Setting up global delivery systems is intricate. Adding outsourcing and offshoring makes it even trickier, demanding significant shifts in how you operate. Language and cultural hurdles further complicate things.
The main driver behind offshoring is cost reduction. Businesses often believe that relocating tasks overseas will lead to sustained cost savings. When executed strategically, offshoring can be a powerful tool for businesses to remain competitive and flourish. A smooth transition, if well-managed, can unlock the full potential of the offshoring arrangement, laying the groundwork for a long-term collaboration.
According to a recent comprehensive study by the McKinsey Global Institute, companies save as much as 70% of their total costs through globalization, of which 50% of savings can result from offshoring. Around 54% of companies worldwide have adopted offshore teams to interact with their customers, demonstrating the global reach of outsourcing practices.
Companies can drastically streamline business production processes and supply chains across the globe to enter new markets rather than just national or regional borders. More businesses opt for innovation by hiring new talent beyond borders and making operations cost-effective.
Why Businesses Choose Managed Operations
In today’s globalized business landscape, offshoring has become a strategic level for many organizations. It offers access to a wider talent pool, potentially lower labor costs, and the ability to operate 24/7. However, simply setting up an offshore team isn’t enough to unlock these benefits. To truly thrive in the offshoring landscape, businesses need a structured approach- Managed Operations.
Advantages of Managed Operations for Business Growth
Cost Reduction
Offshoring provides a significant advantage in terms of cost reduction. By outsourcing tasks to regions with lower labor costs, businesses can access a similar skill set in resources while slashing employee costs. This allows companies to allocate their budget more efficiently and invest in other areas of growth.
Low Time Investment:
Compared to onshore recruitment processes, setting up an offshore team requires minimal time investment. Offshore recruitment is often streamlined, with fewer bureaucratic hurdles and quicker onboarding processes.
Risk Hedging:
Operating with a distributed team offers inherent risk mitigation benefits. By diversifying their workforce across different geographical locations, companies hedge against risks related to employee turnover, availability and performance.
Increased Productivity:
Offshore teams contribute to increased productivity by offering round-the-clock availability. With team members situated in different locations and time zones, business can ensure that critical tasks and customer-facing functions are attended to all times. The ability to operate 24/7 enhances operational efficiency and workflow progression.
New Revenue:
Offshoring facilitates the generation of new revenue streams through two main avenues:
Increased throughput: Additional resources from an offshore team result in higher throughput for existing business operations. With a larger workforce, companies can handle more projects simultaneously and deliver results more efficiently. This heightened operational efficiency allows businesses to scale their operations and serve a larger client base, ultimately driving revenue growth.
Exploration of New Service Lines: Offshore teams provide an opportunity for businesses to explore new service lines or markets at a lower financial risk. By leveraging the cost-effectiveness of offshore operations, companies can experiment with offering new products and services without committing significant upfront investment. This flexibility encourages innovation and diversification, allowing businesses to adapt to evolving market trends and customer demands.
Modern businesses recognize its potential as a comprehensive strategy to conquer global market challenges. While cost reduction remains a significant advantage it's just the tip of the iceberg. Offshoring offers a lifeline in an unpredictable economic climate. By controlling operational expenses, companies can maintain stability and fuel growth, even when local costs become a burden.
At Parati, we understand the strategic advantage a well-integrated offshore team can bring to your organization. Our Managed Operations approach goes beyond simple talent acquisition; it focuses on creating a cohesive unit that seamlessly extends your existing workforce. This fosters a collaborative environment where both onshore and offshore teams work synergistically towards shared objectives.
Here’s a closer look at the core principles that guide our Managed Operations Framework
1.Deep Business Understanding
We prioritize a holistic understanding of your business. This includes a thorough analysis of your goals, existing processes, and the specific role the offshore team will play. By acquiring this in-depth knowledge, we can target highly skilled and experienced individuals who perfectly align with your unique requirements. Furthermore, this comprehensive understanding allows us to develop tailored onboarding and training programs that effectively integrate an offshore team into your existing workflows and company culture, ensuring a smooth transition and maximizing their productivity from day one.
2. Collaborative Roadmap Development
Following a comprehensive needs assessment, we work collaboratively with you to develop a comprehensive roadmap for the offshore team integration. This roadmap clearly defines roles and responsibilities for all stakeholders, establishes clear communication protocols to foster a transparent and efficient communication environment, and outlines performance metrics for effective performance evaluation.
3. Customized Pilot Program
We believe in a bespoke approach. A customized pilot program is developed specifically for your business. This pilot allows you to experience the tangible benefits of an offshore team, while minimizing potential risks. Additionally it provides valuable data that enables us to further refine our approach before full-scale implementation.
4. Continuous Improvement Through Review:
Our commitment extends beyond the pilot stage. Following the pilot program, a comprehensive review is conducted. This review involves analyzing performance data and gathering feedback from both the onshore and offshore team members. This collaborative approach ensures a seamless scaling-up process that adapts to your evolving needs.
5. Global Management Expertise:
Our expertise extends far beyond recruitment. We provide comprehensive management of your offshore team, encompassing all aspects from payroll and compliance to administrative tasks. This comprehensive support frees you to focus on core business activities while ensuring your offshore team has the necessary resources to flourish.
6. 360- Degree Feedback Loop: Ensuring Alignment
We firmly believe that effective communication is paramount. We facilitate a continuous exchange of feedback through a 360-degree feedback loop. This allows you to receive feedback from your onshore team. This ongoing feedback ensures everyone remains aligned and works towards shared goals.
By adhering to core principles, Parati’s Managed Operations approach creates more than just offshore teams ; we build strategic partnerships. We ensure your offshore team functions as a true asset to your organization, one that directly contributes to your overall business success.
Panum’s Journey With Parati : A Case Study in Growth Acceleration
Panum, a Maryland-based company specializing in federal government innovation and transformation, has experienced phenomenal growth in recent years. This success stems from their dedication to “expecting excellence” in various areas, including Project Portfolio Management (PPM), Health Sciences, Digital Transformation and more. However, to support their ambitious goals, Panum sought a strategic partner to optimize their workforce structure.
This case study explores Panum’s journey with Parati and delves into the key milestones achieved through this collaboration.
Challenges and Objectives:
As Panum's client base and project volume grew, so did the need for a more efficient and cost-effective workforce structure. Scaling their workforce with the right talent while maintaining cost-effectiveness became a key objective. Partnering with Parati allowed Panum to explore the potential of an offshore team to
Reduced Operational Costs: Lowering overall operating costs offered more headroom for investment in core business areas.
Enhance Efficiency: Expanding their team with skilled professionals aimed to increase efficiency and complete projects faster.
Access a Wider Talent Pool: Parati;s expertise in offshore recruitment provided access to a broader talent pool.
Parati’s Approach: A Collaborative Journey
Parati’s Managed Operations approach provided a structured and customized solution for Panum’s specific needs. Here’s how they achieved success:
Understanding Panum’s Business: Parati conducted a thorough analysis of Panum’s business goals, existing processes, and required skill sets. This in-depth understanding ensured they recruited the right talent for Panum’s specific departments.
Phased- Implementation: Parati adopted a phased approach, starting with onboarding the first hire within 6 weeks of engagement. This initial success allowed Panum to comfortably integrate the new team member and establish a foundation for further growth. Following this initial win, Parati gradually scaled the team by department, ensuring a smooth and manageable onboarding process for Panum
Scaling Up with Precision: By Q4 2021, Parati successfully established five key departments for Panum: Proposal Management, Recruitment, Accounting, Project Management & Marketing. This expansion provided Panum with a robust offshore support system.
Performance and Cost Savings: By Q4 2022, Panum’s India team demonstrated its value by leading 27 proposals, submitting 5 RFIs, and supporting 67 active contracts. Furthermore, by Q4 2023, Panum achieved an estimated annual cost saving of $1.1 million through its operations.
Continuous Improvement: Parati facilitated a continuous feedback loop between Panum’s onshore and offshore teams, ensuring ongoing alignment and performance optimization.
The Panum-Parati Partnership: A Catalyst for Growth
Panum’s partnership with Parati signifies the transformative power of strategic workforce management. By leveraging Parati’s expertise, Panum achieved significant cost savings, increased efficiency, and accesses a wider talent pool. Notably, the offshore team played an instrumental role in leading proposals, supporting contracts, and driving project success. This case study exemplifies how Parati’s approach can empower businesses like Panum to accelerate growth and achieve ambitious goals.
Conclusion:
The global business landscape is constantly evolving, demanding agility and innovation from organizations of all sizes. Offshoring presents a compelling opportunity to access a wider talent pool, reduce operational costs, and achieve 24/7 operations. However, navigating the complexities of offshoring can be challenging.
This is where a Managed Operations partner like Parati comes in. We offer a comprehensive approach that goes beyond simply setting up an offshore team. Our focus lies on creating a seamless extension of your existing workforce, fostering a collaborative environment where both onshore and offshore teams work towards shared goals.
As demonstrated by Panum’s successful journey with Parati, Managed Operations can be a powerful catalyst for growth. Through a collaborative approach, deep understanding, and a commitment to performance excellence, Parati empowers businesses to unlock the full potential of offshoring and achieve their strategic objectives.
Ready to explore the transformative power of Managed Operations?
Contact us today and let’s discuss how we can help you build a high-performing offshore team that propels your business forward.
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