[kictanet] Newest Name for AID ? Impact Sourcing ...

Thu Jun 23 16:07:23 EAT 2011

Gilda,
I'm a writer/analyst/professional nosy person, so I'm always interested in
facts. But there are way more interesting stories out there than I could
conceivably tackle, so I'm going to concentrate on the proper business and
country risk stories, and ignore the fluffy heart-warming ones.

I really think that all this well-intentioned 'social business' is
incredibly bad PR for Kenya and Africa: because it's a cute, heartwarming
story, it gets more popular (i.e. non-specialist) attention than a
completely standard boardroom story, but it actually misrepresents what
business in Kenya is.

Edwin,
Capacity is one thing, and I'm sure there are several dimensions to it
(technical, number of seats, education levels etc). Perception also matters:
I remember Nik mentioning that in the beginning, it was just really
difficult to get on the radar screen of bigger outsourcing clients. But my
more general point is as above: There are so many plain-vanilla business
issues to this that I've got enough to research and write about if I want.

Chris,
I've emailed txteagle and will call Mr Eagle in the next few days to get
some details - will let you know. That outsourcing reaches the middle class
doesn't surprise me: If you look at the kind of qualifications and
background you need to work in it, that's probably natural.

And I think there's nothing wrong with employing middle class - or nascent
middle class: There were some interesting stats on what middle class
actually means in Africa (interesting column material as well:
http://the-star.co.ke/business/andrea-bohnstedt/24381-who-exactly-forms-the-middle-class).

Employing middle class doesn't take anything away from anyone - it's
employment, people pay taxes, and at least in Kenya, anyone middle class in
employment has probably a number of family members that s/he helps looking
after.

I see the point that more employment everywhere is desperately needed. I do
wonder, however, whether it makes sense to use a subsidised business model
(which then isn't really a business, and its growth will depend on donations
or 'sponsorship') is the best way of reaching these people. Maybe
outsourcing just isn't the answer to marginalised youth unemployment?

Eugene,
YES to chocolate :)

Happy day everyone,
Andrea

On 22 June 2011 09:10, <godera at skyweb.co.ke> wrote:

> Andrea,
>
> Maybe it would help if Samasource provided some actual facts on this,
> rather
> than the story....
>
> Gilda
> Quoting Andrea Bohnstedt <andrea.bohnstedt at ratio-magazine.com>:
>
> > How did Samasource help BPOs get started? I don't remember Nik Nesbitt
> from
> > KenCall, for example, talking about Samasource (but maybe I wasn't paying
> > enough attention).
> >
> > I do remember Nik Nesbitt and a number of others talking about perception
> > issues: that Kenya is not seen as a BPO market internationally, it's not
> on
> > anyone's radar screen, the operations are still too small to carry weight
> > etc. I very much doubt that an NGO-type outfit like Samasource, with
> people
> > in refugee camps, does much to create a perception of Kenya as a punchy,
> > professional, grown-up BPO player.
> >
> > On 21 June 2011 16:57, Muchiri Nyaggah <muchiri at semacraft.com> wrote:
> >
> > > Not quite aid, leans more towards trade (or traid). Players like
> > Samasource
> > > have helped BPOs here get started.
> > >
> > >
> > > Kind regards,
> > >
> > >
> > >
> > > *Muchiri* Nyaggah
> > >
> > > Principal Partner
> > >
> > > @muchiri
> > >
> > > +254 722 506400
> > >
> > > Semacraft.com
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > >
> > > On Tue, Jun 21, 2011 at 4:34 PM, Agosta Liko <agostal at gmail.com>
> wrote:
> > >
> > >> First, they called is Social Entrepreneurship, Then impact Investing
> > >> ....now its Impact Sourcing .......
> > >>
> > >>
> > >>
> > >>
> >
>
> http://www.rockefellerfoundation.org/news/press-releases/rockefeller-foundation-foster-impact
> > >>
> > >> Press Releases
> > >>  ShareThis
> > >> Rockefeller Foundation to Foster Impact Sourcing in Africa: Poverty
> > >> Reduction through ICT Jobs
> > >> June 17, 2011 / Press Releases
> > >>
> > >> *New York, NY*—A new report funded by the Rockefeller Foundation
> > >> estimates that the field of Impact Sourcing, employing
> socioeconomically
> > >> disadvantaged people in Business Process Outsourcing (BPO) centers, is
> > >> currently $4.5 billion and has the potential to reach $20 billion and
> > employ
> > >> 780,000 by 2015. The report, conducted by Monitor Group, suggests a
> > strong
> > >> business case for Impact Sourcing, which can provide high-quality,
> > reliable
> > >> services at prices that are at least competitive with traditional BPO
> > >> centers and, in some cases, almost 40 percent lower than what
> traditional
> > >> providers can offer.
> > >>
> > >> The findings, contained in the new working paper, *Job Creation
> through
> > >> Building the Field of Impact
> >
> Sourcing<
> http://www.monitor.com/Portals/0/MonitorContent/imported/MonitorUnitedStates/Articles/PDFs/Monitor_Job_Creation_Through_Building_the_Field_of_Impact_Sourcing_6_16_11.pdf
> >,
> > >> *also finds significant potential for poverty alleviation because
> Impact
> > >> Sourcing workers can earn incomes up to 100 percent over alternative
> > >> employment options.
> > >>
> > >> The working paper is part of the Rockefeller Foundation’s Poverty
> > >> Reduction through Information and Digital Employment (PRIDE) work.
> > Through
> > >> PRIDE, the Rockefeller Foundation plans to support the development and
> > >> testing of Impact Sourcing business models, support research on
> > >> interventions and continue to build the network of key Impact Sourcing
> > >> stakeholders to advance the field.
> > >>
> > >> Impact Sourcing employs individuals with limited opportunity for
> > >> sustainable employment as principal workers in Business Process
> > Outsourcing
> > >> (BPO) centers to provide high-quality, information-based services to
> > >> domestic and international public and private-sector clients.
> > >>
> > >> “Harnessing the global BPO trend, PRIDE exemplifies the Rockefeller
> > >> Foundation’s commitment to promoting growth with equity, in which the
> > poor
> > >> and vulnerable have more access to opportunities, such as ICT
> > employment,”
> > >> said Dr. James Nyoro, Managing Director, Africa.  “The Foundation is
> > proud
> > >> to partner with Monitor on this important research, which drives the
> idea
> > >> that employing low-income workers will provide them with sustainable
> > income
> > >> which can lead to positive social outcomes, ultimately helping to
> improve
> > >> livelihoods and build relevant skills for employment in the fast
> growing
> > ICT
> > >> sector.”
> > >>
> > >> *Job Creation through Building the Field of Impact
> >
> Sourcing<
> http://www.monitor.com/Portals/0/MonitorContent/imported/MonitorUnitedStates/Articles/PDFs/Monitor_Job_Creation_Through_Building_the_Field_of_Impact_Sourcing_6_16_11.pdf
> >
> > >> *features case studies on current Impact Sourcing models in Africa,
> India
> > >> and other regions, including those of Foundation grantees like Digital
> > >> Divide Data, a social enterprise with the objective of creating jobs
> for
> > >> poor and disadvantaged youth in Cambodia, Laos and Kenya; and
> Samasource,
> > an
> > >> intermediary that markets and sells Impact Sourcing services to
> clients
> > >> based in the United States and United Kingdom.
> > >>
> > >> “Based on more than 120 interviews across 13 countries with Impact
> > >> Sourcing managers, providers of BPO services, outsourcing experts,
> > >> employees, outsourcing clients, government officials, and other
> > individuals
> > >> linked to the Impact Sourcing space, this analysis creates a shared
> > >> understanding of the current situation, the size of the opportunity
> and
> > >> action agenda necessary to build this field,” said Michael Kubzansky,
> > Global
> > >> Heald of the Monitor Inclusive Markets Initiative.
> > >>
> > >> * *
> > >>
> > >> *The Rockefeller Foundation*
> > >>
> > >> The Rockefeller Foundation’s mission to promote the well-being of
> people
> > >> throughout the world has remained unchanged since its founding in
> 1913.
> > >> Today, that mission is applied to an era of rapid globalization.  Our
> > vision
> > >> is that this century will be one in which globalization’s benefits are
> > more
> > >> widely shared and its challenges are more easily weathered.  To
> realize
> > this
> > >> vision, the Foundation seeks to achieve two fundamental goals in our
> > work.
> > >> First, we seek to build resilience that enhances individual, community
> > and
> > >> institutional capacity to survive, adapt, and grow in the face of
> acute
> > >> crises and chronic stresses.  Second, we seek to promote growth with
> > equity
> > >> in which the poor and vulnerable have more access to opportunities
> that
> > >> improve their lives. In order to achieve these goals, the Foundation
> > >> constructs its work into time-bound initiatives that have defined
> > objectives
> > >> and strategies for impact.  These initiatives address challenges that
> lie
> > >> either within or at the intersections of five issue areas: basic
> survival
> > >> safeguards, global health, environment and climate change,
> urbanization,
> > and
> > >> social and economic security.
> > >>
> > >> * *
> > >>
> > >> *About Monitor Group*
> > >>
> > >> Monitor works with the world's leading corporations, governments and
> > >> social sector organizations to drive growth in ways that are most
> > important
> > >> to them. Monitor Group offers a range of services—advisory,
> > >> capability-building and capital services—designed to unlock the
> > challenges
> > >> of achieving sustainable growth. Monitor brings leading-edge ideas,
> > >> approaches and methods to bear on clients' toughest problems and
> biggest
> > >> opportunities. Headquartered in Cambridge, Massachusetts, the firm
> > employs
> > >> more than 1,500 people in 18 countries worldwide. For more
> information,
> > >> visit www.monitor.com.
> > >>
> > >> Monitor Inclusive Markets (MIM) catalyzes support for market-based
> > >> solutions to social challenges. MIM does this by understanding and
> > improving
> > >> the business models of enterprises currently engaging people that live
> at
> > >> the bottom of the economic pyramid, particularly helping these
> > enterprises
> > >> reach scale and commercial viability. For more information, visit
> > >> www.mim.monitor.com.
> > >>
> > >> ###
> > >> For media inquiries, please contact:
> > >> Svetlana Vaisman
> > >> <svaisman at rockfound.org>            917-975-5318
> > >>
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> > --
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