Avasant Releases Impact Sourcing Report

Los Angeles, CA, USA - September 19, 2012 - Avasant today announced the release of a research report titled "Incentives & Opportunities for Scaling the ‘Impact Sourcing' Sector". Avasant carried out this study with the support of the Rockefeller Foundation with the goal of providing recommendations for governments and industry to implement and scale Impact Sourcing based on global best practices that align policies and incentives to industry needs. The full report can be accessed at www.avasant.com/research/impactsourcing. At the heart of "Impact Sourcing" is the goal to create jobs for individuals with limited opportunity and in rural or economically depressed communities. These jobs of the future would principally be directed at workers in Business Process Outsourcing (BPO) centers to provide high-quality, information-based services. The twelve-month study spanned 24 countries and over 100 stakeholders across service providers, government ministries, departments and agencies, investment promotion agencies, trade bodies, buyers and other experts. Avasant's research was designed to advance the Rockefeller Foundation's work entitled "Poverty Reduction through Information and Digital Employment" (PRIDE). PRIDE is working to support programs, like Impact Sourcing, designed to generate employment opportunities for the poor or vulnerable by establishing meaningful jobs in the information technology industry. The Avasant study estimates the market size for Impact Sourcing to be over US $10.7 billion, employing nearly 561,000 people. With a booming BPO sector, it is projected that by 2020, the market for Impact Sourcing services will grow to employ 2.9 million people and generate revenues of US $55.4 billion. Simply put, Impact Sourcing could account for up to 17 percent of all global BPO services spending by 2020, growing at more than double the rate of the traditional BPO industry. Commenting on the report, Kevin S. Parikh, Sr. Partner and CEO, Avasant said, "Impact Sourcing has the effect of raising the spirits and dreams of individuals that have never had an opportunity to be part of the Global Economy." He also added, "We hope that Avasant's collaboration with the Rockefeller Foundation on this project will yield poverty reduction, not just in emerging countries, but also in more developed economies. During the course of its research, Avasant worked towards identifying opportunities and challenges for scaling Impact Sourcing sector. Based on Avasant's survey findings, a handful of governments are providing the targeted incentives to spur Impact Sourcing and job creation. To foster employment for poor and vulnerable people in the BPO sector, policy makers will need to align their policies and incentives to the needs of the Impact Sourcing sector. "Impact Sourcing provides an enormous opportunity for governments to harness the skills and talents of often marginalized populations, and put them to work in good sustainable jobs" said Eme Essien Lore, Interim Managing Director, The Rockefeller Foundation Africa. "The Rockefeller Foundation is proud to have funded this important report from Avasant. Identifying the right policies for governments to establish a thriving impact sourcing sector is integral to its success and ultimately in creating employment options for poor and vulnerable people." The report also outlined several recommendations for policymakers to drive greater employment of poor and vulnerable people in the private sector by creating incentives and policies to encourage training and organizational development. Dr. Pradeep Mukherji, Avasant's President & Managing Partner added "For governments around the world, Impact Sourcing takes advantage of business imperatives to expand the supply of labor while simultaneously generating large scale employment for poor and vulnerable people. With the endorsement and backing of governments, buyers and suppliers of IT services have an opportunity to implement a sustainable socially responsible sourcing model at an affordable price."