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Outsourcing in the Philippines

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Outsourcing in the Philippines2018-09-12T16:02:57+08:00

Tim discusses Outsourcing in the Philippines

Tim is an experienced Outsourcing Strategist and Senior Business Advisor with Cloudstaff Australia. He has worked in Silicon Valley, the Philippines and across the Asia-Pacific. He openly discusses the Cloudstaff approach to business and how Cloudstaff solutions have helped companies turn outsourcing failures into incredible successes.

Cloudstaff, we help businesses expand capability and grow more cost-effective teams by leveraging the top talent here in the Philippines. What we do at Cloudstaff with our secret sauce, so to speak, is we build and scale dedicated high-performance teams that meet and exceed the customer’s expectations for exactly what they’re looking for as far as their hiring needs. So in a nutshell, that’s really what sets us apart from a lot of the other outsourcing companies that are here in the Philippines. We customise the staffing request and we let them focus on their secret sauce while we focus on their support, repetitive tasks, those time-consuming tasks which so much people get buried down with. That’s really our secret sauce of outsourcing.

So the Philippines has been in one of the leading outsourcing areas for quite some time. But the Philippines is known for outsourcing because of the great English-speaking talent that we have here in the Philippines and also the proximity, the no promptu, the staff working the time zone’s difference to Australia, it meets the same time zones in Australia as well as United States. They don’t have any problem working at night time that meets the U.S. time zones. But again, the tasks that we work with here, the type of staff that we work with, whether it’s filling that staff for a Software Developer, Quality Assurance Tester, Executive Assistant, Paralegal, Accountants, CPA – all these type of roles that we fill here in the Philippines, we have great success here at Cloudstaff doing this for now almost 10 years.

It’s a misconception that’s been in outsourcing for quite some time. In Australia, United States, Europe and I tell everybody that I work with – we move tasks, we don’t move jobs. It’s really important to understand that successful outsourcing is not about moving those jobs offshore, it’s actually about moving the time-consuming, repetitive tasks that stop your core business from focusing on what you do best and that’s really the key there at outsourcing. It’s just those time-consuming tasks really slow down the businesses especially those early-stage startups when they’re really there to kickoff, show results for their board and their executive investors that they’re progressing well with their business model and their strategy, they’re making their targets. And the way we can help them do that is, again, offsetting and helping them with their bottom line, showing a good strong ROI and also helping with those repetitive time-consuming tasks, having us focus on that with our staff here in the Philippines.

The key is, what I found when I worked with a lot of startups in Silicon Valley and Australia is mapping out your strategy for your business plan. And then once we have a specific time plan and your business model worked out, it comes down to staffing because when the clients received that money from investors, it’s really important that it’s spent wisely. And so we take a deep dive as far as how can we help you with offsetting those operations and expenses and lower them. One of the key attributes that we bring to the table as we’re able to prove, and document and save companies approximately 44% to about 58% on their operating expenses going offshore in the Philippines using our company because we’re able to lower the cost of those labour-intense, time-consuming tasks that cost so much in the United States and around Australia. And once we could show that to our customers and our clients that are doing their startups, they’re able to take that capital then put it into the areas that they really need it to help show progress when they launch their company.

So in outsourcing, the average attrition rates can fall anywhere from 11% a month, 12%, 14%. I even met with one of our clients which is a large bank based in Sydney, they had attrition rates of over 26% per month and they’re like, ‘Tim, what do we do? We need help.’ And I said, ‘You know, basically we put them on a strategy plan where we can stop the bleeding and first of all with attrition rates.’ We do that by several things – first, we do have a very good reputation as far as retention. We average 97% to 99% retention rate per month for our dedicated staff to our clients.

One of the really important factors to keep those low attrition rates per month that I have found working with startup companies for many, many years is you have to really have that bond with the staff and the company and how we do that to keep those low attrition rates of around 1% to 2% a month is we have a lot of engagements, we have a lot of clubs within Cloudstaff that our staff can join, we have a lot of trips, and games and fun things. So when they’re not at work, they have a lot of options to do and that bonds with their fellow staff and then also we have the Dual Family Model which works really, really well. How that works is our staff, once we align them with our staff and our client, they’re now dedicated to that staff and so there’s a bond there because they come over here, they spend time with their staff and there’s that family unity bonding that takes place. And once they get together, and they’re working together, and they get to meet their fellow workers, and they’re going to lunch and things. They are much closer to that client and they have a tendency to obviously stay within our company. And that’s hence one of the reasons why we have such a low turnover at Cloudstaff.

I think some of the key attributes why Cloudstaff is different than a lot of the traditional BPOs out there, as far as what we offer, is we’re able to look at the skill sets and then match them with the staff. So for example, if you’re looking for let’s say to outsource maybe two people from finance, whether it’s a person working in treasury or another person that you’re looking for to help you with payables, or receivables or bookkeeping, we could provide you that staff. And then you might want somebody that’s in Technical Support Level 1 and then you might need another staff support in creative design. We take that approach where we can put those people together in one team for you and build, and scale and grow with that team together until we reach the success marks and the growth strategy that you have in mind where a lot of the traditional outsourcing companies, they just can’t do that. They want to talk to you until you have at least 50 or 100 people already aboard and that’s just not effective for a startup. Startups are starting with 5, 10, or 15 people so it’s really critical if they’re looking for let’s say a Java Developer or .NET Developer, they need one Bookkeeper, they need one Executive Assistant. That’s where we can come in, supply them the proper staff right away, get them up and running within a couple of days and get them on their feet.

So we also found that, again, it’s better to put your team under one roof so to speak. So what we’ll do is we’ll build a customised area for those specialised tasks and staff in one little area. So for example in your space that we build for you at Cloudstaff, you might have one accountant but we’ll sit them next to two Java Developers or you’ll have two Creative Design Specialists that were sitting next to one Paralegal. So the whole model there is to keep that Family Unity Model which is, again, it is kind of our secret sauce I would say. So we keep that family model together, we keep everybody in one area, one roof and that keeps a family bond, the family unity working with the client’s staff.