Aussie investor pioneers BPO services for SMEs

CEBU, Philippines - In a thriving industry like the business process outsourcing, competition is always getting more challenging and upfront among industry stakeholders. In the Philippines particularly Cebu, the BPO sector has significantly grown over the years.

But while big BPO companies target big-ticket clients, an Australian investor took the risk of offering outsourcing services to the Small and Medium Enterprises (SMEs).

Taking the risk to embrace a niche market may be a key to keep away from the tradition, survive the competition and, in some way, create a specialized market for a certain sector, said Rodney Kafer, an Australian BPO investor in Cebu.

Kafer, formerly an athlete, is the owner and founder of the Ezi Connect Philippines which started its operation in 2012.

Untapped SME market

Kafer said that while huge multinationals go for the "big fish", the SME sector remained a generally untapped market in the voice services industry, thus his team decided to venture into offering BPO services for this particular sector.

"Our company doesn't have competition thus far," he said, "but sooner or later some companies will follow suit."

Kafer said the outsourcing sector must also bring business importance to SMEs and that it should only be made available to big businesses.

"We choose small to outsource, they can outsource through us," Kafer told The FREEMAN in an interview. "With the BPO companies, one way or another, we're actually not competing because we have a different model and no one has thought about that."

Conventionally, large companies dominate the outsourcing services of call centers given the extent of their ventures.

The Aussie businessman believes that it's time also for a BPO firm to help small enterprises to maximize their existing manpower through providing an off-site labor, making the outsourcing trend as a business advantage.

He said this would enable them to lessen the costs and risks when it comes to staffing, technology and operations, adding, "SME's on-site labor will then be able to focus more on the needs of the company while the call center--like ours--works on the delegated tasks."

Kafer also added tapping BPO for bookkeeping and accounting services would help small ventures save costs and allow them to focus more on the foundation of their businesses.

While the foreign businessman is keen on the competition in Cebu, he stressed though that the biggest challenge for traditional BPOs is always the "clients' implementation and integration" and finding a good quality staff.

42-year-old Kafer is also a FOX Sports Rugby commentator and the founder and executive director of Totalcom, an Australian-based telecommunications service provider that also caters to SME businesses.

He first founded first Ezi Connect in Sydney Australia in 2011 with his business partners Michael Leahy and Mark Van der Mullen.

Cebu's potential

Later on, as they discovered the big opportunity of the business outsourcing industry in the Philippines, they decided to expand Ezi's operations in the country in 2012, initially setting up operations in Makati City.

"We immediately saw the outsource opportunity in the Philippines and in fact it is the largest English speaking country in the world," he said, adding that Australian culture is similar to that of the Filipinos in terms "outlook in life".

When they joined Cebu's BPO industry in 2013, the company only had six employees with General Manager Jeyson Salandron and Human Resource Manager Paul Michael Briones.

Presently, it has grown to 40 employees operating in a space in Pag-IBIG Fund WT Corporate Tower in Cebu Business Park.

Kafer said that even as the company is only starting, there seems to be no signs of the company slowing down.

He also added that the goal of his company now is to provide employment, a reason they are closely looking at expanding and tripling its workforce in less than a year.

Kaffer recognized the capability of Cebuano workers who, he described as possessing good work ethics, committed to the job and very appreciative to be able to work: "Those can't be questioned, I've seen it from them."

The company also plans to provide business solutions to local and national ventures in the Philippines as for now, it currently only serves Australian clients.

Although he did not have a formal training in business management, he said his family has influenced him to make a career in such field: "They are into business also in Australia. And you know business is one of my passion. I enjoy doing business."

Kafer also shared that he has seen a lot of opportunities in Cebu and that he is confident that what started to be small business may soon take its steps to a more challenging role in the business industry.

He emphasized, "running a business is a combination of risks, rewards, hardwork, managing people's personalities and finding opportunities around." (FREEMAN)