SupportSave Solutions (SSVE:OTCBB) - Profit from the Outsourcing Boom
New York Time (EST). 4:14 PM, 10:40 PM, 11:08 AM, 5:25 PM, 7:09 PM, 5:59 PM, 4:02 AM, 4:10 AM, 4:14 AM, 4;20 AM, 4:23 AM. This is the span of my workday and I don’t even consider myself a workaholic. But, what is Chris John’s excuse? Who is Chris Johns? Chris Johns is the CEO of SupportSave Solutions (SSVE:OTCBB), a publicly traded company on the OTCBB specializing in offshore BPO (business process outsourcing). If you’ve ever tried to get the CEO of a public company on the phone, you know how difficult it is. Not only was Mr. Johns available in the offices of the company’s American managed Philippines facilities all hours of the day, he told me in a recent phone conversation, “We encourage investors to look into our company. I’ll even set them up with a live video feed so that they can see our operation at work. There’s a lot of business being conducted here.”
BPO is a type of outsourcing that involves the contracting of certain business functions to third party providers. Companies have been outsourcing activities such as accounting and legal assistance for hundreds of years. However, over the past 20 years, the industry has grown to over $155 billion according to McKinsey.
Cost savings are the principal component of any outsourcing decision, but language and quality control are becoming a more important component in the final decision to grant contracts. Although India still controls over 60% of the outsourcing market, locations such as Eastern Europe, Philippines, Morocco, Egypt and South Africa have emerged to capture a large share of the market. Philippines may just be the next country to grab a large share of the offshore outsourcing market.
SupportSave Solutions offers a high level of competence for only $5.18/hour in the fields of tech support, customer service, Technical Support, administrative support, legal, accounting, AutoCAD, engineering, virtual assistant, sales, telemarketing, programming, call center agents, CCTV Monitoring, market research, surveys, writers and medical billing. The Filipino workforce is one of the most attractive workforces in all of Asia. English is taught in all schools starting at the first or second grade level and most college courses are taught in English. Since language barrier and accent are an important part of the outsourcing decision, more and more global giants are looking toward the Philippines as a “best in class option”.
Wages in the Philippines are typically 1/5 that of the United states. Most foreign companies that have contracted activities to the Philippines realize 30-40% cost savings. That coupled with a corporate income tax rate of 32% and a 5% rate in the special economic zones make the Philippines a top choice for outsourcing needs.
SupportSave offers their clients a state-of-the-art telecommunications facility, competent and highly-skilled workers, 24 hour a day services and a seamless transition which will not interrupt current business activities for any of their clients.
For the period ended February 28, 2009, the company reported revenues of $492,000 and earnings of $43,995 with a cash position of $252, 245. With a little more than 13 million shares outstanding and a stock price of $0.26, SupportSave is currently trading at less than 2 times this year’s expected revenues.
Key Points
1. Company offers a much needed service with an existing business producing revenues.
2. Company does need any near term cash.
3. Recently announced a major contract that could have a significant impact on revenues.
4. Professional CEO who is focused and driven to create shareholder value
Like any low priced stock, there is significant risk and you should consult an investment professional before you make any investment decision.
Notice:
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June 11th, 2009 at 2:47 pm
[…] with countries such as the Philippines because of their command of the English language. In our original article regarding SupportSave, we correctly pointed out that one of the main reasons that multinational companies are looking […]
June 11th, 2009 at 3:07 pm
[…] with countries such as the Philippines because of their command of the English language. In our original article regarding SupportSave, we correctly pointed out that one of the main reasons that multinational companies are looking […]
June 11th, 2009 at 3:13 pm
[…] with countries such as the Philippines because of their command of the English language. In our original article regarding SupportSave, we correctly pointed out that one of the main reasons that multinational companies are looking […]