Outsourcing Is a Noble Career Path that Brings Immense Pride and Opportunity: IAOP’s Michael Nacarato

When Michael Nacarato entered the workforce after serving in the U.S. Army, a career in outsourcing wasn’t even on his radar.

Like many in the industry, his journey began serendipitously, starting as an entry-level agent making outbound phone calls for a retail bank.

Today, with more than 25 years of experience, Nacarato has designed and implemented world-class outsourcing, offshoring, and third-party risk management programs for leading U.S. and multinational financial services companies.

Currently leading Third Party Risk Management efforts for Transamerica in the Fort Worth, Texas area, his career has taken him across the globe, establishing offshore captive and vendor operations in India, Costa Rica, Jamaica, and the Philippines.  

“I went from the headset to the Head of Third-Party Risk with two passports filled with global stamps,” says Nacarato, COP-GOV.

By embracing every opportunity the industry presented and leaning into the guidance of mentors who believed in him, Nacarato transformed a call center job into a lifelong profession that has brought him immense pride, a global perspective, and rapid upward mobility.

“I truly believe that outsourcing is an honorable profession,” he says. “I have seen it change lives and create entirely new middle classes in many countries. It opened the world to me in ways I could have never imagined.  It is the ultimate reward for embracing my call center opportunity all those years ago.”

A passionate advocate for the sector, Nacarato frequently shares his expertise as a speaker, Global Ambassador, and Chair of IAOP's Strategic Advisory Board.

PULSE magazine sat down with Nacarato to get the heartbeat on global sourcing and discover why it remains such a powerful field of opportunity.

Did you plan on entering outsourcing as a career? The short answer is no.  When I got out of the Army, I earned my associate’s degree in business administration and started my career in banking. 

Share how you entered this space.  Like many others, I took a serendipitous route into the outsourcing profession. I began my career as a call center representative for a major New York Bank, making outbound calls to our new small business customers. Over each of my first five years at the bank, I received five promotions. I progressed from an on-the-phone agent to Vice President overseeing the Retail Banking Call Center. Then, in the year 2000, we were informed that the bank would not renew the leases and that the call center would relocate to Texas. I was given the opportunity to relocate to Texas and build out the operations at our new facilities while managing the decommissioning of the New York center, which I did. Due to the successful migration and expedited stabilization of the operations, I was then presented with another career opportunity. I was tasked with identifying an offshore location and a vendor to partner with to establish a third call center for the company.  Since then, I have been in the outsourcing and vendor risk management space.

What are some key points in your career that have led you to your current position?  Without a doubt, my success has been attributed to a succession of amazing leaders who took a vested interest in my career and presented me with several career-advancing opportunities. In parallel, I developed a work ethic that produced results and a leadership style that positioned me to take on these opportunities.   A key differentiator was that I embraced outsourcing and recognized early that it was an area of the bank where hard work leads to rapid advancement. Embracing outsourcing as a noble career and immersing myself in the industry through IAOP have led me to my current position. I’ve gained immense knowledge and insights from collaborating with so many industry leaders and IAOP Leadership Hall of Fame members. 

What advice would you give to young professionals interested in a career in outsourcing? First, recognize it as an “honorable profession,” not just for themselves but for how it has changed lives around the globe. Secondly, I would seek out a mentor through IAOP. Outsourcing and vendor risk management are part art and part science. A mentor is tremendously valuable in learning the art of the profession. Be invested in continuous training and earn your IAOP Certified Outsourcing Professional (COP) designation. Another critical success factor is investing the time and energy to immerse yourself in learning about the culture and geography of the destination you are about to outsource or offshore to. This is definitely a people business.

Tell me more about the importance of mentoring. Mentoring is one of the most significant accelerators of careers. This is especially true when it’s a symbiotic relationship in which the experience enriches both the mentee and the mentor. It is a wonderful gift for a mentor to invest time and energy in helping develop the skills of the next generation.

Was there any key advice you received along the way that led you to where you are? I will always credit the self-discipline I learned in the Army as the foundation for my work ethic and my valuing of teamwork.  Then it was all about observing the great leaders I have had who took a special interest in me and paying it forward to others throughout my career. Actions speak louder than words; people may not remember exactly what you said to them, but they surely remember how you made them feel. Building strong, cohesive teams is critical to success. I did not get to where I am today by myself. I had incredible teams along the way, and we achieved great things together.

What are the biggest changes or evolutions you've seen in this industry?  The most prevalent point is that global sourcing is an absolute necessity, whereas when I started, it was taboo even to say the word "outsourcing." Disruptors like COVID have changed the thinking that you needed to have your offshore teams in dedicated, secure rooms without paper or phones to maintain a safe working environment. This has opened the opportunity to engage uniquely skilled resources distributed across geographies. It is also great to see companies embracing Impact Sourcing as a strategic service-delivery model rather than a charitable gesture. IAOP has played a major role in educating companies globally on this win-win business model. And of course, the most significant accelerator of change in the industry is AI, both positively and negatively.

What skills, experience, and knowledge are critical for a sourcing professional today?  Industry knowledge and emerging technologies, contract structures, risk management, and interpersonal communication and relationship-building are all skills needed for success. 

Where can you gain that expertise - what training/certification is available? As I mentioned before, obtaining a COP certification from the IAOP is a start. Since obtaining my COP, I have sponsored several of my team members at my previous employers to get their COP.  It gives them a sense of confidence and legitimacy when sitting across the table from their business partners. It also helps them obtain trusted advisor status.

Looking back, what are some of the biggest surprises or things you didn't expect in your career journey?  Hands down, it is the incredible places around the globe that I have been able to visit and build relationships. Leading outsourcing operations has taken me to wonderful places such as the Philippines, India (I have visited 13+ cities and seen the Taj Mahal twice), Sri Lanka, Scotland, Serbia, South Africa, and Costa Rica.  I have also been blessed to hold the IAOP role of Global Ambassador, which has taken me to places such as Vietnam, the Netherlands, China, and Germany. 

For more on Nacarato’s views on the critical importance of relationships in outsourcing, view the OWS26 session on Breaking Bad (Outsourcing Relationships): How to Strengthen Alignment, Build Trust, and Thrive Together.

Watch the session (Available to Professional Members)

Download the presentation