- Why the traditional talent ecosystem has broken.
- How the business case adds up for offshore IT & Development talent.
- Understand how the numbers for offshore IT & Development talent add up for your business.
- Checklist: Is adding offshore IT & Development talent right for your business?
- Get started, find talent, learn more.
‘’We have a lot of experience with offshoring and Yempo is the first company we’ve found where delivery exceeds what we expected.’’ – Warwick Matthews, Compliance Data Lab (Yempo client)
We’ve ‘entered a new sourcing ecosystem’ (Deloitte) The traditional accountancy talent ecosystem has broken
Do you struggle to recruit and keep the IT & Development talent that your business needs? Yes? Then here’s the good news:
You’re in the majority!
Deloitte’s research found talent acquisition is the top internal challenge for organisations. Plus 62% of executives say they are ill-prepared to address the causes and impacts of poor employee retention.
In just a few short pandemic-accelerated years remote working has opened a deeper, wider, job pool~, and IT & Development talent have dived in.
Response: 76% of executives say IT functions are outsourced
In 2024 it’s now distinctly ‘not normal’ to only use in-country IT & Development talent. So, how does the financial case stack up for outsourced & offshore IT staff? What do the numbers look like for your business?
1. Philippines IT & salaries are 70% lower
What would your firm’s salary numbers look like?
Over the next few pages, we outline five key business benefits that outsourcing brings. These are example numbers based on what outsourcing clients achieve. So, grab a piece of paper to work out likely benefits for your own business.
In this example, an IT & Development business spends 40% of revenue on salaries, with a revenue of 2.5 million dollars.
Let’s assume that 50% of this salary spend supports the company’s senior in-country leadership team, 50% supports middle and junior roles. 50% of salaries = £500,000 ($1,000,000 / 2).
If the middle and junior roles supported by 50% of salaries are filled by Philippines-based IT & Development talent, then this delivers a 70% salary saving for these roles = $350,000 ($500,000*0.7).
Any loss of control? No. Yempo’s model means that the IT & Development talent you select is a fully dedicated part of your team.
“Our business benefits from significant productivity gains vs. hiring in-country.” – Russell Khan, OneStop (Yempo client)
2. Specialised skill sets, more revenue opportunities
What IT & Development skills would you add and offer?
Do you leave revenue opportunities on the table because of a lack of suitable and/or affordable skills?
Deloitte’s research found 28% of firms report a lack of adequate skills of employees. This leaves toeholds for competitors to gain access to your clients.
The broad range of skills and lower costs of Philippines talent make it possible for IT & Development businesses to maintain margins on work that in-country teams cannot profitably service. Refer to point a. in the table below.
“You don’t just get given people – we recruit for our own team even though, technically, team members work for Yempo’’ -Andrea Harris, Powertech (Yempo client)
3. Senior experts freed to focus on growth
How would your firm use this capacity?
How much of your senior team’s time is sunk fixing talent issues rather than winning and delivering fee earning work?
Senior partners at IT & Development firms tell us that local talent is in extreme short supply. Salary and staff turnover rates are climbing.
It’s very frustrating for them.
By filling talent gaps with offshore talent, they freed themselves to grow their businesses. Refer to point b. in the table below.
‘’As a business leader my time is short. Yempo’s end to end process is efficient and effective.’’ – David Dennis, Managing Director, FiveP, (Yempo client)
4. More funds to accelerate growth
What business opportunities would you pursue?
Funding marketing & new business activities, plus adding not yet fully chargeable talent to your team, can be cost-prohibitive.
Adding a greater range of chargeable talent may be unaffordable until full utilisation is guaranteed.
Growth is slowed.
In this example, we’ve reallocated $200,000 from the $350,000 saved by outsourcing 50% of the salary bill to New Business Activities.
Growth is accelerated. Refer to point c. in the table below.
5. Lower technology costs, reduced security risk
How would these affect your business plans?
IT functions are led by IT experts, not staff recruitment and retention experts.
Recruitment and retention activities draw IT experts away from their core expertise. These activities may also impact cross-functional business leaders across non-pure IT organisations.
IT & Development outsourcers are experts in the provision of enabling technology and cyber security. It’s core to their operations. These costs are wrapped into the simple monthly fee that Yempo charges for each person.
Your savings and productivity gains may be larger than we’ve allowed in this example. Refer to point d. in the table below.
Understand how the offshore IT & Development talent numbers add up for your business
Click here and select your currency.
Input the IT & Development skillsets you use.
Compare costs vs. local hires…year one, over three years.
- You’ll measure the potential for salary savings.
- You can cost adding new skill sets funded from salary savings.
- You’ll start to understand how much senior time can be freed.
- You can plan how savings fund growth activities.
- You’ll see how tech costs and headaches are removed.
Checklist
Is adding offshore IT & Development talent right for your business? If you answer ‘Y’ to more than three questions, then let’s chat.
Thank you for visiting our blog! We hope you found our content informative and engaging. Stay connected with us for more insightful blogs, updates, and tips on outsourcing IT & outsourcing Finance in the Philippines, or shoot us an email at [email protected]. We are happy to answer your questions!
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