Making the Case for Impact Sourcing - Samasource

Victor Neeley, Vice President of Sales14 February 2013

samasource.org

MAKING THE CASE FOR IMPACT SOURCING

TABLE OF CONTENTS The Problem: Global Job Shortage The Solution: Impact Sourcing

The Samasource Model

2

3

40%

60%

THE PROBLEM: GLOBAL JOB SHORTAGE

1.8 billion of them are jobless.

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, clarifying, helpful, world-altering fact.What the whole world wants is a good job.”

Jim Clifton, Chairman, GallupThe Coming Jobs War (2011)

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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.

THE SOLUTION: EMPLOYMENT BY IMPACT SOURCING

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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

THE BUSINESS VALUE OF IMPACT SOURCINGWHY CLIENTS AND BPOS ARE MOVING TOWARD IMPACT SOURCING

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WHAT BPO CLIENTS VALUE THE MOST

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0

1.25

2.50

3.75

5.00

Cos

t

Qua

lity

Free

ing

Up

Res

ourc

es

Glo

bal E

xpan

sion

CSR

Initi

ativ

es

1.72

2.97

3.89

4.51

Most Important

Least Important

Source: Accenture Analysis, Impact Sourcing Feasibility Study, 2012 Based on 322 respondents across 29 countries and multiple verticals

THE GLOBAL IMPACT SOURCING MARKET SIZE

8

0%

3%

6%

9%

12%

2010 2011 2012 2013 2014 2015$0

$8

$15

$23

$30

% Impact Sourcing Represents of Outsourcing Market ShareImpact Sourcing Market Size ($ Billions)

Source: Avasant GSC - December 2011 Newsletter

IMPACT SOURCING IS GROWING QUICKLY

9

10%

OF CURRENT BPO WORKFORCE

780,000

WORKERS EMPLOYED BY 2015

$20 BILLION REVENUEIMPACT SOURCING BY 2015

$ $ $ $ $ $

11%

Impact Sourcing as a Percentage of

Outsourcing by 2015

$

40% IMPACT SOURCING PROVIDERS

EXPECT TO GROW MORE THAN 50%

$

$- OR -

48% OF EXECUTIVES WOULD DEDICATE

1/4 OF BPO BUDGETTO IMPACT SOURCING*

Sources: Accenture, Avasant *Based on 322 respondents across 29 countries and multiple verticals

IMPACT SOURCING OPPORTUNITIES FOR INDIA

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Lower employment costs for BPOs

Leverage existing infrastructure

Less sales / marketing required for established BPOs

TOP 3 BENEFITS FOR BPOs

WHY INDIA?WHY INDIA?

• The BPO industry currently employs 1.2 million people in India

• Low-income people are already performing this work in India; 77,500 current BPO workers can be classified as a part of the impact sourcing sector

• India has a well-developed education system; ability to leverage those with secondary school level education or below

• 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

CHALLENGES & RECOMMENDATIONS

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RECOMMENDATIONSIMPACT SOURCING CHALLENGES

• More difficult for impact sourcing providers to scale; easier for BPOs

• Requires up-front education/training for workers

• Sales/marketing is required to communicate business value

• Challenging to measure impact or limited impact

• Policy implications / government regulations

• Quality must remain consistent

• Lack of infrastructure may exist in rural areas

• Invest in replicable technology

• Invest in standardized, systematic training up-front to reduce long-run costs

• Articulate the cost savings and quality standards to prospects

• Establish impact criteria for hiring to ensure impact is met

• Lobby local government for tax incentives or stipends; job creation will help local economies

• Investment in training, technology and processes will help maintain high quality

• Partner with existing impact sourcing providers in rural areas to leverage existing infrastructure; work in champion states already familiar with impact sourcing

BPO IMPACT SOURCING INVESTMENT CURVE

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COST/BENEFIT

INITIAL INVESTMENT IN EDUCATION & INFRASTRUCTURE

SHORT-TERM MID-TERM LONG-TERM TIME

COST

BENEFIT

IMPACT SOURCING PROVIDER TRADITIONAL BPO PROVIDER

Source: Accenture Analysis, Impact Sourcing Feasibility Study, 2012

THE BENEFITS OF IMPACT SOURCING

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TALENT POOL / WORKERS • Gain employment• Valuable skills training• Break the cycle of poverty• Access to healthcare & education

IMPACT SOURCING PROVIDER

• Cost & quality objectives met• Satisfied clients• Strengthened relationship with local communities

GREATER COMMUNITY

• Positive impact on the economy• Increased purchasing power• Happier and healthier community members

SERVICE BUYER / CLIENT

• Significant cost savings• Growth objectives met• Enhanced CSR• Strengthened relationship with local communities

IMPACT SOURCINGECOSYSTEM

Source: Accenture Analysis, Impact Sourcing Feasibility Study, 2012

THE MICROWORK MODELOUR MODEL FOR IMPACT SOURCING

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OUR MISSION

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Samasource worker, Martha Kerubo Ombwere pictured outside of Nairobi, Kenya

http://youtu.be/s9nVNrV5jS8

SAMASOURCE CONNECTS WOMEN AND YOUTH LIVING IN POVERTY TO DIGNIFIED WORK THROUGH THE INTERNET

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OUR PROGRESS TO DATE

CUMULATIVE WORKERS TRAINED AND PAID

0

1,000

2,000

3,000

4,000

2008 2009 2010 2011 2012 2013PROJECTED

We’ve paid $3M in wages to over 3,700 workers in 6 countries.

HOW WE WORK

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HOW WE WORK

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OUR CLIENTS

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AdviceCompany

Leading technology and data institutions around the world count on Samasource for digital projects

HOW WE LEVERAGE TECHNOLOGY FOR OUR CLIENTS

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Account Manager in SF sets up project on the SamaHub and trains local teams.

1 DESIGN

We return answers to clients via API or as CSV, with real time or batch delivery.

6 DELIVER

Tasks are loaded into our SamaHub technology platform, and sent to delivery centers in a web interface.

2 STAFFWorkers complete tasks, known as microwork, with full project management from the head office.

3 WORKLocal teams leads conduct QA on the SamaHub.

4 QA

Samasource completes a final quality check.

5 REVIEW

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DataData augmentation, research, collection and data mining

Online Content

SEO tagging, unique content creation, product catalog enrichment and image tagging

Transcription

Video and audio transcription services, document indexing, classification and search engine optimization

Machine Learning

Sentiment analysis, custom data sets, quality reviews, data cleanup and image tagging

SAMASOURCE PROJECTS BY VERTICAL

Machine LearningTranscription

Online Content

Data

*2012 REALIZED AND CONTRACTED SALES (EST.)

THANK YOU

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INTERESTED IN PARTNERING WITH US?

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Victor Neeley, VP of [email protected]

www.samasource.org/servicesOffice: (800) 521 6717

2017 Mission Street, Suite 301San Francisco, CA 94110