Cape entrepreneurs' gamble pays off

Direct Channel Cape, a call centre operation started in 2005 by three former Telkom managers, has grown from 10 to 120 employees in just eight months – and is set to grow to 400 people by the end of 2006.

The company, originally started as Call Connexions, so impressed the judging panel at last year’s Calling the Cape industry awards that they received a special judges’ award just four months after starting up. The judges noted at the time that “what they’ve achieved in the past four months blew us away. Their willingness to bet on the future of the industry in Cape Town sends an inspiring message to the whole community.”

Gauteng-based Direct Channel Marketing (DCM), with operations in Kwa-Zulu Natal, acquired 50% of the company in November 2005 following a referral by Luke Mills of Calling the Cape, giving both companies a national footprint. “DCM is recognised as the leader in outbound call centre services and was looking for inbound expertise to complete their service offering,” says director Shafick Hamdulay. “Both parties saw this as an ideal strategic alliance. We complemented each other as business partners and Call Connexions bought into the DCM vision, training and recruitment philosophy.”

Hamdulay and equal partners Ebrahim Petersen and Shamiel Mathews  were initially unable to raise bank finance and started the company with their own money.

Direct Channel Cape is running successful outbound sales campaigns for some of South Africa’s leading financial services companies. On the inbound side, the company scored a notable coup during the power outages crisis earlier this year. Approached to set up an emergency call centre to deal with the overflow experienced by the City of Cape Town’s Electricity Department, Direct Channel Cape was able to set up a 24x7 operation within four hours of their proposal being approved. Employees, who had previously worked an eight-to-five shift on an outbound sales campaign, were retrained at short notice to support the 24 x 7 operations for three months.

The episode is a vindication of the company’s unorthodox but effective “taking jobs to the people” recruitment strategy, which sees senior managers setting up “recruitment stations” at Cape Flats shopping centres on Saturday mornings wearing T-shirts boldly suggesting “Unemployed? Speak to me”. The company only hires unemployed people and promotes junior management and from within, not only because of its commitment to job creation but also to avoid poaching from other companies.

New recruits, who must have matric , receive several days of free no obligation training at the beginning of their 12-month contracts. The company’s unique recruitment and selection strategy allows for accelerated development of previously unemployed individuals. At the end of the 12-month period and a 360° assessment, successful recruits are offered permanent posts with full benefits including pension, medical aid and a transport allowance.

Successful sales agents are able to earn excellent salaries. Mandisa Ketso, currently the company’s highest-earning agent, broke the national sales record for one of Direct Channel Cape’s insurance clients after just five weeks on the job. “It’s definitely a job for people who are self-motivated and committed,” she says. “I love the challenge of sales and being able to write my own cheque.”

Having weathered its first year of operation with enormous success, Direct Channel Cape is now planning to move to new premises and add another 280 jobs by the end of 2006.

“Direct Channel Cape is superb proof of what Cape Town has to offer,” says Calling the Cape’s Mills. “They’ve tapped into a wealth of undiscovered and undeveloped talent to show what can be achieved once people are given some training and an opportunity to shine.”

Source: Cape Business News - www.cbn.co.za

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