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

This paper describes how a startup business process outsourcing (BPO) provider named Liberty Source helped a large U.S.-based client reshore business services from an established Indian BPO provider. Founded in 2014, Liberty Source is a for-profit firm that provides a competitive alternative to offshoring while fulfilling its social mission to launch and sustain the careers of U.S. military spouses and veterans who face various employment disadvantages. Thus, the case describes reshoring in the context of impact sourcing. It addresses key impact sourcing issues pertaining to workforce development, scalability, and impact on employees. The impact was positive: the workers found the employment and stable salary were beneficial, “the military” culture fit well with the workers, and workers received considerable flexibility and greater career options. Liberty Source was able to reduce a client’s costs after reshoring the client’s processes because Liberty Source’s U.S. site had about 20 percent fewer full time equivalents (FTEs) FTEs than the original India location and because Liberty Source received subsidies. We found evidence that the offshore BPO provider and Liberty source experienced difficulties with finding enough skilled staff for the wages offered and both firms experienced attrition problems, although attrition was greater in India.