The key to offshoring success is knowing what you want

A 2010 report issued by the World Bank entitled “Doing Business” ranked India 133rd in “ease of doing business”. Equally, Brazil ranked just right in front of India at 129, while much worse in “employing workers” at 138 to India’s 104. China, the other powerhouse of the developing world who will surpass Germany soon enough as the third largest economy, ranked 151 in “starting a business” and a dismal 180 in “dealing with construction permits”.

Like all things, these only have meaning when in context or relation to other things, and the most important fact to know is that there were only 183 countries in the survey. According to this survey, Singapore is the easiest place to do business and New Zealand is the easiest place to start a business. The United States ranks fourth in ease of starting a business and tied with Singapore for first in employing workers.

So what does all of this mean to a mid- to small-sized company? It means that the large corporations can access global markets like India with their clout while you struggle to keep your business afloat by having to deal with high costs and productivity issues. But what you may not know (and what the big companies don’t want you to know) is that you too can enjoy the benefits of doing business with emerging markets. It’s time to level the playing field.

At first, companies came to India for the cost reductions, and stayed for the quality. Now research and development and innovation lead the way as reasons why companies such as Cisco, ADP and IBM are in
India to stay. The key is knowing what you want to do in a market that matches the skills available, not simply being there because it is cheap.

If you are a services business, learn from the mistakes of those before you. We learned these lessons as a provider in the HR services industry and will guide you carefully through what to do, and not to do in an offshore operation. Believe it or not, we don’t like reading scripts and not having the answers to that phone call from an irate employee in Texas. Know what you are good at and do it!

Match skills with location! You wouldn’t open a steel mill in San Jose, so choose wisely the processes or portions of them you move offshore.

Consider benefits administration for a moment. Your offshore vendor can easily download the invoice, perform the reconciliation and make the necessary changes in the system(s) of record. Imagine, you come into work the first of the month and your Inbox filled up overnight, remembering that time difference can be in your favor. Now, your highly trained benefit experts can spend their day talking to participants and employees on the tough questions, or maybe help out your sales associates with closing a deal, instead of being buried in spreadsheets. That benefit subject matter expert is now the face of your company’s service, while your offshore team supports them with their best foot forward.

We built the condo on the beach for you and staffed it with ISO experts to make your business better, and this is fractional ownership. You can skip that annoying ownership association meeting and let us do the governance for you. We formed Cognet to provide small to mid-market service companies with access to global resources without the hassle.

So, do you want to deal with the 175th hardest country in the world to get a building permit for that shiny new office? We already did the work, you enjoy the benefits.

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Get a free ticket for a global resource!

90-Day Risk-Free, No Obligation Free Trial

As a consumer, the global economy is part of your everyday life. Pick up an item off the shelf and more likely than not, it’s made in another country. When you call for technical support, there’s a good chance that your representative is located on the other side of the world. Yet, as a business owner or leader, your organization has not taken advantage of what the global economy has to offer. Cognet HRO is here to help you take that next step by offering you a “free cruise” around the world.

Cognet HRO is a leading provider of offshore Business Process Outsourcing (BPO) services. We are so confident that we can make an immediate impact by managing your processes that we are offering a 90-Day Risk-Free, No Obligation Free Trial to access our global team. We want you to experience how an offshore operation can make your organization more efficient and allow you to focus more on sales and customers, not spreadsheets.

Click here to complete our process assessment, and you could be one step closer to realizing the benefits of a global team.

Noble Governance with a Collaboration Model

By Dianna Sheppard, President, Advantec HR

Can you imagine handing over any part of your precious core business processes to another company without a clear pathway for governing the relationship between your organization and the organization performing that work? Do you believe you have some work to do inside your own walls on communicating and tracking responsibilities, accountabilities and authorities?

If you answered ‘yes’ to these questions, then you my friend, are not ready to outsource anything.

Between the man who designed and built the Titanic, the man who owned it, and the Captain who was to steer the ship, they had not determined how best to govern the ship on its maiden voyage in regards to a “worse case” scenario. The result is now known in our history, “and thus lithe the lesson,” you will avoid icebergs in the sea, and as for business you will know the most effective path forward for success, and how to assure you will achieve it.

Click here for the full report.

Wish you could focus your key employees on your clients?

Imagine how much revenue retention improves if you can beat medical trend because your best people worry about customers and not spreadsheets.

Now let’s take this a little further and tell you that you can do just that while also improving your bottom line.

Here are the realities of the TPA Industry. Revenue declined 3.9 percent in 2009 and clients are looking to cut cost in any way possible, including their health care. $1 of every $3 dollars you spend in your business are wages, which means you are in a labor intensive business, and to compound that your employees are a bit more skilled and their pay reflects it.

Listen to what the CEO of a TPA client of ours said about us.
“Cognet allowed me to redirect my key talent to medical cost containment, provider selection and customer service. As a result we provided our partners with negative trend results. They not only allowed us to properly place transactional tasks in their operation, we also learned a lot about process and ISO that became a part of our company we lacked before Cognet. In fact, we closed an acquisition given our ability to scale quickly and are looking forward to growth as the economic cycle improves. Cognet provides us the cost and capacity to do it.”

So what’s your next move? Go Global, but stay at your desk and we will come to you.

Is your answer to sustainability to think global?

There has never been a better time to invest in your business! The Dow is hovering around 11,000, unemployment has stabilized a bit and all the media seems to be convinced the worst is over. But, if you’re like most small to mid-sized businesses you know that your banker isn’t opening up the wallet yet and that you are still cautious on spending money.You worked hard and made tough decisions. In fact, this recession was quite different from others. In the first half of 2009 sales went down $68 billion, but net income increased $285 billion. At the same time productivity increased at an annualized rate of 6.6 percent.

Will your competition start hiring and give up those hard earned productivity gains? Don’t wait for that rerun, time to build a sustainable global operating model just ahead of the wave. Yes, we said global.

Economic Denial

Will revenue in your business continue to increase ahead of your cost? Consider for a moment the consumers of your product or services and their plight. Between 1947 and 1973, the typical American family’s income almost doubled in real terms, not adjusted for inflation. What did they do? They shopped! Between 1973 and 2007 it grew by only 22 percent, and that includes the impact of many households having two income earners, rather than one. If you adjusted for inflation over this period the average family made less. Therefore, you can expect changes in consumption and for consumers to seek better value and price.

Globalization

Do you think that the BRIC (Brazil, Russia, India & China) invented globalization and that it will simply go away? Not likely, and in fact all we need to do is consider  Romans, Persians, Egyptians, English, Spanish and French to understand that this is not a modern trend and that after over 500 years it is here to stay. The recent economic crisis shows us how interconnected we all are, and that those of us who don’t keep up may not survive. The United States currently has a trade deficit of $533 billion, while the BRIC has a trade surplus of $214 billion combined, which is watered down by India who carries a deficit of $91 billion because they must import oil much like the United States. Simplified, American consumers have less buying power and income, so they go to Wal-Mart. “Reverse innovation” allowed that organization to change the way the supply chain from manufacturer to store works, which lowers their cost and increases their profit margin, even if they can’t raise prices. They went global!

Obstacles

So you may think that having access to global resources is only for the big boys, and while General Electric built a city in a far away land, that you are just too small to do it yourself. The good news is that you are both wrong and right. The World Bank ranked 183 countries in 2010 on several criteria. India ranked 133 in “ease of doing business” and 169 with “starting a business, while China ranked 140 in “employing workers”. Emerging markets can be difficult to enter and contain many market protections, so pioneering on your own to set up shop may be harder than you think and require substantial amounts of time and money.

Solutions

We all consider the argument of “build vs. buy ” or even rent in today’s business world. We know that globalization has been around and will only increase, and that our customers have less and less to spend. The question isn’t “if” but more like “how” to go global.

Cognet HRO was formed to answer that questions for small the mid-market companies. We are a Business Process Outsourcer (BPO) located in India and we specialize in helping Human Resource Service Providers. You have “back office” tasks that don’t help you spend more time with your customers, or focusing on sales. We have experience in your space, and guide companies to global resources that lift them to operational excellence.

We did all the hard work to be in India, now you can utilize those resources to not only reduce cost, but also increase productivity and allow for more flexible capacity planning. We have deep subject matter expertise at your disposal globally, and leadership locally with owners in the United States who have been in your shoes. You can access India and all it has to offer without leaving your desk, and remember it is your stuff we are managing in a partnership and typically on your systems. You just moved the cube a bit farther away and can hold us accountable.

In fact, we guarantee cost savings and productivity gain in the contract. We also plan to exceed your expectations by improving processes and finding innovative solutions to your business problems. We are an ISO 9001:2008 certified company, we know process. We are ISO 27001 certified, we know data security. Are you ISO certified? We can get you there and provide the benefits to your bottom line and customers. We can get you global.