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[Whitepaper] Offshoring Disruptor: Helping Businesses Take Control Of Growth

by Max Tennant
03 September 2015

How can you reap the benefits of an offshore workforce without sacrificing control, speed and agility? It’s time to look to a new breed of offshoring for the answer.

The successful companies of tomorrow are those that embrace new business models that disrupt the way things used to be, unlocking new opportunities for growth along the way. That stands true whether we’re talking about the rise of technology, the sharing economy or, increasingly, offshoring.

Entrusting business processes and knowledge to offshore teams is known to help companies save costs, grow and succeed in a competitive global market. For many CEOs, this is now an undisputed fact.

However, even with cost savings and access to talent, there’s one major factor that continues to hold many firms back from reaping the true benefits of an offshore workforce – the perceived loss of control and visibility.

That’s why many firms are now looking to new breed of offshoring for the answer – managed operations. A pioneering blend of traditional offshoring and incorporating, managed operations is disrupting the norm by helping many organisations take control of their costs, deliver flexibility and enable long-term growth – in an easy and accessible way.

Here’s how managed operations helps tackle today’s business challenges:

Challenge: You want control and transparency over day-to-day business operations

Offshoring is seen as providing cost benefits, but this usually comes with a big compromise: loss of control. Quality control, intellectual property protection, data security, and risk mitigation are seen as the major issues that plague offshoring.

Control is the number one reason why managed operations is an ideal offshoring solution. Managed operations lets you implement the level of control you want, all the way up to 100 per cent. If you have a large team working offshore, you might choose to have a team of expats onsite to oversee the operation, whereas smaller teams can rely on the managed operations provider to manage the day-to-day with 100 per cent access and transparency.

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Challenge: You need access to specialist talent

Traditional offshoring enables companies to tap into and leverage a global knowledge base, giving you access to world-class capabilities you wouldn’t necessarily have access to at home. However, unless you have the right recruitment team, it’s difficult to get access to the talent when you need it and even more difficult to keep them.

Through managed operations, you can handpick their own staff, screen and select candidates just as you would onshore.

Let’s say you want to recruit 20 skilled .NET developers as an offshore extension to your web team. The managed operations provider sources the candidates, using local market knowledge to secure the right skills. However, rather than presenting hundreds of candidates for you to choose from, they screen and present only the very best selection. You can then calibrate these skills according to your exact requirements to make the final selection.

This saves you the considerable time and costs of recruiting in an unknown market, while ensuring you get the best-fit staff for your operation and budget.

Challenge: You want cost savings and long-term growth potential

Traditionally, the main focus driving offshoring globally has been cost. Lower operational and labour costs are consistently among the top reasons why companies choose to offshore.

The managed operations model combines all the cost benefits of traditional offshore outsourcing with long-term growth potential. In other words, you can have your cake and eat it too.

There is no need for large one-time investments as there would be if you were setting up and growing your own offshore operation. That is, there’s no need to expand office space or buy more PCs, furniture and so on. Instead, you tap into those of the offshore provider.

In terms of actual cost savings, working with a managed operations provider in the Philippines can reduce overhead costs by up to 70% or more. These are savings that can be reinvested back into the business to improve core functions, invest in services, and intensify sales and marketing activities – all of which will help build your competitive advantage and improve your bottom line.

managed operations whitepaper

Challenge: You want a dedicated, loyal offshore team

One of the toughest challenges when it comes to offshoring is retaining good staff. It’s hard to operate successfully if you lose half of your workforce each year, and the offshoring industry can be plagued by employee attrition rates as high as 50-60% per year. There are lots of reasons for this, but by far the biggest is staff feeling like they don’t belong to one strong company culture.

However, in managed operations, your recruited team is dedicated to your organisation. For all intents and purposes, they can be considered your employees – an extension to your onshore team.

This brings lots of advantages, including the freedom to embed your own culture and identity, through staff training and workplace culture programs, all of which will have a huge positive impact on motivation, productivity and retention.  

Challenge: You need to be able to upscale or downscale fast  

Speed and agility are essential to success in today’s business world. But while traditional offshoring often provides lots of room to grow, rarely is it as fast as businesses need.

The managed operations model bucks this trend. With a high level of operational flexibility, companies are able to quickly and easily tap into growth potential. You can customise operations according to what you need; short-term projects, ongoing processes or fluctuating seasonal demand. The provider can rapidly hire more people with the right skills and provide access to more desks.

The same is also true of the reverse; you can scale down your operation swiftly, without having to worry about the cost of unused office space and assets.

This kind of flexibility is perfect for those businesses with fluctuating seasonal demands, as well as startups and established businesses experiencing periods of massive growth.

Disruption is critical in every industry. But it doesn’t always have to come from start-ups like Uber and Airbnb. Sometimes it simply comes from asking how you can do things differently and change the usual models to help your business grow. That’s what managed operations is all about. As a new offshoring model, it’s designed to provide the freedom, control and visibility to accelerate your speed to market, refine your offering, and propel your business growth.  And that’s a powerful proposition.

managed operations whitepaper

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About the author
Max Tennant
Head of Sales

With over 17 years' experience in the outsourced contact centre and customer management industry, Max has a passion for helping organsations deliver outstanding customer experiences. Max's expertise extends to the delivery of technology and outsourcing solutions in the Philippines, New Zealand and Australia.

More articles by Max Tennant