Case Study: Oriak Digital Location: Nairobi, Kenya View Video >> http://www.youtube.com/watch?v=bjD97YlNhDU
The Problem: Talent Surplus 32 million rural Chinese leave their towns each year for big cities, in search of work 45 million rural Chinese youth are currently enrolled in senior secondary schools Source: Wang, Dewen. “China’s Rural Compulsory Education: Current Situation, Problems and Policy Alternatives.” Working Paper Series No.36. 2003 The Organization for Economic Cooperation and Development (OECD) reports that there are 130 million surplus workers in rural India Source: “Rural BPO.” Drishtee BPO Presentation. March 2008. Over 990,000 young people graduate from secondary and tertiary institutions in Ghana and Kenya each year and face staggering unemployment Source: Kenya Ministry of Education; Ghana Ministry of Education; Samasource research November 2007 - March 2008.
Socially Responsible Outsourcing: Deﬁnition 1.0 Right now, it’s a nascent set of guiding principles for buyers who want to help low-income and socially disadvantaged people pull themselves out of poverty. Buyers are encouraged to follow any 2 of the 3 principles in choosing a service provider for outsourcing work. Principle Clariﬁcation 1 Includes ﬁrms located in: (a) a developing country, as Hire ﬁrms in low-income deﬁned by the World Bank*; (b) an economically countries distressed region (e.g., Ceara, Brazil; Bihar, India) 2 Hire micro-, small- and mid- Includes ﬁrms that employ between 1 and 249 people sized ﬁrms 3 Hire ﬁrms that are owned “Disadvantaged” means: belonging to an ethnic or by, or employ a majority of, religious minority group, living at or under the poverty disadvantaged people line, physically or mentally disabled
How the guiding principles were developed Samasource spearheaded a series of conversations with many organizations from November 2007 to July 2008 to help develop the “1.0” version of these guidelines. They are only the beginning. In this ﬁrst iteration, we left out several important considerations, such as labor and environmental standards for service providers. It is our hope that these principles evolve into the ﬁrst fair trade system for services. To learn more, please visit www.sourceoutpoverty.org. Organizations consulted Responsible business groups Service Providers + Buyers Academics Industry Consultants
Positive Social Impact Socially responsible outsourcing creates positive social impact by: Outsourcing jobs in sub-Saharan Africa 1 Ghana directly generating jobs for skilled Senegal workers in low-income regions with Kenya high unemployment levels Uganda 0 1,000 2,000 3,000 4,000 1 direct job 2.5 indirect jobs 2 indirectly generating jobs for semi- and unskilled workers 3 reducing skilled-labor emigration, or “brain drain,” in low-income regions
Thank you! Leila Chirayath firstname.lastname@example.org
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