Virtual communication becomes a reality 

This year though it was time to take our communication to the next level and have that one on one contact that’s needed to progress any business. Seeing how our staff live and getting a feel for the city where I chose to setup business was important to our future.

Cebu City, Philippines

Cebu is currently number 8 on the Top 50 global outsourcing destinations and for a very good reason. Cebu City is home to more than 5 million people in about the same space as the Sydney City area, in other words jammed in. With 3 universities and countless training academies english is quickly becoming the language of choice. Almost every subject in schools is now taught in english. Which is really going to position the city well in the future. With their Spanish/Asian mix you find a really interesting blend of people. You find deeply caring, respectful, sincere and entertaining humans. In a country where they rank 127th on the Richest and Poorest list, you can see there is a lot more to be done to build on the efforts to date to lift this country out of poverty. Over the three weeks while staying in Cebu I had the great pleasure of working directly with my business partners and meeting some extraordinary people. 

Booming Growth

Cebu City is a very busy place, early morning traffic starts to hum around 5am local time, from Jeepnie to motorcycle, to all kinds of other types of unique transport, the streets are really busy. I took many taxi rides on my way to our office each morning and around the city on our ventures to business meetings and to government entities. Many of these taxi drivers work 14-16 hrs a day for about $500 Australian dollars a month. Needless to say people work very hard in Cebu. The city is really booming with building projects scattered right across the city from the rapidly growing IT Park to the Ayala Mall region where I counted more than 20 buildings going up. While large scale office real estate opportunities do exist, finding smaller centres for the start up businesses is much more difficult. 

Red Tape

When it comes to starting a business in the Philippines it's no easy task. There's no government portal you can log on to like in Australia and set up a business in under 20 minutes. The red tape in this country is thick, long and about as bright red as it gets. Even the documents have red ribbons on them! If you're thinking about setting up an operation in Cebu then it can be done but it's not going to be easy or quick. For starters you'll need local representation, connections to the government departments, a substantial amount of startup capital and a lot of patience. 

Local Contracts

Most businesses or start up entrepreneurs won't be in a position to setup a business locally so they'll turn to established companies to contract to. That's where the next challenge is, finding a suitable company to meet your specific needs. I say specific as every business is different and finding a suitable company does take effort. The old saying you get what you pay for, is a real factor, though like any good evaluation process you can find exceptional companies with excellent capabilities. Having a business on the ground is now a real advantage for us and opens up both local and international opportunities.

Hiring Staff

Far to many smaller start up business owners are seeking offshoring solutions by turning to direct quasi contractor options. This method not only undermines the entire system, it leaves those staff highly vulnerable to local prosecution, which puts those peoples futures at risk. As employment and taxation regulations continue to tighten those so called employees of a business will be facing hefty fines and possibly worse as they are not covered for standard local medical rights which is a major concern in this region. 

Businesses seeking offshoring solutions should be showing leadership here in offering the structures and providing quality employment systems to ensure staff continue on their way up out of poverty. There is a highly skilled job pool to select from and the hiring processes are relatively simply now with the power of Linkedin, oDesk and Freelance style sites. Depending on the job requirements staffing solutions generally work best from PH20,000 plus benefits, while you will find opportunities to find lower rates, quality staff are seeking remuneration's from PH25,000 per month. Exceptional Management quality staff or highly experienced specialised staff will commence from PH35,000.

Loyalty 

The employment sector in the Cebu is running at almost 93% with only an estimated 7% unemployed, with contact centre related jobs totalling approximately 25% of the market. With approximately 80% of those facilitating US based customers. Filipinos in general have slight American accents which is being received well in Australia. Though as the education programs are expanded more neutral speaking Filos will continue to come through. There already are many neutral sounding Filos that can service a very wide range of customer service and sales portfolios. To attract the best staff that will be loyal to your business, you have to respect where they come from, understand where they live and find a way to help with their transitioning into middle class citizens. Like any of the most admired companies it's not only the Salary and Benefits programs, it's the culture you build into the business that makes every difference. 

Team Building 

During the trip to Cebu this year I had the great pleasure of getting to know my team of business partners on both a personal and professional level. Working with young entrepreneurial like minded business people is very refreshing and deeply rewarding on a personal level. To enhance the trip this year we planned a getaway over the Australia Day Long weekend. Offering those types of annual getaways for your staff is one way of giving back for all the hard work the team put in over the year. We want our customers to know that we are always looking to reward our staff with that little bit extra and something special. This year our annual team retreat was held at Siargao, an Island approximately 45 mins flight off the mainland, and a well known surfing destination. Team building is an integral part of developing our leadership capabilities and we had a lot of fun on this years getaway. For a look at the behind the scenes adventure please stop by our Pinterest Page and check out our 2015 Getaway Siargao Board.  

Talent Evaluation 

Talent wise the sky's the limit and with the increased training and certification programs being offered in the region Cebanos have the ability to move from number 8 on the global outsourcing list up into the Top 5. This looks to be a real possibility as foreign companies are increasing their investment in the training platforms that have helped many of the largest companies in the world rise to the top of the customer service chain. An estimated 700,000 plus jobs are predicted by 2016 to take the total Philippines market to in excess of 1.35 million jobs in the BPO sector. Creating quality customer service models inspired by training and certification programs will create the point of difference you need to be ultra competitive. With more jobs also being created in the creative design, development, tech and other customer centric areas, it’s little wonder that more companies see Cebu as the place to position their offshoring services.

New Opportunities 

The opportunities for outsourcing and offshoring to the Philippines has now given emerging businesses a chance to hire quality staff to grow a new business. Where before in Australia local employment laws and remuneration requirements restricted the solopreneur from having this option. They simply could not afford to give a start up a chance because of the minimum break even monthly allowances. With technology transforming the way we live and work, and social media opening up more channels of communication, marketing costs are down and the start-up business can now find the staff they need, at very reasonable prices to grow a successful business. The boundaries are coming down and its great to know that we can play our part in building wealth, on both sides of the spectrum, while lifting standards and improving qualities of life. 

How you can Benefit

Settling on an outsourcing city isn’t an easy choice, with more than 50 Global Cities offering offshoring solutions, there really are a lot of value propositions to consider. Cebu works well for many reasons, you can build a business virtually, you can tap in to the growing pool of talented Cebuanos, the skills are wide and expanding, if you’re an entrepreneur getting a new business venture off the ground or an established business looking to expand a business unit, then Cebu will likely make your short list. The top 5 elements i came away from my trip are:

1. The city is growing fast, technology is progressing and office space is on the rise;

2. Staff are skilled, english speaking, experienced in contact centre services and keen to get ahead;

3. Cost of living in Cebu is relatively low and your staff can afford to live where they work;

4. Loyalty is built through offering value and building culture into your business; and

5. Training and certifications will provide a further point of difference and offer you a competitive advantage.

About the Author

 

About Adam Mole

Adam is the proprietor of start up BPO company Transeo and has been working with offshore and outsourcing services for more than 20 years. Adam is passionate about small business. He likes to write about his experiences in sales and startup business ventures. In his spare time you'll find him on one of Sydney's south coast beaches surfing and smiling. Email Adam at adam.mole@transeo.com.au and follow Adam on Twitter @adam_transeo.