Mike O'Hagan Growth and Profit have never been Easier.........
In 2009 the so called Global Financial Crisis (GFC) almost flattened my main business.
Almost overnight our market condensed by 60%. What was a vibrant profitable business with 28 years of growth
employing around 500 Australians, suddenly turned toxic. Red ink appeared everywhere. We quickly consumed our
ability to borrow from the Bank and then they said enough ... fix it.
It's was from this background, motivated by the fear of losing everything, I started experimenting, teaching myself
GlobalSourcing or outsourcing overseas. What I now realise is there is a massive change affecting the business world.
The connectivity of the internet and globalisation effect of cloud computing mean you can employ anywhere in the
world that represents "value".
I joined a worldwide organisation of Entrepreneurs (EO). I moved around the world studying the trends and reasoning
of leading edge businesses. My choice was the Philippines - same time zone as Western Australia and an American
colony for about 50 years that used an American education speaking in English. This country has embraced
GlobalSourcing where you can employ a well-educated loyal administrative worker for about $1000 a week less than
an equivalent Australian worker.
For many years I had employed individuals both full and part time in
the same manner as ODesk and Freelancer. These sites have huge
numbers of workers, many terribly over promise and under deliver,
while a few are brilliant.
My studies and various visitations around the world introduced me to the predominately corporate practice of
outsourcing a "part" of their processes. Typically they use a service provider who specializes in this. These "part
processes" are very structured, so they systemise and script their workers to the nth degree. Wherever I witnessed
small to medium businesses trying this, the results ultimately were disastrous.
What I noticed was the lack of knowledge sharing between workers. Whilst large corporates are systemised to the nth
degree, when it comes to Entrepreneurial SME businesses there needs to be more tacit knowledge sharing, more
creative solution finding. This can really only come from a "team" - all in one office environment.
The logical solution is to incorporate a legal entity in a foreign country, then lease premises and employ in the
traditional way. This exposes you to all sorts of local business cultures that we find difficult if not impossible to deal
with. The solution I found was Seat or Staff Leasing.
These businesses provide office space, with a desk, computer, internet access and IT support. They help find the type
of workers you want, let you interview a short list and select suitable staff and then legally employ them. It doesn't
matter if you only want one worker or hundreds. Many also provide ongoing managing support to assist with
overcoming the employment culture differences.
Across my various business interests I currently have 35 Filipino who are a fantastic, productive staff in my Manila
office.
This move saved the jobs of a few hundred of my core Australian based workers. Within 6 months our red ink was
replaced with healthy profits and new growth.
GlobalSourcing is changing the cost and productivity parameters of many industries. If your margins are being
squeezed and / or your marketing has become ineffective, then you need to consider GlobalSourcing.
My journey has not been without its mishaps and learning experiences. I discovered a few hours "consulting" was
ineffective so I now regularly run Business Learning Tours in Manila.
Mike O'Hagan has built huge businesses in Australia and is CEO of
MikesManilaTours.com because many Australian Businesses get outsourcing wrong.
Mike runs Business Learning tours for any sized business showing what works and
what doesn't. Contact us at http://www.mikesmanilatours.com in Manila Philippines.