May 24, 2019
Daniel Choi – The Future Potential of Outsourcing
Last updated August 20, 2019
We speak again to Daniel Choi, VP of client service in Intelegencia. We focus about the future and potential of outsourcing and more specifically how that can help you in your business. I had a good chat with Daniel and hope you enjoy this episode.
Derek Gallimore: Welcome to the Outsource Accelerator podcast. This is a short format podcast where we explore business and outsourcing mastery. My name is Derek Gallimore and I am really excited to bring you the leading podcast in outsourcing
Derek Gallimore: Hi and welcome to another episode of the Outsource Accelerator podcast. My name is Derek Gallimore and this is episode number 237. So today we are speaking to Daniel Choi of Intelegencia, he is the VP of client services there, after an acquisition by Intelegencia. We previously spoke to Daniel Choi in episode 214 and 231. If you want to go back and listen to those as more background information. But today, we have a good conversation about the future and potential of outsourcing and you know more specifically how that can help you in your business. So I had a good chat with Daniel and learned some good things here. If you want any of the show notes or to get in touch with Daniel, go to outsourceaccelerator.com/237 enjoy.
Derek Gallimore: Hi and welcome back everybody. Today. I am joined again by Daniel Choi, the VP of client services for Intelegencia. Hi Daniel. How are you?
Daniel Choi: Hey, good. Thanks for talking to me, Derek.
Derek Gallimore: Yeah, pleasure, pleasure. And thanks for coming back. I’m super excited to be talking to you again. And we’ve previously spoken to about Intelegencia. You’re on the services and also your experience in outsourcing despite being still a young chap. You’d been outsourcing since 2011 now. So, you know, the whole industry is only about 20, 25 years old, so you’ve certainly been in a long time. now I wanted to, you know, discuss the future of outsourcing in the Philippines. Certainly there’s a lot of talk about where it’s going. it’s one of the biggest, well it is these single biggest sector in the Philippines. employs about 1.3 million people, is a highly sophisticated sector.
Derek Gallimore: so now of course there’s a lot of speculation as to is this thing growing? Is it plateauing? and also what will happen with AI and automation, you know, and, and how also does the Philippines continue to upskill it’s people to make sure that the outsourcing, provision keeps on climbing that skills letter and value add letters. So, super long intro, but you know, you’ve been outsourcing now for eight years. and you know, no doubt you have seen the, the skill sets and functionality increase. I mean, I suppose, you know, do you just want to give us insight into how you saw outsourcing and when you started compared to what you see the potential of now?
Daniel Choi: Sure. I think we were a little bit of other now and not only in terms of the industry when we entered into it. we didn’t really understand the industry. We just need, we just had a itch and we just had to scratch. That’s kind of how I got into the industry. But as a whole, we got in, me and my business partner, we got into outsourcing because we had our own ecommerce store in the US and there were certain, tasks that were very, took, you know, physical amount of time though is just not possible for two people to handle. And so we actually ended up, offloading some of our data entry, some of our, you know, operation management to the Philippines to handle as well as customer service. And looking back, I realized that, you know, largely, outsourcing in the Philippines was based on voice or call customer support center.
Daniel Choi: So they’ll be handling emails, there’ll be handling phone calls and they’ll be handling live chats. And that still is the biggest pie of the industry in the Philippines, I believe. And us being a niche player at that time we were just small. But, I think in the industry, like you were talking about upscaling, so some of the work that’s been growing I feel is, is the, is the technology piece is the data entry piece and it’s more integration into the operations of the businesses. In the US or Australia or United Kingdom. and I’m going, I feel that, you know, for me at least, for our industry, the niche for, outsourcing is ever growing. I think it’s just that proportions are shifting based on the trends.
Derek Gallimore: Yeah. Yeah, for sure. For sure. And, I mean, you know, I still look because there is talk of the industry plateauing and, and what I think a lot of people, or this is what I’m trying to tell people is that outsourcing really only started, with the, with the fortune 500, with the fortune 1000, because outsourcing used to be super expensive because you would need to build facilities, you would need to bring over service as you’d need to put in the cables yourself. whereas now, you know, and you guys starting in 2011 reflected this in that the everything is far more plug and play now. it’s cheaper to set things up. It’s still expensive. It’s still complicated, but now things can, you don’t really be set up, a lot cheaper and quicker now. And then then, plays into the, the benefit of the clients because every like, BPOs and outsourcing suppliers are now accepting clients, in smaller scale. So one seats, two seats, you know, and I, and above which I is really opening up the market. But how do you see the, the awareness in, in the US, because I still see that most of middle America, the small and medium size businesses, they’re still thinking that out. What they’re maybe not aware of outsourcing if they think that it’s kind of something that American Express does and out not the common business.
Daniel Choi: Absolutely. I still feel it’s, it’s there’s blue for grow, especially with small and medium size companies. because like you said, they feel like, you know, it doesn’t, it doesn’t fit their bill because they’re just a small company. But I feel like, for coming from my own experience, they are the ones that needed more than ever because, you know, the, the, the businesses are getting ever more competitive and only the way to, you know, be compete, compete in the market is to find economical means to sustain your operations. And outsourcing is absolutely at the center of, you know, e economical, operational, you know, having the lean operations and I still feel it’s very new to the small and medium size. And you know, even in the Philippines there are a lot of like 5,000 seaters there, a lot of big BPO companies and they are not, you know, I think recently there’s been a change where it’s because infrastructure is there now it’s easier to set up now, companies are starting to reach out to small and medium size businesses.
Derek Gallimore: Yeah, yeah, for sure. For sure. It’s just sort of building that, gap and awareness isn’t it? And letting people know that it’s out there and accessible and not really that difficult to start and, you know, have you, what are your thoughts on automation? You know, we’ll all of this be automated in the future. do you think that the outsourcing, the generalized lower level employment as it is at risk?
Daniel Choi: Yes. It’s hard to, it’s hard to see the future, right? but the technology by itself will have an impact, I feel. And I think it’s, it’s all related to timing. So I feel like AI as a technology is still developing and I don’t think it’s made strides into affecting into the labor market in a way that it’s very significant to reduce the manpower. I still feel, you know, that human touch is needed in a lot of the business operations that are going on today. And unless there are some significant strides with AI or automation, it’s going to be hard to replace manpower. With that said though, there a lot of, you know, developments there in the background, but it’s, I feel it’s still needs time for it to become a commercial for it to be applied to the businesses.
Derek Gallimore: Yeah, absolutely. And do you see, do you see a future where you know, all of the workforce, all of an organization is really globalized so that, you know, instead of getting your, I dunno, bookkeeping done in the Philippines, the business is basically built and run in the Philippines. And in fact, I imagine that’s what you did with your first business. Yeah, I like you, you know, you started with some of the basic functions, but really as you know, as you needed anyone, you really just brought them on in the Philippines as opposed to looking in your, in your local market.
Daniel Choi: I think that really depends on that on a case by case business and it really follows the characteristic of the CEO or the founder of the company. I think for me and Carlo, we were a little bit more comfortable with the technology, with people working overseas. We were actually, you know, a little bit excited to travel to the Philippines and to be able to work with people and we did our mind outsourcing. But you know, I’ve, I’ve come across clients who are, who, who believes in face to face time, who likes to have work around people and you know, they would like to keep starting level of employees in their office. so, yes, I think capability wise it’ll be absolutely easier and, and capable to run a business overseas without having employees in the US or whatever country that you’re in. but I think because of that human touch, some people will choose to have their offices in the states or in UK or in Australia.
Derek Gallimore: Yeah, for sure. And then, you know, the, I also get a lot of questions about upwork and freelancer and people often, you know, I’m, I’m telling people to try outsourcing and they say, well, I’ve tried upwork and freelancer and I’ve got disappointed. also I’ve, I’ve, you know, so I’ve, I’ve kind of given up on the Philippines. do you, do you have experience with that and like how do you see the difference between outsourcing, and upwork and freelancer?
Daniel Choi: Yeah, absolutely. Actually, I think I even have some personal experiences and we have clients who are coming from freelancers and (inaudible) by them. so, I think industry as a whole is evolving to offer different types of, service to the clients. And the clients have this choice to make that, you know, make a decision. But freelances mainly like economical decision. You want to have some work done in, you know, you’re looking to be as, as do it with as least amount of money as possible. I think for organization like us, we see value in having a relationship with the client, having long term relationship where not only the client is growing but the staff is growing as well. So that’s why we take the pains of, you know, having the infrastructure, having the, you know, legal structure structure that is, that is compliant to the government, making sure all of the Labor laws are compliant and so, you know, there is always going to be different options for clients and, but for those who are looking for longevity and they’re looking for stability, they should really have a developer relations shape with a partner who can deliver that overseas.
Derek Gallimore: Yeah, absolutely. And so your, you know, your deep into outsourcing now, are you, are you excited about the future of outsourcing?
Daniel Choi: Oh yeah, absolutely. it’s, you know, it’s going to be evolving ever the more, yeah. I, and you know what, I don’t think it’s just the outsourcing, but you know the labor market as a whole, I think we’re evolving as a whole with the development in technology.
Derek Gallimore: Yeah, yeah. It’s true isn’t it? Because you know, people say outsourcing like it’s a thing, but it’s really outsourcing is really just employment, isn’t it? And then you’re employing people to do business and so you really just covering the whole sway of them employment, the whole suite of business and that’s super exciting in a way, isn’t it?
Daniel Choi: Yeah. That’s what it is really.
Derek Gallimore: Amazing. Thank you so much. Then if, if anyone wants to contact you or know any more about Intelegencia, how can they do that?
Daniel Choi: They can contact me via email or visit us at our website. My email address is Daniel@Intelegencia.com my website, our website is www.Intelegencia.com.
Derek Gallimore: Amazing. Thanks for your time Daniel.
Daniel Choi: Thank you, Derek.
Derek Gallimore: That was Daniel Choi of Intelegencia. If you want to get in touch with Daniel or know any more about this episode, go to outsourceaccelerator.com/237 and as always, if you want to ask us anything and just drops them email to firstname.lastname@example.org. See you next time.