Jamie McBrien is arguably Australia’s leading expert on offshoring and outsourcing, with over 20 years’ experience consulting on the financing
He recently spoke to The Outperformer about how to build, and effectively implement your offshore strategy. During the interview, Jamie discussed several pertinent issues, including:
The entire interview is available here on our website, but here are some of the key take-outs of the discussion:
Outsourcing, or offshoring, is a transformation initiative. Essentially, it’s the practice of using shared services, provided by a third party, in a different jurisdiction. Most companies get very excited when they first consider outsourcing because they know that when it’s done properly, it can result in significant cost savings. However, Jamie stresses the importance of taking a step back and first starting with a proper review of where the opportunities lie.
“We need to look at how we build a plan and a case for change,” he says, “as well as how we manage the risk and the change through that process. That initial assessment is critical for setting the roadmap for the future, and helps secure agreement and buy-in across the entire
Once this all-important buy-in has been achieved, support structures then need to be designed and built.
“All the things you need to be successful in offshoring are things you also need to be successful in simply running your onshore business day
Jamie highlighted some of the important questions companies need to ask themselves when considering offshoring as an option:
“Any problems onshore become even bigger issues in the offshore circumstance,” says Jamie. “These all have to be fixed before you go offshore.”
One of the most common mistakes companies make when considering offshoring is to only compare like with like, focusing on the cost savings. While this can be very attractive,
“It’s about thinking what else can we do,’ says Jamie. “How can we change the way we do things to make the most of, and leverage, the offshore platform? Perhaps there are new services and processes that we would like to support, but we are simply too resource constrained to do them in Australia. There is often the ability to do things offshore that simply wouldn’t stack up onshore. And that’s where a huge percentage of the benefit lies. Yes, the cost savings are significant, but we mustn’t ignore the added benefit of being able to add things to your business that are going to drive revenue.”
Jamie believes that having the right leadership team in place to manage the offshore team is absolutely critical. Getting professional advice from offshoring specialists can help this team navigate the “bumps” they’re likely to encounter along the way.
“It’s important to get the right guidance and advice,” says Jamie. “A lot of the horror stories about offshoring come down to a lack of expertise as to how to approach it.”
It’s also important to start small and pick an area where you know you’re going to be successful.
“Choose an area where there’s not a lot of
As a final point, Jamie highlights the importance of choosing your offshore location very carefully. “Just because your offshore location might be a low-cost jurisdiction, it doesn’t mean you have to go low cost on everything,” he says. “You still need the facilities and technology infrastructure, and you want people to have a decent place to come to work every day. Your offshore team is as much a part of your business as your onshore team, just in a different location.”\
Jamie is the founder and director of optiBPO, a company that helps companies in Australia, New Zealand, Europe, UK and North America set up dedicated outsourcing operations in the Philippines. With offices in Sydney, London