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Is Impact Sourcing the Solution to Unemployment?

The Business Process Outsourcing Industry offers small and large companies' alleviation from the front and back-office tasks through cost-effective services and a plentiful supply of talent and equipment. BPO providers can deliver high-quality service, but like most businesses, it struggles with rising unemployment rates. Developed and developing economies both face job shortages and high turnover rates. The global employment trends show that one in three workers worldwide is either unemployed or impoverished. The difficulty in keeping social stability and sustainable growth forces nations to find solutions addressing this issue.

One method that appeared in recent years is the practice of impact sourcing. This article will explore the definition, its development, and how it can potentially reduce the global unemployment rate.

What is Impact Sourcing?

Most people see impact sourcing as a branching subsection of the BPO Industry. The idea involves hiring and providing career opportunities for candidates with a disadvantaged background. Developmental training and instructional courses are provided to people with limited chances to compete with other job seekers.

Developing countries have a pool of hidden talent that outnumbers the number of available job opportunities. This socially oriented outsourcing strategy grants employment to marginalized populations and makes a positive economic impact.

Only a few BPO businesses are switching up their strategic model to maximize societal and business outcomes. As technology continues revolutionizing how people work and do business, the emphasis on people diminishes. It is one of the few business practices that combat poverty and serves vulnerable communities.

How Can Impact Sourcing Benefit the BPO Industry?

Today, impact sourcing is an evolved form of BPO services that carries a layer of social justice. This generation currently has a high interest in diversification, and companies basing their choices around the state of the economy and making altruistic efforts are likely to receive more brand recognition.

Here are some benefits BPO providers can expect when implementing impact sourcing into their business plan.

High-Performing Workforce

Raw talent can exist in every part of the world, but without the proper education or background, finding a stable job becomes difficult. Most economically depressed areas do not have enough job opportunities, and when they do, the qualifications and standards are too high to get through the screening process.

Impact-sourcing service providers (ISSPs) give these workers a chance by targeting eager, work-oriented candidates to undergo training and onboarding programs. Despite history and background, these providers place an investment in chosen candidates to build trust and company morale, hoping to receive incredible productivity and quality in return.

Low Attrition Rates

The BPO industry is notoriously known for employee turnover and the ongoing pursuit of scouting talented workers. A BPO employee works for a certain time until they have gained enough job experience to search for a higher salary and employee benefits.

The impact sourcing sector has 15-40% lower attrition than traditional BPO companies. The investment in these workers brings about a sense of loyalty to the company and a determination to meet all standards and expectations.

ISSPs who receive help from low attrition rates do not spend added costs on recruitment or training as they can keep their workforce with employees grateful for experience and opportunity.

Social Impact

Corporate goals are the main differences between BPO companies and impact sourcing services. While BPO providers focus on maximizing productivity and reducing labor costs, ISSPs tackle wealth distribution and supply relief to struggling communities around the globe.

The impact sourcing model has the potential for long-term sustainability and growth over traditional outsourcing models. Within the global nature of supply chain coordination, primary suppliers face low salary wages in exchange for overwhelming workloads. Impact sourcing grants a measure of relief towards the economic pressures found in these job fields.

The model is still in its first stages of development, but in 5-10 years, impact sourcing can potentially employ over three million workers globally to stabilize the economy and promote higher learning.

What are the Challenges of Impact Sourcing?

Impact sourcing presents itself as a socially responsible solution to socio-economic issues, but the reality is that most BPO companies continue to uphold their traditional values that have supported their profitability and financial gains.

The benefits of impact sourcing are good, but here are some challenges the model will struggle with in today’s market.

Securing Clients

Impact-sourcing service providers can find clients who share the same values and give chances to the model, but most clients are not willing to risk their business to have influence.

At the end of the day, people address their own needs before involving themselves with others. CEOs and entrepreneurs still have a company to run, and changing to a socially conscious business model would not help them financially.

Looking from the outside, ISSPs have yet to prove a record of accomplishment to prove the model is worth an investment. Impact sourcing companies also lack scalability for large organizations and cannot accommodate heavy workloads, losing a part of potential profits.

Purpose Over Performance

ISSPs have a social responsibility to provide opportunities to the less fortunate and develop programs and training sessions to inspire and build strong relations with the local workers. While these efforts are well-meaning and supply generosity towards developing communities, the downside can affect quality and work performance. Impact-sourcing service workers might not be trained enough to tackle front or back-office tasks and can return services with poor or inadequate quality.

Traditional BPO companies use their equipment, resources, and vendors with expected results, delivering the promise to clients that the quality will remain consistent. The aim of impact sourcing is noble, but at the expense of performance, the model still needs refinement in its practice and methods.


Impact sourcing as an idea is incredibly wholesome and acts as a potential solution to rising unemployment rates across the globe. Third-world countries can become self-sustaining and open job opportunities to those suffering and in need of work and purpose.

However, the concept requires a stable reputation before rivaling the traditional values of BPO companies. Hopefully, ISSPs can set up a new line of work that is both profitable and repairs the global economy.



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