Think About Geo-arbitrage Opportunities

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I talk to so many entrepreneurs and managers who have people sat in city offices with city rents, city sized salaries & perks, plush office furniture and all those kinds of things with their team doing tasks that someone even just hundreds of miles away could be doing for a fraction of the cost. I'm not suggesting doing away with those perks or not hiring individuals who want a city sized salary, more just securing maximum efficiency from their time.

That is the key distinction to make between the model I am talking about and what most people think of when they talk about outsourcing. This isn't about taking your entire workload, dumping it on an individual thousands of miles away then hoping for the best.

It is about breaking the process down and sending it to the right person regardless of their location. That may even just involve sending it to someone within your country but based at a different location. Location arbitrage opportunities are all around us. The fact is that the cost of living and therefore the expected wage varies vastly across the world. You know the price your customers are willing to pay for something from you. You can then determine how to break that up in the most efficient way possible to achieve the highest possible standards and a fair cost.

Furthermore, timezones can be a serious competitive advantage. We can receive a client brief at 5.30pm GMT and have something back to them by the time they arrive at their desk the next morning if we needed to.