<img height="1" width="1" style="display:none;" alt="" src="https://dc.ads.linkedin.com/collect/?pid=246732&amp;fmt=gif">
Is outsourcing right for your business?
March 13, 2020

Is outsourcing right for your business?

Written by: Gary Culverhouse

You may have heard quite a bit about outsourcing in recent times; especially outsourcing to lower cost offshore locations like The Philippines. If you do go down the outsourcing path in your business then the benefits can be transformational. Not only can you immediately see bottom line savings, but your local staff will be happy and better retained, and outsourcing will force your business into becoming a productivity powerhouse. However, not all businesses are suited to or ready for an outsourced team.

Review the following checklist to understand if you are outsourcing ready.

  • You want to grow and scale

    If you have plans to grow and scale your business over the coming months and years then outsourcing is something you should definitely consider as part of that plan. In order to scale a business you need to be highly systemised and process driven. This kind of organisation lends itself well to working with outsourced resources and remote staff . Also, the cost benefits of engaging with Philippines-based outsourced staff allows you to grow quickly when cash flow is tight.

  • You are in the cloud

    Any business that currently operates in the cloud is potentially ready to integrate an outsourced team. Cloud-based software provides you with the agility and flexibility to work from anywhere. No longer are staff confined to the same office. Cloud-based systems are incredibly efficient when working with geographically spread teams and the productivity gains, in terms of collaboration and real time communication, are invaluable.

  • You have the culture

    We have seen many businesses who look and feel like they could easily integrate an outsourced team fail at it. This is simply because the corporate culture is such that the business is not ready to work with remote staff and cross-cultural teams. If you think you might get push back from your staff about the idea of outsourcing to the Philippines, then have a close look at your culture. Consider if your team has been successful at implementing change in the past, are they open to new ideas, and will they try new things to drive performance?

  • You have clear functional areas within your business

    In the past, we have been approached by solo-entrepreneurs about leveraging offshore outsourced support for their business. If you are currently doing everything in your business, then how are you going to find the time to manage an offshore team member, let alone a whole team of offshore staff? Your first step should be to hire someone locally to manage business operations (including your offshore staff), while you work on the business strategy and systemising how things are meant to work. The more defined tasks are in your business the better result you will get when outsourcing.

  • Your existing team are carrying the admin burden

    Did you hire your local team for one reason, only to observe them doing something else? Often we see it happen where someone is hired for a job, which is aimed at returning great value back to the business (it might be improving the customer experience, generating more leads, closing more deals, streamlining processes etc.), only to see them overwhelmed by paperwork and compliance tasks. If this is the case for you, then you need to understand how much those staff are costing you! The ROI on this scenario is not great. You should be freeing up your local team’s time so they can focus on what they were hired for and offloading the paperwork, and general admin churn to a lower cost team in The Philippines.

  • You have the cashflow

    Don’t get sucked into the hype. You might be able to employ someone in The Philippines for $600 a month, but they’re likely going to be untrained, working from home with an unreliable internet connection, in an area with frequent power outages, non-existent data management and information security practices, no onsite management and no account management support. Adjust your expectations now and do the right thing by your business by working with a world class, best practice outsourcing provider. Sure, they will cost more than someone working from their house; but the quality, reliability and productivity is worth it.

    If you check all of these boxes then you might be ready to take the leap and really ramp up your business by introducing a Philippines-based outsourced team into the mix.  If you are excited by this idea but not sure where to start, then check out this eBook

Boost your knowledge about offshoring, register for our education series here.