2015-10

Achieve Lower Costs & Better Focus With Managed Operations

by Max Tennant
 | 
23 October 2015

The pursuit of happiness: how to achieve lower costs and better focus with Managed Operations

We live in a world of soaring consumer expectations. Fuelled by rapid globalisation and the digitisation of practically everything, consumers have gained enormous power and freedom in controlling where, when, what, and how they buy. For businesses that want to compete, the pace is faster, the dynamics more complex and the outcome never more unpredictable.

Normally, this would be enough to make any business collapse in a state of panic. But there are ways to rise to the challenge. Back in the ‘80s, organisations had two strategic choices: cost leadership or differentiation1. Choose wisely and they would reap the rewards. Carry on as they were and they risked becoming ‘stuck in the middle’ without a coherent strategy.

Business woman using tablet outside

But how do you choose between cost leadership and differentiation? How can you look into the future and know which will bring the mightier rewards?

The good news is you no longer need to. Businesses today have the power and the tools at their disposal to both take control of costs and focus on innovating and building a competitive advantage. And with the right tools and processes in place to secure sufficient margin for reinvestment, you can continue building on your foundations for a strong future.

So what are these all-powerful tools?

Traditionally, companies have looked to offshoring in pursuit of cost savings. In fact, lower operational and labour costs are consistently among the primary reasons why companies choose to offshore. And while it’s true that offshoring can deliver significant savings, today it’s more about optimising efficiencies over the long term and improving overall business performance.

A new hybrid breed of offshoring, managed operations, combines the cost benefits of traditional offshoring with long-term growth potential. 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. And at the same time, managed operations helps businesses grow in the right way, so they can get the edge on competitors.

managed operations whitepaper

It comes down to three main factors:

1. Managed operations eliminate long-term costs and the associated upfront investment for facilities and technology incurred if you were setting up and growing your own offshore operation. Instead, you use the office space, assets and support services of the managed operations provider.

2. Managed operations mitigate the risks associated with running an operation in a country where the local legislation and procedures are unfamiliar.

3. Offshore managed operations can provide access to an overseas talent pool, in the event that the home pool of talent is depleted or hard to retain, and at costs that can be significantly lower than in the domestic environment.

These cost savings can be reinvested back into the business to improve core functions, invest in a level of customer experience your customers expect, and intensify sales and marketing activities – all of which will help build a competitive difference and improve your bottom line.  

Focus on core competencies

It isn’t only dollars that can be reinvested back into the business; with a managed operations provider managing all assets and support services, you have more time and resources to better focus on core competencies. Managed operations can also be customised for short-term projects to find out if a particular opportunity is worth pursuing. And ultimately, they can support you to grow faster than you could alone and, therefore, be more responsive to global opportunities.

Growth comes from within

Today’s business world is a battleground, and organisations are relentlessly fighting to innovate, grow and win. But the bottom line is growth can only come from within. To grow and succeed in today’s economy, you need make a conscious commitment to do things in a smarter way and to constantly seek out new ways to turn your organisation into a lean, highly productive and efficient operation.

Download our ebook and learn how companies are taking control of shared services with managed operations.

managed operations whitepaper

1. Porter, M. (1985). Creating and sustaining superior performance. Competitive Advantage. New York: Free Press.

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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