Offshoring – A Positive Impact On The Local Job Market
A commonly held misconception is that offshoring results in moving Australian jobs offshore – this couldn’t be further from the truth. In reality offshoring enables SMEs to take advantage of a global trend in offshore labour outsourcing (offshoring) that big businesses have been benefiting from for many years. With improvement in telecommunications and IT infrastructure and the introduction of cloud based business solutions means SMEs can now re-imagine how they deliver value for clients, staff and other stakeholders.
Offshoring in Australia – the facts
69% of Aussie SMEs using offshore staff said their main motivation was to expand their team.
80% of Aussie SMEs have maintained the size of their Australian workforce since they began offshoring.
42% have seen their Aussie team grow.
Recent research suggests 80% of Australian businesses that use offshoring have maintained or grown the size of their local teams. Offshoring is not about moving Australian jobs offshore, it’s about unlocking the hidden productivity within businesses. Many businesses find their best people are often tied up working on low value support activities rather than out pursuing leads and developing business. Offshoring allows you to send this often repetitive and time consuming work offshore saving costs, whilst freeing up your high value staff to achieve more.
When Offshoring is implemented effectively it not only allows local businesses to save costs and boost productivity and but in many cases allows businesses to expand their local teams and take on more work.
Managing resistance to change
Dealing with resistance to change within your organization can be difficult. You may find the concept of Offshoring is a complicated proposal for you local staff, they may feel threatened or insecure. It’s important these misconceptions are dealt with quickly. With our short term contracts you can trial an offshore team member from as little as one day a week or a 3 month contract. Often all it takes is for local staff to meet and connect with their new offshore team member to resolve most of their concerns.
If the opportunity is framed in the right way – as not only reducing costs and boosting productivity but also improving work place efficiency and even work life balance – your local staff will often embrace the benefits.
Explore innovative new business models
Offshoring allows you to re-imagine the way you do business and the value proposition for your customers. Businesses that identify innovative ways to use technology, increase capability and reduce operational costs find it easier to achieve growth and succeed. This is particularly true if you’re in the professional services sectors where high-cost structures and client resistance to hourly billing models are already under significant threat.
Transitioning your business model to include a global labour resource can often result in changing the way you do business. AMBS client Ross Beames, Director of DPR Accountants, shares his offshoring experience: “We are now pulling together a business proposition for our clients to take over their bookkeeping and data processing requirements where we take sole responsibility for that work, however a large chunk of that processing and repetitive work is done by the offshore staff. “
Want to learn about how you can utilize offshoring to grow your business locally, get in touch!