First time outsourcing offshore? Read on!

Outsourcing has been a game-changer for so many companies, but let’s face it, it’s not always sunshine and blue sky.  In fact the divorce rate amongst BPOs (business process outsourcing companies) and their clients is higher than the rate of marriage breakdown! As with any relationship, it takes two to tango, yes. But what if you could optimise your chances of success by understanding the reasons for failure, so you can avoid them in the first place? 

I dug deep into the many stormy outsourcing relationships I’ve witnessed throughout my career to uncover some common themes. And what it boils down to is 3 key pillars:

• you need clear vision to know what you want and what the market offers 
• you need to find a great fit with a BPO, not just in terms of your requirements, but with people you can trust
• and finally you need to nurture and build a true partnership, with common goals and shared values.

 

Location Options

With these foundations in mind, there are multiple factors to consider when deciding which location(s) suit your outsourcing needs (which is the step before getting your BPO shortlist together):

• Volumes 
• Hours of coverage
• Skillset
• Accent
• Workforce availability
• Proximity – time zone and flight time
• Geopolitical stability
• Price.

The 2 most popular offshore locations for SMEs are:

Fiji – this link will give you 61 facts and figures about outsourcing to the Pacific’s island paradise, and one of the industry’s best-kept secrets! Fiji has skyrocketed in popularity for BPO in the last few years and is now the operations hub of choice for businesses in industries ranging from travel and retail to accounting, recruitment, construction and health. Fiji is just a few hours’ flight from Australia and in the same time zone as New Zealand. The accent is neutral and the people embody the friendly “bula” spirit. 

Philippines – this link will give you all the essentials about the best-known country for outsourcing! The Philippines is the go-to destination for thousands of Australian businesses. The country has a vast array of BPO options suiting all sizes and industries, operating round-the-clock. Filipinos speak English with an American accent which is easily understood.

Both Fiji and the Philippines have a similar cost structure – expect savings of more than 50% for most roles!

 

Choosing the right outsource partner

Once you know which location you want to outsource to, it’s time to go to market. There are literally thousands of BPOs, and they come in all shapes and sizes – some are great, and unfortunately (as in any industry), some are not!  Dodgy providers can pay an SEO consultant a lot of money and rank on page 1 of Google search, so don’t fall into the trap of thinking they’re good, just because they appear near the top of an online search. It’s a far safer bet to go through a short matching questionnaire to find your “perfect match” BPO. This will ensure you get straight to BPOs that are:

• highly rated by their clients
• have experience in your industry (if applicable) and work type (eg. accounting, customer service)
• cover the operating hours you need covered
• are aligned with your business in size (for example if you’re looking to outsource 1 or 2 FTE, you don’t want to waste your time getting a proposal from a global behemoth)
• aligned with your budget, and
• I also recommend that, if your requirement is offshore, it’s ideal to partner with a BPO that has a sales presence in your own country as this helps mitigate risk and shows commitment from the BPO to your market. 

 

TIP: Find your perfect match BPO by completing this questionnaire.

 

Why you should outsource sooner rather than later 

Whether you’re planning for the busy season, and need a BPO partner to provide overflow support, or whether you’d like to outsource all or part of your operations ongoing, there are so many benefits to incorporating outsourcing into your business strategy. And the sooner you start, the sooner you’ll reap these benefits:

• Cost reduction – depending on the model and location you choose, this will probably be a savings of around 50% offshore, give or take 10%.
• Reduced HR headache – BPOs will help you recruit new and replacement staff, and manage any HR issues, as the staff are on the payroll of the BPO
• Access to talent where there’s a shortage in your own market – Australia has a skills shortage in many areas, where other countries have a talent surplus.
• Speed to market – BPOs have mastered the art of hiring fast – they are constantly hiring and attracting and screening candidates, so you can be up and running quickly.
• Access to global best practice in operations – customer service and back office operations are core business for BPOs and they have it down to an art form!
• Improved customer experience – many companies use at least part of the savings reaped offshore by investing in technology and resources to improve the customer experience. With more staff, for example, customers are waiting shorter times in queue.
• Focus on the core – by outsourcing repetitive or non-core tasks, you get to focus on the big picture of your business and innovating for the future.
• BCP – by having two sites for your operations (some inhouse and some in another country), you create the benefit of business continuity should one site be affected – by anything from natural disasters to power outages.
• Reduced risk of legal action – the BPO takes responsibility for employee issues.
• Better documentation – a side benefit of outsourcing is that it forces you to document processes that are otherwise just in people’s heads. This often leads to questioning of why things are done a certain way, and improvement of processes before they are shipped offshore.
• Flexibility – a workforce in another location gives you additional workforce elasticity to manage surges in volume and seasonal peaks.