The 2009 Outsourcing World Summit

Transcription

1 The 2009 Outsourcing World Summit Digital Divide Data & the Model of Socially Responsible Outsourcing: Realizing the industry s potential for those who need it most JEREMY HOCKENSTEIN, CEO & Co-founder of DDD The 2009 Outsourcing World Summit February La Costa Resort & Spa Carlsbad, California

2 Introduction IAOP named Socially Responsible Outsourcing a top industry trend of As we have seen recently, ethical business practices are crucial to company performance.

3 Outline What is the impact of outsourcing today? How could Socially Responsible Outsourcing deepen this impact? What are the challenges to this model? What can the success of DDD and others teach us? What can you do to leverage the potential impact of outsourcing?

4 Scope of outsourcing today: how much? BPO & IT Outsourcing Market Unrealized Market Potential, $305 billion Current market India, $26.2 billion (60%) Others, $18.8 billion (40%)

5 Impact of this work in India Economic growth: India s outsourcing industries account for 6% of recent GDP growth Job creation: Indian outsourcing industries directly employ 700,000 people, and indirectly employs 2.5 million people IT sector: In the last ten years, IT has grown from having a negligible presence to accounting for more than 5% of GDP

6 Applying India s success to other developing countries Today Potential Currently, impact of BPO & IT outsourcing work is huge, but largely confined to India Extending the reach of this outsourcing to more developing countries would multiply its positive regional externalities BPO & IT outsourcing work ideal for traditionally marginalized countries: (1) they have no access to major shipping routes, and (2) their economies are too weak to create enough local demand to support growth

7 Defining Socially Responsible Outsourcing Socially Responsible Outsourcing (SRO) is an outsourcing model that operates strategically to yield social benefits in addition to its traditional commercial revenues. Specifically, an SRO firm will: be located in a marginalized region employ from a disadvantaged population use its work to create opportunities for its staff

8 Examples of SRO Digital Divide Data, a nonprofit with outsourcing operations in southeast Asia Samasource, an organization that connects companies to outsourcers in poor countries Byrraju, a BPO firm that operates in rural India

9 Benefits & Challenges Benefits Low cost structure Diversification of risk Higher retention Ethical practices Social impact Challenges Political risk Infrastructure Availability of talent

10 DDD addresses these challenges Battambang, Cambodia Vientiane, Laos Phnom Penh, Cambodia Since 2001, DDD has used its model to empower the poorest citizens of southeast Asia to break their cycle of poverty by delivering worldclass IT services to global clients.

11 What we offer our staff

12 What we deliver to clients Affordable IT Solutions: High-end digitization services to commercial publishers and libraries Records & Document Management for business and governments Monitoring & Evaluation survey solutions for international NGOs and organizations Dedicated client support in North America Social responsibility

13 Looking ahead DDD s success proves the viability of the SRO model we have shown how operations conducted in impoverished countries like Cambodia and Laos can be both profitable and socially beneficial. Can we build on the success of experiences like DDD s to bring the SRO model global?

14 Ways in which you can help to take SRO mainstream Establish operations in a developing country like Rwanda, which would usually be ignored in outsourcing decisions Work with a nonprofit like DDD to recruit from and train a more disadvantaged population in your current location Dedicate a portion of your outsourcing work to be done through an SRO firm

15 Conclusion In today s business climate, social responsibility is more crucial to success than ever. By bringing opportunities to places that wouldn t have them otherwise, SRO magnifies the social impact of outsourcing. As IAOP members, our challenge now is to work together to take SRO global.