Outsourcing is not a dirty word

Presented by Jeff Mazzini (FPIA)

Managing Director

AAMC Training Group

Session Overview

• What is outsourcing / offshoring?

• What pressures are driving out sourcing?

• Large multi-nationals and technology disruptors forcing change

• ASEAN 2016

• Rise of middle class in Asia and India

• Lessons learned and mistakes made on my journey

• Opportunity to grow business models offshore

• Suggested actions

2015 Top 10 Outsourcing Destinations

1. Bangalore, India2. Manila, Philippines3. Mumbai, India4. Delhi, India5. Chennai, India

6. Hyderabad, India7. Pune, India8. Cebu City, Philippines9. Krakow, Poland10.Shanghai, China

Source: Tholons Top 100 Outsourcing Destinations 2015

What is Outsourcing / Offshoring

• Outsourcing

• BPO (Business Process Outsourcing)

• Industry being redefined by trends – cloud computing, social media and crowd sourcing

Off-shoring, Near-shoring and On-shoring

• Off-shoring – involves shifting work offshore

• Near-shoring – transfer of business to nearby countries

• Captive vs Third Party• Captive or Regional Office• Third Party

Shared Services, Crowd Sourcing

• Shared services – Where a group combines processes in one location

• Crowd sourcing – a form of outsourcing previously performed• By employees

• By contractors• Examples would be Freelancer and Upwork (previously known as

oDesk)

Source the Outsourcing Guide

Drivers of Outsourcing

• Consumers demanding lower cost goods

• Australian wages too high for return, combined with low productivity

• Advanced technology being adopted offshore

• Large global players offering cheaper offshore servicing

Drivers of Outsourcing

• Australian work force behaviours and costs• Workers take on average 10 sick days annually costing $33b in lost

productivity

• Compared to:• UK 9.1 days

• Ireland 6.4 days

• USA 4.9 days

• Asia 2.2 days

Source: Direct Health Solutions

Issues in Establishing Offshore

• Understand which is the best model and why

• Location

• Language, skilled workers, English speaking, cultural barriers

• Contracts

• Support of your Australian team

• Country rules, regulations, ease of doing business

• Technology availability

AAMC Training Global Family Journey

• Sharing the experiences of the journey

• Reasons for looking offshore

• Journey started four years ago

• Local operations Australia, India, Philippines and Indonesia

Sharing the Experiences of the Journey

• Every human is the same no matter what country they come from

• Deciding outsourcing, shared services, regional offices or local company establishment

• If you do not control the journey you do not control your destiny

• Culture and standards are a two-way process

AAMC Training Global Family Core Values

Deliver WOW through service

Embrace and drive change

Every task has a deadline

Talk once, act once

Do more with less

AAMC Training Global Family Core Values

Culturally aware, culturally sensitive

Put AAMC Training Global Family agenda ahead of your own

Be passionate and determined

Pursue personal growth and learning

Ask for forgiveness not permission

Overview of Operations - Australia

• Registered Training Organisation 51428

• Delivering nationally

• Financial Services focus but diverse offerings

Operations India

• Head office located in Ahmedabad, Gujarat State

• Office located in Delhi

• Local Company approved for delivery by RASKI, PMVKY, NSDC, AICTE and funding available

• Working on projects containing large numbers hard to comprehend

• Assisting Australian and other countries to sell their education products into the market - supporting BPO industry

• Establishment journey many lessons learned

Operations Philippines

• Local office established in Manila

• Shared services arrangements for AAMC Training Global

• Supporting BPO industry, local companies, Australian companies and schools

• Over 1300 Australian companies with registered business interest

• Establishment many lessons learned

Operations Indonesia

• Office located in Jakarta

• Training of corporates and government employees

• Location close to Australia

• Many lessons learned

Why change is not an option

After viewing this video we will look at ways to move ahead.

Humans Need Not Apply

What does the Accountant’s role look like?

• Accountants are considered the most trusted advisors

• What can be input will be robotic automation

• The future is built around relationships, knowledge and technology skills