20 years ago the BIG corporate businesses outsourced their very structured processes to countries that have a pretty good education system and LOW WAGES – like $100 a week.
This developed a competitive edge over smaller businesses.
10 years ago Employment portals – like oDesk came along. Suddenly Smaller employers in the Western Countries could access these better educated people with really LOW WAGES – like $100 a week.
DIFFERENT NEEDS AND STYLES
Smaller Employers however are different to the Big Corporates.
First many tried “outsourcing” by getting a Third party provider to run “set processes” but that failed. Outsourcing got a bad name.
Many tried hiring home-based workers and operate them as a team but that had issues. Virtual Workers have another set of issues.
Then along came another Offshoring Solution – Staff leasing or Co-Managed. Your people, in your space, working to your instructions, with your Business Culture – and for many it worked.
SMALL – MEDIUM BUSINESS OPPORTUNITY
Picture a team of smart thinking people who understand your “business”. More productive, willing and focused, well educated, English speaking workers that is 80% lower costs than in the West. Working together in one space so they can share the Tacit Knowledge within your business.
When I started my staff-leased, co-managed team, productivity went through the roof!
Today there is massive growth with Small Western Businesses moving almost any role that faces a computer to countries that have a pretty good education system and really LOW WAGES – like $100 a week.
Cloud Computing with computerised solutions has dramatically improved remote management. Managing people from home is now very viable.
As all this continues to develop, the “type of work” being Offshored is changing. It started with “voice” in Call centres, then back office (repetitive) Administration processes. And now the online skills like graphics, website building and computer coding etc.
Now the ‘White Collar’ skills like Accounting, Engineering and Law are on the rise. Next thing is Businesses in the East will sell directly to Businesses in the West. Yes, you will end up paying $20 an hour for full Accountancy services. Right behind this will be the integration of “Automation or Robotics”. Yes they are remotely driving Mining Trucks. Farming Vehicles will be next.
New Business models are also emerging.
With it Micro home based business, Small, Medium, Large and even Public Listed businesses are all availing this opportunity.
Big businesses are faltering – small businesses are on the rise. The borders are dissolving, the Business world is becoming one. Margins are being squeezed – the change has arrive.
The Philippines is 3rd largest English speaking Country in the World. Today it has 1.2 million workers employed by Western Business in the Offshoring Industry. This is growing by around 25% a year. With a population of 107 Million People, two thirds under 15 years of age producing 500,000 College Graduates a year, all Educated in English – the supply is assured.
53% WHO TRY … FAIL
There is a problem.
About 53% of those in the West who try Offshoring FAIL. This usually comes from a lack of awareness or understanding. This article mentions 3 different solutions you could use when Offshoring. In fact there are 7 different solutions. Each has their place with points for and against.
AVOID THE PITFALLS
To be successful you should understand what works and doesn’t work – and WHY. It also helps to understand the Culture differences and how you can work with these differences.
Mike O’Hagan has been using workers in the Philippines for over 10 years. He also owns an Australian Business that recovered from GFC by moving its back office to the Philippines. He now owns 6 businesses in 4 Countries. Today he shares what he has learned via www.MikesBusinessTours.com
On a 3 day intensive business visiting and learning TOUR you will learn how to Offshore. You will also discover new business models and opportunities for your business.
The Tour is now 3 years old and very successful. It is a unique, effective, hands-on way to learn.
Suitable for any sized Business Owner or Manager you will learn:
- The appropriate prices to pay
- How to avoid the common traps
- What Filipino employees are really good at, and not so good at
- The most common mistakes – which are usually at the Australian end
- The effect of the accent, the limitations or considerations needed with Filipino English
- What others are doing with GlobalSourcing to improve their businesses
- And much more ……….
To receive notice about dates when they are announced, click here. It is vital to act quickly when the notification arrives. As these tours fill quickly due to their limited numbers and specialised information.
Learn Offshoring before you start – it saves lots of tears.