Is lifting and shifting offshore really going to help you transform?
By Nick Hastings - Director for Business Development & Partnerships, hammerjack
Originally published on LinkedIn
A variety of outsourcing models are now available to SMBs in Australia.
The Australian small, midsize business (SMB) market is one of the most hotly contested in the world and the need to place customers at the center of a business’s focus has become more important than ever.
As technology continues to break down global distance and increases the availability of markets and people capability, competitive advantage is no longer limited by geography. It is here that we've seen large scale growth through businesses lifting non-core processes and shifting them offshore, commonly referred to as outsourcing.
It is no secret that for offshoring, the Philippines has become the number 1 choice. Obviously, this is due to a national English proficiency rate of 92.5% (Cushman and Wakefield, 2015), cultural compatibility and adaptability that comes from a long history of colonization, and a proven track record. The Philippine Business Process Outsourcing (BPO) industry is expected to hit a government revenue target of US$25.5 billion and 1.4 million people employed by the year end. The sector currently contributes 9 percent of the country’s GDP growth with the industry’s projected total income range to reach US$ 40 to 55 billion by 2020. Read more why the Philippines and outsourcing works.
The question: Is lifting and shifting offshore going to help me transform?
The most common model in the Philippines for SMBs is the lift and shift or "Seat Leasing" arrangement. Companies are sold on cost savings, and staff are managed from onshore for a resource plus “seat” fee. You're in control, but you're on your own. With heavy investment, training and enculturation businesses are able to realise benefits.
However, can we expect transformation simply by moving a process?
The new model for SMB (old in the world of enterprise business) is a Fully Managed Service. This includes enterprise level capability, structure, process, technology and scalability, all now available for businesses that previously would not have met the requirements to receive such a comprehensive solution. As with seat leasing the model gives cost saving benefits and is bolstered by a solid foundation of quality, auditing and coaching frameworks, intensive structures, business reviews, calibration sessions and performance management with business intelligence reporting built on experience. Utilising dedicated staff and a shared services group, the outsourcing provider is responsible for business outcomes. You're in control but fully supported!
If you're wanting to try to transform your business by adding another dimension within your internal management, then seat leasing could be for you.
If your preference is to de-leverage core stakeholders, giving them the time back to focus on growth, retention and most importantly customers, then the solution is to give that chore to someone else through expanding the scope of offshoring.
Got more questions? We listed down and answered the top 5 questions we’re usually asked.
Please feel free to reach out if you'd like to continue the conversation.