The Philippines has a lot of appeal for offshoring, due to its similar time zone, the quantity of educated workers, the quality of their English, and the low (but ethical) cost of labour. It is also a very familiar and easy place to visit, and many Australian business owners who attend our strategy tours are surprised at just how much it feels like doing business in Australia.
They therefore often ignore or miss the subtle differences, but it is those differences which are the key to succeeding offshore. There are 10 key areas which cause failure with offshoring and all of them can be avoided by any business which has been shown how.
One of the most common areas for failure lies in finding the right staff. The Philippines is not short of staff with the right qualifications; it turns out 450,000 new university graduates every year, with a total working population of around 60 million. My prediction of around 1,000,000 roles shifting offshore from Australia over 10 years will soak up only a tiny percentage of the available talent.
The veterans of offshoring know that you have two choices: you either fully train them on every process, or you become scientifically brilliant at recruitment to find the people who can already do what you need done. Those who are not diligent about this when building their team will often get a poor result.