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A brief history of Impact Sourcing and why it’s important

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ADEC Workforce | Sep 19, 2023
A brief history of Impact Sourcing and why it’s important

Explore the history of impact sourcing and how it can make a difference to outsourcing professionals today.

What is Impact sourcing?

The meaning of Impact Sourcing has evolved since the term emerged in the early 2000s. In a nutshell, Impact Sourcing is a talent-sourcing approach that creates employment opportunities for individuals with otherwise limited economic opportunities.

Because the concept overlaps with similar ideas, like socially responsible outsourcing, it has evolved beyond its original focus. Now, it encompasses broader social and impact goals, including gender equality and supporting local communities.

Impact Sourcing encompasses offshore and in-country sourcing. Offshore, the model often generates jobs for marginalised individuals in emerging economies (e.g., India, Kenya, the Philippines, Zimbabwe and more).

The in-country approach includes creating employment by bringing operations to areas with low employment or employing from marginalised groups, like long-term unemployed, veterans and people with at-home care responsibilities.

Recently, the definition of Impact Sourcing has come under debate (and rightly so). The challenge of outlining a set of parameters which are prescriptive yet open to a range of applications has led to hurdles in its success measurement. As James Donovan, Group CEO of ADEC Innovations, a business process outsourcer (BPO) with an Impact Sourcing focus, reflected in a post following IAOP’s Outsourcing World Summit in 2023 – “Is Impact Sourcing about numbers? Is it about pure philanthropy?”.

Grasping the history and evolution of Impact Sourcing approaches can help shape our understanding of the current and future applications.

History of Impact Sourcing

The concepts linked to Impact Sourcing have been around for several decades. Back in the 1970s, the practice of “rural sourcing” emerged in the US to provide employment opportunities to individuals in rural areas, and since then, the concept has grown.

The 2000s – The term emerges

In the years preceding the 2000s, offshoring gained ground with outsourcing partners establishing centres in countries like India and the Philippines.

The primary driver for offshoring was to deliver operational cost reduction without compromising service quality or customer satisfaction. Moving work offshore gave rise to millions of new skilled jobs, enhancing economic conditions for workers, families, and communities and fostering a burgeoning middle class.

This era birthed Impact Sourcing – a strategic approach that intentionally utilises sourcing tactics to channel these economic gains for widespread positive impact.

The term “Impact Sourcing” was coined by the Rockefeller Foundation to describe this more intentional approach to employment that prioritises social impact.

The 2010s – The development

The Rockefeller Foundation played a vital role in the early development of Impact Sourcing by providing funding and support to organisations in this space. It created Digital Jobs Africa, a $100 million initiative, to help disadvantaged youth access employment opportunities.

In addition to global work, the foundation supports the development of the outsourcing sector in Africa by providing job matching to help connect skilled youth and employers and supporting the business environment in countries to make them better places for outsourcing. 

This period also saw more outsourcing providers set up initiatives and operations in ways that drove Impact Sourcing uptake, for example:

The 2020s – The renaissance

Having been halted by the pandemic, Impact Sourcing initiatives are once again gaining momentum. As a growing number of companies and organisations recognise its potential to create positive social and economic impact with this sourcing model.

Also, technology and increased internet connectivity are making it easier to connect with remote workers. Cloud-based solutions open new engagement avenues for Impact Sourcing models with more reliable real-time communications channels and work streams.

As the focus on Impact Sourcing grows, a need for industry standards and certifications and coalitions has also become more evident. Recently, various initiatives have sprung up to address this need from various angles:

Impact Sourcing today and into the future

As an idea, Impact Sourcing is gaining more prominence, but across the vast BPO landscape, this sourcing model is still accountable for only a fraction of jobs.

The model has the potential to address a wide range of social and economic challenges by expanding job opportunities, improving economic development, alleviating poverty, promoting social equality and environmentally responsible practices.

Adopting Impact Sourcing still faces hurdles, encompassing impact measurement, skill development and market acceptance. Addressing these challenges requires collaborative efforts from various players, including governments, businesses, NGOs, local communities and Impact Sourcing providers.

The good news is that the movement towards multistakeholder collaboration is happening right now. Since the start of 2023, we’ve seen more stakeholders on the BPO buyer, provider and industry body side join the Impact Sourcing conversation. The next step remains to ensure we can go from discussion into more tangible action, creating a new chapter in the history of Impact Sourcing.

The ORIGINAL article is written BY ADEC WORKFORCE for Intelligent Sourcing.

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ADEC Workforce

Global brands and specialized enterprises trust ADEC Workforce to deliver remarkable outcomes through outsourced services. From simple tasks to complex process management – we do the hard work at optimized costs so your business can thrive.

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    Land Conservation & Sustainable Agriculture

    ADEC provides management services for projects focused on land restoration, agriculture, and biodiversity conservation, ensuring sustainable practices are implemented effectively.

    • Reforestation: We manage reforestation projects, overseeing planning, tree planting, and long-term maintenance to ensure restored forests thrive.
    • Sustainable Agriculture: Our project management includes implementation of sustainable agricultural practices that enhance food security, reduce environmental impact, and improve soil health.
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    • Biodiversity Conservation: Our team manages biodiversity conservation efforts, ensuring the protection and enhancement of ecosystems within land-based projects.

    Marine & Coastal Restoration

    For marine and coastal projects, ADEC offers specialized management services to protect ocean biodiversity and promote sustainable use of marine resources.

    • Coastal Restoration: We implement coastal restoration projects, from rebuilding mangroves and wetlands to restoring natural barriers that protect shorelines.
    • Marine Ecosystem Management: Our team ensures the successful management of projects focused on preserving and restoring marine ecosystems, such as coral reefs and seagrass beds.
    • Sustainable Fisheries: We manage projects that implement sustainable fishing practices, balancing ecological health with the needs of local communities.
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    Urban Sustainability & Smart Cities

    ADEC provides management services for urban sustainability projects, ensuring the successful execution of climate resilience initiatives, smart city technologies, and infrastructure improvements.

    • Energy Retrofit: We manage energy efficiency retrofitting projects for buildings, helping reduce energy consumption and improve environmental performance.
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    Circular Economy & Waste Management

    ADEC offers project management for circular economy initiatives, focusing on recycling, waste management, and sustainable supply chains.

    • Recycling Projects: We oversee the implementation of recycling projects, ensuring materials are efficiently processed and reintegrated into the supply chain.
    • Waste-to-Energy: Our team manages waste- to-energy projects, converting waste into renewable energy sources, reducing landfill waste, and supporting energy security.
    • Green Supply Chain Management: We manage the transition to green supply chains, ensuring sustainable sourcing, reduced emissions, and environmental best practices.
    • Supply Chain Transparency: We oversee projects aimed at improving supply chain transparency, using technology and monitoring systems to ensure responsible sourcing and sustainability.

    Financing & Funding Support

    ADEC offers tailored financing and funding support for companies, organizations, and projects committed to creating positive environmental and social impact. We assist impact-driven enterprises in securing the necessary resources to fuel their sustainable initiatives, with a focus on land conservation, ocean protection, urban sustainability, and the circular economy. Our services are designed to help investee projects access capital, funding mechanisms, and partnerships that align with their sustainability goals.

    Land Conservation & Sustainable Use

    We support land conservation projects by helping investee companies and organizations secure the funding they need to achieve their goals in sustainable land management.

    • Carbon Credits & REDD+ Funding: We assist in securing carbon credits and REDD+ (Reducing Emissions from Deforestation and Forest Degradation) funds to help finance reforestation and land conservation projects.
    • Impact Investment Facilitation: We connect land conservation initiatives with impact investors to provide the necessary financial backing for their projects.
    • Green Bonds Development: We help structure and secure green bonds tailored to sustainable land use, unlocking capital for environmental stewardship.
    • Public-Private Partnerships: We work to establish partnerships between the public and private sectors to finance large-scale land restoration projects.

    Ocean Conservation & Blue Economy

    For organizations focused on marine conservation and sustainable ocean use, ADEC offers specialized support in accessing critical funding sources.

    • Blue Carbon Financing & Conservation Grants: We assist in securing blue carbon financing and ocean conservation grants, ensuring that marine sustainability projects have the necessary financial backing.
    • Marine Impact Investing: We facilitate access to impact investing for projects dedicated to marine conservation, supporting initiatives such as sustainable fisheries and ocean biodiversity protection.
    • Blue Bonds Development: We provide expertise in developing blue bonds, a financing tool designed to support sustainable ocean-related projects.
    • Public-Private Partnerships: We promote collaborations between private enterprises and government bodies to finance marine renewable energy and other sustainable blue economy ventures.

     

     

    Urban Sustainability & Green Infrastructure

    Our services empower projects that aim to transform cities into sustainable, climate-resilient urban areas through access to specialized funding and investment.

    • Green Bonds & Climate Finance: We assist urban sustainability projects in securing green bonds and climate finance to fund initiatives such as renewable energy, smart cities, and green transportation.
    • Urban Impact Investing: We connect urban sustainability projects with impact investors, ensuring access to capital for projects that reduce carbon footprints and improve urban resilience. 
    • Infrastructure Bonds Development: We help create and secure infrastructure bonds that support green building projects, sustainable water management, and resilient urban infrastructure.
    • Public-Private Partnerships: We promote collaborations between municipalities and private investors to accelerate sustainable urban development.

    Circular Economy & Waste Management

    For organizations focused on reducing waste and promoting circular economy practices, we provide support to access funding and financing mechanisms.

    • Green Finance for Circular Projects: We help secure green finance for circular economy projects, such as recycling, sustainable manufacturing, and waste reduction initiatives.
    • Impact Investing for Circular Initiatives: We facilitate connections between circular economy projects and impact investors who prioritize resource efficiency and sustainability.
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    • Public-Private Partnerships: We seek out partnerships between the public and private sectors to finance large-scale waste management and recycling programs.

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    Land Conservation & Sustainable Agriculture Technology

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    • Satellite Monitoring for Deforestation: We use satellite technology to track deforestation in real time, providing accurate data on forest cover changes and identifying areas at risk of deforestation.
    • Geographic Information Systems (GIS) for Spatial Analysis: Our GIS solutions offer spatial analysis capabilities for land use, helping stakeholders visualize and manage land resources efficiently.
    • Data Management and Analytics: We provide data solutions to track and analyze land use patterns, deforestation rates, soil health, and water resource management, enabling more effective decision-making.

    Marine & Ocean Monitoring Technology

    For ocean and marine conservation projects, ADEC offers cutting-edge technologies to monitor marine ecosystems and ensure the sustainable management of ocean resources.

    • IoT-Based Ocean Monitoring Systems: We deploy Internet of Things (IoT) devices to monitor ocean health, marine biodiversity, and environmental parameters in real time, allowing for dynamic management of marine ecosystems.
    • Satellite Oceanography for Remote Sensing: Our satellite-based remote sensing technology provides detailed data on ocean temperatures, sea levels, and marine resource health, supporting long-term ocean conservation.
    • Data Management and Analytics: We offer data solutions for monitoring ocean health, marine biodiversity, and fisheries, providing insights into the effectiveness of marine conservation efforts and sustainable fisheries management.

    Urban Sustainability & Smart City Technology

    ADEC provides advanced data and technology solutions to help cities and urban projects enhance sustainability, improve efficiency, and build resilience against climate challenges.

    • Smart Sensors for Air Quality, Noise Pollution, and Traffic Congestion: We deploy smart sensors to monitor and manage urban environmental indicators such as air quality, noise levels, and traffic, supporting more livable cities.
    • Smart City Management Technology Platform: Our smart city platform integrates data from multiple urban systems, enabling cities to manage energy, water, waste, and transportation systems more efficiently.
    • Data Management and Analytics: We provide data solutions to track urban emissions, energy consumption, water usage, and waste generation, helping cities optimize resource use and reduce environmental footprints.
    • Real-Time Geospatial Data and Dashboards: Our dashboards offer real-time geospatial data on socio-economic developments, territorial inequalities, and access to public facilities, helping city planners make data-driven decisions.
    • City Digital Twins: We offer digital twin technology to create virtual replicas of cities, enabling real-time monitoring, simulation, and optimization of urban systems for enhanced sustainability and resilience.

    Circular Economy & Supply Chain Technology

    ADEC offers innovative technology solutions to drive transparency, traceability, and sustainability within circular economy projects and global supply chains.

    • Blockchain for Supply Chain Transparency and Traceability: We implement blockchain technology to provide transparent, traceable data on supply chain activities, ensuring responsible sourcing, ethical practices, and reduced environmental impact.
    • Digital Twin Technology for Product Lifecycle Management: Our digital twin technology enables companies to monitor the entire lifecycle of their products, from design to recycling, supporting circularity and sustainability.
    • Data Management and Analytics: We provide data solutions to monitor waste generation, recycling rates, and supply chain sustainability, enabling organizations to improve resource efficiency and reduce waste.

    Policy Development & Advisory

    ADEC provides policy development and advisory services to guide companies, organizations, and projects driving positive environmental and social impact. We support impact investors and their investees in shaping, implementing, and aligning policies that promote sustainability across land management, ocean conservation, urban resilience, and the circular economy. Our expertise ensures that projects not only meet regulatory requirements but also lead the way in sustainable innovation and practice.

    Land Conservation & Sustainable Use Policies

    We offer expert advisory to support sustainable land management practices that enhance environmental resilience and biodiversity while ensuring long-term sustainability.

    • Sustainable Land Management: We provide policy frameworks for land conservation, balancing development needs with environmental preservation.
    • Reforestation/Afforestation: We assist in developing policies to promote reforestation and afforestation, crucial for carbon sequestration and restoring ecosystems.
    • Carbon Sequestration: We offer guidance on policies that enhance carbon capture through forest management and other nature-based solutions.
    • Biodiversity Conservation: Our advisory services help organizations adopt policies that protect and enhance biodiversity within landscapes.
    • Climate Change Adaptation: We support the development of strategies and policies to mitigate the impacts of climate change and improve resilience to climate-related risks.
    • Sustainable Agriculture: We advise on sustainable agricultural policies that promote soil health, water conservation, and responsible land use.
    • Sustainable Water Use & Conservation: We help develop water use policies that prioritize conservation and sustainable management of water resources in agricultural and land-based projects.

    Ocean & Marine Conservation Policies

    For organizations committed to protecting marine environments, ADEC provides guidance on policy development that safeguards ocean ecosystems and supports sustainable marine economies.

    • Marine Protection Regulations: We offer advisory services on establishing and enhancing marine protection regulations that conserve ecosystems and promote sustainable use of ocean resources.
    • Sustainable Fisheries Policies: Our team assists in the development of policies that ensure responsible and sustainable fishing practices, protecting marine biodiversity and supporting coastal economies.
    • Ocean Biodiversity Protection: We provide guidance on policies aimed at protecting and restoring marine biodiversity, ensuring healthy and resilient ocean ecosystems.

    Urban Sustainability & Smart City Policies

    Our advisory services in urban sustainability help cities and urban projects design and implement policies that promote energy efficiency, climate resilience, and sustainable growth.

    • Smart City Policy Toolkit: We provide a policy toolkit for smart city development, helping cities adopt innovative technologies and practices for sustainability.
    • Urban Sustainability: Our advisory services include policies for energy efficiency, sustainable water use, and resilience in urban infrastructure, supporting climate-smart growth.
    • Climate Resilience – Adaptation & Mitigation: We assist cities in creating policies to address both climate change mitigation and adaptation, ensuring long-term urban resilience.
    • Sustainable Water Use & Conservation: We help cities implement water conservation policies that promote efficient use and long- term sustainability of water resources.
    • Renewable Energy Adoption: Our advisory supports the creation of policies that accelerate the adoption of renewable energy sources, reducing reliance on fossil fuels and lowering urban carbon footprints.

    Circular Economy & Waste Management Policies

    ADEC supports organizations in developing policies that promote circularity, reduce waste, and encourage sustainable procurement practices.

    • Circular Economy Policies: We help design policies that facilitate the transition to a circular economy, where resources are reused, recycled, and reintegrated into the supply chain.
    • Recycling & Waste Reduction: Our advisory services support the development of recycling policies and waste reduction strategies that minimize environmental impacts and enhance resource efficiency.
    • Sustainable Sourcing & Procurement: We provide guidance on adopting sustainable sourcing and procurement policies, ensuring that organizations prioritize environmental and social responsibility in their supply chains.

    Impact Measurement & Reporting

    ADEC offers a suite of Impact Measurement & Reporting solutions designed to help impact investors evaluate the environmental and social outcomes of their investments. Our services are tailored to assess projects across land, ocean, urban sustainability, and the circular economy, providing transparent and reliable data that ensures measurable impact. We enable investors to track key performance indicators (KPIs), monitor progress, and report on the tangible impact of the projects they fund.

    Land Conservation & Reforestation Metrics

    We provide detailed measurement and reporting on land-based projects, focusing on carbon capture, water use, and ecosystem restoration.

    • Carbon Sequestration Metrics: We measure the amount of carbon captured through reforestation and land management projects, ensuring alignment with carbon offset goals.
    • Water Usage Tracking: Our team tracks water consumption across projects, monitoring efforts to conserve and use water sustainably.
    • Assessment of Reforestation Efforts: We provide data-driven assessments of reforestation activities, evaluating tree survival rates, ecosystem restoration progress, and biodiversity impacts.
    • Assessment of Conservation Efforts: Our reporting includes evaluations of biodiversity conservation initiatives, tracking their effectiveness in protecting endangered species and ecosystems.

    Marine Conservation & Blue Carbon Monitoring

    For ocean and marine projects, we specialize in tracking the health of marine ecosystems and quantifying carbon capture in coastal environments.

    • Blue Carbon Sequestration Monitoring: We measure the amount of carbon sequestered in coastal ecosystems like mangroves, seagrasses, and wetlands, providing key data on blue carbon storage.
    • Biodiversity Monitoring: Our team monitors marine biodiversity, assessing the effectiveness of conservation efforts to protect ocean life and restore marine ecosystems.
    • Assessment of Conservation Efforts: We provide evaluations of marine conservation projects, ensuring that efforts to preserve coastal and ocean habitats deliver measurable environmental benefits.

    Urban Sustainability & Climate Resilience Reporting

    ADEC offers impact measurement services for urban sustainability projects, focusing on energy efficiency, emissions reductions, and climate resilience.

    • GHG Emissions Tracking: We track greenhouse gas (GHG) emissions from urban sustainability projects, evaluating the effectiveness of emission reduction strategies and reporting on progress toward net-zero goals.
    • Water Usage/Reduction Tracking: Our services include detailed monitoring of water consumption and reduction efforts in urban areas, ensuring sustainable water management practices.
    • Evaluation of Green Buildings: We evaluate the environmental performance of green buildings, measuring energy efficiency, resource use, and sustainability certifications.
    • Evaluation of Resilience Measures: Our reporting assesses the effectiveness of climate resilience initiatives, ensuring that cities are prepared to adapt to and mitigate the impacts of climate change.

    Circular Economy & Waste Management Metrics

    For circular economy projects, we provide specialized measurement and reporting on waste reduction, resource efficiency, and supply chain sustainability.

    • Waste Diversion Measurement: We track the amount of waste diverted from landfills through recycling, reuse, and waste-to-energy initiatives, measuring the environmental benefits of waste reduction efforts.
    • Supply Chain Emissions Measurement: Our team assesses the carbon footprint of supply chains, measuring emissions at each stage and identifying opportunities to reduce environmental impact.
    • Resource Efficiency Measurement: We track the efficiency of resource use across circular economy projects, measuring how effectively materials are reused, recycled, and conserved.
    • Assessment of Waste Reduction Initiatives: We evaluate the success of waste reduction programs, reporting on key metrics such as waste diversion rates, resource recovery, and circularity in product life cycles.
    • Assessment of Supply Chain Environmental and Social Impacts: Our services include assessments of supply chain sustainability, evaluating both environmental and social impacts to ensure responsible sourcing and operations.