Telco Offshoring and the IT Industry
One of the most controversial developments in recent years has been the rise of offshoring of jobs in the telecommunications market.
It doesn't seem like we can go a week without reading about a Telco sending more jobs overseas, or one making news just by deciding to keep roles in Australia!
While offshoring has traditionally been associated with contact centre roles, in recent years more specialised jobs have increasingly been sent outside of Australia.
Why go offshore?
The most common reason that firms choose to go offshore for talent is so that they can make cost savings.
Wages tend to be cheaper in places like the Philippines, making them an attractive location to set up call centres, for example.
Another big draw for companies to look abroad for talent is a lack of skilled candidates here in Australia.
It may be easier for firms to source niche, in demand skills, such as developers, from bigger and more developed IT markets overseas - like the US, for example.
Why keep it local?
When it comes to customer support in particular, outsourcing can be quite unpopular with customers. Many prefer to talk to someone local, even if it means having to wait longer for service.
For more specialised positions such as telecomms engineer or project development roles, if staff are located in other countries it can be harder to manage and motivate them.
In many cases, offshore workers may in fact be working for another company, who in turn is working for the Australian company . This means that there is even more of a disconnect between the workers and the firm they are employed by, which can lead to a lack of engagement. Staff are less likely to go above and beyond simply because they don't feel part of the team. This can lead to poor customer experience, and can ultimately impact the reputation of the brand.
Offshoring can work well for businesses where the emphasis is on cost rather than service. If a business is less susceptible to customer service issues, and the training and communcation with off shore teams is well handled, it can be a viable solution for Australian telecommunications companies.