Outsourcing boom: Cloudstaff raises $500,000 from investors

Cloudstaff, an Australian outsourcing start-up based in Manila, has raised $500,000 from three local investors Robert Whyte, Trevor Kennedy and serial entrepreneur, Bevan Slattery.

Founder and chief executive Lloyd Ernst told StartupSmart the successful float of Australian outsourcing company Freelancer has stoked even more interest in the growing trend.

“While we’re involved in outsourcing, we’re in a slightly different part of the growing market. We build and manage ongoing teams in the Philippines in particular,” Ernst says.

Ernst says the increasing demand for outsourcing has changed the dynamic of outsourcing tasks, as more work is sent overseas and both parties’ expectations evolve.

“People often make the mistake of trying to outsource a person, but it’s about taking tasks offshore, especially the low-value repetitive tasks. We’re the next step and help build ongoing relationships,” Ernst says.

The funds will go towards developing demand for Cloudstaff services in Australia, specifically education campaigns including marketing campaigns and education seminars about the benefits of outsourcing.

Ernst says they chose to base their operations in the Philippines because they believe the biggest challenge holding start-ups back from making the most of the outsourcing were cultural challenges.

“Understanding all the cultural issues involved with working offshore takes time. There is a raft of different issues you need to cover,” says Ernst, adding you’ll need to invest as much time into supporting your offshore team as you do your local one.

“It’s essential that you come and visit the offshore team and understand what can and cannot be done,” Ernst says. “If your offshore team is working well, you need to focus on culture if you want to retain these quality staff.”