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In today's globalised economy, businesses are increasingly turning to offshore outsourcing to achieve competitive advantages. Offshore outsourcing involves transferring non-core business functions to third-party service providers located in countries with lower labour costs and specialised expertise. This approach leads to cost reduction and improve operational efficiency typically returning 20-40% cost reduction, as well as enhance overall business performance. HCG has extensive expertise in this area and see it as an essential strategy for achieving cost-effective, efficient, and high-quality results. Therefore our clients engaged HCG to drive this process transformation programme.
With Hargrave Consultingʼs proven approach the implementation of an offshore outsourcing project would be phased in over a period of six-nine months. The following steps will be followed:
Detailed mapping of the targeted business processes to identify specific tasks and their current cost and performance levels.
Identification and evaluation of potential offshore service providers based on the selection criteria. Negotiation of service contracts with the selected vendors.
Transfer of knowledge and training of offshore staff to ensure seamless transition of the outsourced processes.
Establishment of robust monitoring and control mechanisms to track service performance, address any issues promptly, and ensure continuous improvement.
Based on our evaluation of various factors, including labour costs, language proficiency, cultural compatibility, time differences and regulatory environment, the following offshore locations are considered most suitable:
01. Sri Lanka
02. South Africa
01. Customer service
02. Technical support
03. Data entry
04. Procurement ordering
05. Finance Transactional
06. Finance Accounting/Reporting
07. Human resources
HCG implements rapid, strategic and tactical BPO initiative focused on achieving our clientsʼ aim of ambitious cost savings. while committed to maintaining strong ethical standards, ensuring sustainability, and managing their business processes.
To mitigate potential risks associated with offshore outsourcing, the following measures will be implemented:
Conducting thorough due diligence to ensure the financial stability, operational capabilities, and ethical practices of the selected vendors.
Establishing clear and comprehensive SLAs to define expectations for service quality, response times, and escalation procedures.
Maintaining regular communication with offshore vendors to monitor performance, address any issues promptly, and ensure continuous improvement.
Implementing robust data security measures to protect confidential information and comply with applicable data privacy regulations.
The implementation of this offshore outsourcing initiative is expected to yield several benefits, including:
Significant reduction in labour costs due to lower rates in offshore locations.
Enhanced efficiency through streamlined processes, standardised procedures, and better utilisation of resources.
Access to a broader talent pool with specialised expertise in various areas.
Ability to scale operations flexibly to meet changing business needs.
01. Establish a BPO operation in Sri Lanka for large UK Contactor, resulting in 26 FTE covering a number of areas including order processing, query resolution, invoice processing and masterdata. Running split shifts to cover UK working hours and out of hours cover. Generation a c40% cost benefit
02. Establish BPO operation in SA managing customer scheduling and information gathered using a mixture of on line surveys and phone calls. Allowing great flexibility to put resource onto task for short intensive campaigns. Proving flexibility and low cost c35% less than UK based FTE/Agency.
The offshore outsourcing initiative is a strategic and well-structured plan designed to achieve significant cost savings, operational efficiencies, and access to specialised talent. By carefully selecting offshore locations, partnering with reputable vendors, and implementing rigorous monitoring and control mechanisms, we can effectively mitigate potential risks and maximise the long-term benefits for your business.
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