Potentiam Blog

Insource vs Outsource: Which is the right way to scale your company?

by Charles Fenton

 

 

 

SMEs looking to scale their business to deliver revenue goals or fast track their software development face the choice of insourcing or outsourcing. But is there a 3rd way?

Continue reading

9 Key tips on making your offshore team a success - Part 6 of 6

Christopher explains that growing their business with offshoring, while extremely worthwhile, was not without its challenges. “We grossly underestimated the heavy lifting involved in making it work” Many of the challenges we experienced in the early days of our offshore journey could have been mitigated with the right guidance.

9 Key learnings EnergyQuote JHA gleaned from their experience:Strategy – Build a strategy based on company objectives considerate of the right team structures and the optimal staging of the roll out.Planning – Allow for senior management capacity to set up the company and successfully onboard staffLocal Leadership – Appointment of the right team lead will make or break your offshore venture.Pilot – Start small, keep it simple and scale fast when you succeed.Staff development – Be clear on career tracks that allow for growth and integration of UK and offshore staff.Team structure – Build team structures consisting of juniors, mid-levels and seniors ensuring higher retention, greater resilience and the optimal cost.Internal communication – Maintain a clearly communicated vision and manage “silent resistors”.Regulatory insight – Do not stint on local regulatory support and tax advice advise… especially around transfer pricing.Local knowledge – Hiring the right capability, and understanding the cultural nuances in roles and career management.Conclusion

EnergyQuote JHA made offshoring a success in their business by establishing clear objectives and a shared vision from the start. This was key to getting the most out of their offshore teams.

At the heart of Energy Quote’s success lay a keen understanding that offshore resources are people. “Offshoring only works if you have a thorough onboarding strategy, well thought through career tracks and the right team structures,” explains Charles.

When Accenture acquired EnergyQuote in 2015, its valuation was greatly enhanced by the scalability of the offshore model. Christopher and Charles – recognising the potential of offshoring for other businesses – formed Potentiam, which now has locations in Cape Town, Romania, Bangalore and Hyderabad.

To find out how Potentiam can help your business grow with offshoring contact us 

Continue reading

The real value of offshore was not initially visible : Cost saving was just the tip of the iceberg - Part 5 of 6

Once EnergyQuote started offshoring, they could get high-calibre employees at a fraction of the cost, freeing up capital to reinvest in further business growth.

However, the real value in offshoring was not immediately apparent. While the cost saving alone was significant, only latterly did Christopher and Charles realise far greater value in other areas:

Unlocking senior manager’s capacity by providing more capable resource earlier in the company’s scaling journeyHigher calibre staff with a greater work ethicBeing able to pivot into new business areas faster and at lower risk3 X revenue through greater sales and account supportTapping into superior technical skills globally, unlimited by geography.

These unseen benefits in offshoring transformed EnergyQuote JHA. This combination had a massive accelerated growth impact on the company.

 

In case you missed the previous posts, here they are:

Continue reading

How EnergyQuote built an offshore sales engine that transformed sales performance - Part 4 of 6

 

Charles never envisioned that sales or marketing could benefit from offshore capabilities. Client-facing roles that depended on native language skills and a good cultural grasp of local regions was seen as essential.

However, sales were challenged to deliver the right level of lead generation and prospect nurturing through traditional channels.

“The complexity of our proposition meant that we needed to generate high quality content to educate our prospect about our value proposition via a range of digital channels such as LinkedIn, email, webinars and events,” explains Charles.

To deliver their ambitious sales objectives, he recognised that he needed a very different team structure and resource base. “We needed to focus senior sales and marketing staff on strategic client engagement, while building a team of specialists that could deliver a powerful lead-generation engine.”

Continue reading

Building a World-Class Technology Team: The Offshoring vs Outsourcing Dilemma - Part 3 of 6

 

One of EnergyQuote’s biggest costs was technology. The company needed to make a step-change in technology investment to create a differentiated, Software-as-a-Service offering.

However, technology changes of this nature are expensive and require upfront investment before any additional revenue can be generated.

“Our dilemma was: How could we deliver our software development roadmap within budget, at the right quality, and on time?”

We initially selected a 3rd party outsourcer in India. However, outsourcing failed miserably.

Continue reading

Our 1st offshore team delivered a 30 percent productivity improvement in the first month - Part 2 of 6

To meet these challenges and realise their ambitious growth goals, Christopher and Charles decided to structure their teams differently so that all managers were given the opportunity to be supported by extra capacity in Romania.

Their starting point for their offshoring journey was a pilot of 4 data analysts, a role that had become increasingly expensive and difficult to retain in London. “We saw a 30% increase in productivity within the first 4 weeks,” says Charles.  “The work ethic, education and experience of the Romanian team was superb.”

“We had discovered Iasi, Romania’s second-largest city, a well-established offshore location with a deep, liquid talent pool already serving many of the world’s largest corporations such as Amazon, IBM, Deloitte and Siemens.” With 12 universities (6 technical), it was an ideal location to source highly educated, multi-lingual talent with an outstanding work ethic.

Once one senior manager had demonstrated the benefits from employing Romanian talent, other managers began to think differently, adding offshore staff to their own scaling plans. Now the Romanian team was proven we grew at a rate of 10 to 16 staff per year. 

At no point did this decrease the size of the UK team. In fact, it was the opposite, the significant cost savings allowed them to invest in more strategic roles in the UK. “Our offshoring model became like a perfect jet engine. Once it got going, and the more fuel you put in, the faster it went.”

Continue reading

How a CEO delivered £21m of value and an exit to Accenture by building offshore teams – Part 1 of 6

“How do I fund all the projects my business needs to do to be successful, with my current limited resources?”

Like most SME business owners, Christopher Lydiard-Wilson, CEO of an energy SaaS company, had to balance ambitious growth plans with a limited budget.

By unlocking the power of offshoring, Christopher was able to scale far faster than his competitors. Offshoring turned EnergyQuote JHA into a leading global energy services provider, and ultimately, a valuable exit to Accenture in 2015.

Teams in Romania and Bangalore enabled its founders to extract a far higher valuation without the need for equity dilution or debilitating debt.

Cost savings was a key consideration, but in fact 5 times more value was realised from their offshore teams, in areas not at all evident at the beginning of their scaling journey.

This experience led Christopher Lydiard-Wilson and his co-founder, Charles Fenton (former International Director at EnergyQuote), to found Potentiam, a company to help SMEs achieve transformational growth by building offshore capabilities.

Continue reading

An insight into Potentiam

Smart Resourcing for growing businesses
We can Increase your Resources, Improve your productivity and cut your costs all at the same time.

The benefits of Smart Resourcing allows you to increase your staff resources and at the same time reduce your costs by 40% - 70%. How? Big business has been investing heavily in Outsourcing, Offshoring and BPO (business process out-sourcing) for over 15 years and now a similar but improved model is available from Potentiam to small and medium sized businesses. My own personal experience, in a business I sold recently, proved the huge benefits of Smart Resourcing allowing us to increase our resources, reduce costs, improve our cash flow and reinvest the considerable savings in a growth strategy resulting in us outgunning all our competition. Without ‘Smart Resourcing’ we would never have achieved the results we did. Let us show you how we can do the same for you!

Continue reading

Our Locations

Potentiam's offices are located around the World

Our head office is located in London (UK) and we have 3 locations of Potentiam offices were staff can be hired. Depending on the role required the best and most costs effective solution will be different locations. For example technology is by far the most cost effective in India, qualified accountants in South Africa and medium complexity upwards administration Romania. As a part of the service we will advise and guide on costs, location and availability that is correct for you and your circumstances.

Continue reading