Supporting the Growth of an Australian IT Managed Service Provider

Supporting the Growth of an Australian IT Managed Service Provider


IT OutsourcingManaged Services

September 2016


GrowthExtended ServicesCost

Executive Summary

Our client for this case study is a multi-awarded Australian IT company based in Sydney. They were experiencing unprecedented growth and needed to continue delivering world-class service while curbing costs.

1. Client Challenges

  • Improve financial management in the context of company expansion
  • Maximize business operations in order to accommodate the growing demands of their customers
  • Support business growth without compromising service quality

2. The Yempo Solution

  • Provided the client with technology and staff at a low cost, fixed monthly to assist with cash flow
  • Recruited technical resources, enabling coverage for support services across a broader time span
  • Used our extensive knowledge of the IT market in the Philippines to hire exceptional staff with strong customer service skills

3. Impact on Client’s Business

  • Achieved strategic growth goals without compromising customer satisfaction
  • Received overwhelmingly positive feedback relating to services from the off-shore team
  • Broadened the skill set and outlook of the Sydney-based team in working with colleagues from a different culture and geographic location

Client’s Challenge

This leading and award winning IT service provider was experiencing an expanding customer base and associated cash flow requirements.

Managing their 40-70% annual growth while reducing costs was a considerable challenge. In addition, the company was known for the provision of world-class IT services and impeccable customer service. It was important that neither of these were affected as the business grew.

“We needed a solution where we could scale staff in our business whilst controlling employment costs and ensuring we kept customer satisfaction very high.”– Managing Director

To minimize capital outlay and maximize their customer service offerings, they needed a business strategy to support their accelerated growth. This dilemma prompted the company to investigate a local solution but found it to be cost prohibitive. They then considered outsourcing offshore to meet their needs.

Their objective was to find a reliable outsourcing company that could attract talent with the right technical skills, personal qualities and work ethic.

The Yempo Solution

On deciding to explore outsourcing to an offshore business, our client reviewed different offshore models to determine how they could support their individual business needs.

In their first meeting with Yempo, we discussed their concerns with expanding to a low-cost location such as the Philippines and how we could address them.

They had identified that the major fear was losing customers and suffering reputation damage if the initiative was not successful.

They worried there would be language barriers, time zone differences and cultural disconnects. This company values their internal company culture as it forms the foundation for their highly regarded customer service.

To deal with their concerns, we connected them to another client whose similar apprehensions had been addressed. We also set up a phone conversation between one of our highly skilled IT support staff to provide confidence in English language capability, customer service ethos and general work attitudes.

To allow this company to both exceed the expectations of their customers and reduce costs, Yempo provided:

  • End-to-end talent sourcing to identify highly skilled IT professionals to provide the same world-class service that their customers expected;
  • The resources and tools to service customers as well as connect with the Sydney team in a seamless manner; and
  • The solution with no upfront fees and no long term contract.

Impact on Client’s Business

Our client now has a high-performing team of IT Support professionals located in Yempo’s office in the Philippines. They possess the same qualifications as the Sydney team, and due to our expertise in IT recruiting, operate with the same attitude toward excellent customer service as their Australian counterparts. The Sydney team has bonded and formed a close partnership with the Manila team.

“The full cost of a Yempo hosted staff member is 50% of the salary-only cost of a Sydney based resource.”– Managing Director

“Yempo is a values-driven business providing staff with excellent working environment and benefits.”– Managing Director

“Yempo has a high standard of work ethic that they provide to companies seeking offshore IT Support Teams. They are extremely professional and it has been an absolute pleasure working side by side with them to build the great team we have in Manila.”– Service Delivery Manager

Yempo provided the necessary tools and equipment to keep the Sydney and Manila teams in constant contact with each other. Regular team meetings and one on one meetings were set up to ensure that operations would continue smoothly and to boost employee morale. Regular performance appraisals conducted by Yempo ensure that the employees are performing according to the standard required by our client.

Timezone and language barriers have become insignificant, with the offshore employees flexible and open to shift changes.  The Filipino team speaks fluent English and is comfortable using this as their primary language.

Yempo’s extensive experience with both the Australian and Filipino culture and our values-driven business ethics enabled this business transition to be implemented seamlessly.

Our client can continue its accelerated growth pattern without concern.

The partnership with Yempo has enabled them to:

  • Avoid capital outlay or computer equipment as its staffing needs grow.
  • Maintain their existing office footprint increasing headcount without increasing costly office space.
  • Curb operational costs as headcount grows without additional management overhead or recruitment fees.
  • Expand their hours of operation without overtime or additional utility costs.
  • Effectively manage cashflow requirements by having fixed monthly costs and fixed exchange rates for their offshore team.
  • Reduce their per-head costs significantly; the full cost of a Yempo hosted staff member is 50% of the salary-only cost of a Sydney-based resource.

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