It’s a statistical fact that by outsourcing some of your businesses work functions, you can save approximately 70%-80% per person when you are adding up all the operational costs to have a staff member on your team domestically. These costs can be wages, office spacing requirements, and other government related commitments that companies are responsible for paying.
The utilisation of outsourcing in our industry is still very much optional and many companies already embrace this. Our concerns are for the ones who do not, how will they compete with the likes of other companies who have teams of operators working overseas.
Big corporations can afford to set up offsite operations and take advantage of salary and other overhead related costs (Labor Arbitrage) by having the same function being done outside their domestic market.
MDPC understands the dynamics of this – the big guys get bigger by utilising offshore assistance to keep their operational overheads at a minimum. Meanwhile, the small to mid-sized companies who we hope to partner with have no option to do this, nor do they have the time and resources to set up a back office themselves. Some even persist with a patriotic attitude of wanting to keep all jobs in their country.
Whilst we appreciate this sentiment, our main goal is to make small to midsized companies lean, competitive again and ultimately not have to shut down in the future due to big corporations destroying the market. This will not be avoidable paying 100% full domestic wages and overheads on every operational procedure when it can be outsourced to other countries at a fraction of the cost.
What you will need relating to gross profit margins will be considerably more than a company with offshore resources at their disposal. This will mean competing against big corporations on quotes or tenders will be near impossible and the big get bigger, whilst eventually the patriotic (true-blue) companies are left wondering what happened. MDPC see this as possibly the biggest mistake small to mid-sized companies are going to make, and that is by not embracing the offshore operational options out there in the market.