Case Study

MicroSourcing and Connective: offshore excellence

connective
Group 1219
docs
Connective’s audit rate doubled to over 10%.
line
Error rates have dropped, reflecting better compliance and risk management.
diamond
Connective’s Manila team audits 10,000+ loan files yearly for greater accuracy.

The client:

Connective, a prominent player in the financial services industry, faced significant challenges with their offshore teams in India before forging their invaluable partnership with MicroSourcing in the Philippines. These challenges included a lack of control, personnel turnover and cultural misalignment, all of which hindered their pursuit of operational excellence.

The need for change became evident when Connective explored the Philippines as a potential outsourcing destination. The Philippines offered a cultural alignment that resonated with their Australian team and the English proficiency was impressive. But what truly stood out was MicroSourcing’s offering.

“Before we joined up with MicroSourcing, we relied on a team based in Chennai, India. While they were undoubtedly skilled, we faced operational difficulties. The most glaring issue was our lack of control over the team composition and service providers. We couldn’t individually select team members, and there was a constant flux in personnel, leading to inconsistency and a lack of accountability. Culturally, there was a noticeable misalignment that impacted our operations.”

Daniel Oh
Group Legal Counsel, Connective

"What really stood out for us with MicroSourcing was the amount of control we got over staff selection, the IT setup, cybersecurity measures, data protection and the level of support, both in Manila and locally in Australia."

Daniel Oh
Group Legal Counsel, Connective

The partnership: MicroSourcing and Connective

The partnership began in 2019 with the relocation of Connective’s 12-member compliance team to Manila. Recognizing the importance of setting high standards from the outset, Connective invested significant effort in training and development.

Connective sent their Head of Compliance to Manila for six weeks to ensure the team’s seamless integration and to provide comprehensive training. Clear guidelines and protocols were established to maintain consistency and quality in their operations.

While the initial team consisted of 12 members, Connective’s confidence in MicroSourcing’s capabilities and. the success of their partnership prompted further expansion. Over the years, the team size grew steadily, now exceeding 40 full-time employees based in the Philippines across compliance functions, including developers.

suitcase

Connective aimed to integrate their offshore team seamlessly into their operations, avoiding the perception of being outsourced. MicroSourcing supported this by offering flexible working hours aligned with Australian time zones.

Additionally, Connective had the freedom to set up reporting structures and key performance indicators (KPIs) tailored to their unique requirements. This approach fostered open and efficient communication, effectively eliminating geographical barriers often associated with outsourcing.

MicroSourcing’s willingness to support the establishment of a dedicated security infrastructure allowed Connective to use its own security protocols and setups on the equipment used by its offshore team. As a result, the offshore team effectively functioned as a remote Connective office, maintaining the utmost security and data protection standards, a crucial aspect of their operations.

12 members to 40 full-time employees

“My initial expectations when we started working with [MicroSourcing] were very similar to what we’ve experienced with outsourcing developers and that is no real communication..what we experienced was the complete opposite. It does feel like we have an Australian team that’s just working from a different site.”

Jonathan Meadows
Chief Information Officer, Connective

"Connective is incredibly important to MicroSourcing and really are the perfect partner. They've always got their people and the partnership front of mind."

Sean Baker
Vice President of Sales and Business Development, Microsourcing

The results: delivering tangible benefits

The collaboration between Connective and MicroSourcing has generated significant and quantifiable benefits across multiple facets of Connective’s operations. This successful partnership has led to the following outcomes:

paper

Connective’s audit rate of loan files has increased from 5% to over 10% annually.

line

A significant reduction in error rates over time demonstrates improved compliance and risk management.

diamond

Over 10,000 loan files are now reviewed and audited annually by Connective’s Manila team, ensuring higher quality and accuracy in financial operations.

In terms of compliance software and development:

  • The establishment of a dedicated testing unit in Manila has streamlined software testing.
  • Testing processes have been expedited, allowing for faster and more efficient software releases.
  • By leveraging MicroSourcing’s support, Connective has achieved cost savings by reducing the time and resources required for software testing.

What does the future look like for the MicroSourcing-Connective partnership?

Connective’s partnership with MicroSourcing has evolved into a symbiotic relationship that goes beyond conventional outsourcing. It has been a journey characterized by continuous growth, collaboration and shared goals. The future of Connective’s partnership with MicroSourcing is marked by a path of sustained growth and enhanced efficiency. They foresee expanding their presence and team in Manila, with a strong emphasis on transitioning additional compliance functions.

“As our experienced members further enhance their skills, we see opportunities to bring even more expertise on board. However, our commitment to efficiency remains unwavering. We will always seek areas where outsourcing to Manila makes sense, either due to talent scarcity in Australia or enhanced cost-effectiveness.”

 

Daniel Oh

Group Legal Counsel, Connective

Want to build a dedicated team in the Philippines?

Get in contact today, and we’ll get back to your inquiry within one business day.