Emerging ITO and BPO Markets: Rural Sourcing and Impact Sourcing

This publication explores two overlapping niche sourcing markets: rural sourcing and impact sourcing. Rural sourcing is the practice of locating information technology outsourcing (ITO) or business process outsourcing (BPO) delivery centers in low-cost, non-urban areas. Impact sourcing is the practice of hiring and training marginalized people in ITO or BPO services who normally would have few opportunities for good employment. Rural sourcing and impact sourcing intersect when marginalized people in rural areas are hired, trained, and employed in ITO or BPO businesses.

Based on 62 interviews with providers and clients in the US, Israel, India, and China, this concise study discusses challenges, best practices, and lessons for providers seeking to build ITO and BPO capabilities in remote areas or with unique populations and for clients seeking to buy their services.

Dr. Mary Lacity is Curators' Professor of Information Systems at the University of Missouri-St. Louis. She is also Co-chair of the IAOP Midwest Chapter and Industry Advisor for the Outsourcing Angels and the Everest Group. She has published 14 books and over 100 academic and practitioner papers. Dr. Joseph W. Rottman is the Director of the International Business Institute, an Associate Professor of Information Systems, and a Research Fellow in the Center for International Studies at the University of Missouri-St. Louis. He has conducted case studies in over 40 firms and has been engaged by Fortune 500 firms to analyze their offshore strategies. Prof. Erran Carmel is the International Business Professor at American University, where he also teaches and has served as department chair in Information Technology. He has written over 90 articles, reports, and manuscripts and consults and speaks to industry and professional groups around the world.