Offshore Talent Profitability

Shaan discusses how companies like Shepherd are succeeding by helping businesses leverage offshore talent, particularly in the current economic environment where profit margins are crucial.

Key Points:

• Market Timing & Conditions:

  • Work-from-remote transition made offshore talent more acceptable
  • Shift from growth focus to profit focus makes labor costs critical
  • Companies now openly discuss using offshore talent, removing previous stigma

• Value Proposition:

  • Reduces labor costs which directly improves bottom line
  • Increases EBITDA through cost savings
  • Provides access to talent without additional organizational overhead

• Positioning:

  • Moved away from "low status" perception of platforms like Fiverr/Upwork
  • Reframed as "your team is your team" regardless of location
  • Packaged as a professional service rather than just freelance marketplace

• Business Model Evolution:

  • Companies doing this for 4-7 years seeing strong growth
  • One competitor raised at $300M valuation
  • Particularly successful for established players versus new entrants

• Target Market:

  • Businesses looking to improve profitability
  • Companies needing specialized roles (bookkeepers, assistants, marketing managers)
  • Organizations wanting to scale with less overhead