1. Socially Responsible Outsourcing
Guiding Principles
brought to you by

2. Summary
The $160 billion global services industry has created over 1.5
million jobs
These are mostly concentrated in big cities in China, India
and the Philippines
As a result, over 170 million skilled workers in developing
regions such as Africa and rural Asia are left out
Unemployment is one of poverty’s greatest ills.
Socially responsible outsourcing can help.

3. The Problem
Perception that economically
277% of per-capita income spent depressed regions are open for
on tertiary education in some
countries aid, not trade
+ +
>175M skilled workers in Africa, Few opportunities for
rural India and China smaller firms to connect to US clients
+ +
60% unemployment among No socially responsible
university and high school graduates option that promotes economic
development
= =
Talent Client
Surplus Deficit

4. One Solution: socially responsible outsourcing
Low-income
Foreign capital Small firms
Individuals
$$$
a small slice of the
$160B services
poor people with
outsourcing industry
micro-, small- and untapped talent
mid-sized businesses
Socially responsible outsourcing promotes economic
development and reduces poverty

5. Socially Responsible Outsourcing: Impact
Socially responsible outsourcing creates positive social impact by:
Outsourcing jobs in sub-Saharan Africa
1
Ghana
directly generating jobs for skilled Senegal
workers in low-income regions with Kenya
high unemployment levels Uganda
0 1,000 2,000 3,000 4,000
2 1 direct job 2.5 indirect jobs
indirectly generating jobs for
semi- and unskilled workers
3
reducing skilled-labor emigration, or
“brain drain,” in low-income regions

6. Guiding Principles v1.0
Objective: help low-income and socially disadvantaged people pull themselves out of poverty.
Buyers are encouraged to follow any 2 of the 3 principles in choosing a service provider for
outsourcing work.
Principle Clarification
1
Includes firms located in: (a) a developing country, as
Hire firms in poor or very defined by the World Bank*; (b) an economically
poor regions distressed region (e.g., Ceara, Brazil; Bihar, India)
2
Hire micro-, small- and mid-
Includes firms that employ between 1 and 249 people
sized firms
3
Hire firms that are owned “Disadvantaged” means: belonging to an ethnic or
by, or employ a majority of, religious minority group, living at or under the poverty
disadvantaged people line, physically or mentally disabled
*http://www.imf.org/external/pubs/ft/weo/2008/01/pdf/statapp.pdf

7. What kinds of service providers are included?
Principles Example
1 + 2 Daproim Africa, a 10-person
Hire firms in poor Hire micro-, small- digitization company headed by a
or very poor and mid-sized firms person from rural Kenya
regions
1 + 3 Digital Divide Data, a nonprofit
Cambodian data entry firm that
Hire firms in poor Hire firms that are
or very poor owned by, or employ a employs 500+ socially
regions majority of, disadvantaged people
disadvantaged people
2 + 3 Preciss International, a 15-person
data entry firm headed by 2 women
Hire micro-, small- Hire firms that are
and mid-sized owned by, or employ a Oriak Digital, a 10-person online
firms majority of, research and transcription firm
disadvantaged people
headed by a Kenyan woman
For case studies, see the following slides.

8. Case Study: Daproim Africa
Location: Nairobi, Kenya
• Run by Steve Muthee, a young entrepreneur
from rural Kenya
• Started in 2006 with 4 people
• Types of services: form and survey processing,
transcription, digitization, web development
• Offers part-time work to local university students
and facilities for disabled workers
• Plans to grow to 20-30 people
• First large project branded as a socially
responsible outsourcing firm: $13K
• In pipeline: projects for clients including
Benetech, a Bay Area nonprofit, and the African
Braille Center

9. Case Study: Digital Divide Data
Location: Phnom Penh, Cambodia and Vientiane, Laos
• Nonprofit social venture led by Harvard
graduate Jeremy Hockenstein
• Started in Phnom Penh in 2002 with 25
employees
• Types of services: form and survey
processing, transcription, digitization
• Offers education for sex-trafficked women,
on-site medical care, scholarship program
(financed through donations)
• Currently employs 500+ people at 3x
Cambodian minimum wage
• Operationally self-sufficient with revenue from
services for clients including the Harvard
Crimson

10. Case Study: Preciss International
Location: Nairobi, Kenya
• Run by two women, Mugure Mugo and
Ivy Kimani
• Started in 2002 with 5 employees
• Types of services: online research, data
processing, subtitling, transcription
• Offers part-time work and on-site
training to university students, young
mothers and recent graduates
• Planned growth to 70-80 employees
• 30% of revenue goes to floor
employees
• In pipeline: projects between $10K and
$100K for clients in the US and UK

11. Case Study: Oriak Digital
Location: Nairobi, Kenya
View Video >> http://www.youtube.com/watch?v=bjD97YlNhDU

12. Appendix

13. How the guiding principles were developed
Samasource spearheaded a series of conversations with many organizations from
November 2007 to July 2008 to help develop the “1.0” version of these guidelines.
They are only the beginning. In this first iteration, we left out several important
considerations, such as labor and environmental standards for service providers.
It is our hope that these principles evolve into the first fair trade system for
services.
To learn more, please visit www.sourceoutpoverty.org.
Organizations consulted
Responsible business groups Service Providers
+
Buyers
Academics
Industry
Consultants

14. Outsourcing: Quick Facts
$120-150B global business process outsourcing market
Eastern Europe
USA $3.3B
$90B
China & Southeast Asia
$3.1B
Latin America &
India
Caribbean
$17B
$2.9B
Middle East & Africa
$425M
Source: NASSCOM-McKinsey Study 2005; http://www.indobase.com/bpo/global-market-of-bpo.html

15. About
Mission
to create knowledge jobs for skilled, economically disadvantaged people
to create business value for US enterprises through low-cost, high-quality business
process and IT outsourcing services
Method
a new socially responsible outsourcing concept among
Defining and promoting
US enterprises
small- and medium-sized outsourcing firms (SMOs) in
Training
economically disadvantaged regions
Connecting SMOs to a global marketplace for services
Measuring the social impact of ethical outsourcing

16. Appendix 1 2 3 4 5 6
Samasource team
Leila Chirayath Joy Sun
CEO Initial director
Visiting Scholar, Stanford University
Director, Clinton Foundation HIV/AIDS Initiative
Consultant, Katzenbach Partners
Stanford Graduate School of Business (MBA
World Bank Development Research Group
expected June ’10)
BA, Harvard University (African
Development Studies) BS, Georgetown University (Foreign Service)
Expertise: Outsourcing, social Expertise: Non-profit management and
enterprise, development operations, development
Alice Wang Henry Thairu
Business Development and Finance Kenya Program Advisor
Investment Associate, FT Ventures Deputy Vice Chancellor, Jomo Kenyatta
Investment Banking Analyst, JP Morgan University of Agriculture and Technology
Consultant, UN Industrial Development Chairman, Kenya Council of Science and Tech
Organization PhD, Norwegian University of Science and
BS, Economics, BS Finance, MIT Technology, Trondheim (Thermodynamics)
Expertise: Outsourcing, finance, and Expertise: Entrepreneurship,
business strategy education, technology in Africa
Advisory Board
Premal Shah Darren Berkowitz
President, Kiva Founder & CEO
Emeka Okafor Katherine Barr
Director, TED Global Partner, Mohr Davidow Ventures
Ken Banks Mohamoud Jibrell
Developer of Frontline SMS CIO, Ford Foundation