Outsourcing can help companies improve their efficiency and save a lot of money. Even the most menial tasks can bring a positive change. And one Australian company played its cards right to make outsourcing work
Outsourcing is the practice of hiring external workers to perform particular tasks. By doing so, the company in question can avoid hiring new permanent employees or burdening its existing workforce.
The benefits of outsourcing are numerous. First, a company stands to reduce costs and increase productivity, if properly executed. As a result, its onshore employees would have more time to focus on essential tasks. Furthermore, it’s possible to outsource both full-time and part-time jobs.
Companies that outsource through Cybalink, in particular, enjoy additional benefits. For example, Cybalink specialises in engineering and construction. That’s in contrast to most offshoring providers that offer one-size-fits-all solutions. With this specialisation, you’re sure to find the most qualified employees for your company.
Critically, Cybalink has a proven track record of helping companies become more productive with innovative solutions. These include developing a better workflow, improving business processes, and increasing capacity. As you can imagine, this would enable you to save a lot of money.
In focusing on solutions and systems, Cybalink will go to great lengths to find the right workers for you. Steeped in both sets of culture, Cybalink is an expert at bridging cultural gaps.
And an Australian company achieved all these because it successfully outsourced with Cybalink. Theirs is a perfect case study of what happens when outsourcing is done right.
The Before Story
The client’s company had always had growth potential. However, staff inefficiency slowed the company’s progress.
Back then, it relied strictly on the onshore staff. The company had 50 employees in recruitment, with seven of them having admin roles. And the team also handled training duties for new employees.
All seven admins dealt with data entry. They filled in and submitted training certificates and licenses, and they updated the CVs of the candidates.
Data entry is admittedly a low-level task with little contribution to revenue. However, even such small things can result in significant losses if neglected.
And that’s what happened to the client’s company.
In the client’s case, this low-level task actually proved to be valuable. The company was being held back by the Admin team’s insufficient speed and precision.
To sum it all up, the admin team simply failed to understand the importance of their role. They were too slow and mistakes were common, to the point of submitting certificates with silly mistakes.
Of course, this resulted in plenty of applications that needed correction that held things up even further. It’s also common for the new hires to just sit around and wait to get started. And that created additional losses for the company.
All told, the admin department was costing the company thousands of dollars. And the hold-up with candidates and new hires further caused staff inefficiency.
As the financial and opportunity losses piled up, the client turned their attention outside of Australia.
Why the Client Came to Cybalink
Inefficiency was rife in the admin department, what with the laid-back attitude and disinterest in improving. And things also went from bad to worse. As a result, it caused many problems for the client.
All that inefficiency was already taking a toll on the business. Suffice to say, the company lost a lot of money due to incompetence and human error.
But besides the recorded losses, there were the opportunity costs as well. They were not making full use of the candidates and new hires. And with that, the productivity got worse over time.
Perhaps worst of all is the fact that these losses could have been preventable. If the Admin team had shaped up, the company could have thrived. Instead, it was languishing and things didn’t look like they were about to change.
That’s when the client decided to test the data entry team.
And they made the following discovery: it took 60 seconds to enter a certificate with an accuracy rate of 75%. These figures were unacceptable and the client knew they needed to do something about it and fast.
So, the client went ahead and revamped the admin team with new hires. But it didn’t work as expected.
To make things worse for the client, their industry was growing at a rapid pace. And the company had a hard time finding skilled professionals in Australia as a result.
Besides not having the necessary skills, the available candidates also showed little interest in delivering quality work. Predictably, the client couldn’t fill open positions with quality employees.
After their spectacular failure, the client knew they had to change the approach. Rather than looking in Australia, the company turned its attention to outsourcing.
Honing in on the Philippines, they contacted Cybalink for a solution.
The Cybalink Solution
First and foremost, Cybalink helped the client hire a team of data entry admins based in the Philippines. While Cybalink handled the recruitment, the final say belonged to the client.
The new team members showed high motivation and understanding of their responsibilities. They also displayed greater accuracy and speed compared to the local team in Australia. And the attitude of the Filipino team was even more professional and dedicated.
The client went on to test the outsourced team like they did the local one before. The results may surprise you… but you really shouldn’t be.
That’s because the offshore team outperformed the native team by a wide margin. The 95% accuracy was 20% better. And with an average certificate entry time of 20 seconds, they blew away the Australian team by a neat 40 seconds!
The client’s situation changed soon after hiring Cybalink’s services. They went from losing money to saving money, and eventually turning a profit. And unsurprisingly, it didn’t take them long to want to expand the team in the Philippines.
What Did This Mean for the Client
Outsourcing was beneficial to the client in a number of ways. For starters, they were able to offer a better service to their Australian clients. The services even became faster and more accurate, thanks to the new team. Also, the new hires no longer had to wait a long while before starting work.
The new team made far fewer mistakes, which was key to increasing the company’s efficiency. And the much lower certificate entry time and the much fewer corrections resulted in a corresponding increase in productivity.
The new team also brought a more professional attitude to the table. The outsourced employees proved to be more focused and dedicated to their tasks than the native Australian employees. In comparison, the Filipino team members also showed more gratitude.
No secret to anyone, the client benefited from lower wage costs. That enabled the company to expand the data entry team. Thrilled with the performance, the client grew the team to 45 workers over time. And this brought with it $3 million in yearly savings to the client.
Even after the expansion, the outsourced team was able to keep up with the superior performance. The work ethics remained at a high level, and the same is true for accuracy and speed.
It’s precisely the bigger team that allowed the client to grow in earnest. In fact, the company doubled its business and became a significant player on the national scale. That allowed the client to do business on their own terms.
Through it all, the client realised that they didn’t have to get stuck with unprofessional and expensive employees at home. That’s because the original team grew complacent and their professionalism was the first to go.
But with a simple change in perspective, they were able to turn the loss into profit. Thanks to Cybalink, the company is now growing at a fast pace.
Outsource with a Purpose
There are cases where you’re better off going with an outsourced team. They’re cheaper and fully capable of delivering top-level performance, provided you go with a qualified outsourcing provider that has plenty of experience and knowhow.
Furthermore, finding enough skilled and professional workers in Australia is a challenge on its own. And it’s a lot worse if you’re talking about the in-demand positions. In fact, it can be near impossible sometimes.
And it’s what happened to the Australian company in the case study above.
With Cybalink’s help, however, the company turned it around. The situation stabilised and the local team could then switch its attention to company growth.
If you want to learn more about what Cybalink can do for your company, send us a message here. We’re specialised in engineering and construction outsourcing, and you can be confident that we have the perfect solution for you.
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