Offshoring or “multi-shoring” of office-base roles has become a hot topic for good reason. Never before in the history of commerce has there been a way to massively increase profit, and at the same time substantially improve services.
Yet many businesses fail to hit their expectations, getting only minor benefits or none at all. Why? The answer always lies in the strategy they took with offshoring. In most cases those who get poor results have no strategy at all – they just try something they heard at a conference or somewhere. With no proper direction or guidance, they drift from mistake to mistake.
Bearing in mind that every 5 roles placed in the Philippines adds at least $200,000 per year to the bottom line, it pays big dividends to invest a bit of time and money to make sure you do it properly.
Unfortunately, too many approaches suggest it is simple to excel offshore – just pick a provider, put cheap bums on seats, and Voila! You’ve magically saved 90% of your costs.
This is absolute nonsense; it’s a sales pitch – no one succeeds that way. It takes work and planning to adapt your business to properly leverage offshoring. A good strategy means less work.
A lot of businesses dabble fearfully at the edge of global-resourcing, not fully appreciating how their establishment will change and improve over a 3-5 year period if global-resourcing is correctly implemented. With no long term vision, they think only as far as the first few roles.
Vision comes from experience, and savvy businesses engage external experience when they do not have it internally. With the benefit of experience, you can understand exactly what value your business can derive from offshoring and factor that intelligence into your broader planning.
Some of your competitors are already well into their initial 5-year offshoring plan. Some of those are growing exponentially, some are moving into cash-flow funded acquisitions – all because they constructed a solid strategy and executed it properly.
Others are still stumbling around, lurching from one problem to the next. It’s really just a choice.