Impact sourcing can transform individual lives, create diverse and inclusive workforces for employers, and deliver economic benefits to entire communities. Hearing first-hand about the power of impact sourcing at the Development Dialogue gathering in India was inspiring for our sustainability analyst, who explores what is impact sourcing in this blog.
An idea does not have an impact unless it is directed at some burning problem in the world.” – Gururaj Deshpande, co-founder of the Deshpande Foundation
This intriguing and thought-provoking statement set the stage for the recent Development Dialogue international gathering in Hubli, an ideal setting to better understand sustainable development issues at a grassroots level and to behold rural transformation at its best.
Our Everest team was uplifted to attend this two-day event led by stalwarts like Infosys Founder Narayana Murthy, iMerit Founder and CEO Radha Basu, and DeHaat Founder and CEO Shashank Kumar among many technology, finance, education, and agriculture experts.
Capturing our interest the most from the event was seeing the entire impact sourcing ecosystem and the important role all stakeholders play – starting with non-governmental organizations (NGOs) that provide valuable skills training to the employers that implement impactful innovation and sourcing in principle and practice.
Why is impact sourcing so critical today?
In a world where technology is driving growth and global competition at an unprecedented pace, people in certain rural pockets of the world are left behind. Many individuals simply want to enter the workforce, earn a decent living, and enjoy a dignified life.
While many governments have implemented policies and programs to help marginalized communities, war-torn countries, and radicalized groups that prohibit females from receiving an education or gaining financial independence still sadly exist.
At this critical juncture, people in these communities desperately need direction, skills, and the confidence to transform their lives. The impact sourcing ecosystem plays a critical role in helping these individuals. Let’s explore this growing business practice further.
What is impact sourcing?
Impact sourcing is a business practice where companies intentionally hire and provide career development opportunities to individuals who may have limited access to formal education, resources, and opportunities.
This powerful concept has the potential to change the trajectories of people from marginalized communities. Here are some real-life examples that we heard at Development Dialogue of how impact sourcing is making a difference that left a lasting impression and demonstrated the power of resilience, courage, and determination:
- Vaishnavi, a bright 8th-grade student at a state government high school, is the first girl in her entire family to pursue secondary education. Her impeccable English and story about finding the confidence to talk to her doctor in English about health issues captivated and inspired the audience
- Innus Khan was expected to take over his modest family business in While he yearned for independence, his rural upbringing deprived him of essential job skills. He joined Deshpande Foundation to learn English and digital skills and is now Senior Director of Agriculture Initiatives
- Rukmini, the first female auto driver in a small village in Uttar Pradesh, is a single mother who received a car loan from Rang De, a social investment institution. Rukmini’s reputation as a responsible driver, particularly for school children, has made her the village’s most sought-after driver. Her journey is a testament to perseverance and strength
Impact sourcing benefits Top of Form
By providing opportunities for individuals who may have limited access to formal education or resources, impact sourcing enables job seekers to gain valuable skills and work experience. Not only does impact sourcing transform individual lives, but it also has a multiplier economic impact on families and entire communities.
At the same time, impact sourcing can help companies create diverse and inclusive workforces and provide a cost-effective solution to the current talent crisis. By tapping into this attractive talent pool, businesses can access a new source of skilled labor, often at lower costs than traditional hiring methods.
This can help businesses reduce operational costs while maintaining high-quality standards and increasing retention rates by hiring dedicated workers that studies show stay with the companies longer.
Impact sourcing commitment
Everest Group believes that by working together, we can help create a more inclusive and sustainable global economy. As a signatory of the Clinton Global Initiative’s “Commitment to Action,” Everest Group has pledged to increase the impact sourcing workforce by connecting hundreds of thousands of marginalized individuals to new jobs.
The company has set a goal to grow the impact sourcing market from its current level of 350,000 Full-Time Equivalent (FTE) employees to half a million in three years. To achieve this goal, Everest Group is providing research and enablement tools, sharing best practices, and collaborating with enterprises, service providers, governments, and NGOs.
Everest Group is developing a playbook to help organizations incorporate impact sourcing into hiring practices. Please continue to follow this space for the latest developments and contact Susmitha Devisetty or Anik Dutta with any questions.
For more insights from our team from Development Dialogue 2023, please see Driving Social Transformation: The Power of Impact Sourcing on India’s Rural Economy.
Learn more about how to grow sustainability within your organization in our webinar, Sustainability in the New Year: Follow Through on Resolutions for People and the Planet.