Tag: impact sourcing

From Buzzwords to Reality: Impact Sourcing and AI for Social and Business Advancement | Blog

Discover the transformative power of impact sourcing firsthand through Everest Group’s sustainability teams’ eye-opening visit to a NextWealth center in rural India.

Stepping out of our vehicle after a sixhour trip from our office in Bengaluru, Karnataka, to visit Mahendra NextWealths center in Mallasamudram (near Salem) in Tamil Nadu, little did we know how profoundly our convictions about impact sourcing would deepen. Terms such as automation, AI, inclusion, and sustainability are typically discussed as separate buzzwords in organizations; impact sourcing commendably brings them together. The Everest Group team quickly saw NextWealth’s operationalization of the impact sourcing model seamlessly combines the two worlds. Let’s share more about what we saw during our visit in this blog.

Seeing impact sourcing in action

NextWealth was founded in 2008 to employ graduates in less populated small Indian towns with colleges but limited job opportunities. The founders are Wipro veterans who have made a conscious decision to create opportunities that do not require migration to cities, maintaining social cohesion. Yet the service offerings do not differ from traditional providers, including AI/Machine Learning (AI/ML), Information Technology (IT) services, and Business Process Services (BPS) under a managed services model. Their diverse set of clients include tech, e-commerce, fintech, banking, financial services and insurance (BFSI), and healthcare.

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The Everest Group team with the NextWealth team in Mallasamudram, Tamil Nadu, India.

Leveraging impact sourcing to drive business growth: a three-pillar approach

Everest Group has written extensively about the variety of ways businesses can integrate impact sourcing with their operational strategies. NextWealth specifically achieves this by using a threepillar approach focused on:

  1. Strategic talent location: Hiring the right talent by establishing centers in areas with an ample workforce yet limited career opportunities in those locations
  1. Promising markets: Targeting high-growth services such as data annotation and AI solutions that allow the company to scale operations
  1. Systematic skills development: Creating step-by-step-based training modules for the delivery of services, resulting in increased efficiency and quality, as well as transferable talent

 

Impact sourcing through strategic location selection 

The primary qualifications for impact sourcing are employing typically excluded individuals in a deliberate manner. NextWealth intentionally hires graduates, particularly women, with limited access to quality jobs from India’s smaller cities, creating positive social impact and business gains. The centers are established in towns with colleges, thereby guaranteeing a stream of graduates. These locations also have a reliable internet connection (physical and digital infrastructure), a stable operating and business environment, and cultural ties to the community, including Chittoor, Hubli, Bhilai, Vellore, Puducherry, and Udaipur.  

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NextWealth’s team briefs the Everest Group analysts on how they use data annotation to automate security scans for luggage at airports and railway stations.

Delivery of high-growth services through sustained employment and skilling

Much of the societal discussion about generative AI (gen AI) is the elimination of jobs because of efficiency and automated tasks. Instead, we saw how embracing gen AI can also enable job creation. The NextWealth delivery we witnessed included AI/ML training data solutions, customer experience (CX) design, and auditing these solutions. We saw self-checkout store error analyses, product fraud detection design, and product placement with marketing tools. These services are delivered after rigorous training on the solutions and feedback loops to improve quality/efficiency.

The ultimate objective of impact sourcing is social impact 

Here are some of the social impact outcomes that particularly impressed the analysts and left a lasting mark:  

  • The recruitment focus on women has begun to reshape the perception of their role in society. Their marriage age in surrounding communities has increased by 2.5 years 
  • Hybrid work options have enabled many who might otherwise be unable to pursue careers 
  • The low attrition rate of about 12% is an indicator of a positive workplace culture and employee experience. It has also afforded the opportunity to promote within 

As we set out on our journey back from Mallasarudram to Bengaluru, the fatigue of the trip was overshadowed by the wonder of what we had just experienced. While we are aware of the constant Darwinian evolution of the global services industry, it was truly incredible to witness in practice a firm leveraging impact sourcing to create broader societal impact through a sustainable and prosperous business model. 

Read more about Everest Group’s impact sourcing research and our latest report, Impact Sourcing for Sustainable Development and a Brighter Future: Impact Sourcing State of the Market 2023. Contact the analysts who visited NextWealth: Rita N. Soni, Aiswarya Barjatya, Kanishka Chakraborty, and Mohammed Riyaz.

Impact Sourcing: Empowering Communities, Transforming Business, and Creating Long-term Impact | Webinar

oN-demand webinar

Impact Sourcing: Empowering Communities, Transforming Business, and Creating Long-term Impact

With the talent demand-supply gap continuing to persist globally, providers and enterprises are increasingly leaning on alternate talent acquisition channels and models to address their resourcing needs. Impact sourcing has emerged as a strong and effective option in the global services segment and has become a model of choice for many leading service providers globally.

Watch this webinar as our impact sourcing experts shed light on the successes and trends developing in the impact sourcing space. Participants got a view into the ecosystem of impact sourcing, how providers, buyers, industry bodies, governments, and NGOs are undertaking several of their own initiatives, and the results they are seeing.

What questions did the webinar answer for the participants?

  • How is the impact sourcing model continuously evolving the business case?
  • What are service providers doing to enhance the adoption of this model?
  • How are buyers responding to services delivered by impact workers?
  • What are the emerging trends in impact sourcing and what is the outlook?

Who should attend?

  • Impact sourcing providers
  • Talent and DE&I leaders
  • Sustainability leaders
  • Sourcing and procurement leaders
  • CPOs
  • Category managers
  • Supplier management leaders
Barjatya Aishwarya 1
Practice Director
Hota Sailesh
Practice Director
Soni Rita B
Principal Analyst, Impact Sourcing & Sustainability Research
Aniruddha edited

Impact Sourcing Special Report 2023 | In the News

Impact sourcing is gaining global recognition as a powerful solution for meeting talent needs in a socially conscious way while achieving business results and gaining positive publicity.

Rita N. Soni, Principal Analyst, Everest Group, and Prateek Singh, Practice Director, Everest Group, shared their thoughts, saying promoting diversity, equity, inclusion, and belonging through impact sourcing can also attract positive publicity.

Read more in this special report.

Sourcing with Purpose: Five Steps to Drive Successful Impact Sourcing Initiatives | In the News

The talent market has witnessed significant turbulence over the past few years, starting with the pandemic and hiring freeze to the great resignation and ongoing economic uncertainty. It is becoming increasingly difficult for enterprises to secure a skilled workforce, making the talent and skills shortage one of the top three business concerns in 2023.

This is where impact sourcing steps in – a practice that aligns social and ethical values with business benefits for the betterment of both society and the organization. Learn more about impact sourcing and the benefits businesses can gain in this article by Rita N. Soni and Anik Dutta.

Read on in Irish Tech News.

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