The growth in Australia’s economic and business sectors are expected to go even beyond for the next years. With this at hand, almost every company in the country is doing all means to keep up with the competition. Many business owners are evidently in search for new and sustainable ways to achieve a more efficient performance to drive the bottom line and majority of them have found solution in outsourcing.
What good does outsourcing offer Australia today?
To business owners, outsourcing is a highly ideal way for small and large companies to run a cost effective, efficient, and leaner operation. With it, employers get to only pull in the skills and expertise of workers if and only when they are needed. The availability of such a mobile workforce greatly helps in ensuring customers needs are being immediately responded and addressed.
Nowadays, outsourcing can already address a business’s needs for all functions including the more complicated ones like administration and finance support. This has invited more entrepreneurs to join the trend. In fact, Australian outsourcing statistics show that around 80% of businesses outsource and mostly use offshore resources. This 80% has increased their domestic workforce of more than 200%. Alongside cost-cutting, around 2/3 of business owners said their other essential objective for outsourcing was to expand their overall team in terms of their ability to access specific knowledge and skills and their ability to scale fast as new challenges arrive.
Below are the top reasons why Australian companies outsource:
- Inexpensive labour
This is true especially for those whose outsourced countries’ cost of living is essentially cheaper than Australia. This just means that pays are also as much lower in these countries, clearly benefiting the company in terms of cost reduction of workers. With outsourcing, businesses will be operated just the same and same tasks will be accomplished while owners get to save almost half of the business budget for salary.
Also, outsourcing countries with closest to same time zone will let business owners enjoy the financial perks. For instance, in the Philippines where timezone is just four hours ahead of Australia, businessmen no longer have to pay for a night shift.
- Lots of Talent and Skills
Most outsourced countries like the Philippines put education in their highest priority. As a matter of fact, Philippines’s education system has been influenced by that of United States and Australia. This means these outsourced workers can function pretty much the same, or even better, than Australian workers. In fact, nowadays, offshore workers are already treated typical middle-class job workers and are being highly sought after because of it.
Although outsourced workers only get to work virtually, they are still flexible enough for companies to be able to build a business that scales. This is because they get to carry out critical functions extra carefully and effectively so as to preserve business operations.
- More Client and Market Opportunities
According to many Australian companies that hire offshore workers, outsourcing their production and operation functions has slowly taken them closer to end users and has given them access to new opportunities for their businesses.
- Competency in Language (Proficiency in English)
In Australia where English is the primary language, companies has English proficiency as a top requirement. Fortunately, outsourcing has got it covered since there are a lot of workers offshore who are fluent in English. And for this aspect, Philippines reigns as Australian entrepreneurs’ most outsourced country.
- Increased Productivity
Australian companies that outsource are usually able to experience increased productivity quickly. Owners are free to choose between entrusting even administrative and financial tasks to offshore workers or just delegating non-essential functions. With the latter, they are able to get more focused in managing time, money, and other resources of the business. The savings in outsourcing can also be used for other income generating projects.
- Access To Latest Technologies
For small Australian entities, outsourcing is an inexpensive ticket to accessing advanced accounting programs or IT infrastructure. Since technology makes life and business more efficient and greater efficiency translates to more cost savings, outsourcing has just proved itself to be really worth investing.
The Guide to Outsourcing
All types of businesses can take advantage of outsourced expertise to grow. There is no question to that. In fact, the real challenge is to properly identify which parts of your business need outsourcing.
Basically, if a task or business function is potentially and critically doing significant changes and bringing essential competitive advantages and the company already has internal experts to carry out the job, then outsourcing for it is highly unlikely. But if the potential for competitive advantage is not that striking and the company lacks experts and skills to work on it, then deciding on outsourcing such certain functions is probably the right thing to do.
Here are five tips to keep in mind should you consider outsourcing:
- Review everything about your business. Before even deciding, make sure you have looked over your companies’ existing core capabilities. Although outsourcing has gone the extra mile in terms of functions to cover, ideally, businesses should still be careful in outsourcing and should only outsource those functions that are not so critical to the business. For instance, if your business is popular for its personalized customer service, having offshore workers to take calls may be risky and a bad idea overall.
- Lay in the right questions. Do not hesitate to put your offshore workers to the test. Scrutinizing, in this case, is necessary. Otherwise, the hope for having a cost-effective approach may end up the other way. Hence, make sure you always require proofs of past experience, testimonials, o a portfolio. This is your only way to ensure that the quality of their work meets your company’s needs.
- Set clear objectives and deadlines. Be clear about the deliverables you expect but be realistic about the project’s schedule at the same time.
- Put everything in your agreement in paper. Make sure the contract states the scope of the project. It is always best to make everything formal.
- Monitor offshore workers’ performance. It is vital to show your workers that you are monitoring them so that they will know that there are justifiable grounds on how they will be evaluated. Set milestones or checkpoints from the outset and stick to them. But as you go along, make sure not many restrictions are implemented as these might only intimidate and restrict them from performing at their best.
Because of outsourcing’s benefits, it is no question why a lot of Australian companies choose it. Evidently, outsourcing companies have improved efficiency and marketability while enjoying lower business costs. If you want to take advantage of this great opportunity, better outsource functions that are IT, accounting, SEO, social media related and a lot more and help your company boost its efficiency.