Outsourcing 101: A Talk With Derek Gallimore, Founder of Outsource Accelerator

Welcome to the Marketing Growth Podcast. I’m your host, Shane Barker. Today, I’m with Derek Gallimore, the CEO and founder of Outsource Accelerator—the world’s top BPO marketplace advisory and operator. He helps businesses build, maintain, and operate offshore teams. His company serves as a conduit between the Philippines and the high-cost Western world. He firmly believes in cost savings and the benefits of outsourcing and is passionate about spreading his message worldwide. Before becoming a vocal offshore advocate, Derek founded and bootstrapped two eight-figure businesses.

On today’s episode, we’ll discuss how Derek conceptualized Outsource Accelerator and how outsourcing benefits global businesses. He’s also going to forecast the future of outsourcing in this post-COVID era.

Before we start talking with our guest today, I’d like to talk to my listeners. As you know, digital marketing is all the rage these days, and the trend is here to stay. If you need help with digital marketing strategies like SEO, content marketing, influencer marketing, or online PR, feel free to get in touch with my team. We have an expert team of strategists, writers, editors, and SEO professionals. For more detailed information, check out our website, shanebarker.com—that’s S, H, A, N, E, B, A, R, K, E, R. Now, let’s get back to talking with Derek.

All right, you guys—welcome to the Marketing Growth Podcast. I have Derek Gallimore with me today. Hey man, thank you so much for jumping on the podcast today.

Yeah, we were excited. We were talking about the industry of BPO and virtual assistants before we started the podcast, and we’re going to jump into that a little later. I have a long history of hiring people out of the country, and I know you are in the Philippines currently with a phenomenal company called Outsource Accelerator. I’m really excited to chat with you today. But I always like to start off by talking a little bit about yourself as the founder—where did you grow up? I can’t see you right now, but judging by the way you look (and that accent of yours), I don’t think you’re originally from the Philippines. Am I off there?

Yeah, I was gonna say—the Kiwis. I’ve never been to New Zealand, but I’ve heard nothing but good things about the country. I mean, it’s like…

A little bit of pollution is always warranted. That’s good. At least you found a bit of that in the Philippines, along with phenomenal people. So, how big was your family growing up? Give us a little background there.

Gotcha. You know, it’s funny—some friends of mine have these huge family reunions with hundreds of people, and while our families are connected, we never had that kind of massive reunion. I see my mom and dad quite often, but nothing on the scale of hundreds of people—it’s a bit unfortunate. I’ve always been a bit jealous of those big family reunions; they look like a lot of fun, probably even too much fun. The people I grew up with seemed to have a blast.

Yeah, it’s funny. My friends’ families are huge and Catholic—Sundays are a big deal, and when someone has a quinceañera or something like that, everyone gets together, hangs out, and has a great time. I look at that and think, “Man, that looks awesome.” Of course, I’m not Mexican or Hispanic, but I’ve managed to mix in, grab some tacos, and have a good time.

So, tell us—give us one interesting fact or something fun about your upbringing.

That is awesome. Congrats, man. I’ve seen some pictures—you’re not doing too bad, my friend. It looks like you still keep in shape. You might not be winning awards right now, but you’re still out there hustling and looking good. Just wanted to say that.

That’s awesome. I’ve tried keto and a lot of other things myself—probably a whole other podcast topic. But you look like you’re doing well, so keep up the good work. Now, you’re in the Philippines. Where exactly are you based?

Super hot—yeah, there we go. That’s the thing. It’s probably a bit different than in the UK—although the UK can be cold sometimes—but that’s not happening in Manila, huh?

I hear you. I live in Sacramento, so the weather here is pretty good—we might fluctuate by a few degrees, maybe 20 or 30 degrees at times. It can get a bit colder in winter, but that’s California cold—nothing extreme. I’m not a huge fan of snow; I’d rather not spend hours scraping my car or shoveling snow. I prefer warmer weather, and living in California, that’s what I get. So, where did you go to college?

Yeah, that’s kind of the same for me. I got my degree a long time ago—I always joke that this is Shane 3.0 and that was Shane 1.0, which seems like ages ago. The funny thing is, I don’t really apply most of what I learned because everything has changed so much. I graduated with a marketing degree, but back then the internet was just starting out.

So everything I’ve learned over the last 20 years has mostly come from doing, and then there’s Udemy and all these other platforms to learn from now. It’s pretty interesting. But I hope my son doesn’t listen to this podcast, because he might say, “You told me I have to go to school.” And I’m like, “That’s for you. I’m not saying that—you know, you have to learn through living.” It’s kind of crazy.

At an insane rate, you know? We always joke around—”now you kids can Google and do all kinds of fun stuff.” I remember when I started my first business—what did I do? How did I start it? Nowadays, you just Google and get all the research you need, and it’s all right there. I was trying to remember what I started; that’s how old I am—I can’t even remember the business I launched. It’s a weird concept, thinking about how we did things before Google or the internet, before digital was a thing.

I’m gonna have to Google how to write a letter and what a fax machine even is. I’ve heard of those terms—I’m just kidding, of course.

Probably, this is the guy. Yeah, he probably checks his fax too. That guy is something else. I remember seeing a video about him—he jumped in his car for an interview, and he said, “Oh yes, I drive my Cadillac.” They asked, “What year is this?” He replied, “Oh, 2011, okay.” I mean, you’ve got a few billion, so why get a new car? He said, “No, I like this one.” Very modest—probably still doing faxes, and maybe even the guy who answers them. So shout out to Warren Buffett if he’s listening. So, what was your first job? What’s your first job out of college, man?

Yeah, the psychology of people too, you know.

You’re always hustling, right? It’s always the same deal. There are many industries where you earn a good hourly rate, but how many hours are you actually working? How do you get more clients at that hourly rate? And that’s awesome. You’ve been a trainer—it’s like, “You’ve got to be kidding me. This is the perfect job: hanging out, getting a workout, and getting paid for it.” Life couldn’t get any better.

So, how did you come up with the idea of Outsource Accelerator? Tell us about that journey—I’d love to hear more.

I love it. I think that’s genius. We talked a bit about this before the podcast—it’s genius because there are obviously many companies doing outsourcing in the Philippines, but to have a directory that not only lists them but also provides the necessary education about cultural factors is crucial when hiring internationally. A lot of Americans expect things a certain way, but you have to be sensitive to different cultures and traditions. I don’t ever want to come off as the ugly American, and I try to educate others similarly. You have to treat everyone like human beings who are helping your business, regardless of cost—they might be less expensive, but that doesn’t mean they aren’t amazing people doing amazing things.

So what are some of the benefits of outsourcing in your mind for businesses?

And the thing is—I’m not being paid to say this—but I started using virtual assistants a long time ago (back when it was called “Get A Freelancer”). I found some absolutely amazing people. The biggest lesson I learned (which we talked about before the podcast) was to know exactly what you want them to do and not expect them to be superhuman. For example, if someone handles your email marketing, don’t expect them to also do your videos and your accounting. Be very specific in the job you’re hiring for, and you’ll find phenomenal talent.

So, I want to get your opinion on how outsourcing has changed the world. For me, outsourcing has been a staple of my business. But what do you think? How has outsourcing changed the business world out there?

Yeah. I mean, why not, right? The thing is, the internet has opened it up so you can sell all over the place and tap into talent from all over the world at those discount prices. But once again, that doesn’t mean they’re not amazing people doing amazing things—and I think that’s the point. So, tell me, how have you seen the outsourcing landscape change because of COVID? I mean, here in the United States, or at least in California, we have Google, Facebook, Twitter—and everyone’s like, “Hey, we can all do remote.” I’m sure you’ve seen a lot of the same trends. How has that impacted outsourcing?

Yeah, absolutely agree. Man, I think if you haven’t looked into it—at least on a certain scale. It doesn’t have to be your entire workforce, but at least give it a try. And just like hiring anyone, the first person you hire might not be the best fit right away. It may take a little bit of time. One of the things I’ve gotten better at is the process of hiring—really qualifying candidates properly. I’ve learned that often the issue wasn’t with the talent I hired; it was that I wasn’t ready on my side with the proper processes and clear evaluation of what I needed them to do. Expecting someone to read my mind isn’t realistic—no one can do that, last time I checked. So it’s important to have those processes in place and to discuss how outsourcing can be valuable for both sides.

Thanks, Derek, that was an insightful conversation. I’m sure my listeners appreciate your perspective on outsourcing and how it benefits global businesses. Thanks for joining the conversation. And don’t stray too far—the next episode features another exciting discussion about the top challenges of outsourcing. Stay tuned to the Marketing Growth Podcast.