With all the legal documents, equipment and manpower required in starting a business in the Philippines, both aspiring and veteran entrepreneurs may grow to find how daunting it really is to set up a call center business in the country.
As we all know, startup business owners need to spend an inordinate amount of time and effort making sure that a business’ bare necessities are in place for it to run smoothly. The Philippines, despite its reputation for being a leading contact center destination in the world, is leaps and bounds behind its neighbor Singapore in terms of ease of doing business. In a World Bank report, when it comes to complying with government regulations, local entrepreneurs need to spend 34 days to open an average business and 42 days just to power a facility with electricity. Don’t worry, though. The time it takes to secure the necessary resources can be drastically reduced if you know the right people, and you take heed of these tips:
Be Aware of the Risks Involved
Businesses—from small, home-based startups to multi-national corporations—are keenly aware that in any business engagement, there will always be risks involved. What makes outsourcing so popular is that there is a myriad of benefits companies can enjoy from delegating non-core tasks to a different location that only requires a fraction of the usual cost. Even with confidentiality agreements, businesses are still vulnerable to various risks. Here are a few drawbacks that you need to be aware of:
- Possible problems with management and control of operations due to time-zone difference
- Breaches of confidentiality agreements.
- Communication challenges when conversing with people whose English is not a native language
- Failure in delivery
Prepare Enough Capital
Aside from manpower, businesses will also need electricity, a phone line, Internet connection, and other items to operate smoothly. All in all, even a small call center with the minimum ten employees can set investors back a few million pesos a month. Clearly, Philippine call centers are a capital-intensive venture that can require a lot. With the average office space in Manila at around Php816 per square meter a month, and a typical call center agent needing a 2-square-meter workspace furnished with telephony, computer and swivel chair, businesses will need to invest thousands of pesos per agent.
Be Aware of Philippine Labor Laws and Regulatory Restrictions
As we mentioned in a past article entitled “Philippine Labor Laws and the Call Center Industry”, foreign investors need to be fully aware of the intricacies of the Philippine labor laws (mainly to avoid legal disputes in the future). Even just registering your business can take several tedious steps and several government agencies such as the Bureau of Trade Regulation and Consumer Protection (BTRCP), Department of Trade and Industry (DTI) and Bureau of Internal Revenue (BIR). Through the efforts of the non-government agency and BPO enabler IT and Business Process Outsourcing Association of the Philippines (IBPAP) the Philippine government has soon issued out tax exemptions and policy directives that include affirmative labor policies and benefits to attract more investors. These labor policies are frequently updated, and so it is a must for investors to be updated on a regular basis.
The Bottom Line
Like all investments, businesses need a significant amount of research before finally joining the Philippine outsourcing bandwagon. Good news is that as more and more business opportunities become available this year, TeleDevelopment will continue to provide the BPO support solutions businesses need at every stage of their lifecycle. Contact us should you need help setting up a BPO or call center company in Manila, Cebu, Davao or any part of the Philippines!
Author: Ethel Merioles
Source: http://teledevelopment.com.ph/how-to-start-successful-bpo-philippines/
