The latest Commonwealth Bank Legal Market Pulse results are in, and offshoring continues to be a major option for legal practices looking to reduce costs and offer significant value to clients. More of them are realising the opportunities an offshore workforce can deliver; opportunities that can be realised by businesses operating within any industry sector.
Over the next two years, the survey indicates that the number of larger firms offshoring work will grow from 9% to 14%. This percentage of mid-practices offshoring will increase from just 1% to 7% as more of them realise the potential offshoring can offer in reducing costs and maintaining or improving margins.
The perception of offshoring continues to shift, with businesses realising that the approach does not just bring on the opportunity of cutting costs, it allows for costly local team members to be liberated from lower-cost activities, letting them focus on the areas that can deliver the greatest value to your business.
More and more firms are starting to express the view that offshoring can have a positive impact on their profit margins. In the survey, research and discussions conducted by the Commonwealth Bank indicated that:
- Offshoring can help firms take control of their future, rather than relying on market conditions to improve; and
- Firms who spend on offshoring are more likely to be neutral about business conditions rather than negative.
Although this survey was conducted on the operators’ within the legal sector, the findings apply to all business. Offshoring can reduce cost pressures that are building on business, empower local team members to focus on growth activities and, most importantly, maintain or grow profit margins.
Some key quotes contained within the survey by leading Commonwealth Bank executive, Marc Totaro, Head of Professional Services, included
- “Outsourcing offers the opportunity for firms to focus their investment in hiring and retaining quality staff in the areas where they can achieve the greatest impact. The key is to closely examine each step in your processes to identify the areas where you have the greatest competitive advantage.”
- “Firms who master the art of successful price negotiation not only achieve higher margins, they can also increase client satisfaction and build stronger relationships by highlighting the value they offer, rather than the costs they charge.”
If you would like to learn more about how an offshore team can deliver value to your business, get in touch with Diversify today. Also, take advantage of our complimentary offshore readiness review – we’ll schedule a discussion and overview of your business and see which functions can be effectively offshored.