The cutthroat business environment you are in right now can make the management of your operational expenses a constant struggle. Especially if you are living in New Zealand or Australia, a KPMG article explained that “cost controls in an inflationary environment” will be a challenge moving forward for businesses residing in this country. But what if you could optimise your operations, access a global talent pool, and even gain a strategic advantage—or, should I say, cost-savings? Look no further than offshoring.
The offshoring industry transcends the outdated notion of simply relocating factories overseas. It has now become the strategic transfer of business functions to another country. This transfer can encompass a diverse range of activities, from customer service and IT support to back-office tasks and creative design. This growing industry gave rise to the Philippines becoming a premier offshore location amongst businesses in the world.
Establishing a partnership with an offshore company in the Philippines can unlock a multitude of benefits. Businesses go offshore to experience these benefits, which include reducing your operational expenditure versus the traditional method of offshoring while simultaneously gaining access to highly skilled professionals who may not be readily available in your local market.
Offshoring can free up valuable resources, allowing you to focus on your core business activities and drive innovation. The extensive research conducted by the McKinsey Global Institute indicates that offshoring can generate cost savings of up to 50% for certain business functions. This can have a significant impact on your bottom line, freeing up capital for strategic investments.
Explore the possibilities of offshoring and transforming your business. Let's delve deeper and see how it can address your specific challenges.
Expanding Your Business Horizons: Exploring Offshoring Options
Offshoring presents a strategic approach to optimising your business operations by leveraging resources in another country. These are the various ways New Zealand and Australian businesses can benefit from this strategic approach.
Offshoring Services (Business Process Outsourcing - BPO):
Business Process Outsourcing, or BPO, involves delegating specific business functions to a qualified external provider located overseas. These functions encompass a diverse range of activities, from handling customer enquiries to managing data entry and accounting.
Benefits for New Zealand and Australian Businesses:
Reduced Fixed Costs: BPO allows you to tap into a talent pool offering competitive rates, leading to significant cost reductions in salaries, infrastructure, and employee benefits.
24/7 Operations: Leveraging the Power of Time Zone Differences! By strategically partnering with an offshore team, you can extend your customer service reach or ensure uninterrupted data processing, providing a clear competitive edge.
Many New Zealand companies have successfully partnered with call centres in the Philippines, renowned for their excellent customer service skills and cultural affinity with the Australasian region. On the other hand, Australian businesses have leveraged virtual assistants in Southeast Asia for tasks like data entry, document processing, and web research, freeing up internal resources for higher-value activities.
Offshoring Knowledge Work:
The landscape of offshoring is undergoing a transformation. Businesses are increasingly recognising the value of offshoring knowledge-intensive tasks that extend beyond basic data entry. This includes specialised fields such as:
Accounting and Administrative Services: Tasks like bookkeeping, tax preparation, payroll processing, and administrative support (scheduling, data management) can be efficiently managed by qualified professionals overseas. Countries like the Philippines and Indonesia boast a highly skilled workforce in these areas.
Software Development and Engineering: Offshoring coding projects or specific development stages has become commonplace. This allows access to a wider talent pool with expertise in various programming languages and technologies.
New Zealand engineering firms have successfully offloaded specific coding projects to offshore teams, allowing them to focus on core design and development tasks. While Australian accounting firms leverage offshore bookkeeping services, freeing up their internal staff for client consultation and tax strategy development.
Beyond BPO and knowledge work, businesses can explore offshoring other back-office operations like human resources (HR) management and IT support. This allows streamlining internal processes and freeing up valuable resources to concentrate on their core competencies, ultimately driving innovation and growth.
Tailoring Offshoring to Your Business Needs
Selecting the optimal offshoring strategy for your company is paramount to ensuring a successful outcome. Here are some key considerations to guide your decision:
Cost Optimisation: A Strategic Move, Not Just a Price Tag
While cost reduction is a compelling advantage of offshoring, it shouldn't be the sole driver. Conduct a comprehensive cost analysis, factoring in potential hidden expenses like training and communication overheads.
Skills and Expertise: Partnering for Proficiency
Clearly define the specific skills and experience required for the tasks you intend to outsource. Partner with a provider boasting a qualified workforce that demonstrably aligns with your precise needs.
Communication: Bridging the Distance
Effective communication is the cornerstone of a successful offshoring arrangement. Consider time zone differences, language fluency across your teams, and preferred communication channels to ensure seamless collaboration.
The Importance of a Reliable Partner
Beyond these considerations, partnering with a reliable offshore provider is critical. Conduct thorough due diligence, assess their track record in your industry, and prioritise companies with robust communication practices and a demonstrably strong commitment to quality.
Your Offshourcing Advice: Offshoring for Business Growth
Offshoring presents a powerful tool for Australian and New Zealand businesses to thrive in today's competitive environment. By strategically transferring specific business functions overseas, you can unlock a multitude of benefits:
Reduced Operational Expenditure: Leverage a global talent pool offering competitive rates, leading to significant cost savings in salaries, infrastructure, and employee benefits.
Enhanced Talent Acquisition: Gain access to a wider pool of highly skilled professionals who may not be readily available in your local market.
24/7 Operations: A Competitive Edge: Leverage time zone differences to extend customer service reach or ensure uninterrupted data processing, providing a clear competitive edge.
Focus on Core Competencies and Drive Innovation: Free up valuable resources to focus on your core business activities and drive innovation.
We've explored the diverse range of offshoring options available, from Business Process Outsourcing (BPO) for tasks like customer service and data entry to knowledge work in accounting, software development, and engineering. Businesses can even streamline back-office operations like HR and IT support through offshoring.
The key to success lies in tailoring your offshoring strategy to your specific needs. Carefully consider factors like cost optimisation, required skills, and communication strategies before partnering with a reliable offshore provider.