This is a guest article published by TalentVine on behalf of Adaca. To learn more about the outsourcing services provided by Adaca, click here.
The shift to work from home in recent years has driven a move offshore
The pandemic triggered a seismic shift in workplace norms, cementing remote work as the new standard. This transformation has collided head-on with the mounting financial pressures faced by companies, as skyrocketing living costs fuel employees’ demands for higher pay, putting immense strain on corporate budgets. Compounding this perfect storm is the ultra-competitive job market, characterised by historically low unemployment rates, making it a Herculean task for businesses to attract and keep top talent.
Australian firms have been rapidly pivoting towards building geographically dispersed teams. While the pandemic has turbo-charged this movement, a suite of other factors is fuelling the change. Take tech behemoth Dell’s bold move: when it presented its 120,000-strong workforce with the choice between remote work or a pay rise, over 50% plus opted for remote working. Their offer backfired tremendously and is a sign of the times in a rapidly evolving work culture. Forward-thinking companies are waking up to this change and scrambling to adapt their strategies accordingly.
The Offshore Advantage: Cost and Quality
The idea that offshoring to countries like the Philippines offers minimal cost benefits due to increased risks and higher management costs is a significant misconception.
Businesses can reduce costs by up to 70% through offshoring to the Philippines. While the Australian Bureau of Statistics (ABS) reports a cost saving of 30%, this figure underestimates the potential benefits. The ABS statistic includes a 40% failure rate, meaning that even with high historical failure, the cost savings remain considerable. By implementing sophisticated support and management processes for remote workers, companies can achieve cost reductions of up to 70%.
The quality of staff in the Philippines is remarkable. With a population of approximately 120 million and a strong tertiary education system, the Philippines offers a deep talent pool. Philippines-based team members are keen to work with Australian companies due to our similar time zones and cultural alignment.
Benefits Beyond the Bottom Line
While cost savings are a significant factor, offshoring offers benefits that extend beyond financial advantages:
Making Offshore Work for You
Effective implementation of an offshore strategy demands careful planning and execution. Although the remote work trend has prepared many businesses for this transition, it remains essential to consider the business processes needed to support an offshore team. At its core, this involves a blend of communication channels and protocols, cultural awareness training and team-building initiatives, and productivity-enhancing technology tools. By addressing these processes from the outset, you establish a robust foundation for your offshore team.
The Future is Distributed
As we progress further into the digital era, the notion of a centralised workforce is becoming less relevant. Businesses are increasingly adopting distributed teams to reduce costs, access high-quality talent, and gain operational flexibility.
When establishing an offshore presence in the Philippines, partnering with an experienced firm like Adaca is valuable. With over a decade of experience in managing the intricacies of offshoring to the Philippines, Adaca facilitates a smooth transition for businesses aiming to utilise the country’s skilled workforce.
By thoroughly assessing your needs, selecting appropriate partners, and strategically identifying roles suitable for offshoring, you can transform the challenges of offshoring into a significant strategic advantage during this period of economic uncertainty.
