THE CLIENT

The Company: A leading player in on-demand food delivery

The Company is a leading player in the on-demand food delivery industry and since it launched its app over a decade ago, has rapidly grown to become one of the largest food delivery platforms in North America, connecting millions of customers with local restaurants and businesses. The company has an extensive BPO network globally with >10K front line agents in the standard BPO global footprint, with a small but successful site in northern Africa.

INTRODUCTION

Aligning with corporate mission and Corporate Social Responsibility goals

In a strategic move to align its expansion with both its corporate business objectives and Corporate Social Responsibility (CSR) mission, The Company decided to enter the sub-Saharan African market. South Africa was identified as the target geography due to its socio-economic challenges and the potential for substantial positive impact. Here, we’ll take you through the journey, implementation, and impacts of this initiative.

David Wilson was responsible for spearheading and championing this impact sourcing program, as well as overseeing the overall process to get the operations up and running in South Africa.

THE GOAL

Aligning with corporate mission and Corporate Social Responsibility goals

Copy: The Company aimed to make a meaningful difference through identifying non-negotiable goals to define the “impact” for this initiative, broken down into must-have and nice-to-have criteria.

The “must haves”:

• Living vs. minimum wage. The Company committed to offering a wage significantly higher than the minimum wage, ensuring that disadvantaged employees could support their families and integrate into the formal economy. At the time of launch, the minimum wage in South Africa was approximately 4,000 South African Rand (ZAR) monthly, and the company set its target wage at a minimum of twice this amount to ensure a living wage for its employees.
• Elevating the role of women in leadership. Appointing an African woman to lead the overall program was key to this initiative, as well as ensuring that more than 70% of the management team comprised women and People of Colour. It is a known impact that women will typically reinvest up to 15% of their earnings into the local community.
• Community investment. Additionally, the company sought partners with a proven track record of community investment, for example establishing community centers to provide safe spaces for kids, preparatory academies to help disadvantaged youth be employment-ready, etc.

The “nice to haves”:

• Black ownership. While not a deal breaker, there was a desire for black ownership of the contact center company.
• Creating a hub. The Company also hoped to establish a centralized “hub” in a disadvantaged area to allow employees to work within their communities.

IMPLEMENTATION

Making it happen with the right BPO partner

South Africa was chosen for its high unemployment rates in the Townships of cities like Cape Town and Johannesburg, where the impact of employment would be more significant. The Company partnered with the Mandela Legacy Foundation to identify potential vendor partners, ensuring that the search included both large Business Process Outsourcing (BPO) firms as well as local South African companies with a focus on impact sourcing. David led a rigorous Request for Proposal (RFP) process, evaluating candidates based on their ability to meet the outlined impact goals.

The decision was made to partner with a leading South African BPO partner that specializes in impact sourcing as a mission as the winner of the RFP. The launch location was set in Johannesburg, with plans to expand further based on initial success.

David and his team initiated the onboarding process in Q4 2023 with approximately 100 agents focused on chat interactions. Within six months, the team grew to about 400 employees. An additional call center was opened in the Township of Soweto to maximize local community impact, specifically in the Jabulani area. This was a bold step, bringing the contact center to the Township allows for much reduced commutes for employees and to see more local commerce and businesses spin up around the site.

THE IMPACT

Empowering women leaders and turning 400 jobs into 2,400

The Company's annual investment in the South African economy is estimated at approximately $12 million.

The creation of 400 contact center jobs is projected to generate a total of 2,400 jobs, considering the downstream effects of BPO employment on the local economy. This impact sourcing initiative significantly improved wage equality and provided valuable employment opportunities in disadvantaged communities. What’s more, the goals of empowering women and People of Colour through leadership roles and management positions was achieved, aligning with the Company’s CSR objectives.

WRAPPING IT UP

Setting ambitious goals pays off for everyone

The Company’s expansion into the South African market is a perfect example of a successful implementation of impact sourcing strategies.

By setting ambitious goals for living wages, women in leadership, and community investment, the Company not only met its CSR objectives but also made a significant positive impact on the local economy and community. As well, the partnership with the BPO and the Mandela Legacy Foundation ensured a strategic and effective implementation, resulting in promising growth and sustainable development in the targeted regions.

The Company's dedication to impactful and responsible business practices is setting a benchmark for future expansions and CSR initiatives, not just for themselves but for other enterprises looking to extend their operations to Africa.

Want to enjoy the same results for your business while making a difference in Africa? Let’s talk.