Offshoring is when you outsource business functions to a team in another country. For small to medium businesses the costs of setting up an operation in a distant country made it prohibitive to consider until relatively recently. Nowadays there are many companies all over the world who can meet the demand for offshore services.Three main centres for offshore/outsourcing are India, China and The Philippines.

There are a number of companies offering ‘virtual’ assistants and the like. And whilst it might seem like an easy fix, it can often involve hassle, risk and ultimately will not drive real value to your business. For offshoring to be successful, particularly over the long term businesses need to find a trusted offshore partner. The sorts of benefits this can offer are

• Substantially reduce local staff and overheads
• Provide the ability to scale your business efficiently
• Allow you to focus on your core strengths and business

Understanding the cost benefits of offshoring

The cost of staffing in Australia and New Zealand has many hidden costs outside the standard salary being paid to your workers.

Additional to the base wage you have:

• Superannuation – 9.5% (and increasing)
• Kiwisaver – currently 4% and increasing
• Annual leave – 4 weeks p.a. plus 17.5% loading in some cases
• Public Holidays – 10 days p.a. in Australia, 11 days p.a. in New Zealand
• Sick/Personal Leave – up to 10 days p.a.
• Workers’ compensation insurance or ACC Levies- % depends on the industry
• Payroll Tax – this varies depending on the State but can be as high as 6%
• Office space and associated costs

A base salary of A$50,000 can cost the employer in excess of $70,000 pa

Finding a partner who understands your business and is able to help you transition to offshoring is critical to success. Learn more about how CCC Data Management Solutions can help you.