Outsource Resource Magazine February 2012

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February 2012

YOUR COMPLETE HOW THE CLOUD HAS OUTSOURCING CHANGED THE WAY WE RESOURCE CONDUCT BUSINESS FOREVER maxiom


What’s in this month’s Magazine?

Regular Features

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A Quick Word

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In the “Spotlight”

Special Features Page 6:

Modern Management and Common Sense

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Why Outsourcing Has Become an Integrated Function of Modern Business

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Where is Your Customer?

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Content Marketing - Lessons of Experience

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10 Best Outsourcing Destinations in the World

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The Age of Outsourcing

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Mistakes Entrepreneurs Make When Building A Virtual Team

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6 In the Spotlight Page 10: Maxiom Jobs Articles Page 12:

Why the Cloud Has Changed Marketing Forever

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Do What You do Best and Outsource the Rest

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Complying With New WHS Standards

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Why Content Marketing has Changed the Way We Sell

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How to Motivate Freelancers & Employees

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10 Tips to make Outsourcing Work

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HR & Recruitment Outsourcing Trends

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A QUICK WORD with Mark Matthews Welcome to the Outsourcing Revolution! And of course the February edition of Outsource Resource Magazine! 2012 is shaping as an interesting year for business around the world. We now live in the “Age of Outsourcing” with new technology making it easier than ever to share information. The way we do business from finance to marketing to HR has changed forever. In this issue we look at how this is impacting on business and the outsourcing sector. We have packed together a huge edition this month! We take a look at “Modern Business Management and Common Sense”.

A combination of new business realities, delivery models, destinations and technologies has increased the utilisation of outsourcing strategies by business of all sizes, so we investigate “Why Outsourcing has Become an Integrated Function of Modern Business”.

growth in 2012 in “Where are Your Customers?” The new harmonised WHS regulations have just come into effect, but with some states missing the start date and arguements over wording and the new laws impact on the volunteer community many are confused over whether they should comply. Joanne Solis from Building Up Consulting looks into why most businesses should still implement the new national regulations now.

As mentioned before, the cloud has changed the way we now do business. There are some great articles on “How Content Marketing has changed the art of selling” and “Why the Cloud has changed marketing forever”. We also look at what happens if you get it wrong in This month Kristin McNicol also “Content Marketing - Lessons talks about the changes in the way of Experience” we employ, train and manage staff in her article about “HR & Leading Australian entrepreneur Recruitment Outsourcing Siimon Reynolds has been helping Trends”. up and coming business leaders The Cloud had changed the way we do business, particularly outsourcing. We investigate how this is being utilised by smart businesses and the opportunities this presents for outsourcing providers.

We also look at the changes in both B2B and consumer buying habits and how internet marketing strategies are the key to business

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reach their business goals through The Fortune Institute. He is giving away copies of his new ebook PLUS two great 45 min + videos that are great for either aspiring or experienced entrepreneurs.

Many entrepreneurs are now building “Virtual Teams” to support their businesses. There is some great advice on how to make sure you get the most from your team and some of the common mistakes we make when building our virtual teams. There are some great “Tips on making outsourcing work” and we look at the “10 best destinations for outsourcing”. We also ask, “Is Crowdsourcing an alternative to outsourcing?” Plus much more…. And of course information about our favourite outsourced providers ....and a few ads, which is of course why you subscribed to the magazine in the first place! And if you hadn’t noticed, on the next page there’s some information about our other FREE digital magazines. We hope you enjoy this issue of Outsource Resource Magazine. All feedback is appreciated. Please visit our website: www.maxiom.com.au/feedback to have your say.

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Outsource Resource Magazine | 5


MODERN MANAGEMENT AND COMMON SENSE: 8 CHALLENGES FOR 2012 Business can ask some hard questions of entrepreneurs. Here are some worth thinking about as we start the New Year. By Leon Noone Summary

The real problem could be poor marketing. Remember, everything isn't marketing, but So called "modern management" has been studied marketing is everything. seriously for about 100 years. Why Don't Masters Degrees Many of our management practices are rooted in 20th In Business Administration Century thinking. Has common Require Business sense been forgotten? Management Experience? Why Aren't Senior Managers Colleges and universities all More Interested In Marketing? over the world bestow MBAs. Few require any proof of CEOs, COOs and Managing business management Directors are ultimately competence or even extensive responsible for the continued actual management experience. success of the business. Yet most of them take only a And few managers bother to passing interest in marketing. check to see whether the content of an MBA program match the They're more interested in management needs in their planning, financing, ROI, business. production: all those areas that produce statistics they can read Doctors, pilots, lawyers and and analyze to death. many other professionals must undergo rigorous postgraduate The reality is, if your marketing's practical training to prove their poor, sooner or later, those worthiness to practice. figures will be, as they say, "trending downwards". Tradespeople have to be able to Discussion will rage about prove practical competence "reversing the trend", "product before being allowed to "ply their mix", "expense reduction" and trade". In most Australian states all that hard data stuff. new car drivers must have at

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least 2 years incident free driving experience before being granted an unencumbered licence. Why doesn't the same apply to MBA graduates? And why don't colleges and universities describe the skills that an employer can reasonably expect an MBA graduate to bring to a postgraduate job? I'll probably be accused of being anti-intellectual, anti-academic and anti-MBA. But I believe that it's perfectly reasonable and businesslike to expect MBA graduates to bring proven practical skills to the business that employs them. Shouldn't managers insist on that? Why Do Businesses Persist With Rigid Start And Finish Times? When we offer a new hire a job, we usually state start and finish times. Why? It's 2011. Using modern technology, many people can work readily and easily from almost anywhere.

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There's just no need for people at the same meeting to be in the same building to have a successful meeting. Using video conferencing and webinars, they don't need to be in the same continent. Email means that there's no need to circulate copious copies of written material. There's no need for the bureaucratic rigidities we all grew up with. And there's just no need for all employees to "start at 9 and finish at 5".

Emphasising behaviour has a negative effect on performance. It tells employees that being "nice", wearing certain clothes, following certain social mores, eating particular food and other peripheral issues are far more important than the results they achieve at work. Are "Pep Talks" Merely Ego Trips?

Maybe we managers have delusions about being very successful sports coaches. What on earth is "a good talking Why Do Managers Confuse to" or a "verbal rev up" Employee Behaviour With supposed to achieve? The assumption that a manager can Performance? cause a definitive and "Behaviour is what you take with lasting performance improvement merely by talking you", Dr Tom Gilbert wrote some years ago. "Performance with employees, insults the employees' intelligence. is what you leave behind", he continued. There is a place - a small placefor the pep talk. It may feed a Behaviour's important only where it has a negative effect on manager's ego. But far greater workplace success will result performance. We can reasonably expect employees to from role and goal clarity, effective incentive and rewards, be polite, civil and courteous system improvement and of with each other. But it's unreasonable to expect them to course, sound listening skills. be "pleasant" and "emotionally controlled" at all times.

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Why Don't Managers Demand Proof Of Competence Before Offering Jobs To Strangers? Staff selection is a hidebound affair. Business has been using the same basic process for at least 75 years. It starts with a job description. Then follows a job ad, resumes and written applications, shortlisting, interviews, reference checking and eventually a job offer and a new employee. Rarely, except in relatively low level jobs, do we require demonstrable proof of competence from a candidate. We use various tests including psychometric instruments. We have so called "in depth" interviews. We check references thoroughly. But we don't get the applicant to actually do anything... except talk. Prior to the job ad being placed or the selection consultant being engaged, all candidates were complete strangers. The referees they nominate are usually strangers too. The candidate may even have taken "interview training". Outsource Resource Magazine | 7


The chances of error are high at any stage of the process. But we don't seek demonstrable proof that the candidates can do what they claim to be able to do. Our initial decision about who to shortlist was made based on a resume or written application. There's about 70% chance that it was prepared by a professional writer. Does any of this make sense? Why Do Managers Spend So Much Time In The Office?

What About EPC?

Conclusion

EPC - Expectation, Perception and Consequences - have a major effect on how we form our opinions.

It's time to seriously question lots of the so-called "management theory" that's prevailed for so long. It's costly and inefficient in the 21st Century. The eight issues I've raised are just a start.

Quite rightly, managers are concerned with "facts". But that's easier said than done. In order to "get the facts", you have to deal with opinions. The opinions that people hold are facts to them. And opinions drive actions.

In 1973 Peter Drucker wrote, "Executives who make Back in the 1970s we called it effective decisions know that "management by walking one doesn't start with facts. One around". Be seen. Talk to starts with opinions." Mark Twain employees. Ask questions. Be put it more bluntly years earlier. available. "It's not what you don't know that gets you into trouble. It's what These days progressive you know for certain that just companies don't even give each ain't so." manager a separate office. There's really no need. There's What I'm saying may not fit no need for "management comfortably with some theories spaces" in the car park or a of modern management. But special management area in the employees and work colleagues canteen. These things are merely are people. Expectation, the accoutrements of office. They Perception and Consequences don't help anybody do better are most important to those who work. Yet we persist with such hold them. Managers must work trappings. In the 21st Century through them in order to reach they can't be justified. "the facts". 8 | Outsource Resource Magazine

Leon Noone helps managers in small-medium business to improve on-job staff performance without training courses. His ideas are quite unconventional. Read his free Special Report "49 Practical Tips for Removing Employee Apathy, Aggravation And Resistance In Your Business". Simply visit http://staffperformancesecrets .com/ and download your free copy now.

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…THINK BIG…

…AIM HIGHER…

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Outsource Resource Magazine | 9


INTRODUCING A DIFFERENT KIND OF RECRUITMENT SERVICE Maxiom Jobs is built on our network of digital publications with over 300,000 business leaders and talented professionals subscribing across a wide range of industries and sectors, you can now reach a greater pool of active and passive job seekers. The Opportunity

The Process

Utilising this network of subscribers, along with traditional talent search channels, we help you identify the best talent that fits your organisation’s culture, business goals and vision.

Candidates apply via the Maxiom Jobs web site. Rather than just have them forward resumes, we ask them to complete an online application developed in conjunction with you that is tailored to reflect the qualities required to succeed in each individual role and that match your business goals.

Maxiom’s specialist recruitment marketing team advertise your position on the Maxiom Jobs web site, as well as on the publication web site(s) that best match your vacancy, industry and the role. In some cases, you will also have the opportunity to post your job on the web site of our association or corporate partners and affiliates. A candidate attraction campaign is also launched via social media (including LinkedIn). A comprehensive candidate search is also undertaken within the Maxiom subscriber base. We don’t charge commissions or placement fees, there are no monthly charges or contracts to tie you in. You simply purchase a Job Pack that reflects your recruitment needs. There are no extra costs!

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This includes a first round interview questionnaire. This enables you to more easily and evenly compare candidates and candidates can see that there is a “level playing field” and that their application will get seen by the person who counts…YOU! They also know exactly what the role entails and what qualifications are needed before they apply, saving you valuable time. Applications are forwarded to both your inbox and to a Maxiom Jobs Client Services Manager. Depending on the Job Pack purchased and level of support required, Your Client Services Manager then walks you through the process of short-listing, interviewing and selecting the best candidate(s).

The Ultimate Recruitment Back Office! Our screening process ensures you get the candidates whose unique ability match those required to be successful in the specific role and in your organisation. You can employ as many of the candidates as you like without any additional cost. As a strategic marketing specialist, publishing and advertising business, we also understand what it takes to make a business successful and how we can best pitch the job to people in your market. As a successful digital publisher we have a professional copywriting and design team who specialise in creating advertisements to grab potential applicants’ attention. We also have a specialist recruitment team with experience in over 22 industries and sectors. Maxiom Jobs gives you a structured and innovative recruitment marketing campaign designed to attract the best applicants to your team. Most importantly, you retain complete control over the whole process.

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For more information on Maxiom Jobs call us on 1300 855 696 or visit our website: maxiom

www.maxiom.com.au Outsource Resource IntelBuildMagazine Magazine| |11 3


WHY “THE CLOUD” HAS CHANGED MARKETING FOREVER The cloud isn’t just revolutionising outsourcing, it is having an impact on many business functions and operations. Marketing is one of these. Simply put, the cloud makes sharing information easy. Whether it’s general information about your industry, a product catalogue, marketing presentation, training materials such as webinars, videos and manuals, ebooks, brochures, articles, internet communications, business documents, manuals or any other form of content, sharing it has never been easier.

One advantage is measurability. Marketers all over the world struggle with proving the ROI for their marketing efforts. Cloud based marketing solutions provide a great way to quantify and prove your marketing business case.

These marketers are chosing to advertise and place more content on cloud-based platforms so that they can see exactly how the Connected TVs, mobile, computers audience interacts with their content in cars and the other emerging or advertisement then provide technologies is the megatrend that follow-up (usually automated) switched on marketers are communications to build a watching closely. The move to an relationship and convert the on-demand world of content and audience to customers. what it will means for the trillions business spends on advertising A good example is this magazine! worldwide will change the way we Hosted on a cloud-based platform, view and target marketing. any time a reader clicks or taps on a page of the magazine so they can The cloud is important because say, enlarge it to read the text, or now people can select what they click on a link, or watch a video on want to view when they want to any page, their details are recorded view it, so for advertisers there are and the relevant advertiser can see consequences for that. that they have read the article or advertisement, watched their video, Marketers around the world are which link was clicked and what constantly grasping to understand pages of their website they visited. these new ways of marketing and the technologies that support them. And if they didn’t buy something (which is normal on the first visit) The cloud provides some clear then the advertiser can continue to advantages that smart marketers communicate and develop a are now utilising to communicate to relationship with them, for example their audience and grow their by email. The advertiser doesn’t business....before their competitors need to capture the name and email do! address of the reader because the publisher or cloud platform already has these details.

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The interesting thing about this is that a recent survey by KPMG showed that over two thirds of all people are quite happy to sign up to such sites and platforms provided that when they are sent communications that they receive some value from them, rather than just being sold to. And soon your TV, car, mobile, even your home and office will be connected in the same way. Advertisers are now starting to communicate to their audience based on individual preferences and habits. Broad reach advertising might eventually all but disappear. So as long as you offer tangible value and your audience agrees that you offer value (we all love a great deal or special discount), you will end up growing your business faster and be able to measure and demonstrate the exact path your audience takes from first contact to loyal customer, thereby measuring audience interaction and habits, sales cycle and of course the holly grail of marketing, the ROI. It is also a good thing to remember that around three quarters of all people that follow a brand on social media or consent to this cloudbased marketing interaction do so in order to receive a great deal or discount and make a purchase, not just to get information, express an opinion or feel connected to a brand as many wrongly believe.

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click here And get your free copy of "How to Attract More Customers Quickly and Easily." 24 | Modern Franchise Magazine maxiom

Outsource Resource Magazine | 13 maxiom


WHY OUTSOURCING HAS BECOME AN INTEGRATED FUNCTION OF MODERN BUSINESS A combination of new business realities, delivery models, destinations and technologies has increased the utilisation of outsourcing strategies by SME’s and large enterprises alike. As more businesses realise the importance marketing plays in driving growth and achieving business aims many have turned to outsourcing to help ramp up their marketing activities.

Business is turning to technology to boost productivity and flexibility. This also brings employee recruitment and education challenges as businesses need to recruit and train staff to cope with this new This has driven home the reality marketing and technology. It is that many business functions are also bringing about a new better off being outsourced so appreciation for relationship that management can building with all stakeholders as concentrate on the key drivers of business owners carefully steer business growth and profitability their business towards it’s goals. rather than managing timeconsuming and repetitive Labour Shortage business functions. Despite the doom and gloom There are still challenges though, talk of the economy, with the talent shortage and unemployment is still at very low access to finance still remaining levels. This is unlikely to change key barriers to achieving the significantly in the near future growth business leaders desire. which means entrepreneurs will continue to find it difficult to Many businesses are increasing recruit the expertise they need to their online presence with grow their business. greater utilisation of social media, content and local Marketing, sales, finance and marketing tactics to boost technical positions will be revenue. Many are outsourcing particularly hard to fill. the day to day processes of creating & posting content, Businesses of all sizes will lean managing feedback and more heavily on cloud-based comments. software in particular Software 14 | Outsource Resource Magazine

as a Service (Saas) to facilitate project and client management as an increasing shortage of technology labour affects all businesses in 2012. This places a greater pressure on businesses to outsource some of these new roles in order to get access to the talent and knowledge required to successfully utilise these marketing and technology opportunities. Business is now learning how to integrate outsourced services into their operations as seamlessly as possible in order to pursue their commercial goals. Freedom & Flexibility Business has embraced outsourcing more than ever in an effort to be more flexible. New Media tools such as tablets, webinars, document hosting and videoconferencing have become more important in staff communications and training.

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The latest generation of potential employees insists on being able to work wherever they feel most productive. If that means at home, on a customer’s premises, or at a café, business will need to offer ways for those employees to keep connected.

Some companies have been discounting their products and services to compete with online businesses, discount coupons and international competitors, both online and new bricks & mortar arrivals.

become more flexible and provide more time to concentrate on building these client relationships that are so essential to staying competitive in the modern business environment.

Finance As the traditional retail economy struggles, clients won’t want to go Entrepreneurs trying to win over back to paying higher prices. banks and other lending Being Where Your Clients Are institutions are facing a tough Social Media has also been audience. Banks aren’t going to partially responsible for the high Many businesses have taken open their purse strings to SMEs keenly to the online environment levels of retail competitiveness that don’t have incredible with a clear majority of people that and to social media in recent credibility. times, using sites like Facebook “follow” or interact with companies using social media doing so to and LinkedIn to broaden their The European debt crisis has put gain special offers or discounts reach to customers. While the financial institutions there under (61%) and make purchases commercial zeitgeist suggests pressure. If a European bank (55%). every company should use this were to fail, lending may be technology, entrepreneurs are severely restricted, and we could As a result, business is finding scrutinising the benefits carefully easily see a return to the Global ways to reduce their own costs to Credit Crunch that saw banks to avoid wasting an investment that may be better placed in other restore margins, and zero in on collectively review their lending those customers who may be media, including traditional policies based on their access to willing to pay more, given media, as that may be where funds. This could mean that exceptional service and best-ofclients are. Having the right obtaining business finance industry products. outsourced partners to help you whether to start or grow a reach these clients has become business will be more difficult. vital to modern business success. Relationship building will be the key to winning over these clients. Regardless of this, lenders won’t Tough Customers be willing to lend to businesses While we would never suggest that lack excellent business plans outsourcing relationship building – and in this day and age, you can Here’s something that isn’t going with your clients, outsourcing will bet that more businesses than to change anytime soon help business reduce costs, ever are vying for the banks’ customers’ willingness to pay attention. more.

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Outsource Resource Magazine |15


Smart outsourcing to improve cash flow (such as paying outsourced contractors monthly instead of staff weekly or fortnightly) has helped many SME’s stay afloat and reduces the reliance on external finance options. Strategic Outsourcing Many business-critical, high-level services such legal, finance & accounting, marketing, HR, recruitment, facilities management, security, and strategic planning are outsourced. Modern outsourced service providers, have become more experienced at seamlessly integrating their services into client businesses. Collaborative and Strategic Alliances and Partnerships Models where customers and service providers work collaboratively to develop performance-based partnerships are being increasingly used by companies. Business is moving outsourcing out of the backoffice and into more customerfacing processes and more strategic opportunities making seamless integration by

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service providers even more critical to business success.

The use of cloud based services for document hosting, training, sales and promotional materials has been growing significantly Technology Convergence for several years and as more companies look to replace The convergence of social outdated intranet solutions with networking, collaboration and mobility platforms has created a more secure, flexible and functional cloud-based solutions, significant demand for valueprinted marketing material with added outsourcing services. digital brochures and look for Companies are increasing their more measurable marketing solutions that the cloud offers; emphasis on social media to integrating these with existing source talent globally, position their products and services, and business functions, processes collect intelligence around their and strategies has become vital. end users that goes significantly The roles of sales, marketing beyond SEO and SEM. and IT have become somewhat merged. Very few businesses The Cloud can find candidates with the knowledge and experience to As cloud computing solutions continue to proliferate worldwide, deliver the results required for modern business. This is where customers and suppliers will outsourcing comes into its’ own. continue to struggle to comply with increased government The best outsourced providers regulations, the real risks of have teams that deliver for cyber-security and threats of clients across these disciplines eco-terrorism. so that the entrepreneur can concentrate on the business Having said this the growth in functions that deliver the highest cloud solutions across the IT, returns. Human Resources, Marketing and Digital Publishing functions means more businesses will need HR, Marketing & IT expertise that understands the technology.

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www.maxiom.com.au Outsource Resource Magazine |17


DO WHAT YOU DO BEST AND OUTSOURCE THE REST Modern technology opened up new outsourcing options for entrepreneurs. No longer are small business operators confined to local providers. So which "shore" is right for SME’s when outsourcing - Onshore, Nearshore or Offshore? As the world becomes smaller and technologies converge facilitating the easy transfer of information, and as communications improve to allow the provision of services anytime, anyplace, anywhere - the question has emerged “which outsourcing option is best?”

communications can result in more complex work being transferred.

Recently we have seen Heinz close it’s tomato sauce plant in Australia to move the packaging to New Zealand where they source the tomatoes from low cost regions such as China, ship What is the difference between them to New Zealand then turn different outsourcing options? them into sauce which is sold in Australia at increased margins. Similarly, Woolworths has 1. Offshoring - is when highvolume, low-complexity tasks are outsourced it’s biscuit manufacture to Indonesia resulting processed in a country with a in considerable savings. significantly lower cost base. Countries such as India, China, the Philippines are the most used Both offshore and nearshore outsourcers provide a systematic, by Australian business. An transaction-based service. example is the many large Australian companies that use call centres based in the Philippines 3. Onshore - on the other hand, is an entirely different proposition. It or India. is the practice of obtaining business-critical, high-level 2. Nearshoring - is still moving services from someone not tasks overseas, but to a employed by the company but neighbouring country. New within the same country. Onshore Zealand or Indonesia are good examples. The cost base of these services are not "one size fits all"; they are unique for each countries is still lower, but geographical proximity and in the company. These services might include legal, finance & case of New Zealand, cultural similarities, can create an easier accounting, marketing, HR, recruitment, facilities working relationship. The better management, security, and relationship, culture and strategic planning just to name a few. 18 | Outsource Resource Magazine

Are the needs of SME’s really that different from large corporation such as Heinz and Woolworths? Whilst the needs of a quality organisation (large or small) are similar, the problems they face are quite different. The majority of SMEs turn to outsourcing either through foresight - a business decision to concentrate on core activities - or as a result of a significant problem, which they believe outsourcing might fix. For larger organisations, on the other hand, the need will probably be primarily cost-driven, as in the previous examples. The character of the outsourced service is also quite different for SME’s. Outsourcing for the large company is more commonly associated with large volumes of low complexity transactions with an easily defined service level agreement (SLA) and easily measured outcomes. Conversely outsourcing for the SME is about bringing crucial skills into the business with more complexity and a higher value-add to a less predictable, and at times capricious, environment.

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There are also differences in the economic model. Larger organisations will accept longterm contracts in return for guaranteed savings. The costsensitive SME is still considerably more aspirational and has much shorter time horizons. The SME has no idea if it will grow to be a large national or even international business. Time scales are another key difference.

And if that’s’s not already complicated enough, significant changes are occurring within the labour market.

These solutions offer a combination of labour arbitrage, advanced technology and business process know-how.

The movement of labour from one country to another has never been easier. The workforce are astute, and fully aware of their marketability and consequently are ready to ‘jump ship’ to an alternative employer on a whim.

The issue for SME’s is how to put the infrastructure and process in place to facilitate the move to becoming a larger business. And this is not easy otherwise a lot more SMEs would grow to become large companies.

These changes can only mean one thing - an increase in labour The large company is reassured costs within the traditional with a three-to-six-month offshore and nearshore implementation plan but the SME territories and consequentially a needs help NOW. They need slow but sure erosion of the providers that are light of foot massive cost advantages of and can mobilise the service these services. quickly with the business not dependent on an IT department. Thus we enter a new and exciting era. There has always been a Then there are technology range of good quality differences. The larger company outsourcing services for the early can be easily pushed to one of a stage and smaller growing SME, handful of enterprise resource and the large companies have planning (ERP) packages. been well served by the large business process outsource But whilst the smaller SME can (BPO) providers but really good be migrated relatively easily from flexible outsourcing solutions are one package to another, for the now available for the first time to larger SME, who may have a all sizes of SME organisations. very specific industry application, or bespoke solution, it isn’t going to be easy moving between one or two off-the-shelf solutions.

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Smart outsource providers offer SMEs Business Process Enablement. Interestingly the large traditional BPO providers are frantically working out how they can put solutions into this space either through acquiring smaller specialist outsource providers or developing more flexible and easier to install tools. Likewise smaller outsource providers are actively engaging in partnerships and joint ventures with larger BPO providers in order to give them scale and access to technologies and offshore resources.

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There are significant challenges to be faced by these providers. The BPO provider does not possess the higher value-add services knowledge or teams with experience of working across multiple clients and the smaller provider does not have the financial engineering and commercial skills to sell a large, long-term contract. So what is the best outsourcing solution for the SME? The answer of course is irrelevant.

migrating to a mixed onshore and offshore solution dependent upon the technology platform, costs, benefits and needs.

For SME’s and outsource providers alike, the focus will be on Business Process Enablement, value added services, and technology The blend of solutions will involve platforms. Whether this occurs on transferring the bulk of shore, or not, is becoming processing to offshore - utilising increasingly irrelevant. the benefits of labour arbitrage, but retaining onshore a strong The key issue for the SME is not working relationship and higher which "shore", but which partner? value-add services. Which outsource provider For example, activities such as (partner) can provide a suite of financial management, strategic flexible, multi-platform services planning, reporting, budgeting, which will enable their business to marketing, hr & recruitment would grow to the next level? all be handled onshore. Though, Cloud based IT solutions hosted anywhere in the world may be used to manage these activities.

The SME, regardless of size or aspirations, needs a service which balances value, quality and flexibility, regardless of location. As it says in the title, and in the words of Peter Drucker “Do what The key focus for this solution is you do best and outsource the not primarily cost saving rest”. (although this is an important element) it is about Business The model of outsourcing nonProcess Enablement - supporting core activities, concentrating on the SME in their journey to what you are good at has been becoming a larger organisation. proven time and time again. Initially this will involve an onshore team to solve the pressing current issues - the reason why the SME has decided to outsource in the first place - before gradually

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In order to grow market share the larger outsource providers have to engage with tomorrow’s big companies early - while they are still small to mid-sized.

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COMPLYING WITH THE NEW NATIONAL WHS STANDARDS? Despite the political grandstanding of some state oppositions and minor parties, businesses are urged to ensure they meet the new harmonised OH&S Standards. By Joanne Solis All organisations are advised to ensure they comply with the new harmonised WHS laws, despite concessions from the Federal Government that grant businesses up to 12 months to implement the regulations if they create “new duties” for organisations, and the recent political grandstanding by state oppositions and one or two minor parties that want their 15 minutes in the limelight.

with and supplies goods or services to a business in a jurisdiction where the harmonised WHS Laws are in effect may find itself subject to Victoria and Western Australia have those Laws as a worker, designer, indicated harmonisation will occur in manufacturer, supplier or other January 2013, though Victoria has capacity. set up an inquiry to look into the legislation so there may be some So if you are a Victorian or West state-based amendments to the Australian organisation that does harmonised Laws due to these business across state borders, it arguements over wording that have makes good sense to ensure you surfaced after the legislation was comply now. With Victoria and Western Australia passed. (both liberal governments) missing Building-up Consulting’s advice to the start date for the changes that In NSW for instance, parliament all clients is don't wait - ensure you took effect on 1st January 2012, allowed the Shooter’s Party to are prepared now, because in many Companies that operate across amend the legislation to give unions ways this is best practice so there's multiple states may have to the right to prosecute employers. little downside. maintain state relevant policies for Victoria & WA until the laws are This may present problems for By now all businesses should have passed in these states, while some businesses, though, as many undertaken a review of all their WHS complying with the harmonised requirements of the new WHS laws practices, procedures, manuals and WHS Laws in other jurisdictions. are equally relevant to workplaces in policies. Businesses may need to non-harmonised States, obligations implement training to ensure that all Tasmania and South Australia’s of the new laws can be followed in managers and employees are up to upper houses have also blocked the many situations without being in speed with the changes and legislation. breach of the current laws in nonunderstand the requirements placed harmonised states. Any of these upon them. The Commonwealth's proposed state-based amendments are likely harmonised legislation says liability to have minimal impact on the Special care should be taken when rests with those who have the legislation’s effect for most reviewing contractor arrangements "capacity to influence the outcome". commercial entites in any case. under the new laws and contractor It applies to a “business” and an management systems, and make "undertaking". Opponents of the It makes good business sense, sure their staff are prepared for the legislation want this clarified or where no conflict exists with the changes. rewritten, thought the arguement is current laws, to move to the more of a polical one as the effect is harmonised obligations. Company directors and managers clear and has been effectively must be aware of the positive incorporated into OHS requirements Another important consideration is obligation on an officer of a in some states such as Queensland that under the new WHS regime, a company to exercise due diligence since 2007. business based in a nonto ensure the company is harmonised state that contracts discharging its safety obligation.

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Those opposing the legislation also say that volunteers should not be covered by the legislation.

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New National OHS Laws coming into effect soon WILL require you to make significant changes to your OHS practices, manuals & training. The good news is that you will only need to learn about one set of rules. The bad news is that the rules are complex, and will require changes in your OHS policies and Safety Management systems, so it’s important to get it right from the start. There is now just over 8 months to fully review your OHS safety systems, documentation, training and education to be compliant on January 1, 2012 At Building Up we make it our business to ensure your risks are minimised and your potential maximised. We hold the solutions to your OHS problems, so you can rest assured that your business is able to tick all the boxes.

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WHERE IS YOUR CUSTOMER? HE'S IN THE NEW WORLD ARE YOU? The Internet has changed the way we do business, yet way too many businesses still don’t utilise it to their benefit. If you’re not, then you are losing out to your competitor. By Julie White The Internet has become the And the customer is different new showroom. You can chat, or too. Way different. phone in a heartbeat. You can see every option and some you He's going to decide never knew existed. It's fast, it's somewhat slower. The accurate, and anyone can sales cycle is longer than choose anything, any time of the ever. day or night. He's concerned about the value of his home, and the The Internet is now a trillion value of his investments. dollar option for consumers and customers every place in the He will not be doing world. Your world. business the same way it's been done before. It's a different world. The retail He will not be banking the model is changing…fast. The same way he banked B2B model is changing…fast. before. The education model is changing…fast. We're living in a He will not be advertising world of rapid innovation. And the same way he you can be part of it, or watch it advertised before. pass you by. He will not be buying a car the same way he did Here are some examples of before. "different" on the business side. Car dealerships, stock brokerages, insurance companies, banks, home builders, real estate agents, mortgage lenders and professional services such as accountants have all revised and restructured their business - and that's the short list. 24 | Outsource Resource Magazine

He will not be buying or building a home the same way he did before. He will not be investing the same way he did before. He's online. Checking out your website - and your competitor's website.

He's socializing. Telling everyone what's happening in his world and the world. He's Tweeting (any better marketing ideas Qantas?) He connected - Facebook, Google+, Linked-In. Social media will only get bigger and stronger. He's blogging about his experiences with you, for the world to read. He's YouTubing about his experiences with you for the world to watch - by the millions (any questions United Airlines?). He's Googling, not yellowpaging. He's texting. A lot. He's using his mobile device to do almost everything and doing it everywhere IF he's reading a paper, magazine or getting the news - it's online.

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He's purchasing after midnight. By the billions

He knows as much about your product as you do.

He's looking for ease of doing business with you.

He knows MORE about your competitor's product or service than you do.

He is value oriented, but will look to price as part of the decision. He wants a relationship. He’s looking to do business with someone who understands him he’s not interested in demographics and being “sold to” and “pidgeon holed” because a marketer is too lazy to discover what he really wants and why he wants to buy. He wants, needs, and expects GREAT service before, during and after the sale. He does not want to wait for anything or anyone. He needs help and expert advice. He's looking for ideas and answers. He can check your price and your facts in two seconds or less on Google.

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He can pay right now IF you can take a credit card online. He expects someone to answer the phone when he calls that can actually HELP. He is SICK of off-shore call centres, erroneously called "help desks."

If he needs a referral or recommendation, he'll go to Google, Social Media, Yelp or his next door neighbour, or anyone else but you...UNLESS you have video testimonials online. As you're thinking about (and making excuses about) these statements, you better be thinking about your answers and responses to them. And you better be making the strategic decisions and game plans to make them happen.

He is SICK of you telling Are you being found? him how important his call is while he stands on hold. When people Google you, are you an expert? He is SICK of your recorded hold message. Where do you advertise and are He demands the truth. All you getting the name and email the time. address of the person who reads or clicks on your ad? He no longer trusts the institutions he used to hold After reviewing these sacred. statements, ask yourself this BIG He expects you to be as question: computer literate as he is. Will your new customer buy from He needs to be understood and feel your you, or your competition? sincere interest. While you are qualifying him, he is qualifying you.

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IS CROWDSOURCING AN ALTERNATIVE TO OUTSOURCING? Crowdsourcing sites have gained in popularity as an alternative to the tried and proven methods of outsourcing. So is it a genuine alternative to outsourcing or just a form of freelance marketplace? By Aiden Williams Crowdsourcing is defined by Wikipedia as the act of outsourcing tasks, traditionally performed by an employee or contractor, to an undefined, large group of people or community (a "crowd"), through an open call. It is a system wherein you have a “crowd” that independently work on an assignment that you requested and then they would submit their best effort. From there, you may then pick your favourite submission and pay only that person for their work. It is in reality a form of workcontest. Crowdsourcing is not totally different from outsourcing Outsourcing marketplaces such as oDesk, Elance and Freelancer might also be considered crowdsourcing as buyers or those looking to have a project completed would post what they need and you have service providers who would bid on a project. Technically, this is not crowdsourcing as you don’t get to see the finished product before you chose the “winner”. 26 | Outsource Resource Magazine

A good idea on how online crowdsourcing works is that you want a logo and you're willing to reward someone $300 to provide you with the best design. So post your "project" on website such as Crowdspring or 99Designs and wait for the "crowd" to send in their work and you reward the person whose logo you selected. Crowdsourcing is not for everyone There are some business models wherein the power of the crowd works. However, crowdsourcing is not a genuine alternative to outsourcing. Most outsourcing requires personal contact. It requires the service provider to develop an understanding of your business so that they can deliver a key function of your business better then you can do it yourself, and so that you don’t have to worry about it. Cowdsourcing probably wouldn’t work to find a great accountant, lawyer, logistics supplier, marketing firm or IT contractor.

Obviously, in many of these instances you need an outsource supplier who has the infrastructure, business knowledge, team and experience to be able to deliver on a long-term basis. There is a big debate when it comes to crowdsourcing, to the point that it’s integrity is being questioned. Even when considering graphic design, if you don’t have any grand plans for your business and are just looking for a logo then crowdsourcing might be a solution, but if you are looking to tie in or develop your image with your brand, then outsourcing to a professional marketing firm is a far better option that will save you time and money in the long run. The fact is, that both crowdsourcing and outsourcing play an important role in modern business. Choosing the best option depends on how you plan to capitalize on it and on the type of work.

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WHY CONTENT MARKETING HAS CHANGED THE ART OF SELLING FOREVER It is often said that marketing owns the message and sales owns the relationship. By Richard Wozniak However, in the modern world of business, the proliferation of social media, content publishing and realtime search has changed this forever.

Salespeople must monitor the social graph of a prospect in order to begin to mine for opportunities, frustrations and buying signals. They must also be adept at constructing ways to put the pieces of information together in While it can be argued that sales still a package that opens doors and owns the relationship, much of the starts relationship building relationship nurturing and building is done by marketing, in reality it is now Traditionally, the salesperson’s role a shared relationship. centred around delivering information. Most salespeople today So, while the fundamental purpose face the possibility that a prospect of a salesperson has only changed a may actually know as much or more little, the function of an effective about the product, service or salesperson in today’s contentsolution being offered as the driven environment has changed salesperson. These traditional sales dramatically. roles are quickly being phased out in many organisations, replaced by Organisations and sales internal online content management professionals that get this are now and customer support staff. exploring, evolving and adopting an A salesperson must provide context inbound selling mindset. and meaning, must aggregate and A key change is that price is a direct filter and must become a resource of insight for today’s information reflection of the buyer’s perceived value. This doesn’t always mean it’s overloaded buyer. Today’s a reflection of the true value or even salesperson must commit to working deeply with clients to help rational reflection of value, but the measure and communicate true ROI question will never go away value received as a completion of unless, and until, an organisation can show proof of value rather than the sales process. With that piece in promised value peppered throughout place, today’s salesperson can offer proof as part of the trust-building, marketing materials. lead-conversion process. Salespeople have always been Marketing departments around the taught to probe, listen and offer solutions. In today’s world they must world are scrambling to feed the market’s expectation that they can listen intently before they ever pick instantly find content on any subject up the phone, send an e-mail or or need imaginable. Search engine draw up a solution.

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usage has made consistent quality non-spun content production mandatory. Few salespeople see writing content as a good use of their time, but it’s a skill that today’s successful salesperson has embraced. Not every organisation will allow their salespeople to blog, but the ones that do have the opportunity to create a stream of content that is potentially informed with real-life customer stories and experiences. Smart salespeople have also begun to curate content as a way to become a resource for their clients as well. Some of these functions may well have been traditionally called marketing. The two must work more closely to achieve the common goal. Salespeople have become farmers rather than hunters. This change probably runs counter to traditional selling because it sounds passive. Salespeople have been taught to hit the street, knock on doors and close deals. The problem is the street is closed, the doors are made of bits and no one answers the phone anymore. Working the soil, planting seeds and watering the harvest with care is the new model for turning "like" “follow” and “permission” into "trust", "try," "buy," "repeat" and "refer”.

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HOW TO MOTIVATE YOUR FREELANCERS & EMPLOYEES By Joanne Porter A motivated employee or freelancer will often do more, for less. They'll put in more hours, pay more attention to details, speak up on your behalf and all in all be an all-star for your business. How do you motivate your employees and/or freelancers? Acknowledge Quality Work When someone gives good work, acknowledge them. The more public the praise, the better. Always strive to praise in public and criticize in private. Don't give empty praise. In other words, don't praise something unless it's really praiseworthy. But also don't pass up the opportunity to praise good work. Employees who feel valued are more likely to do valuable work the future. Loyalty is usually not "bought" by money, but by recognition. Interact With Integrity

Hold a high bar of ethics and values for yourself. You also need to make it clear to your freelancers that you expect the same of them. Make it clear that lateness isn't tolerated - for business reasons, and also because that's just not how things are done with you.

own a restaurant, you can take pride in helping people create delicious moments. Stand for the impact you have in the world. Convey this pride to your employees and freelancers. Let them know what they're a part of.

Be Positive! Be a person of integrity. Interact with your employees with a sense This sounds simple. And it really, of value and integrity. actually is simple. People love to work for positive people. This will really contribute to creating both respect and Smile and bring optimism to the motivation in the workplace. workplace. Be positive about where your company is, about Let Them Know What They're A who you're working with and about Part Of your company's future prospects. What are your employees helping you to create? Engineers working at firms like Google or Facebook aren't motivated just because of the money. They're motivated because they believe they're helping to change the world.

Positivity is infectious. If you're positive, chances are sooner or later it'll catch on with your employees.

Do these four things and your organization's overall motivation level will shoot way up. So will their They stand for something, and that loyalty and performance. creates a huge sense of accomplishment.

In order for employees and freelancers to feel motivated by What does your company stand you, they need to truly respect you. for? How are you changing the world? Their respect for you is earned in large part by integrity. Even if you're selling a "mundane" product, you're still solving Pay your freelancers when you problems for other people. say you'll pay them. When you make a promise, make sure to If you're a dentist, you're helping hold up your end of the bargain. others live pain-free lives. If you

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10 TIPS TO MAKE OUTSOURCING WORK Businesses outsource for different reasons. SME’s tend to outsource when mundane business functions start to become a burden to business growth and larger firms to increase flexibility and reduce cost. Whatever the reason you outsource these tips should make managing your outsourcing easier. 1. Plan your projects.

3. For many SME’s a longwinded legal contract is a huge Outsourcing can be a great way deal breaker. to free up valuable resources and create more time to work on Keep it simple but also make the most profitable areas of your sure you clearly set out what is business. But this takes careful required of the outsourcing planning to make sure you are provider and what your outsourcing the right business expectations are. If you do enter functions and services. A good into a signed agreement, make starting point is to beak down sure there is solid understanding each business function or project of each parties responsibilities into stages and assess which and expectations before you parts should be outsourced and sign. which parts are better off being kept in-house. This way you can However big or small the make the most flexible and cost- outsourcing project, building an efficient outsourcing decisions. outsourcing partnership entails a solid understanding of the roles, 2. Stick to one. It's better to duties and obligations of each avoid a harem set-up when it partner as well as designating comes to outsourcing projects. the appropriate terms including Josh Billings once said: "Be like when to expect payment and the a postage stamp. Stick to one mechanisms to kick in should thing until you get there." there be a dispute or disagreement. The same is true when you're thinking about outsourcing. Stick 4. Be picky. to outsourcing one business function with one partner until you Learn to discern the best get the hang of everything. Later suppliers from the rest. When on, you may extend the contract you require new outsourcing and outsource more business projects or services, take your functions. When you do this, you time to evaluate the various are imposing changes step-by- options and outsource providers. step rather than drastically, making them easier to manage. Always remember, that the 32 | Outsource Resource Magazine

reason you are outsourcing is to find someone who can do the job better than you can do it yourself so that you don’t have to worry about it. If you have to worry about it, or fear that you might have to worry about it, find another provider. 5. Commitment Ensure both you and the outsourced provider are committed to the project. For larger businesses, large and complex projects or ongoing services a strong governance mechanism that measures performance and ensures compliance with standards and responsibilities is fundamental to effectively managing your outsourcing contracts and the activities of your outsourced provider. Make sure you choose a governance model especially customized to complement your organisations specific operational requirements..

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6. Display Integrity

8. Utilize “the Cloud”.

Where possible be faithful to your chosen provider. Having multiple outsourcing channels dilutes the outsourced providers and your own focus. Single outsourcing models are easier because there is a one-way flow with which you spend all your energy.

Cloud based solutions make information sharing and communication easy. 9. Outsourcing is not an all or nothing venture.

Also be fair when negotiating with an outsource provider. By all means negotiate a good price but if you go in too hard the provider may not be able to deliver to your quality, time line and other expectations. Ideally, outsource providers should have a stable source of income to fund its operations, just like you. Take advantage of the benefits of outsourcing but do not take advantage of your provider's good will. This is relevant whether you are outsourcing offshore (offshoring), locally or when engaging a freelancer.

Only outsource what you are better off not doing yourself. Trying to outsource everything, Get to know your processes and particularly offshore, will usually document them before you mean you end up losing control outsource. Outsourcing may of your business fast. backfire if the you are not welloriented with your own business 10. Complete Due Diligence processes. Before you outsource, don’t just Using project management consider the price. Value isn’t Outsourcing works best when software such as Wrike will always in the price. Investigate there is synergy between make it easy for you to see the outsource provider to ensure organisations and people. where each project is at, they can deliver and the measure ongoing performance, arrangement is flexible as you ensure all parties are meeting grow or need to add additional their time lines and the projects services or functions. are being successfully completed. Ensure you are actually gaining a benefit from outsourcing that This also makes communication particular function. clearer and easier. Good service providers also have strong systems and procedures in place to make sure they deliver to your time scale and expectations.

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CONTENT MARKETING LESSONS OF EXPERIENCE Content Marketing has become the most powerful factor in SEO & SEM, engaging, connecting and interacting with your audience. This is because unlike other forms of communication, the audience selects you as the person or business with which they wish to build a relationship. But get it wrong and you risk losing your audience for good. We all hear phrases like “content is king” more and more these days, particularly as search engines reward relevant and original content by ranking it higher in search results.

After all, their business is about more services to satisfy their providing quality answers to your clients’ needs, such as content search questions. marketing and social media services. They know that you don’t want 100 spun versions of the same This might seem a natural piece of content showing up in progression as these firms know “Content marketing” have search results. Unless their how to write and produce video become “buzz words” and all the search results are relevant and for marketing purposes, it should rage just like “social marketing” provide quality information, their be a natural shift to do the same and “SEO”. Everybody is talking customers will look elsewhere. editorially. It’s not. about it. Many are doing it…but very few of them well. Yet there are still content Unless the advertising agency or marketing “spruikers” out there PR firm already has a staff of In fact, I see far more content masquerading as experts former journalists and TV marketing failures than I see charging thousands of dollars to producers, it’s not a natural shift organisations doing it well. It’s teach you these now frowned just like it wouldn’t be a natural an honest mistake an upon tactics. shift for a journalist to start organisation makes. For most, writing marketing copy. content marketing is new Likewise, content that is clearly territory and rarely are we good marketing or sales copy will not Of course these firms can still at something when we first start show up in search rankings physically create media without doing it. either. Again, their business is seasoned editorial staff, but it’s about providing answers not like hiring a general practitioner If you’re just starting out with marketing messages, which is when you need a specialist. content marketing, you are why if you want to advertise on They can only sort of help you. almost definitely making some Google, they charge you for the of these mistakes. privilege. Many advertising agencies and PR firms are basing a lot Article or Content “Spinning” Hiring an Advertising Agency of their new business on content marketing. And this is or PR Firm perfectly fine so long as they Google and other search have experienced staff to do engines have put everyone on As the business landscape notice - “spinning” content is changes, advertising agencies it. This requires hiring people going to see you penalised in and PR firms have been offering who have worked in traditional journalistic media, not just search rankings. 36 | Outsource Resource Magazine

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giving new responsibilities to staff who don’t have the experience or training. Traditional media is very different from creating advertising copy. Treat content marketing like marketing This is one of the net results of hiring an ad agency or PR firm to do content marketing. Because their head is so steeped in creating marketing and delivering for the client, it’s very hard to break away from it. “Marketing” is in the title of “content marketing” so why not treat it like marketing? People are forced to watch ads, but they choose content. If it appears that your content is really marketing in disguise, your audience will sniff it out and avoid it. There are rare exceptions to this rule such as truly entertaining commercials that people like to watch on YouTube. The core problem is in the name “content marketing.” It sounds insidious. We’re giving you content, but we have an ulterior motive and that’s to market to you.

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The term I prefer which I think is a more apt title that speaks to the viewpoint and the skills needed is “brand journalism.” Try content on a limited basis, and give up quickly Sadly too many businesses fall into this category. Before you embark on any content marketing you have to calculate time into your strategy. Rarely do companies have that kind of patience with any marketing & communications.

They don’t “get involved” in social media Traditional marketing doesn’t require involvement with your audience. It’s something that can be outsourced and you don’t have to get your hands dirty. Not the case with social media. Social engagement should be part of any content marketing effort. Unlike most services, this isn’t one that someone can “just do for you.”

You need to take a level of After all it’s understandable that responsibility yourself, and if you spend money you’ll want to that requires building a social see some results for your efforts. presence and that takes time. The problem is measuring a content marketing campaign is Have extremely high unlike measuring a marketing expectations about fast campaign. results and increased traffic Content’s value is cumulative. Initially, you won’t see the results like you would from a pure marketing effort, but over time results will increase, sometimes dramatically.

This coincides with giving up quickly.

Many entrepreneurs eat, drink and breathe their company’s marketing messages. If you’re so steeped in it you lose No magazine built a brand with perspective and think the rest of its first issue. It takes many the world has been desperate to issues, trial and error, to build an hear more about you and once editorial voice, a brand, and a your story gets out there they’re following. going to be busting down your doors.

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It’s not going to happen. Unless you already have a brand with an extreme loyal following, no one cares about you. Everyone cares about themselves.

All of that is going to yield much greater output, make you more visible, and your per unit (video, A good number of our business article, photos, podcasts) costs enquiries start with “We want to will be a fraction of that original make a video” and immediately video you wanted to create. Believe there’s a direct the first question is “How much Conclusion: Pay attention to correlation between site does that cost?” Which is the traffic and inbound sales equivalent of asking, “How much your audience first is a car or a holiday?” calls Being self-centred with content In all cases, someone who wants production only works for a It rarely works that way. Have you ever purchased something to “make a video” has a bigger select few that have already solely after reading an article or problem to solve, and that gets established a powerful brand. into discussions of strategy and seeing a video a single time? whether this video will be the For organizations that are just solution to that strategy. starting out you must always play Probably not, so why would you to your audience. It’s a great rule believe there are other people But a greater concern is that if of thumb. Before you create any out there that do. Direct sales shouldn’t be content marketing’s you focus all your efforts on just piece of content ask yourself, purpose. That’s the purpose of one video it can get very costly “Why would anyone care about to just create a single item and this?” If there isn’t a compelling marketing. Content marketing that means you’re putting a reason, then move on to another helps you build greater brand pretty heavy gamble on one content effort. affinity and trust. It plays into many other critical factors, such single piece of content. Remember, unlike traditional as: Conversely, multiple units of marketing, content marketing is 1. Increasing brand value original content will be far more user selected. 2. Increasing audience trust cost effective and provide 3. Humanizing your greater flexibility to your So make something the user business marketing efforts and enable you wants to select. 4. Connecting with industry to engage your audience in influencers different ways. And notice I said “original content” not spun 5. Creating assets to be traded via social media content. For example, instead of 6. Creating assets that are going to a conference and producing one video of the visible in search event, why not produce multiple 7. Increasing the value of videos (with different content), your services articles, photos, a podcast, and 8. The asset itself and the maybe also a summary of the process of creating it is event? what creates value. 38 | Outsource Resource Magazine

Have a narrow view of production

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HR & RECRUITMENT OUTSOURCING TRENDS HR & recruitment outsourcing is an important business function that helps organisations find the best talent to enable their business to grow to the next level. By Kristin McNicol In Australia the outsourced recruitment industry is a 12 billion dollar a year sector that plays a growing and vital role in modern business. This sector though, has been undergoing some changes that are fundamental to its’ long term future. One of these key changes has been bought about by the impact the Internet has had on the industry. Just like the retail sector, the Internet has provided more options and less costly opportunities for organisations to recruit staff which has affected many recruitment firm’s margins and profitability. There is likely to continue to be significant changes to how organisations recruit staff that will put further pressure on the sector’s margins. Despite this, the sector is widely tipped to grow in 2012 with lower recruitment costs meaning more businesses utilising recruitment platforms to find the best talent. Recruitment firms that don’t react to the changing environment in 2012 will quickly find they become irrelevant in the minds of their B2B market.

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It has been widely tipped that up to 70% of existing recruitment firms will no longer exist within 3 years.

HR professionals are climbing over each other to get the best and latest HR Management systems. The Cloud has facilitated enormous growth in Emerging firms may find that SaaS (software as a service) consolidation through merger or systems for managing and acquisition may provide some recruiting staff. protection against the tide of change, but unless they change This growth shows no sign of the way they do business, this is slowing and the technology has only likely to delay the inevitable. put these systems at the fingertips of every business, no Even firms that have become matter how large or small. With respected specialists in a niche their continual levels of or particular field are unlikely to development and improvement be immune from this wave of SaaS systems will quickly change. become the norm in most Australian businesses over the As organisations demand better next few years. value for their recruitment dollar, competition from new 2012 will be a year of innovation recruitment models such as pay and change for many industries by the month and hourly rate and sectors. The HR & recruiters will eat into the Recruitment sectors are likely to traditional recruiters territory very be one of the most affected. quickly as the benefits and cost Though, clients can look forward savings become more widely to highly competitive industry published and these models with more outsourcing options become more widely accepted that provide more flexible and by clients and adopted by more professional services that are recruiters. tailored to each client organisation needs. The Cloud has been a godsend for the outsourcing industry in general. The HR & Recruitment sectors stand to benefit more than most from this technology.

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THE 10 BEST OUTSOURCING DESTINATIONS IN THE WORLD Outsourcing has become vital to business performance and flexibility. It is predicted that continued innovation will drive outsourcing sector growth and influence during 2012. Based on those predictions there are a few countries that shaping up to be the forerunners. Some of them are present last year and some of them are just on their way. 1. Manila, Philippines Philippines has been the destination of Fortune 500 companies because of its high literacy rate and its knowledge of Western business. It has emerged as the key player in the IT services market (Web design, software development, application maintenance, etc.). It continues to excel in both call centre services and the nonvoice sector. 2. Bangalore, India Considered the Silicon Valley of India, Bangalore has developed into a leading city for Outsourcing. India continues to be the number one destination. The country captured more than half of the industry with its IT and BPO export growing as large as $47 billion. The vertical sectors in India include financial services (41

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percent), high-tech/ telecom (20 percent), manufacturing (17 percent) and retail (8 percent). It was reported than in 2009, 2.2 million people are employed in IT and BPO industries.

4. South Moravia, Czech Republic

The Czech Republic is known for its reliable IT skills, political stability, and low rates. It has developed popular antivirus The fact that India is the place of software AVG technologies and birth of Outsourcing guarantees Alwil (Avast!). the quality of service that a company will get. Aside from In its quest to become an that, it has a large number of IT/Outsourcing powerhouse, its English speakers and the government has developed its workforce cost is considerably own Science and Technology low. Parks located near South Moravia. 3. Dalian, China Its key investors include Dalian is dubbed the Bangalore SolarWinds, IBM, Microsoft, Sun of China. The city is houses a Microsystems, Skype, Red Hat, software Outsourcing park with Monster Technologies, 400 businesses that is Computer Associates, SAP, estimated to increase a sale of Hewlett-Packard, DHL, 20 billion Yuan yearly. Currently, TietoEnator, and many others. it is a part of the China's "National Software Industry 5. Saint Petersburg, Russia Bases" and "National Software Export Bases." The main reasons why Russia is an attractive country for The Outsourcing industry in Outsourcing is its abundant high China is comprised of KPO, competency in mathematics and ITO, and BPO. It has huge science. These skills that are investors like Convergys, necessary for engineering and Accenture, IBM, HP, and AT&T. complex algorithms. Intel's Steve There are also local providers Chase even recommended that have expanded globally Russia as a place to go to for such as Neusoft, Dextrys, complex programming. Bleum, and Agumentum.

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It also has close time zone similarities which is more convenient for U.S. And European companies.

is definitely making a huge impact. The country is Mexico is dubbed the strengthening its IT and IT"nearshore Outsourcing hub of related services. As the the United States" with an country's IT service market Russia's government has even estimated 95 percent of its grows, most of these will built several IT parks in Nizhny clients coming from the U.S. concentrate on services that Novgorod, Novosibirsk, and St. include system integration, Petersburg to strengthen its Being in close proximity to U.S., professional services, training, Outsourcing sector as a way to it offers a convenient support systems, Internet strengthen its Outsourcing Outsourcing of software process services, and global sourcing. industry. for American companies. Contracted processed foods Companies that invested in The Mexican government has manufacture is also a key growth Russia include the London built three technology parks: sector. Stock Exchange, Deutsche Monterrey Technology Park for Bank, Boeing, Reuters, Dell, multinational companies; 10. Singapore, Singapore Alcatel, Siemens, LG, Google, Apodaca Technology Park; and IBM, Citibank, Motorola, Boeing, Guadalajara Park, which is The US Department of and Intel. situated in the centre of Mexico's Commerce ranked Singapore's own Silicon Valley. Outsourcing market as the 6. Budapest, Hungary second-fastest growing globally. 8. Warsaw, Poland Hungary's IT industry is rapidly Singapore is the offshore home advancing with global Poland may be the country to to many global corporations, companies such as SAP, watch out for in Outsourcing with including Citibank, Credit Ericsson, Siemens, Nokia, and its high IT skills. Suisse First Boston, HewlettHP-Compaq as its investors. Packard, IMB and Microsoft. Poland specializes in software The high-end quality of Its market includes IT products focusing on projects for Singapore's environment makes consultancy, Outsourcing, embedded systems, business up for the lower costs found in application development analytics, human resources, India or China. services and consultancy, finance/banking and accounting, integration, IT training, and multilingual contact centres, tele- With the Outsourcing sector implementation and support. information network expanding rapidly, it won’t be management, or programs that impossible for other countries to Outsourcing has become an use languages like C and C++. play bigger roles in the future. It's important industry to Hungary’s become a strong vibrant sector economy with an average 9. Jakarta, Indonesia and with advances in growth of around 6.7 percent at technology, sharing information a time when many industries and Indonesia might just be starting and communicating has never sectors are struggling in Europe. to venture on Outsourcing but it been easier.

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7. Mexico

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We will help you implement a suite We can also help you develop a of HR practices and policies to learning culture, while fitting in with reflect contemporary, consistent the overall strategic goals of your best practice. organization. Our consultants are individuals Our programs are strategically who have carved their careers within leading, complex business aligned to the commercial aims of environments.

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Outsource Resource Magazine | 45


MODERN BUSINESS - THE AGE OF OUTSOURCING As we stand on the cusp of the “Golden Age of Outsourcing” we should take a moment to consider the drivers, how they will effect tomorrow’s business and how they are interrelated. By David Marks The Future Has Already Arrived - Now it’s Time to Innovate Outsourcing has become a key component of business plans for organisations of all sizes and types.

Outsourcing has itself become a recognized organisational competency.

Companies now see this and are beginning to make the necessary investments to build these skills across their organisations. This new breed of The emergence of a new outsourcing professional is platform for outsourcing - the advancing management, cloud - has provided enormous practices and processes that communication and information are able to produce consistent, sharing capabilities offering high-quality outcomes. benefit to both the outsource provider and their clients. We’ll see a continued rapid expansion of the use of This platform has revolutionised outsourcing enterprises around business and the outsource the world. What’s more, the sector offering great flexibility, recent economic crisis taught us excellent security and as yet all a lesson, real business unrivalled opportunity. transformation - something that outsourcing excels at delivering This has encouraged the is needed for sustainable adoption of new and improved growth. That’s because industry practices which have organisations don’t know what increased service quality and they don’t know and only by flexibility. bringing in new expertise such as outsourced ‘partners’ can As a result of these successes these “unknowables” be learned. we will now see continued development of outsourcing as a This organisational competency management discipline. is changing the way companies view outsourcing. Reducing costs is now seen more in terms of increasing business flexibility while still achieving short-term and long-term savings. 46 | Outsource Resource Magazine

Using outsourcing to support future business opportunities is now more important and accessing skills and talent are also equally important. So not only has outsourcing expanded and become more linked to future business needs, the very way companies are outsourcing is changing as well. The most notable of these changes is cloud computing. Not surprisingly, information and communications technology, which include infrastructure as well as common business applications, is the key area outsourced. The range of functional areas already being addressed through cloud based solutions is growing rapidly. Cloud based outsourcing solutions are implemented most commonly in the areas of customer relationship management, human resources management, transaction processing, financial management, document management, and administrative services essentially, across the entire organisation and especially within areas where outsourcing already is commonplace.

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The key driver of cloud based outsourcing is speed and flexibility. These are also key factors in successful modern businesses.

These professionals are now being deployed as teams across organisations.

They work within the functional areas themselves, operate out Risk and performance concerns of centres of excellence dominate a lot of the internal supporting the entire customer dialogue and it’s fair to organisation, or within the say that full adoption can’t take company’s shared services place until the risks of cloud operation. These professionals based outsourcing are fully work across the outsourcing lifeunderstood and mitigated to the cycle from strategy development customers’ satisfaction. The to governance. point has been made for some time - companies that don’t Socioeconomic Trends Are outsource are typically so Positive - Not Negative - for concerned about the risks, Outsourcing they’re unable to see the potential benefits. All the overheated political rhetoric lately about how Outsourcing is Increasingly outsourcing exacerbates Driven by Internal Teams of domestic unemployment might Professionals foster the notion that outsourcing’s negative Many businesses are now reputation will ultimately recruiting specialist outsourcing overshadow its positive impact professionals on staff. on business and society. In fact, it is now one of the most competitive roles for employers to find talent. The increased number of outsourcing professionals is being matched by increases in compensation, as the value of their work and the competition for real experience and knowledge increases across the field.

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Almost all companies do not consider this factor when deciding on and implementing their outsourcing plan.

The world’s economies are seen as far more interdependent than ever before. And, employment as a measure of size and success will never be thought of the same way. Nonetheless, the top 200 outsourcing providers employ about 4 million people globally. What is happening, however, is that outsourcing customers and providers are working even harder to make their programs socially responsible. Corporate Social Responsibility (CSR) is an important to critical part of most outsourcing programs. Within this broad area of CSR, customers care most about labour and operating practices; environmental issues; and human rights. Providers generally match-up with those same concerns with an additional focus on community involvement, because attracting and retaining talent within their respective communities is so critical to their long-term business interests. Despite their occasional grandstanding on the issue, even politicians are beginning to grudgingly acknowledge that outsourcing - when equated to offshoring - is a two-way street that creates economic prosperity and jobs.

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THE KEY MISTAKES THAT ENTREPRENEURS MAKE WHEN BUILDING A VIRTUAL TEAM FOR THEIR BUSINESS As business owners, it is difficult to make the decision to hire help. But every business, in order to reach that next level is going to have to build a support system. By Joel R Russell Hiring a virtual team takes a great deal of care to get it right, but it can make all the difference in the world. Here are a few key components of putting together that winning virtual team! 1. Job Description Just like you were employing a new staff member you will need to have a job description prepared so that both you and your new recruit know exactly what they will be doing when they come on board. Take the time to write down what tasks your new team member will be taking on and what your expectations are for this new team member and share this with them when they start working with you so they know what is expected of them. 2. Delegating There is no point in finding great people and working hard to build a team for your business if you're not going to delegate tasks to them. If you have taken the time to build a supportive, successful team then let them do what you hired them to do.

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3. Communication

5. Quick To Hire, Slow To Fire

It is important to find talented team members and let them do what they do best. However, it is incredibly important to communicate with your team so that you know what is going on at all times. Are deadlines being met? Are customer service standards being upheld? Are they meeting your expectations and their KPI’s?

Just like employing staff, take your time when you are looking for a new member for your virtual team. Business owners tend to put off the decision to build a virtual team or to outsource then rush out and hire the first person with the skill set they find. Hiring the wrong person is costly, time consuming and incredibly frustrating. Take the time to hire the right person and if you don't have the time, you can always outsource that to a specialist.

Managing the projects that you outsource to your team can sometimes be challenging. Adopting software solutions like Wrike can make this task much easier so that you always know the progress of each task or project you outsource. 4. Hiring Based on Skill Set Only This is one of the biggest mistakes that business owners make. Just like hiring staff, attitude and work ethic are even more important than experience or expertise. When outsourcing to a virtual team you also need to know if the team member will be available when you want them (are they working for others who are a higher priority to them?) and how well do they communicate with you?

6. Have Systems In Place This is one of the biggest mistakes that business owners make when they are growing their team, not having systems in place will cost you time and money. You should have templates for FAQ's, how you answer emails, anything repetitive should have a "how to" template or checklist attached to it. Paying attention to these few items can make all the difference between success and failure when hiring and working with a virtual team. So take your time, do it right, and reap the benefits!

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DIGITAL BROCHURES for Web, Mobile and Tablet Devices Maxiom produce beautiful and engaging brochures that can be enhanced to carry video and much more. Return on Investment While there is a cost for design, brochures are hosted free so ROI is all about reducing print and distribution cost, which is dramatic. More importantly, by showcasing your product or company using a digital brochure you can reach audiences all over the globe for little extra cost. Maxiom can produce digital assets for the web or deliver your brochures into container apps that are branded to suit you. You can keep them updated and push new brochures to all those users who have the app installed. Great push marketing is now here with the Apple and Android tablets. The digital content can be easily integrated into your existing customer intelligence systems or be used to stimulate calls to action that can generate new enquiries and tangible new business that can be tracked. Data Collection & Comprehensive Reporting Data is an important element in any customer engagement process and Maxiom can help you capture customer information. These digital publications can be used to help segment your database through intelligent content creation and delivery. Over 38% of digital brochure users opt-in to provide their data without any additional incentives and some customers have built segmented databases with tens of thousands of users in as little as 3 months. The statistics system is accessible online and you are able to use this to identify customer usage patterns.

www.maxiom.com.au 50 | Outsource Resource Magazine

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PARTNER WITH US Digital Magazines & Online Publications Maxiom partners with associations, businesses and Not-For-Profits to deliver essential industry relevant content and insights straight to your readers’ e-mail inboxes. Educate and engage members, clients and other important stakeholders with your own branded, Maxiom custom publications. Choose the format that works best for your audience - from digital magazines, newsletters, reports, whitepapers, manuals and ebooks. Increase revenues Maxiom secures sponsorships and advertising to support each publication and shares a percentage of the publication's revenue with the association or corporate partner. Let us do the work From design to drafting to distribution, Maxiom’s team of experts handles every aspect of every publication. Extend your brand Each co-branded publication captures your brand’s look and feel, keeping it front and centre in readers’ minds every day. Connect with your audience Maxiom subscribers are highly engaged and unusually loyal. That means partner messages are read and acted upon. Association marketing has never been easier.

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About Outsource Resource Magazine Publisher Maxiom Group Pty Ltd 2/710 Collins Street Docklands Vic 3008 Australia www.maxiom.com.au Editor Mark Matthews Digital Magazine Created By Outsource Resource Magazine www.outsourceresource.com.au Advertising Enquiries 1300 855 696 (within Australia) + 613 9097 1606 (International) advertising@maxiom.com.au Editorial, Media Releases & Article Submission magazine@maxiom.com.au

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Outsource Resource Magazine is published as a service to subscribers. We will adhere to strict privacy policy concerning all subscriber names on our database and will not disclose to any third parties without written permission of subscribers.

If you have any queries about our privacy policy or this magazine, please contact our editor. In the meantime, thank you and we trust you enjoyed this issue of Outsource Resource Magazine!

DISCLAIMER Information published here has been compiled with due care and attention, but it does not clam to be exhaustive. Outsource Resource Magazine cannot be held responsible for the content of external sites reached via a hyperlink from this site. We accept submissions from outside contributors, and whilst great care is taken, the author of the submitted article is responsible for what they write, and Outsource Resource Magazine will not be liable for any loss or inaccurate information or any other omission or error by outside contributors. This web magazine is provided for information only. It is not intended to replace a consultation with a suitable qualified industry professional. Outsource Resource Magazine cannot accept responsibility for any loss, damage or injury that arises from the use of this web magazine.

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