Efficiency improvement is high on the agenda for most businesses, however many don’t have the time, the headcount or the budget to direct enough attention into this area. What if there was a solution that could truly maximise your return on investment (ROI)?
Katrina Tocco (an Australian-based CFO) has been outsourcing finance tasks to the Philippines for five years. Throughout this period she has refined the processes in her department, leveraging offshore staff to maximise ROI for the business.
When Katrina began her Philippines journey, she had five staff in her Australian team, working on financial tasks for nine different entities. She now has eight locally and three offshore. Contradictory to the common myth that offshoring takes jobs away from Australians, offshoring has not impacted on her Australian headcount. Instead, it has helped to grow her local team.
Process improvements and ROI
After a few months of training, refining processes and strategically shifting finance tasks offshore, Katrina’s Philippines team were successfully completing the traditional accounting functions of the Australian team. This freed up a considerable amount of time for the local team, who were able to shift their focus to more detailed analysis and stakeholder reporting.
The impact of having the time and resources to develop an in-depth understanding across varying financial categories and operating key performance indicators has been profound for the business. The business has benefited from a decrease in costs, due to increased analysis of operational efficiencies across wages, costs of goods sold, procurement, stock purchasing and supplier deals, and staff output and efficiency.
Improving and monitoring efficiencies has also allowed the business leaders to make better business decisions. Decisions that are based on a deeper understanding of the numbers and the areas in which the business is most efficient.
Without the option to add skilled headcount through cost-effective outsourcing, Katrina’s team wouldn’t have been able to allocate the time and resources needed to achieve such transformational efficiency improvement and ROI.
Tips for improving process efficiency through outsourcing
For Katrina’s team, outsourcing was the catalyst for improving efficiencies and freeing up the resources needed to successfully focus on detailed analysis and reporting in their finance-based positions.
What would it mean for your business if your team had more time to focus on the big picture initiatives?
There are a number of key steps you can take to ensure that you’re leveraging outsourcing in a way that drives efficiency and, in turn, the ROI.
Invest the time to train your offshore staff effectively and you will reap the rewards. Don’t skip out on the energy or effort put into the first few months of training, and beyond. You only get out what you put in.
Plan a smooth transition for shifting tasks offshore. Begin by sending over tasks that are repetitive, admin-heavy or have well-documented processes and procedures, before shifting to more complex tasks. This is also best practice for training offshore staff.
Create a roadmap of tasks that your staff member/s should be completing each day, week or month.
Utilise communication tools, such as Zoom and Slack. Don’t let communication become lax or inconsistent. Good communication is key to effective output.
If you’re not working in the Cloud, get on board. Once you’re there, review the programs and systems you use on a regular basis to ensure that you are using the most efficient platforms to meet your business and team needs.
No matter what industry you operate in, outsourcing offshore can provide opportunities to improve processes and efficiencies. Discover the top 10 offshore roles that can add instant value to your business, freeing up your local team to focus on the big picture. Download our free eBook now.