Mike O’Hagan – How Outsourcing Saved his Business in Australia

Mike O’Hagan – How Outsourcing Saved his Business in Australia

Today, Derek is joined by Mike O’Hagan. He is the owner of MiniMovers, a moving company. They will talk about Mike’s outsourcing journey and how it saved his company’s life.

 

Summary

  • Mike O’Hagan is a businessman, he has been in business for decades. He owns MiniMovers, a moving company in Australia.
  • The company achieved continuous growth until 2009’s GFC.
  • MiniMovers is a company which got used to the old-fashioned type of marketing, that they weren’t able to adapt and adjust instantly when the age of the internet made an entrance.
  • To be able to cut their overhead costs and save other people’s jobs, Mike moved the backend to the Philippines. It was desperation that led him to do that. Although, it worked out very well.
  • Mike chose the Philippines as his outsourcing destination because his PA is a Filipina working in Odesk. Also, the idea made perfect sense because his PA was very clever, and her salary is also relatively low.
  • Outsourcing to the Philippines started out as a cost-saving measure then it quickly became more. It allowed them to be able to do a lot of stuff for their customers and clients that nobody else could do. It helped MiniMovers have a competitive advantage in their business.
  • Mike was the one who encouraged Derek to outsource to the Philippines.
  • Mike cited reasons why it is better to outsource to The Philippines than anywhere else in the world.
  • Mike mentioned that the cost of operations in the Philippines is 78 percent lower than the cost in Australia.
  • The Filipino government have welcomed offshoring or outsourcing and has become a vital part of the Philippines economy.
  • According to Mike, the BPO industry helps create a stronger middle class in the Philippines.

 

Key Points

  • The Global Financial Crisis of 2009 coupled with MiniMovers’ inability to adapt instantly to the internet age led them to outsource to the Philippines.
  • Outsourcing to the Philippines started out as a cost-saving measure then it quickly became more.
  • It was Mike O’Hagan who encouraged Derek to outsource to the Philippines.
  • Mike compared outsourcing to heroin, once you start outsourcing you will find it hard to stop because of its undeniable advantages.

 

Resources

  • outsourceaccelerator.com/72

 

 Transcript

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