Offshoring a business

In my opinion

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#1
NEO

NEO

Eat at Joe's
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#1
I have a question that I want to see everyone's opinion on. With the way the government is creating an anti-business environment, and clearly going after the small business people, do you consider it wrong for a business to close up shop here and move to another country.

The reasons to leave I would think would be clear:

A) cheaper labor

B) motivated labor

C) lower tax brackets

D) lower overhead such as office space and utilities.

The reasons to stay are clear also:

A) Keeping jobs in America

I just want to see everyone's opinion considering this is a situation that is truly going on in America today and it does impact everyone.

Thanks.
 
#2
#2
I don't think the government is creating an anti-business atmosphere and especially not targeting small businesses.
 
#3
#3
Depends on what your business is... I've been involved with offshoring for about 12 years, let me know if you want to talk.
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#4
#4
Thirty people have viewed this thread and you're the only one who has replied.

It's not a loaded question. Why so many people willing to open the thread but not make a comment?
 
#5
#5
MystifyingVol said:
Depends on what your business is... I've been involved with offshoring for about 12 years, let me know if you want to talk.
Posted via VolNation Mobile
Click to expand...

Can't PM yet, can we?

But my question is ethical, not as much how to.

Does it bother you at all pulling jobs from here and shipping them elsewhere.

Or do you feel the people there take the job more serious and it means more to them so it doesn't bother you?
 
#6
#6
NEOCON said:
Can't PM yet, can we?

But my question is ethical, not as much how to.

Does it bother you at all pulling jobs from here and shipping them elsewhere.

Or do you feel the people there take the job more serious and it means more to them so it doesn't bother you?
Click to expand...

No, it doesn't bother me. I'm in business to make money first and to do so, I must compete competitively. Let me state that I am an outsourcer and put together best shore models for my clients, which is a blend of high-value individuals in the US and the more commodity type of job being shipped overseas.

Second, I've helped companies stay in business by lowering their operating costs, thus saving a portion of the US jobs.

Your second question has no bearing, most people I work with take their job seriously and want to do good work... I've fired people in the US and India both for not taking the job seriously.
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#7
#7
The second one does take bearing in the context that 10 dollars an hour gets you a coke head here if they are over the age of 30 and 4 dollars an hour in the philippines gets you a college grad.
 
#8
#8
another concern I have with offshoring is lack of control.

I would not be able to be there year round.

I could easily install cameras though on a live feed but still not as much control
 
#9
#9
anybody going to stand up for keeping a business here and give an actual logical reason?
 
#10
#10
NEOCON said:
The second one does take bearing in the context that 10 dollars an hour gets you a coke head here if they are over the age of 30 and 4 dollars an hour in the philippines gets you a college grad.
Click to expand...

Guess its the business I'm in, I don't run into that scenario. Depending on the work and the location you would offshore to, it doesn't always save you money, but I sell unique projects and depending on the scope, timing and technology, it might be wholly onshore.
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#11
#11
NEOCON said:
another concern I have with offshoring is lack of control.

I would not be able to be there year round.

I could easily install cameras though on a live feed but still not as much control
Click to expand...

There are good people you can hire that will manage effectively, just build a good relationship with them, learn about their culture and treat them like a human and it does wonders... I go over once a year.
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#12
#12
MystifyingVol said:
Guess its the business I'm in, I don't run into that scenario. Depending on the work and the location you would offshore to, it doesn't always save you money, but I sell unique projects and depending on the scope, timing and technology, it might be wholly onshore.
Posted via VolNation Mobile
Click to expand...

call center. all out bound.

b2c and b2b.

insurance leads and product placement along with charity calls.

you handled any of that?

I'm getting quotes from Bacolod and Cebu for 3 bucks per hour for college grad fluent in english. 10,000 pesos to 25,000 pesos.
 
#13
#13
i was thinking of living there during the summer and christmas break (i have kids in school) and then fly there once a quarter throughout unannounced.

so the distance is no problem

really wish pm's were back on.
 
#14
#14
NEOCON said:
call center. all out bound.

b2c and b2b.

insurance leads and product placement along with charity calls.

you handled any of that?

I'm getting quotes from Bacolod and Cebu for 3 bucks per hour for college grad fluent in english. 10,000 pesos to 25,000 pesos.
Click to expand...

I don't personally, but we have a division for that, they only bid on multi-nationals though. That's a damn good price, save yourself 70%.
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#15
#15
MystifyingVol said:
I don't personally, but we have a division for that, they only bid on multi-nationals though. That's a damn good price, save yourself 70% on paper.
Posted via VolNation Mobile[/QUO it

yeah which is why i'm debating it so much
Click to expand...
 
#16
#16
NEOCON said:
MystifyingVol said:
I don't personally, but we have a division for that, they only bid on multi-nationals though. That's a damn good price, save yourself 70% on paper.
Posted via VolNation Mobile[/QUO it

yeah which is why i'm debating it so much
Click to expand...

It's a 70% savings, why are you debating? Reinvest some of the savings into US individuals that are higher value and can help grow the business.
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#17
#17
Because I'd be firing 104 employees in an already bad economy.

Just bothers me for some reason.
 
#18
#18
NEOCON said:
Because I'd be firing 104 employees in an already bad economy.

Just bothers me for some reason.
Click to expand...

I was all about offshoring until I read this. It's good to see you struggling with this decision, it says something about you. Most people here would have thought you to be the last person to hesitate going forth with this opportunity.
 
#19
#19
NEOCON said:
Because I'd be firing 104 employees in an already bad economy.

Just bothers me for some reason.
Click to expand...

Would you have to get rid of all of them? There are a certain percentage of those 104 that are low performers. That is the number you swap.

I can understand your distress, I've been on this side of the table for a good portion of my career. Sitting on your side, knowing those people, I would be struggling too.
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#21
#21
Are you looking to grow the company?

If you have concerns, trim a bit here or maintain, grow offshore, use that capital to grow selectively here when the economic and regulatory climate is more favorable.
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#22
#22
Based on the numbers you've put in this thread, you have roughly $2,000,000 in "salary" and with benefits roughly $2,800,000.

If you offshore the entire team, you're looking at around $600,000.... however, I would argue that you're not going to have the same productivity, you'll probably end up spending about $1,000,000 (including your support and travel). That's a savings of $1,800,000. Can you use that capital to grow your business and hire more high-value US people?
 
#23
#23
I worked with a call center in the Philippines and they literally had the best and brightest working there and they were pretty much worthless and very lazy
 
#24
#24
MystifyingVol said:
Based on the numbers you've put in this thread, you have roughly $2,000,000 in "salary" and with benefits roughly $2,800,000.

If you offshore the entire team, you're looking at around $600,000.... however, I would argue that you're not going to have the same productivity, you'll probably end up spending about $1,000,000 (including your support and travel). That's a savings of $1,800,000. Can you use that capital to grow your business and hire more high-value US people?
Click to expand...

Yes, I could use the income to loan to another business I am starting up. It would allow me to grow that faster and it is something I never plan on offshoring.
 
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