Sailing together to success

Velocity Made Good or VMG is the progress the windsurfer is making towards the target destination.  It was a very useful guide and it shortened my windsurfing learning curve.

Twenty-five years later, in the central business district in Makati City, Philippines, I was visiting an active New Zealand company - VMG which also stands for Velocity Made Good, but they are not into windsurfing or sailing. VMG is an established global provider of outsourced pre-media services that are scalable, high-quality, responsive and low-cost.

VMG does graphic design, image manipulation and touch-up work for international media companies in a fast turnaround time -  from one hour for New Zealand and Australian clients up to no more than 12 hours for their North American clients.

VMG’s clients include Fairfax Media, News Limited, the Reader’s Digest Group and Hearst Magazines in the US. Hearst Magazines, one of the most well respected publishers globally, has a wide range of well-known publications such as Cosmopolitan, Esquire, Harpers Bazaar, Marie Claire and Good Housekeeping.

Earlier this year, VMG’s growth and growing reputation in the industry saw them form a strategic alliance with the Australian Associated Press (AAP).

Backed by two investors, one being Sir Stephen Tindall, the young Kiwi entrepreneurs, at the helm of operations are Jonathan Reid, Director Operations, and Doug Drury, Director Sales and Marketing. With a 50-strong talented staff, VMG is one of the largest organisations of its kind in the region and now well-established in the Australasian and US markets with an emerging focus on the UK and Europe.

The Philippines is one of the major global players in the Business Process Outsourcing industry and it’s also the fastest growing segment of the Philippine economy, accounting for 15 percent of the global outsourcing market.

English is the second language in the Philippines and is considered the language of commerce. Most Filipinos read and write in English. The Philippines has a big domestic market, with a population of nearly 100 million and a relatively young median age of 22 years old. Such a large domestic consumer base presents great opportunities for many New Zealand exporters.

As well as outsourcing, electronics and food processing are also key activities. The food and beverage market in the Philippines is growing rapidly and demand for products, processing equipment and technology is expected to be sustained over the long-term. The information and communications technology (ICT) sector is also of the most promising sectors.

There is red tape in the Philippines and it can mean that doing business takes a long time to get done. The government also doesn't seem very interested in helping overseas SMEs - they are far more interested in attracting bigger corporates.

Getting a foothold in the market can take time and money, but a solid team on the ground can be a great asset to any business that has outsourcing as part of their model and the Filipino people are highly skilled.

VMG has expanded over the years, and they are about to outgrow their current office space. Jonathan attributes their success to the following factors: commitment to the market, sticking to what they know and do best, direct involvement of executive management on the day-to-day operations, establishing credibility and successful relationships with the clients and the industry, and, more importantly, the dedication of their talented staff.

They are certainly making progress towards their target!

Hernando Banal is New Zealand Trade and Enterprise’s Trade Commissioner in Manila, Philippines.

This article was first published in the National Business Review.