Driving Growth Through Managed Operations: Parati's Offshore Team Setup for Panum
Outcome
~$1.1M estimated annual savings · 5 offshore departments · 67 active contracts supported
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 lever 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 the workforce across different geographies, 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 across different time zones, businesses can ensure critical tasks and customer-facing functions are attended to at all times.
New Revenue: Offshoring facilitates new revenue streams through increased throughput for existing operations and the ability to explore new service lines at lower financial risk — encouraging innovation and diversification.
Modern businesses recognize offshoring 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.
Parati's Offshoring Process to Setup Managed Operations
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:
- Deep Business Understanding — a holistic analysis of your goals, processes, and the role the offshore team will play, so we can target highly skilled individuals and design tailored onboarding programs.
- Collaborative Roadmap Development — clear roles, responsibilities, communication protocols, and performance metrics for all stakeholders.
- Customized Pilot Program — a bespoke pilot that lets you experience the benefits of an offshore team while minimizing risk and refining the approach with real data.
- Continuous Improvement Through Review — performance data and 360° feedback inform a smooth scaling-up process that adapts to evolving needs.
- Global Management Expertise — comprehensive management of payroll, compliance, and administration so you can focus on core business activities.
- 360-Degree Feedback Loop — continuous exchange of feedback between onshore and offshore teams to keep everyone aligned on shared goals.
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" across Project Portfolio Management, Health Sciences, Digital Transformation and more. However, to support their ambitious goals, Panum sought a strategic partner to optimize their workforce structure.
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. Partnering with Parati allowed Panum to explore the potential of an offshore team to:
- Reduce operational costs and create headroom for investment in core business areas
- Enhance efficiency by expanding the team with skilled professionals to complete projects faster
- Access a wider talent pool through Parati's expertise in offshore recruitment
Parati's Approach: A Collaborative Journey
- Understanding Panum's business — thorough analysis of business goals, processes, and required skill sets to recruit the right talent for each department.
- Phased implementation — first hire onboarded within 6 weeks, then gradual department-by-department scale-up.
- Scaling up with precision — by Q4 2021, five departments stood up: Proposal Management, Recruitment, Accounting, Project Management, and Marketing.
- Performance and cost savings — by Q4 2022 the India team led 27 proposals, submitted 5 RFIs, and supported 67 active contracts. By Q4 2023, Panum achieved an estimated annual cost saving of $1.1 million.
- Continuous improvement — an ongoing feedback loop between onshore and offshore teams kept alignment and performance optimization on track.
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 access to a wider talent pool. The offshore team played an instrumental role in leading proposals, supporting contracts, and driving project success.
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 — but navigating its complexities is challenging.
A Managed Operations partner like Parati offers a comprehensive approach that goes beyond simply setting up an offshore team. We create a seamless extension of your existing workforce, fostering a collaborative environment where onshore and offshore teams work towards shared goals — as demonstrated by Panum's successful journey.
