Impact Sourcing: Employing Prison Inmates to Perform Digitally Enabled Business Services

Abstract

Impact sourcing is the practice of training and hiring marginalized individuals (people who normally would have few opportunities for good employment) to provide information technology (IT), business process, or other digitallyenabled services. Perhaps no other population is more marginalized than prisoners. Worldwide there are over six million prisoners, of which over two million are U.S. prisoners. In the U.S., 95 percent of inmates will one day be released. Prison employment programs are interventions aimed at preparing inmates to reenter society. We studied a special type of prison employment program: the hiring and training of prisoners to perform business services using a computer. The impact of prison sourcing needs to be understood in two distinct time periods: while in prison and after prison. Based on a case study at a U.S. Federal Correctional Institution employing 140 inmates in prison sourcing, we found evidence that prison sourcing for business services positively affects the inmates while in prison. The main benefits are good financial compensation, work habit development, productively occupying time, development of business skills, and the elevation of self-efficacy and status. We have almost no data about the impact on future prospects and explain why this gap happens.

Employing U.S. Military Families to Provide Business Process Outsourcing Services: A case study of Impact Sourcing and Reshoring

“…Most studied companies had high retention because employees had few alternatives for other desirable jobs. However, absenteeism was high when members of the marginalized populations lacked childcare or transportation (Accenture, 2012;Lacity, Rottman, & Khan, 2010;Lacity et al, 2012Lacity et al, , 2014Monitor Inclusive Markets, 2011).…”

“…Only two studies in Table 1 examined the impact of impact sourcing on the employees (Accenture, 2012;Lacity et al, 2014). Accenture (2012) examined the impact on the Native American Tribe by looking at jobs created and other economic benefits.…”

“…Accenture (2012) examined the impact on the Native American Tribe by looking at jobs created and other economic benefits. Lacity et al (2014) examined the effects of employment on U.S. prisoners and found benefits related to financial compensation, work-habit development, productiveness, development of business skills, and the elevation of self-efficacy and status. Overall, we need more case studies to better access impact sourcing outcomes (Heeks & Arun, 2010).…”

“…Globally, impact sourcing may employ as many as 561,000 people and may generate as much as US$20 billion (Accenture, 2012;Avasant, 2012;Everest Group, 2014;Monitor Inclusive Markets, 2011). Case studies have examined companies that aim to help such varied populations as the poor, Native American tribe members, ultraorthodox Jewish women, and prisoners (e.g., Gino & Staats, 2012;Heeks & Arun, 2010;Lacity, Carmel, & Rottman, 2011;Lacity et al, 2012Lacity et al, , 2014.…”

“…Some impact sourcers only intended to grow in their existing delivery centers, and others intended to expand considerably by partnering with other providers or by building more delivery centers (Accenture, 2012;Gino & Staats, 2012;Lacity et al, 2012Lacity et al, , 2014. Liberty Source falls in the latter category.…”