Expert Tips to Overcome Challenges in Outsourcing
By 2030, there will be a global human talent shortage of more than 85 million people. If you’re already struggling with hiring the right people 10 years away from this predicted shortage, you need to act today.
Limited talent pool, lack of qualified professionals, labor costs – these are some of the top reasons why firms like Positive Group, an Adelaide-based financial services firm, couldn’t scale fast enough to meet their business goals.
It may seem like a hopeless situation, but there’s an innovative business solution found beyond borders:
For 54% of companies who do not have the capacity to create shared service centers abroad, they’ve managed to find offshoring as a cost-efficient alternative to create multi-skilled, diverse teams.
In fact, globally 78% of these businesses continue to have an optimistic outlook about their offshoring partnership. In the case of Positive Group in Australia, Founder and CEO Tom Caesar has been highly satisfied with the performance of their offshore team of engineers, developers, and loan specialists in the Philippines who now make up 30% of their entire workforce: “EMAPTA was our clear winner because of the way they could attract a broad range of talent. They had a really good team of recruiters that could find the talent we need across technology, marketing, accounting, loan support, and more.”
In this article, we’ll find out how EMAPTA CEO Tim Vorbach was able to help various organisations overcome offshoring’s diverse challenges and transform it to become the most preferred growth strategy for many businesses of varying sizes from different industries for over 10 years.
Understanding Offshoring – Its Benefits and Challenges
Outsourcing is hiring a party provider outside the organisation to perform tasks, manage and execute processes and/or create products and deliver services for the employing business.
Offshoring entails relocating your end-to-end or parts of services to a third-party provider who are not in your local area (and in most cases, they’re not in your country, either). This is useful for businesses who can’t find qualified talent within their region or flourishing startups who would like to scale with consideration to their limited budget.
Outsourcing/offshoring is a promising prospect if you’d like to save resources and offer high-quality products and/or services at the same time, but according to EMAPTA CEO Tim Vorbach, it’s essential that you understand how your business can directly benefit from it and know what challenges you’ll face when you pursue offshoring as your growth strategy.
What are the Risks and Challenges of Offshoring?
It’s absolutely worth pursuing offshoring because of its immediate and long-term business benefits, but just like adopting any other business strategy, you must be prepared for any of these common challenges in setting up and managing your offshore operations, which Tim experienced when back in 2005 when he outsourced a lead generation project in the Philippines:
- Hiring offshore talent with specific skill sets
- Helping your onshore team adjust
- Dealing with cultural differences
- Managing expectations (both offshore and onshore)
- Facing hidden costs
- Ensuring data security
Overcoming common problems with outsourcing
Initially engaged with a call centre, Tim found it difficult to take full control of his outsourced team and instill the values and processes of his organisation to his offshore operations because of the restrictive, traditional BPO setup. “Talent was not the issue,” Tim stated. “There was no exclusive office or private area for the project team, each task felt transactional, and it was difficult to connect with the offshore team without the call centre management getting in the way”.
After the unsatisfactory experience with the business process provider, Tim was determined to create a business solution that could address his needs based on his experience as a former outsourcing client: “By that stage, we had a team of 35-40 people, and [it took us] two years to establish an operation just to support our needs in Australia”. He also actively spoke with fellow Australian business owners on how they would want an ideal offshoring team to work, which helped him steer the direction for his newly founded offshoring company, EMAPTA. “ After two years, we really nailed it. That started my decision to focus solely on this business. This is the business I’m thinking the most of, this is the one I’m most excited about. It changed my life from living in Australia to living in the Philippines… and just focusing on building EMAPTA and doing exactly what I wanted for other Australian and now US, UK, and other firms in English-speaking countries.”
Choosing the right service provider is central to overcoming your offshoring challenges, and this is how Tim envisioned EMAPTA: “We see our product as a new pedigree of outsourcing and providing an extension of your team, and so we’re providing dedicated talent for our client’s businesses and that involves getting a close understanding of what our client’s objectives are.”
No matter the country, industry, or firm size, these key partnership principles guided Tim and EMAPTA in helping businesses establish their offshore team successfully:
- Finding and retaining the right talent as the key to hiring high-performance offshore teams
- Giving businesses full control over their Philippine-based talent to easily impart company culture and values
- Resolving time zone differences and onshore-offshore alignment by having the offshore talent work in the same shift as their onshore counterparts
- Being transparent in pricing scheme with easy-in, easy-out terms and no hidden costs
- Having a dedicated IT team who provides 24/7 support to offshore teams and ensure that offshore workstations are compliant with the latest data protection protocols and security standards
RELATED READING: How to Make Offshore Staffing Work for Your Company
10 years after starting EMAPTA, Tim has now helped over 340 clients, including Positive Group, successfully overcome their offshoring challenges. For Positive Group Founder and CEO Tom Caesar, their offshoring partnership with EMAPTA has become indispensable: “Our relationship has been great. They’re [EMAPTA] very responsive. If there are any issues we have, their responsiveness is fantastic. It’s a real collaborative approach. We’ve got key points of contact for any issues that arise, but they’re addressed very quickly.”
EMAPTA’s clients vary in sizes and industries, but one thing’s for sure: they’re all satisfied with going offshore because they have a flexible partner to rely on who helps support their dedicated offshore teams. Tim affirms this: “Most of our clients are looking for long-term relationship with their talent. This is about re-engineering their business to be able to have a team operating here in the Philippines delivering the quality with incomparable levels of service.” Tom would also agree: “I’d highly recommend speaking to EMAPTA because you can build out however much control you want or if you don’t want any control at all. It’s up to you and how you want to do it – and that’s a huge point of difference for me.”
Tim’s offshoring experience proves that with the right partner your organisation can overcome outsourcing’s many challenges, realize business goals, and become even more competitive and profitable.
Lastly, Tim shared this advice if you’re looking at offshoring but think that you’re not ready for it: “I would just say – start the phone calls and start talking to people like EMAPTA and others because you’re not committed to anything or not obligated. But just start those conversations because you’ll get more information and you’ll be very surprised: it’s [offshoring] happening across all industries.”
EMAPTA is a leading business solutions provider who can help you hire dedicated, high performance teams legally employed in the Philippines, directly managed by your business, with 24/7 IT, HR, and Admin Support. To know more about our customizable offshoring services, get in touch with us today.