Small businesses lead outsourcing industry’s social responsibility revolution: OIR 2024

MANILA, PHILIPPINES — The outsourcing industry is witnessing a seismic shift in 2024, with small companies emerging as the dominant force driving corporate social responsibility (CSR) initiatives.

According to Outsource Accelerator’s Outsourcing Impact Review (OIR) 2024, small businesses with up to 5,000 seats accounted for an astounding 94.7% of all impact initiative submissions. In stark contrast, large companies with over 30,001 seats contributed just 5.3%. This marks a significant leap from 2023 when small firms comprised 88.5% of submissions.

This trend highlights the growing role of smaller outsourcing companies in driving community development, education, and inclusion initiatives, challenging the assumption that only large corporations have the resources to make a difference.

Economic empowerment and inclusive growth

The rise of small firms as agents of change reflects their ability to foster economic empowerment and inclusive growth, particularly in developing economies. By promoting offshore opportunities for small and medium enterprises (SMEs) and developing targeted support programs, these companies are reducing economic disparities and encouraging entrepreneurship.

Key metrics from OIR 2024 highlight this impact:

• Job creation: Small firms are creating new employment opportunities in underserved regions.
• Income growth: They are contributing to income growth in service-provider countries.
• SME participation rate: Their growing presence is empowering smaller ventures to compete on a global scale.

The expected outcome is a more equitable global economy where smaller players drive innovation and inclusivity.

Award-winning initiatives by small BPOs

Several small firms stood out in the OIR 2024 for their innovative and impactful programs, earning Gold Awards in various categories:

Making an Impact with 1% by Booth & Partners Philippines Inc.

Recognized for its excellence in Community Building, this initiative donates 1% of company revenue to support local communities through projects that focus on education, environmental sustainability, and livelihood development. 

This program exemplifies how small firms can make a big difference by dedicating a portion of their earnings to societal progress.

Health & Wellness Program with a Charity Match by Arcanys

Awarded Gold for Health and Wellness, Arcanys implemented a program that combines employee wellness activities with charitable giving. 

For every wellness milestone achieved by employees, the company donates to local charities. This dual-impact approach promotes both employee well-being and community health.

OP360 Cares by OfficePartners360 (OP360)

Honored with the Gold Award for Education, OP360 Cares has invested over $118,000 in nine underserved schools across the Philippines and Colombia. 

The program focuses on improving educational infrastructure and access to technology while actively engaging employees through volunteer work.

DEIB Program by Innodata Knowledge Services, Inc.

Recognized for Diversity, Equity, Inclusion (DEI), this initiative fosters an inclusive workplace culture by implementing inclusive hiring practices and cultural sensitivity training. 

The program also supports underrepresented groups within the company and local communities.

These initiatives highlight how small companies are leading the charge in addressing critical social issues while aligning their efforts with global sustainability goals.

Volunteerism over financial contributions

The report also revealed a notable increase in volunteer engagement among outsourcing firms. In 2024, volunteer hours surged by 73.3%, reaching a total of 82,808 hours compared to 47,791 hours in 2023. This shift toward hands-on involvement reflects a deeper commitment to grassroots-level change.

However, financial contributions to social initiatives declined significantly from $5.5 million in 2023 to $821,430 in 2024. Analysts suggest this could indicate a strategic pivot toward direct community engagement rather than monetary donations alone.

Education as a top priority

Education initiatives emerged as the top priority for outsourcing firms in 2024, representing 42.1% of all submitted initiatives. 

These programs focus on bridging skills gaps and preparing individuals for employment, aligning with the United Nations Sustainable Development Goal (SDG) 4: Quality Education. 

The report also noted that many smaller firms are investing heavily in human capital development through training programs and partnerships with educational institutions. Such efforts highlight the transformation of the outsourcing industry’s social impact as smaller firms leverage their agility and community ties to address pressing societal challenges.

A new era of responsible outsourcing

As socially responsible outsourcing continues to evolve, collaboration between small and large companies could redefine the industry’s future. Smaller firms’ agility and creativity give them a competitive edge, but partnerships with larger corporations may help scale impactful initiatives globally.

With their innovative approaches and localized efforts, small businesses are setting a new standard for socially responsible outsourcing — one where profit and purpose go hand in hand.