Offshoring – The single key to boost up your next financial year
During this time of year, Australian companies of all sizes and all industries are preparing to tackle their annual business and budget planning. While many enjoy the strong momentum of development, other companies might seek efficient business strategies to refresh their operation and witness imminent improvement right in the next financial year. And that is when the tested-and-proven offshoring practice come into consideration.
In this article, ASW Global would dig deeper into how offshoring boost your business performance in the next financial year, plus best practices to make it work.
THE OBVIOUS POWER OF COST-EFFECTIVENESS
Offshoring is famous for and mostly associated with cost savings and they are certainly right about that. According to various reports, offshoring done right can help reduce 60-70% in annual salary costs, depending on which service you choose to offshore. This is even more vital judging that 49% of businesses struggled with cash flow and budget management in the last financial year, according to The Australian Securities and Investment Commission (ASIC). For example, imagine you can build a team of several qualified accountants in Philippines with the same overheads of hiring a CPA accountant in Australia. Even if you choose to offshore specific functions or tasks rather than an entire role, this will ultimately save a business big bucks down the track.
OFFSHORING MEANS MORE TIME FOR CLIENT-FACING TASKS
More and more companies are facing the challenge of balancing their workforce and schedule for back-office tasks and client-facing tasks. That is definitely the case for Australian start-ups and SMEs where the business maturity is not enough to simultaneously handle multiple tasks with limited personnel. Offshoring offers a smarter, more efficient project management solution as value-preserving tasks (e.g. documenting, in-house troubleshooting…) will be delegating to the offshore staff and your onshore teams focus instead on value-added tasks (e.g. consulting clients, improving customer services, planning and optimising…). Besides the financial benefits of such client-oriented approaches, your business will also enjoy higher staff retention rate as teams are staying away from stress and overload.
OFFSHORING BRINGS IN A TALENTED EXTENSION TO YOUR TEAMS
As the competition becomes harsher each year, it is compelling that businesses have to continuously evolve and provide better services, greater customer experience and higher quality. Offshoring is the fastest, most efficient strategy to leverage current expertise or diversify your portfolio with new, in-demand services. This is due to the fact that many offshore vendors recruit highly capable employees who study abroad in Australia and have a thorough understanding, qualifications for each required position. In reality, offshoring now spans from traditional fields like IT, accounting, finance…to more “industry 4.0” services like creative marketing, supply chain, cloud-based solutions…Following such talent extension is, of course, your strength and capability to capture wider target audience, greater business expansion and development in the next financial year.
BONUS: BEST PROVEN PRACTICES TO MAKE OFFSHORING WORK
Across 8 years excelling in the offshoring industry, ASW Global has collaborated and helped over 60 companies spanning Australia, NZ, UK and US recruit and build their talented offshore teams. Through both successes and challenges, we have learnt and collected these 4 best practices, so that you can employ offshoring potentials to the fullest in the next financial year.
• Have a clear operating model
A crystal clear and holistic business strategy will always be the first step when you decide to invest in offshoring. You need to answer which region to go offshore, whether you should base centres in one or more destinations and the appropriate roles to be delegated. Try to seek advice from experienced players in your networking or, like the majority of companies prefer, contact a trusted, Australia-based offshoring provider.
• Prepare a solid offshore risk management
Risk is inevitable in any business decision, and offshoring is no exception. Data security, legal differences, cultural gaps…the list may go on and on. However, tackling all these obstacles through management frameworks is possible and has been mastered by prestigious offshoring providers, who would be ready to help you build a solid one. According to KPMG, it may include clear executive accountability, senior cross-functional governance body and business continuity plans in case there are any disruptions occurring.
• Build a “one team” culture
By promoting “one team” culture, you are committed to ensure that your local and distributed teams are closely collaborating and working as integral parts in a united organisational culture. It could start from preparing onshore teams before you go offshore, daily interaction between teams to selected onsite training and annual teambuilding trip. It has been proved that the “one team” spirit and timely communication lie in the centre of every offshoring success, both for Australia businesses and multinational corporations.
• Apply empowered global process ownership
A more advanced strategy, the global process ownership is mainly suitable for big companies and multinational business entities. You basically hire a global process owner who own an end-to-end process throughout functional, geographic and business unit boundaries. He or she will report directly to a C-level executive or the Board of Directors regarding offshoring performance, budgeting and partnering with offshoring providers – simply everything to make sure your offshoring practice will be successful and beneficial.
Planning to have a leap in the next financial year? Do not hesitate to contact ASW Global today and let us consult you through the whole successful offshoring journey.