Indigena: Teaching case of IT Impact Sourcing

Abstract

This teaching case introduces the concept of Impact Sourcing, in the context of global IT outsourcing. While IT outsourcing is a well-established management technique, with a history of at least 30 years, Impact Sourcing is a relatively new concept, conceptualized by the Rockefeller Foundation in 2011 and recently defined by the Global Impact Sourcing Coalition. To summarize this case, a First Nations band collaborated with a successful global outsourcing firm, Accenture, to establish Indigena, a Canadian-based impact-sourcing enterprise. Indigena found it difficult to attract, hire and retain qualified Aboriginal employees. The suburban office location in the high-cost Vancouver market may have been a key challenge in building a robust Aboriginal workforce. However, the challenge of winning outsourcing contracts in a competitive market may have been hindered by the Aboriginal workforce, despite the outward positive response of clients to the Impact Sourcing model. Indigena was not able to meet its social goals and at the same time it struggled to attract and retain clients. It was unable to demonstrate profitable business success, resulting in a strategic challenge from its investors.