Derek is again joined by Diego Jose Ramos and they will talk about the education system in the Philippines. They will also briefly discuss the startup ecosystem and funding.
Summary
Derek and Diego talked about the education system in the Philippines and how that intermingle with startups. There’s a movement In the US where some people are almost starting to shun a formal education because they feel they can educate themselves and launch their own startups without the extra years and student debt from secondary education.
The Philippines is a country wherein they are very much open to a lot of things. They have access to immense information. As a result, it influences more people to park education formal education and move into entrepreneurship.
According to Derek, there has been a rise in co-working spaces and all of this sort of affiliated things that happen when there is a budding startup community.
Filipinos have embraced the ecosystem environment of working with a flourishing co-working space. They also accelerate co-working spaces that have really redesigned their layout to match a Silicon Valley type of space. They have been opening a lot of details for more teaching and learning events.
In the Philippines, there’s a huge gap between the rich and the poor. As a result, people who can afford to start startups either come from wealthier families or the middle class. However, as Diego discussed, he thinks there are enough people coming from the middle class which can push the industry further.
According to Diego, the problem is that the Philippines has always been an underrated country in terms of outsourcing. The Philippines is still the market leader in terms of outsourcing because we cannot deny fact that Filipinos has the most amiable charm in treating customers.
Key Points
In the Philippines, it is composed of ninety-five percent SMEs and only five percent of their economy are from multinational companies. Of course, sari-sari stores are already included in the ninety-five percent.
The Philippines has always been underrated in the outsourcing industry.
Startup companies would hire tech people even if they haven’t finished programming in school as long as they can deliver and they the emotional quotient and will quotient to get the work done.
Hi, my name’s Derek Gallimore and this is the Outsource Accelerator Podcast. This is Episode 42 and I’m joined today by Diego Jose Ramos. So, Diego I actually interviewed in an earlier episode number 36. If you haven’t listened to that one I encourage you to do so. Today we are discussing the tech startup scene again with Diego. Diego’s very connected to the tech scene here and he’s very well-known within that community. So, he’s a good guy to know. And we talked initially about the education system and the startup ecosystem and you know how people are changing their views on education. And then we actually talk about co-working spaces and the affiliated ecosystem with the startup community. And then we go into funding and the, you know the general sort of support of the community. So, it’s a really great episode. And you know I encourage those of you listening possibly overseas in the U.S. and the U.K. et cetera to consider the opportunities that this presents to you the potential out there when there’s a huge thriving ecosystem in the Philippines of budding techies, budding startup entrepreneurs. It’s a really exciting time and place to be. So, I hope you enjoy. If you want any of the show notes please go to our website. And that is outsourceaccelerator.com/podcast/episode42.
Derek: Hi and welcome back everybody. I have with me again today, lucky to have Diego Jose Ramos with me. Hi Diego.
Diego: Hi Derek. How are you doing?
Derek: Yeah. Great, great. Doing great. And today, so we had Diego on a past episode which I encourage you to listen to. Diego is intimately involved with the tech and startup community in the Philippines. He has worked as a Technical Recruiter in the U.S. and returned back to the Philippines in 2013. And he really has his, a great awareness of what’s happening in the tech and startup scene and he also has two of his own startups which are well acclaimed within the tech community. So yeah, it’s great to have you back Diego. And first of all, I just want to discuss about the education system in the Philippines and how that now intermingles with startups. And so, there’s a bit of a movement in the US where people are almost starting to shun a formal education because they feel they can educate themselves and also launch into startups without the extra years and student debt you know from secondary education. Do you see any trend of that happening in the Philippines?
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Diego: Yes, Derek I think we live now in an era we’re, we’re not like China where even Facebook are not allowed. You know we live in a country where we are open to a lot of our Internet is open. So, we have immense access to information I think. And there are a lot of people right now in an ecosystem that comes out as strong, headstrong with an idea that I didn’t finish college. I have a great idea and I’ll try to run this startup. So, I think there are lots and lots of going on. I think that influences more people to park education formal education and move into entrepreneurship.
Derek: Right. And so, the whole ecosystem is building. Yeah because I see now there’s a rise in co-working spaces and all of this sort of affiliated things that happen when there is a budding startup community where obviously both A-space which is one of the premiere co-working spaces in Manila. And do you see evidence of that happening around the country.
Diego: Oh, yes, I think we have embraced the ecosystem environment of working with a flourishing co-working space around such as A-space. One of it the most dynamic. We also accelerate co-working space that has really redesigned their layout to match a Silicon Valley type of space. They have been also opening a lot of details for more learning teaching and learning events as well. So, I think we’re getting there with a flourishing business. An economy that has the highest growth stage in the past years compared to other Asian countries. I think we’re getting there.
Derek: And just to play devil’s advocate a little bit. There is a lot of poverty in the Philippines maybe not so much in Manila but who can generally afford to be a startup founder or be involved in the startup community. Is it at the moment the sort of playground for the slightly wealthier kids or can you give me an insight into the demographic there.
Diego: All right. Okay. Derek, the Philippines, unlike other European countries. There really is such huge gap between the rich and the poor. I think there’s a, in terms of socio-economic classes. I mean it has a significant gap. And if you slice it in the middle you can even slice in above average, in average middle class. So, these are the classes of people that actually go including the first-class go into entrepreneurship. The ones you see in the poverty, which is kind it seems evident because of the mass population of the country. But I think we have enough people on the on the middle class and upper middle to the rich social class that goes, that pushes the industry further. I think the level of education also as well helps a lot in the country in pushing this industry.
Derek: Right.
Diego: We live in live in a country that is actually composed of Ninety five percent SMEs and only five percent of our economy are actually the multinational companies.
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Derek: Right. Okay. And that’s because a lot of the SMEs are the sari-sari stores and through that the kind of small family business that keeps the economy ticking along.
Diego: That’s true. That’s true.
Derek: Interesting. And so, what would you say then are the pros and cons of joining a startup. Startups, the popular choice at the moment for budding university graduates.
Diego: Oh, not really. I think what they’re looking for is more on that the level of intense type of intelligence I think that person requires. Even your tech guy hasn’t finished programming in school as long as he could deliver and you have a lot of emotional quotient and will quotient to do that. I think startup companies would hire them. I’ve seen it around. You don’t really have to finish college. Unlike If you go on real hardcore corporate where they really look and look at your certificate that you finished university as well.
Derek: Okay. And then finally a lot of our audience is well the vast majority are based overseas in the U.S. the U.K. And they’re looking from an outsourcing perspective but it’s obviously a great message to put out there that there’s this strong tech community. If foreigners want to take advantage of this burgeoning tech scene. These you know abundance of well-educated techies. Do you see opportunities for that other than just the standard outsourcing? Is there actually an opportunity to startup startups here? You know that is the question in the West.
Diego: Yes, Derek. The problem is like the Philippines has always been an underrated country in terms of outsourcing. I mean, however we’re still the market leader in terms of outsourcing because we cannot deny fact the Filipinos. Our local talent here has the most amiable charm in treating customers especially in terms of customer service. This is why we have we are leading India in terms, in that vertical. In terms of tech talent, I mean the largest company for outsourcing would be a company called Freelancer.com which actually exited Australia but 90 percent of their team are actually located in the Philippines. So, which most people don’t know and a lot more companies as we work, they’re all here. And a lot of outsourcing companies ‘live ops’ 80 percent of the team are here.
Derek: Yeah, yeah, yeah. And a lot of the Upwork.
Diego: So, a lot of them work from home
Derek: And a lot of the Upwork is here.
Diego: That’s right. Even Uber most of their Analyst, those kind that work from home are in the Philippines.
Derek: Yeah.
Diego: So, these are some details that most people don’t know because these are the work that they don’t really put out in public.
Derek: Yeah that’s fantastic. Thank you for that insight Diego. And if people want to get in touch with you how can they get in touch.
Diego: Yes, reach me for me e-mail it’s diego.horsepower.ph or [email protected]
Okay. Hope you learnt some things there and let me know if you come up with any inspiring thoughts. So, if you want any of the show notes go to our website to outsourceaccelerator.com/podcast/episode42. And if you have any questions for us if you want to get in touch just e-mail us and we will get straight back to you. So, ask us anything ideally about outsourcing. If you want to do that send us an e-mail to [email protected].
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About Derek Gallimore
Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.
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