Three Ways the Digital Economy Drives Growth

Robert Kennedy

Before most Americans had ever heard the term “outsourcing,” Dr. Robert Kennedy was already studying the practice. As a respected speaker and writer, Dr. Kennedy has helped bring attention to economic reform on a global basis. For more than a decade, he has reported his research into the impact of outsourcing on businesses and populations in journals.

As Dr. Kennedy stated recently, the emergence of technology has provided the opportunity for rapid growth throughout the world. Furthermore, he’s said there are three ways the digital economy drives growth:

“Linking Workers to Global Services Supply Chains”

Business Process Outsourcing companies in areas like India and China have “dramatically altered the economics of back office work (call centers, accounting and finance, market research, etc).” However, the growth has been so explosive, these countries are experiencing labor shortages and labor costs are on the rise. By focusing on areas like Africa, outsourcing firms (including ISSPs) can more easily find workers while keeping costs low.

“Bringing African Youth into the Digital Economy”

A wide range of work can be performed by younger workers, including video tagging, global information systems work, real-time monitoring of video feeds, and much more. Tasks that might seem mundane to more experienced employees can be outsourced to younger workers to help businesses save money while helping youth gain valuable work skills.

“Benefits Beyond Services Exports”

As impact sourcing gains widespread acceptance, its benefits will be felt around the globe. Eventually, the work of ISSPs will result in “digital clusters” in remote locations, with residents having access to Internet connectivity, training centers, and more. Dr. Kennedy has seen the profound effect digital technology such as smartphones can have on the management of supply chains, optimizing transport systems, and more.

The work of the William Davidson Institute and the Rockefeller Foundation continue to bring to light the positive effects of impact sourcing on populations in both developing and developed regions around the globe. As we’ll see in a soon-to-be-released study, these positive effects are passed on to businesses, which benefit from skilled workers at reasonable prices while helping improve global economies.