In this week’s podcast episode, Derek Gallimore spoke to Mike Larcher, the Founder and CEO of Outsourced.
The episode delved into various aspects of the company, including how Mike’s recent sale of his other business empowered the organization to focus solely on outsourced services.
Outsourced started in 2012 and has reached over 1,000 staff members over the past decade.
The company has embraced remote work arrangements for its staff since the pandemic. Mike explained that “around 30% of our staff are now working in offices while 70% are working from home.”
Outsourced aims to continue growing both organically and through acquisitions of other outsourcing firms. “[We plan] to make several acquisitions of other outsourcing companies, especially in IT fields, over the next few years,” Mike explained.
Mike previously owned another business that he recently sold so he could focus his efforts fully on leading and expanding Outsourced.
He has bold plans to scale the company’s operations up to 2,000, 5,000, or even 10,000 employees and bring it to new geographic locations beyond the Philippines.
The growth of Outsourced over the years
Mike shared the transformation of Outsourced over time. “When the business started in the first couple of years, most of our clients were from Australia,” he recalled.
However, as time progressed, there was a noticeable shift in their client demographics.
As Mike quoted, “11, 12 years on, we’re about 40% Australian now. Most of our growth is coming out of North America and Europe. But definitely, North America is where most of the growth is.”
The CEO pointed out that clients are increasingly looking for specialized IT roles. But even so, the company also caters to the needs of those seeking finance, general administration, and contact center staff.
Mike highlighted how the demand for specific roles varies based on geographical locations. “It seems to be that most of the demand for IT is coming out of Australia and the UK. And then a lot of the kind of contact center work is coming out of the US.”
Overall, Mike affirmed their status as a global operator, with the U.S. emerging as a significant market.
Huge shortage of IT talent globally
As the conversation turned to the current state of the IT industry, Mike remarked, “There’s a huge shortage of IT talent globally.”
He stressed the seriousness of the situation by giving valuable insights, disclosing that “There’s something like 2 million vacant jobs in the US in IT. And that’s expected to get to 4 million.“
Mike explained the consequences of this shortage. According to him, the strong demand for IT talent is causing companies to consider offshore alternatives.
The CEO commended the Philippines as a notable reservoir of remarkable IT talent.
“The talent in the Philippines is exceptional. A lot of IT grads have been coming out of leading universities for over a decade now,” Mike said.
Having said that, Outsourced’s Founder underscored the company’s positive client feedback, saying, “We’re finding some amazing talents, and the clients are really happy with their performance.”
Outsourced’s business model and approach in BPO
Mike explained their transparency and departure from the traditional BPO model, which usually involves managed services.
“We’re not a traditional BPO; we’re an offshore staffing company. We take job requirements, headhunt, become the employer of record, provide facilities, and focus on talent acquisition and retention.”
Unlike traditional BPOs, Outsourced doesn’t handle clients’ day-to-day task management. Instead, they empower clients to oversee their staff.
This is what mainly sets Outsourced apart from other third-party providers and positions the premier company to new heights.