Business Process Outsourcing (BPO) company Massive Distributions is preparing for the growing and maturing BPO opportunities within Cambodia’s financial sector as high competition puts significant pressure on cost structures and growth capabilities of local firms.
Speaking to Cambodia Investment Review Massive Distributions CEO Victor Kaw said the company sees great opportunities in the local BPO field as Cambodia’s economy and competition grows in the market.
Kaw a Malaysian national added that coming from a more developed market coupled with exposure around Southeast Asia, the company can see that the evolution of outsourcing has already started in Cambodia and we are well poised and positioned for this wave of changes.
BPO is a business practice in which an organization contracts with an external service provider to perform an essential business task. The practice can allow companies to reduce overall operation costs, simplify business operations as well as maximize productivity with an already trained and managed workforce.
Massive Distributions targeting Cambodia’s financial institutions
While traditionally the BPO industry in Southeast Asia has been thought of targeting international customers from wealthy nations Massive Distributions is instead working within Cambodia and focusing on local financial institutions.
According to market experts, Cambodia’s financial sector is currently oversaturated with high competition for resources and according to Kaw this competition is putting significant pressure on cost structures and growth capabilities.
“We as a BPO are here to alleviate the non-core tasks for banks, financial institutions, E-wallets and local corporates as well as expedite the growth in revenues, especially through the sales of products and services,” Kaw said.
“This allows those companies to better focus on the development of their core product and services and other business priorities for better cost management and optimization of profits,” he added.
Massive Distributions began operation in 2020 starting with agent management managing a network of more than 10,000 agents across the country for a local wallet player and quickly moving into QR payment merchant recruitment for banks and E-wallet.
According to Kaw, this has not only allowed us to be in a good position in the market, “but also allowed us to truly grasp and comprehend the intricacies of this business and how we could help address the challenges and pain points of the principals; essentially it allowed us to excel in what we could do for such business owners.”
Massive Distributions offers its unique service
Cambodia Investment Review reported on the recent partnership between the payments service institute U Pay and Massive Distributions.
The partnership with U Pay will offer the company’s unique services that Massive Distributions has to facilitate the recruitment and onboarding of the merchants, enable the Payment terminals, and train the merchants on the usage of e-wallet and QR code access across Cambodia.
The upcoming collaboration is tipped to expand the two companies’ digital footprint and enabler more Small and Medium Enterprises to be digitally savvy and for a wider acceptance of digital payment throughout the country.
The company also works with several well know financial institutions offering services for services of sales of products and services where they have over 100 professional and well-trained salespeople to comb the market.
BPO in Cambodia has traditionally been for data analysis and document processing, however, the sector is now developing further into voice projects such as call centers.
Massive Distractions is planning to launch their own call center to serve the needs of various business owners as currently there isn’t any largescale outsourcing call center in Cambodia. “We foresee there will be an uptick in demand for these services in the months to come,” Kaw said.
“Both outbound (tele-sales, payment collections, services calls and research requests) and inbound (customer service , enquiries, IT and generic helpdesk) will be in demand as the competition tighten and pressure on cost structures increase while growth for every organization is imminent,” he added.
Speaking about common concerns in the sector of staff reliability, especially during traditional holiday periods Kaw outlined the company has implemented a strong program on recruitment, training and development of staff.
“We have always maintained a headcount 10% above the required capacity to cater for turnovers and holidays as well as makeup for the gaps with weekend work. This has enabled us to consistently outperform our targets to our principal,” Kaw said.
He added, “with a fixed and variable compensation package, resulting in low staff turnover of less than 10% each year and every employee is well equipped with sales process training, product training as well as on the field coaching and buddy system when they start with us.”
A strong future for BPO in Cambodia
According to Kaw, there will be more companies in Cambodia outsourcing their services in the near future, ranging from sales, call center related activities or loyalty programs to BPOs as competition intensifies, costs to business owners for non-core activities go up and KPIs to perform better and derive revenue more efficiently.
“Over the next 5 years we will see more BPOs coming up as well and more innovative ways to do things are required. The competition will intensify as well in the BPO industry to provide better results and services to principals,” Kaw said.
“The evolution and growth of BPOs that we have witnessed in the Southeast Asia countries namely Singapore, Thailand and Malaysia have started more than 20 years ago and it is still flourishing. So it is about time that Cambodia adopts this and its trajectory will be on the upward trend,” he added.