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Slashing Costs and Increasing Profits Through Offshore Outsourcing
- 1. THE SWARTZ GROUP 2725-2A Old Wrightsboro Rd Wilmington, NC 28405 www.swartz-group.com
- 29. And In My Case, Do You Have An Example?
Notas del editor
- It’s a sad fact that the last few years after a relatively good time have soured considerably Banking, Government Deficits, and Taxes all contribute to a harsher climate for SME’s The economic conditions are caused by failure of government and regulation, the rise of bureaucracy, armies of civil servants and central banks printing money. Banking and finance creating asset bubbles and a belief in never ending credit both by people and governments
- It’s a sad fact that the last few years after a relatively good time have soured considerably Banking, Government Deficits, and Taxes all contribute to a harsher climate for SME’s The economic conditions are caused by failure of government and regulation, the rise of bureaucracy, armies of civil servants and central banks printing money. Banking and finance creating asset bubbles and a belief in never ending credit both by people and governments
- There may be merit in the argument that some big business, particularly banks, were partly to blame for creating asset bubbles in property, but it is certainly not the case that SME’s contributed to the current situation. In fact along with the property bubble, many asset prices in property, particularly the rented sector, office, and factory are overvalued and office rentals reached highs that do not reflect realistic valuations, thus causing higher costs for SME’s With record low interest rates these asset bubbles seem to have much further to go to unwind and if and when interest rates rise this will affect adversely SME’s again. Governments are making policy designed to attempt stability, but in fact in many cases it does appear counter-productive as regulation and red tape rises and taxes as they attempt to reign in deficits. As real incomes fall in the western world and austerity measures start to bite this is having a dramatic effect on consumer purchasing levels and levels of confidence regarding increased inflation and lowers living standards are falling. This can lead to consumers saving more and spending even less causing a level of deflation, and union demands and legislation particularly in Europe and the UK favouring employee legislation have created a situation whereby hundreds of new laws are enacted every year and currently stand at around 22,000 in the UK relating to business activities. Politicians in most of the western world are facing a backlash from voters and policies to appease voters do not necessarily mean these are right policies that would enable the SME sector to regain its growth potential.
- Most banking sectors are currently adjusting to new capital requirements with billions in fresh capital needed to be raised by the banks over the next two years mean banks have little incentive to take more risk by increased lending. Most SME’s feel this acutely. It is difficult to reconcile political words with actions relating to reduced regulations. As the government debts and local council and city debts increase, it more often appears that placatory noises are being made but, the reality is very different. Large multinationals, with a captive institutional shareholder base, can readily marshal efforts and resources to reduce costs by way of outsourcing production, and skills to lower cost countries. These reduced costs for these large multinationals mean they take business from SME’s who cannot simply follow their lead in reducing costs, and so large corporate profits are rising whilst SME’s struggle to make ends meet.
- There is not really much more to say about this but businesses can see what is happening with voids on the high street, closures and whole areas of the country facing very difficult times
- Since the dawn of off-shoring and outsourcing production to China, multi nationals have taken every advantage of the opportunities and it has directly led to the rise of economic power of both India and China. Growth rates in this market are still running at very high levels, and huge outsourcing corporations have grown in past 20 years. Rarely are they interested in the SME market as the numbers need to large to make their investment provide the returns needed.
- A typical outsourcing project for a large corporation can involve millions of dollars in planning and investment costs. These decisions are made for the long term, and typically can reduce costs by between 15% and 25%. The planning, staff and management time involved can be tremendous and when coupled with the legalities and the outsourcing contracts can and SLA, the Service Level Agreement, often fairly inflexible and certainly geared to the outsourcing providers needs to make a profit and cushion against unexpected results and occurrences, can be extremely daunting unless it involves millions of dollars, euros or pounds.
- Payback periods are also in the three to seven year range, and it is difficult for the SME to forecast and plan for such a lengthy period. Large organisations with the full management resources and with the capacity and capital can achieve that but it is very difficult for a SME to match the resources and costs and so most SME’s, although hey can certainly see the attractions, are often refused as being too small for the outsourcing provider, or are charged prohibitively expensive rates with an even longer payback period for the investment required.
- I guess that you could think of many more but you get the picture.
- Basically we are group of companies with the relevant expertise that have come together to help and aid SME’s to do exactly what we would do if we could avail of that. Little by way of putting together the various conditions enacted by the right people has been available, which is why the SME market in outsourcing and off-shoring has been done mainly on a go-it-alone basis. We aim to change that by making it simpler, faster and with all the benefits of outsourcing and off-shoring available to SME’s but at a considerably lower cost.
- Many of these costs and others too numerous to mention here are beyond the control of businessmen. Efficiencies and a drive to profitability and good management is the best that can be achieved together with drive and flair. The one large and outstanding cost is the staff costs. Often overlooked and not properly costed by management it is in many cases an oversight that can cost a business dearly
- Employment costs fall into several broad categories: Recruiting Expenses . Finding technically qualified people who can function effectively in a rapidly growing start up venture is not easy task. Be sure to devote the time to make sure that your hires are as close to perfect “10s” as possible. Anything less will be a drag on your business. Basic Salary . Basic salaries vary all over the place depending on the industry and a variety of other factors. There are data that can help you calibrate an appropriate base salary. For example, the Massachusetts Software Council puts out an annual Compensation Survey and there are similar publications in other industries. Be sure to establish rational salary ranges given your growth plans. This means that in most cases there should not be great salary differentials between early hires and later employees- any "risk component" of being an early hire should be made up in the equity compensation component. Employment Taxes . In preparing your personnel budget be sure to include allowances for Social Security/FICA (currently 6.2% on the first $90,000 of salary), Unemployment/FUTA (6.2% on $7,000 of salary) and Medicare (1.45% with no salary cap). Workmen’s compensation premiums will depend on the category of your employee, with clerical at about 0.3% of salary and manufacturing at 7.5%. Benefits . Basic salary and employment taxes are a minimum- in most cases you will need to provide some benefits. Typical benefits for a $50,000 salaried employee include life insurance ($150) and health coverage ($2,000-$3,000 for single persons; $6,000-$7,200 for families). Other benefits could include long-term disability insurance ($250), dental plans ($240-$650), dependent care assistance, tuition reimbursement, retirement plans etc. These involve actual payment of benefits by the employer. There are also "self funded" plans where the employer contribution is the administrative costs- e.g. 401(k) savings plans where a portion of the employee’s salary is withheld. Vacation is another cost but is subsumed in the basic salary. The costs to this point (basic salary, employment taxes and benefits) are typically in the 1.25 to 1.4 times base salary range- e.g. the cost range for a $50,000/year employee might $62,500 to $70,000. Space . Unless you are hiring travelling salespeople, you need to provide some physical space to house the new employee. Obviously the rent per square foot varies depending on the fanciness and location of the facility. But how many square feet does an employee need? Again this varies but there are some guidelines. Work cubes are typically 8' x 8' in size and private offices range in size. In high tech figure on 225 to 250 square feet per employee when you add in common space. Furnishing the space, even with used work cubes will probably run $2,000 at a minimum. Other Equipment . The basics these days for high tech or office workers have to include a computer and telephone. Even with decreases in PC prices, figure on $1,000+ for a computer, $500 to several thousand for software and $250 to $300 initially per telephone handset on average when you factor in installation. Don’t forget the periodic expensive upgrades you will need to your LAN and voice mail systems. Other Approaches . Instead of figuring out each cost component separately you can develop some simple metrics. For example, in the engineering services business, in which people are billed on projects on a time and materials basis. The company takes the employee’s base salary and multiplies it by 1.25 to cover employment taxes and benefits. This is then multiplied by 1.75 to cover rent equipment etc. Because some management personnel are needed and some of the employee time is spent in non-billable technology development, it is multiplied that number by 1.25. The company figures that for its professional engineering consulting business the fully functioning managed employee costs about 2.7 times the base salary. It has a different metric for planning the manufacturing side of the business. In both cases even though the metrics are simple and easy to apply it has taken them some time to really understand the cost components of the business segments in order to develop the metric. The company notes although that its "rule of thumb" is helpful in planning rapid growth, like any rule of thumb the underlying assumptions need to be recalibrated periodically. Hiring is always a difficult and important activity, especially in a rapid growth business. There is always too much to do and often the business has little experience in hiring. It is the rare case when you can hire exactly to meet your needs. Delay in hiring and you will have trouble meeting your plan, hire too quickly and you may burn through cash before revenue catches up. Consider using independent contractors to cover peak periods if your business does not have too steep a learning curve. Some companies staff at 85% of forecasted needs and contracts out the remaining 15%. Although you can’t control the hiring process exactly you can understand the economic metrics of what you are doing and that can help you avoid some really unpleasant results.
- The result we aim for is a very comprehensive off-shored, fully incorporated, operational facility, fully staffed, with all services connected and working, with your manager or managers in place, with all systems go in a fully coordinated unit providing exactly the same benefits as the one it replaces, but with annual ongoing costs reduced by between 65% to 75% inclusive of all fees and costs, and annual savings coming through at a minimum rate of £250,000 or €300,000 or $400,000 These savings would impact directly on the bottom line for the SME. This could make the difference between making a loss or a profit for the year. This could mean the difference to move forward with Investment plans or put them off again. This could mean the difference as to whether to call in receivers or downsize or make larger redundancies. This could mean the difference as whether to sell the company now at a lower valuation or effect the changes and see a much higher valuation placed on the business. This could mean the chance to expand the company, or to reduce prices to be more competitive, the option to hire those graduates you really need to help future plans or simply to pay yourself more
- UK - Asia Solutions division has been set up to cater specifically to aid those Companies who have a wish to target and take advantage of the benefits of having their own overseas division. Headed by our Managing Director, Leslie Stafford, UK - Asia Solutions can provide very substantial benefits for UK based Companies who find themselves squeezed by the current economic situation and, the expected twin threats of higher taxation and lower growth due to pressure on margins. We believe we can strike the right balance for your company to achieve major cost savings in an uncertain future where global business is in a serious downturn and corporate profits are under increasing pressure from government regulation, taxes and a general slowdown in the economy. As these pressures build competitors may reduce prices in order to maintain business levels and thus force further pressure on margins as customers also seek lower costs. We believe you owe it to yourselves and your company and shareholders to investigate the opportunities to help your business and for a modest initial outlay you could take the first step by identifying what costs could be reduced, and what positions could be offshored. The second step would involve a visit by a director or senior manager to ascertain the benefits on site and discuss in detail with us on how to proceed.
- The lawyers in Ocampo & Manalo combine an understanding of legal needs and market issues in the Philippines and abroad. Our partners have substantial experience in international transactions. The combined local and international experience, coupled with our wide network of relationships, enables the firm to offer its clients far-reaching capabilities and a unique and valuable approach to legal and business problems. Apart from our legal expertise, network, and collective experience, our partners and associates maintain a single-minded commitment to delivering personalized quality service to all our clients, with the goal of building long-term relationships based on trust and confidence. The firm offers a comprehensive range of legal services to clients, which include multinational corporations, foreign and domestic investors, financial services firms, as well as individuals. Our major areas of practice are corporation law, commercial litigation, civil law, transportation, intellectual property, labor, immigration, and international law. The clients we serve are engaged in air, land and sea transportation, insurance, securities, financial services, mutual fund management, travel and hotels, information technology, mass media, construction and property development, engineering, car manufacturing, restaurant operation and management, manufacturing, business franchising, and general sales distribution, among others. Corporate and Finance Ocampo & Manalo has a superior corporate practice, a product of our commitment to achieving results that further our clients' business objectives. We assist our clients with all aspects of corporation law and with such business transactions as corporate organization, mergers and acquisitions, joint ventures, public and private financing, public offerings, due diligence audits, securities registration and regulation, and general corporate representation. Moreover, the firm is also developing a critical practice in debt restructuring and bankruptcy.
- This shows the typical cost savings for an SME like you. This is based on 25 jobs being relocated to the Philippines and operating from your own fully owned off-shored corporation. We have a spreadsheet that we can enter some numbers to see more precisely the likely outcome for you.
- The start of any project is to do an analysis of the needs and the goals and gather the right information. An initial consultation to determine what needs to be done to gather this information and what information is required is the first step. This involves determining which repetitive positions can be safely outsourced, building a job description and details such as salary office space and costs involved and the numbers. An assessment on the management time to complete the project is also needed together with issues like planning for redundancies or redeployment or training for staff able to move up the value chain. Discussions with those likely to be affected and counselling are also important
- We now need to analyse this information in the Philippines. We need to assess the staffing needs and costs, determine office costs, locations, timescales, and also prepare then a detailed cash flow forecast relevant to the Philippine operation. With the approval of the costs the detailed planning can be started by you, the client, to determine who the lucky manager would be and who will be in charge of the project.
- At this stage, we recommend a small investment, to buy a ticket and visit the Philippines. We will meet you at the airport, have a hotel booked and arrange for you to visit our offices and see what happens here, Also a visit and meeting with the Attorneys to discuss legalities in corporate formation and contracts etc. After that if you prefer, we can also organise a few days break at a tropical resort. Oh yes, and meet and chat to prospective employees too.
- Time is money, and the savings to be made in costs need to be met as soon as possible. Here we will immediately complete office lease singing and have contractors on sit within days. We will send weekly photographs to show how the work is progressing, and all invoices etc will be copied and sent together with a spreadsheet showing how the overall costs are. Resumes for the employees will be sent to you for initial review and interviews arranged as necessary.
- As the office is nearing completion and the corporation documents and formation are being completed these will also be sent to you. Licences and permits and services will be attended to by our staff. Arrangements should be discussed and made with the manager appointed to run the office and accommodation and flights booked.
- At this point it will be necessary to implement the plans back home and we will work with the manager to ensure smooth running and the smoothest possible transition. Redundancy notices and redeployment if any can start to take place as the work moves to the Philippines
- This will be the busiest time for all as things get underway. Good communications and a very competent manager to ensure the staff here take on the duties as quickly and as efficiently as possible. We will be helping throughout as when needed
- For the manager, this is the start of a new period in his or her life. Life in a new country. New acquaintances to be made. New responsibilities and challenges to be met. We understand very well that it takes time to acclimatise to new surroundings and ways of doing things. Don’t worry. We will be around to guide and help at all times, from shopping to travelling to dealing with local people until they are fully confident they can manage.
- We understand that the first priority is to have the office working at full capacity, and so any burden we can take from the shoulders of manager will help.
- Often other matters will need to be dealt with during the first few weeks. We will arrange a full schedule with the manager to help with such things as opening bank accounts, understanding how the systems work in the Philippines and a detailed plan to ensure that all information needed is provided quickly and efficiently and accurately.
- And of course there is more to life than just the office. We can arrange visits, introductions, plans for weekend visits, where the restaurants are and can have someone accompany the manager at these times so that he can get a feel of how life is in the Philippines
- This should now give you a fuller idea of the benefits of off-shoring part of your work. Few multinationals do not use outsourcing and off-shoring as the value is incalculable to their business model and competitiveness. Why should SME’s be shut out in the cold. The benefits are obvious and even a quick calculation can show how that would work for you in practice and let you have an idea of the savings and additional profits to be made for your business. The viability and future growth for your company could very much depend on your decisions made now. Future employment of staff as you have more resources to grow and expand will also be determined now. From a start of just 15 jobs in the Philippines the attraction is obvious. But what if there is not enough work to off-shore to merit 15 places in the Philippines. Well we have that covered too. But now we need to start again in that case because we can take from a single job for a Filipino. This we do as an outsourced option and we can even provide one staff or virtual assistant fee for a week in order that you can actually feel the benefits. This costs just £500 a month and of course if the numbers of staff do grow to the extent that you have around 15 or so here we will of course start and help you progress to a fully offshored facility for your self in order that your costs reduce even more
- This should now give you a fuller idea of the benefits of off-shoring part of your work. Few multinationals do not use outsourcing and off-shoring as the value is incalculable to their business model and competitiveness. Why should SME’s be shut out in the cold. The benefits are obvious and even a quick calculation can show how that would work for you in practice and let you have an idea of the savings and additional profits to be made for your business. The viability and future growth for your company could very much depend on your decisions made now. Future employment of staff as you have more resources to grow and expand will also be determined now. From a start of just 15 jobs in the Philippines the attraction is obvious. But what if there is not enough work to off-shore to merit 15 places in the Philippines. Well we have that covered too. But now we need to start again in that case because we can take from a single job for a Filipino. This we do as an outsourced option and we can even provide one staff or virtual assistant fee for a week in order that you can actually feel the benefits. This costs just £500 a month and of course if the numbers of staff do grow to the extent that you have around 15 or so here we will of course start and help you progress to a fully offshored facility for your self in order that your costs reduce even more
- This should now give you a fuller idea of the benefits of off-shoring part of your work. Few multinationals do not use outsourcing and off-shoring as the value is incalculable to their business model and competitiveness. Why should SME’s be shut out in the cold. The benefits are obvious and even a quick calculation can show how that would work for you in practice and let you have an idea of the savings and additional profits to be made for your business. The viability and future growth for your company could very much depend on your decisions made now. Future employment of staff as you have more resources to grow and expand will also be determined now. From a start of just 15 jobs in the Philippines the attraction is obvious. But what if there is not enough work to off-shore to merit 15 places in the Philippines. Well we have that covered too. But now we need to start again in that case because we can take from a single job for a Filipino. This we do as an outsourced option and we can even provide one staff or virtual assistant fee for a week in order that you can actually feel the benefits. This costs just £500 a month and of course if the numbers of staff do grow to the extent that you have around 15 or so here we will of course start and help you progress to a fully offshored facility for your self in order that your costs reduce even more
- This should now give you a fuller idea of the benefits of off-shoring part of your work. Few multinationals do not use outsourcing and off-shoring as the value is incalculable to their business model and competitiveness. Why should SME’s be shut out in the cold. The benefits are obvious and even a quick calculation can show how that would work for you in practice and let you have an idea of the savings and additional profits to be made for your business. The viability and future growth for your company could very much depend on your decisions made now. Future employment of staff as you have more resources to grow and expand will also be determined now. From a start of just 15 jobs in the Philippines the attraction is obvious. But what if there is not enough work to off-shore to merit 15 places in the Philippines. Well we have that covered too. But now we need to start again in that case because we can take from a single job for a Filipino. This we do as an outsourced option and we can even provide one staff or virtual assistant fee for a week in order that you can actually feel the benefits. This costs just £500 a month and of course if the numbers of staff do grow to the extent that you have around 15 or so here we will of course start and help you progress to a fully offshored facility for your self in order that your costs reduce even more
- This should now give you a fuller idea of the benefits of off-shoring part of your work. Few multinationals do not use outsourcing and off-shoring as the value is incalculable to their business model and competitiveness. Why should SME’s be shut out in the cold. The benefits are obvious and even a quick calculation can show how that would work for you in practice and let you have an idea of the savings and additional profits to be made for your business. The viability and future growth for your company could very much depend on your decisions made now. Future employment of staff as you have more resources to grow and expand will also be determined now. From a start of just 15 jobs in the Philippines the attraction is obvious. But what if there is not enough work to off-shore to merit 15 places in the Philippines. Well we have that covered too. But now we need to start again in that case because we can take from a single job for a Filipino. This we do as an outsourced option and we can even provide one staff or virtual assistant fee for a week in order that you can actually feel the benefits. This costs just £500 a month and of course if the numbers of staff do grow to the extent that you have around 15 or so here we will of course start and help you progress to a fully offshored facility for your self in order that your costs reduce even more
- Geography The Philippines is an archipelago of 7,107 islands with a total land area, including inland bodies of water, of approximately 300,000 square kilometres (116,000 square miles). Its 36,289 kilometres (22,549 miles) of coastline makes it the country with the 5th longest coastline in the world. It is located between 116° 40', and 126° 34' E. longitude and 4° 40' and 21° 10' N. latitude and borders the Philippine Sea on the east, the South China Sea on the west, and the Celebes Sea on the south. The island of Borneo is located a few hundred kilometres southwest and Taiwan is located directly to the north. The Moluccas and Sulawesi are located to the south-southwest and Palau is located to the east of the islands. Economy The national economy of the Philippines is the 47th largest in the world, with an estimated 2008 gross domestic product (GDP nominal) of over US$166.9 billion (nominal). Primary exports include semiconductors and electronic products, transport equipment, garments, copper products, petroleum products, coconut oil, and fruits. Major trading partners include China, Japan, the United States, Singapore, Hong Kong, Saudi Arabia, South Korea, Thailand, and Malaysia. Its unit of currency is the Philippine peso (PHP). A newly industrialized country, the Philippine economy has been transitioning from one based on agriculture to one based more on services and manufacturing. Of the country's total labour force of around 38.1 million, the agricultural sector employs close to 32% but contributes to only about 13.8% of GDP. The industrial sector employs around 13.7% of the workforce and accounts for 30% of GDP. Meanwhile the 46.5% of workers involved in the services sector are responsible for 56.2% of GDP. Culture Philippine culture is a combination of Eastern and Western cultures. The Philippines shares many aspects with other Asian countries, with a traditional Malay heritage, yet its culture also displays a significant amount of Spanish and American influences. These influences are evident in literature, folk music, folk dance, language, food, art, and religion. Traditional festivities known as barrio fiestas (district festivals) to commemorate the feast days of patron saints are common. The Moriones Festival and Sinulog Festival are a couple of the most well-known. These community celebrations are times for feasting, music, and dancing. Some traditions, however, are changing or gradually being forgotten due to modernization. The Bayanihan Philippine National Folk Dance Company has been lauded for preserving many of the various traditional folk dances found throughout the Philippines. They are famed for their iconic performances of Philippine dances such as the tinikling and singkil that both feature the use of clashing bamboo poles. The common use of the English language is an example of the American impact on Philippine society. It has contributed to the ready acceptance and influence of American pop cultural trends. This affinity is seen in Filipinos' love of fast food, film, and music. Fast food outlets are found on many street corners. American global fast food chain stalwarts have entered the market, but local fast food chains like Goldilocks and most notably Jollibee, the leading fast food chain in the country, have emerged and compete successfully against their foreign rivals. Modern day Filipinos also listen and watch contemporary American and European music and film. However, Original Pilipino Music (also known as OPM) and local films are also enjoyed. Cuisine Filipino cuisine has evolved over several centuries from its Malayo-Polynesian origins to become a mixed cuisine with many Hispanic, Chinese, American, and other Asian influences that have been adapted to local ingredients and the Filipino palate to create distinctively Filipino dishes. Dishes range from the very simple, like a meal of fried salted fish and rice, to the elaborate, such as the paellas and cocidos created for fiestas. Popular dishes include lechón, adobo, sinigang, kare-kare, tapa, crispy pata, pancit, lumpia, and halo-halo. Some common local ingredients used in cooking are calamondins, coconuts, Saba (a kind of short wide plantain), mangoes, milkfish, and fish sauce. Filipino taste buds tend to favour robust flavours but the cuisine is not as spicy as those of its neighbours. Furthermore, unlike many of their Asian counterparts, Filipinos do not eat with chopsticks. They use western cutlery. However, possibly due to rice being the primary staple food and the popularity of a large number of stews or broth based main dishes in Filipino cuisine; the main pairing of utensils seen at the Filipino dining table is that of spoon and fork, not knife and fork. The traditional way of eating with the hands known as kamayan is seen more often in less urbanized areas. Media Philippine media uses mainly Filipino and English. Other Philippine languages, including various Visayan languages are also used, especially in radio due to its ability to reach remote rural locations that might otherwise not be serviced by other kinds of media. The dominant television networks ABS-CBN and GMA also have extensive radio presence. Sports Various sports and pastimes are popular in the Philippines including basketball, boxing, volleyball, football, badminton, taekwondo, billiards, ten-pin bowling, chess, and sipa. Motocross, cycling, and mountaineering are also becoming popular. Basketball is played at both amateur and professional levels and is considered to be the most popular sport in the Philippines. In almost every corner of the cities, there is a basketball court.
- Employment The unemployment rate as of July 2009 stands at around 7.6% and due to the global economic slowdown inflation as of September 2009 reads 0.70%. Gross international reserves as of February 2010 are US$45.713 billion. In 2004, public debt as a percentage of GDP was estimated to be 74.2%; in 2008, 56.9%. Gross external debt has risen to US$66.27 billion. The country is a net importer. After WW II After World War II, the country was for a time regarded as the second wealthiest in East Asia, next only to Japan. However, by the 1960s its economic performance started being overtaken. The economy stagnated under the dictatorship of Ferdinand Marcos as the regime spawned economic mismanagement and political volatility. The country suffered from slow economic growth and bouts of economic recession. Only in the 1990s with a program of economic liberalization did the economy begin to recover. Asia Financial Crisis The 1997 Asian Financial Crisis affected the economy, resulting in a lingering decline of the value of the peso and falls in the stock market. The extent it was affected initially, however, was not as severe as that of some of its Asian neighbours. This was largely due to the fiscal conservatism of the government, partly as a result of decades of monitoring and fiscal supervision from the International Monetary Fund, in comparison to the massive spending of its neighbours on the rapid acceleration of economic growth. There have been signs of progress since. In 2004, the economy experienced 6% GDP growth and 7.3% in 2007, its fastest pace of growth in three decades. Yet average annual GDP growth per capita for the period 1966-2007 still stands at 1.45% in comparison to an average of 5.96% for the East Asia and the Pacific region as a whole and the daily income for 45% of the population of the Philippines remains less than US$2. Challenges Other incongruities and challenges exist. The economy is heavily reliant on remittances which surpass foreign direct investment as a source of foreign currency. Regional development is uneven with Luzon - Metro Manila in particular - gaining most of the new economic growth at the expense of the other regions, although the government has taken steps to distribute economic growth by promoting investment in other areas of the country. Despite constraints, service industries such as tourism and business process outsourcing have been identified as areas with some of the best opportunities for growth for the country. Goldman Sachs includes the country in its list of the "Next Eleven" economies. However, China and India have emerged as major economic competitors. Memberships The Philippines is a member of the World Bank, the International Monetary Fund (IMF), the World Trade Organization (WTO), the Asian Development Bank which is headquartered in Mandaluyong City, the Colombo Plan, and the G-77 among other groups and institutions.
- The Philippines and having an offshore company based in the Philippines offers other opportunities for domestic businesses. Tax planning, by way of loan backs to the Main Corporation, or transfer pricing can be discussed and arranged. Director’s personal savings and Management savings and Investments can also be fully explored to provide the best opportunity for growth and tax efficiency. We can also offer a full service for your employees in the Philippines to be able to transfer if needed to head office, taking care of all visa and immigration matters. Intra Company transfers are far easier to arrange and it often benefits many corporations to have overseas staff working at Head office, for training, experience, or simply because they have the best skills for the job. The offshore unit can be a a fully operational low cost training base for new staff needed for medium to longer term plans. And of course there is also the use of the new company to provide a springboard and a sales office to go after the new business in Asia, and we can make introductions through our partners to most of the Asian counties, particularly China, Japan and Malaysia
- Small and medium sized businesses are always in need of that friendly capable person, who is there when needed to put the accounts in order, send out e-mails, contact clients with all kinds of information, transcribe documents, update the website, handle calls or arrange appointments, track employee hours and maintain salary records, keep a diary and to do all those things a busy businessman or entrepreneur just doesn't seem to have enough hours in a day to get round to doing. But for the most part, tax authorities, and other interested parties like to see these matters dealt with properly, with full records kept. In the UK, for instance the tax authorities are targeting 50,000 small businesses with as view to fining them up to £3,000 for insufficient record keeping. Bureaucracy is a nightmare for most small businesses and unfortunately hiring someone to cater to these needs brings more problems:
- Just let us know what tasks you need to be done and we will find and train your own Assistant. They will be available during your office hours, or can be left with a workload to complete as you leave the office and it will be ready when you return in the morning. We can cover many requirements such as VIRTUAL ADMINISTRATIVE SERVICES, DATA ENTRY SERVICES, and ACCOUNTING SERVICES AND INTERNET MARKETING. Please see a more comprehensive list of typical work functions at the end of this document. Our charges are straightforward and simple and are based on a 37.5-hour week and additional hours can be agreed at any time. WE are so confident you will be happy with your Virtual Assistant that we are prepared to let you employ one for a week at NO COST whatsoever. If you do not find that your needs are met, you can stop then and no costs will be incurred by you, and you will receive a full refund.
- These rates are fully inclusive of, Salary costs 37.5 hours Weekly reports **A one time set up fee is charged of $500 or £330 or € 385. This can be split into two and paid with standard fees over 2 months. Other working patterns can also be arranged, i.e. working for a limited number of days each week, extra hours etc and we can quote on request Contracts are entered into on a bi-monthly basis and can be agreed up to 5 months in duration before renewing. Payments to be made by direct debit, bank transfer or standing order monthly in advance. Our offer of your free Virtual Assistant is for a limited time, and terms are that the employment is for a standard working procedure as listed above. If you are not satisfied in one week then please inform us before the end of the week and you will receive a full refund of the initial month billing. Please contact our office for full details or send email to [email_address]