One of our clients is a successful roofing company based in Brisbane. On first engaging with this company we identified 10 estimating positions as potential for offshoring. The company signed off on the deal in October 2015 and the roles commenced in our facility in Kollam, South India in February 2016. The company now has more than 50 employees in India doing estimating, roof ordering, drafting services, data entry and accounts.
The annual savings are slightly more than $1.8m. This level of bottom line improvement gained only thru existing operational change obviously presented shareholders with options as to what to do with the money. Rather than just pocket the savings the company decided to re-invest the money at the tip of the sales spear. An aggressive expansion plan into both Sydney and Melbourne took place from Oct 2016 and this investment resulted in 50% growth in both revenue and profit in the first 12 months.
That same level of growth has been achieved in financial year to date 2018 and has resulted in our client becoming a market leader in roofing and one of only two companies servicing major builder clients across the three-major east coast capital cities. Despite the job transfers to India our client has, in fact, increased onshore staff numbers by 20% since the implementation of offshoring.
Throughout this entire offshoring campaign there was not one resulting redundancy. All affected team members were moved into more value producing roles on the back of the rapid company expansion.