Why Offshore Outsourcing is the Next Big Industry Trend

Productivity shouldn’t be limited by geography says Salmat’s general manager, business development, Max Tennant.
When CR Digital’s General Manager Stuart Woods arrives at work in Sydney’s Crows Nest he turns on his computer and says good morning to two-thirds of his staff.
Woods is one of a growing number of Australian small businesses that has staff based in Manila. He talks to them constantly during the day via Skype. Woods says that in many respects it is better than having them sitting in another room as he has constant access to them.
CR Digital is not a big business but Woods has used staff in the Philippines to perform pivotal tasks in his business for almost six years. Woods was an early adopter of using more affordable staff offshore and using the savings to grow other divisions of his business.
Just like any other organisation, the teams talk and work together regularly via Skype, using cloud-based systems such as Dropbox. All new employees are formally trained and the senior staff regularly visit the Manila-based team.
CR Digital is just one of many Australian SMEs using resources overseas – something that is often regarded as accessible only to large businesses.
As reported in Salmat’s recently released report, Beyond Borders, nearly 80% of businesses using offshore resources had retained or increased their local staff, with the average increase in their domestic workforce of more than 200%.
In Australia and across the globe, offshore outsourcing of business processes and knowledge is on the rise, with Australia among the larger economies to see this growth. The Gartner Forecast Report, Business Process Outsourcing, Worldwide
Australia’s largest companies have taken advantage of a globalised workforce for many years, but it’s only recently the practice has really taken off with SMEs. An increasingly competitive business landscape, rising employment costs and flexible new business models from outsourcing providers have been the key drivers behind this change.
It may be surprising for some, but cost cutting is often not the main driver for offshoring. Almost two-thirds of the survey respondents said their primary objective was to expand their overall team. Others listed the ability to access specific knowledge and skills, extend their reach globally, or enable the ability to scale as new business comes in the door.
This research has also been supported by Deloitte’s recent predictions that it will be the measure of service rather than the cost savings that will be the focus for organisations using outsourcing over the next 12 months.
Outsourcing back office functions such as administration and finance support from places such as the Philippines enables Australian companies to put their time and resources into hiring more people in roles designed to grow the business, such as sales or marketing.
The first step to determine whether outsourcing may be right for your business is to better understand your business competencies. Getting the most value from outsourcing begins with an understanding of your competitive advantage, and then looking at work functions that could perform better and more cost-effectively. By delivering non-core competencies offshore, you can not only operate more efficiently, but be confident that these business processes are in expert hands.
The next step is choosing the right outsourcing partner. While it is critical to build a sound understanding of the specific functions the outsourcer will inherit, what makes the partnership successful is the team and processes the outsourcer will dedicate to your company. Is there a good cultural fit with your organisation? Can they demonstrate commitment to a strong relationship with clients, including trust, proactive communication and effective issues resolution?
While offshore outsourcing has traditionally been the domain of large multinational companies, size is no longer a barrier for Australian firms who want to drive competitive advantage.
Latest News

Man Of Many Joins The Australian Press Council
Listing a Mumbrella Award under the accomplishments of Man of Many guarantees scorn from the B&T editorial team.

Ubiquity Lab Expands Team: Nidhi Rajan Joins As Director Of Digital & Performance
It's always good to have someone keep tabs on whether you're underperforming.

Elsa Pataky Hits The Cover Of T Australia
The article compares Pataky's life balance to cocktail ingredients. B&T's recipe would be gin, schnapps and regret.

PlayStation Australia Put NSW And QLD Head-To-Head In Gran Turismo 7 Campaign Via Creative PR Agency Poem
For anyone who wants to take a car and go through the city streets at 200 m/ph.

“Be Very Careful!” Liberal MP Tim Smith Threatens To Take Action Against Teenage Journo
Maybe this little conflict can be resolved in the principal's office or over decaffeinated coffees.

State Of Origin Flasher Upstages ABC Reporter During Live Cross
It's always impressive when a supporter manages to be more badly behaved than any of the players.

Audible Announces First Nations Content For NAIDOC Week
First Nations content should be consumed all year round. But get this in your ears as a start!

10’s Star-Studded Pilot Showcase Features Courtney Act, Abbie Chatfield & Melissa Leong
Channel 10's latest pilot season line-up just screams! We want more Logies next year.

Amazon Staff Ask The Company To Pull The Plug On Books Calling Trans People ‘Mentally Ill’
If Amazon listens it will be the equivalent of putting your coffee mug in the dishwasher at work: the bare minimum.

McDonald’s Australia Announces Digital Sauce Quest
In a Willy Wonka-esque move, Maccas is sending the public on a quest for sauce, something stoners will be familiar with.

B&T Awards Adds NEW CTV Category!
Here at B&T, we love a new category as much as Kochie loves droning on about the economy.

Sunday TV Wrap: State Of Origin Game Two Is Down 100,000 Eyeballs From Last Year
If you knew our TV Reporter, you'd understand the investigative journo skills she used to know who won Origin.

Meta Shuts Down On Employees Talking About Abortion Rights, Report Says
Meta would seemingly prefer workers to talk about MySpace then Abortion Rights.

“Simple Screw Up!” The Daily Aus Mistakes German Flag For Aboriginal Flag In Editing Blunder
Here at B&T, we'd find this mistake way funnier, if we weren't all so confused about how commas work.

UN Women’s New Campaign Highlights Humanity’s Priorities
The new UN Women's Campaign is a nice reminder that some people do want women to have rights.

How To Test A Business Idea: A Step-By-Step Guide
Surely the best way to test a new idea is to go down to the pub and see if anyone calls it, "a bit shit."

Google Gives Relocation Choice To States With Abortion Rights For All Its US Employees
Packing up and moving your entire life to a place that isn't still stuck in the stone ages is totally a thing now.

Carat Lands $10m Funding For MOOD Tea’s Woolworths Launch
MOOD tea is clearly targeted at younger audiences who can say stuff like "yass" while downing some earl grey.

Cannes Lions: Oglivy Named Network Of The Year, Dentsu Bengaluru Picks Up Agency Of The Year Award
All winners walk away with industry bragging rights and probably a nasty hangover too.

Former Foxtel Exec Launches On-Demand Service Oh! Jazz
If you want to feel better than everyone, but can't be bothered going to a Jazz Club, Oh! Jazz is for you!

Kantar Push Sustainability Efforts Through Appointment Of Bethan Hockey
Feeling smug that you own a Keep Cup? Sorry, sweetie that simply isn't enough.

B&T’s Best Of The Best Late Entries Close Friday + Judges Wanted!
Missed the original deadline? Here's another deadline, although this is actually the last one.

Could The Gift of Adventure Help Drive Your Next Promotion?
Give up on the branded akubra for your GWP, no-one wants it. Try something with a little more adrenaline involved!

Delacon Becomes The First To Release Call Tracking Technology Integration For Google Ads Within APAC Region
Call tracking technology... try finding three more threatening words to put together in a sentence, we dare you!

Eastern Standard Times Hold Launch Event In Deeply Cultural Setting
Global media network Eastern Standard Times had their official launch event on Thursday (23/6) night at the Lucky Kwong restaurant in Sydney’s South Eveleigh, with the focus being placed on how this platform will provide Asian communities in Australia with a greater insight on what they need to know. Editor-in-chief Keshia Hannam, who served as […]

Samsung Slammed With $14M Fine By Federal Court For “Misleading Waterproof Claims”
Thank god we have Korean boy bands because some of the country's leading brands lead a lot to be desired.

Woolworths’ Andrew Hicks Named As One Of The World’s Top 50 CMOs
Woolies' marketing supremo celebrating with an iceberg lettuce or two after being named one of the world's best CMOs.

Nike To Become Latest Big Brand To Officially Abandon Russia
Russians set to queue for bread in their thongs as Nike becomes latest western capitalist dog to exit the country.

Netflix Co-CEO Meets With Reps From Google At Cannes To Strike A Potential Ad Partnership
Ads might soon be coming to Netflix. Although we're quite sure Messrs Warburton, Sneesby etc will be having none of it.

Harrowing Campaign Shows The Last Photos & Videos Of Suicide Victims
Ready the tissues at this incredibly powerful and brave mental health initiative.

Alfi Study Reveals Entertainment & Media Will Be Main Focus Of DOOH Ads Within The Next Year
DOOH continues to prove the hot category in adland. That said, B&T's still got a soft spot for towed plane banner ads.

TV Journo Goes Viral After Mistakenly Drawing Large Penis During Report Into The Capitol Riots
Were your school days full of drawing penises on the blackboard and afternoon detentions? Relive the good times here.

ACT Responsible Awards Wunderman Thompson Australia As One Of This Year’s Champions Of Good
ACT Responsible celebrated 4 Champions for Good from the agency, advertiser, NGO and public sectors who have made an impact in the social and environmental areas and helped improve the world through personal contributions or creative campaigns. “It is not an Award. There is no competition and there is no winner. The goal of this […]

Thursday TV Wrap: Footy Punts Seven To A Big Win
The AFL proved a ratings winner for Seven last night. Just not in Sydney, were no one gives a shit unless the Swans win.

WARC Announce The Winners For Their 2022 Award In Effectiveness
If B&T ever had an award for effectiveness, it would go to our publican for his 5-6pm half-price pints happy hour.

Cannes Lions: VICE Media Win Third Grand Prix For Their ‘Unfiltered History Tour’
On the third day of the 2022 Cannes Lions International Festival of Creativity, the “Unfiltered History Tour” campaign by VICE Media walked away with yet another Grand Prix, this time in the Social & Influencer Lions. The campaign, which was held in partnership with the British Museum by the Dentsu Creative teams of Mumbai, Bengaluru […]