The Blog


The future for businesses who ignore offshoring

I have seen the future …

I’m sorry it didn’t work out well for your business, but let me tell you what I saw. 

I saw an “outsourcing” industry making it easy for business of all sizes to employ global teams. I saw that it was the norm for senior staff in Australia to manage the output quality of skilled offshore teams costing one fifth of a similar team in Australia. I saw Australian SMEs with as little as two offshore staff, and major corporations with offshore teams of 14,000. And believe me, this future was a lot brighter than most people could have imagined in 2015.

But back to you. I know you thought you were doing the right thing when you chose to hire only Australian staff, but didn’t you realise how much the world was changing?  While you were convinced that having an offshore team was a bad idea, your competitors were figuring out how to make it work.

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Global-resourcing is Easy…. IF you know how to do it

In a recent meeting with one of my clients, we reviewed the global-sourcing strategy for his business and calculated the most proactive ways to move it into the next phase.  He had been to both our offshoring seminar and on our Philippines Strategy Tour before hiring his offshore staff in Manilla,  and the two new team members were already churning through simple low-end tasks. Now he was keen to set out his ideas for phase two.

This next step involved hiring web development staff but he was concerned about the expense as the staffing facility  had indicated that the wage for such skills would be triple the cost of his current offshore staff. Although this would be a third the cost of hiring Australians for these roles, it still seemed expensive to him.  

Read more: Global-resourcing is Easy…. IF you know how to do it


Regional businesses thrive with offshore staffing

Australia is one of the most urbanised countries in the world, with around 90% of our population living in cities. This presents an ongoing ongoing challenge for regional businesses that often struggle to find qualified and skilled staff.

Take the example of an accountant in Lismore, NSW, trying to attract good talent.  Lismore is a significant regional city of around 50,000 people with a highly regarded university, but being a regional area it can’t offer the salaries that can be secured 200 kilometres away at Brisbane, or even 100 kilometres away on the Gold Coast. 

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How to save a business from insolvency with offshoring

There is no respite for businesses on the edge of insolvency as the ATO doubles its “pay up or wind up” orders.  This comes on the back of a period of an ongoing high number of business failures due to insolvency, and the resulting personal bankruptcies as directors run out of money to prop up unprofitable businesses.

These sorts of sobering statistics reveal it’s still a tough business environment out there, as economic challenges mix with unprecedented amounts of change from technology disruption, generational spending patterns, and globalisation.

Having worked on implementing global-resourcing in my own businesses and many others over the past 5 years, it does surprise me that this is not more often pursued as a way to solve business financial failure. I have seen businesses both small and large turn around a desperate situation where directors were facing bankruptcy, to soon becoming strongly profitable within a short space of time.

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Outsourcing industry continues to Evolve

One of the things we teach to directors and CEOs in our workshops and on our offshore tours is that “outsourcing” is no longer what most people assume, and the term itself is now misleading.

Around ten years ago the call centre industry began to splinter into different staffing models that suited different sizes and style of business.  At last count there are nine different staffing models that an Australian business could use for employing staff offshore!  One of those nine is the traditional “call centre” that most people imagine is the entire outsourcing industry.

Industries by the very nature of competitive forces, tends to improve over time in the quality of products and services, and to adapt to what any market place wants.

Read more: Outsourcing industry continues to Evolve