Call center eyes $98M cash flow in 10 years

A business group that aims to set up the first call center business in the CNMI projects a cash flow of $98 million over 10 years beginning late this year or early next year.

We Manage Calls Inc. part owner Erick Van Der Maas, who recently purchased the Nauru Building in Susupe, said yesterday that the business aims to employ up to 200 people, 80 to 90 percent of them local or U.S. residents.

Based on the plan, it will begin operations with 30 people in December this year. The number is projected to increase to 50 by June 2006 and 100 by end of next year. By middle of 2007, it hopes to employ 150 staff. Beginning 2008, its workforce is projected to increase to 200 or more.

“Eighty percent or more of our employees and 90 percent of our management will be local CNMI residents or U.S. citizens,” said Van Der Maas.

Over 10 years, there will be $21.4 million in accumulated payroll and total employee income tax benefits to the CNMI will amount to some $900,000.

With an initial capital of $2 million, the business is predicted to have a cash flow of $98.7 million over 10 years.

Van Der Maas said that the business would also result in $1.5 million extra revenue for the local telecommunications company and $600,000 in extra income for the Commonwealth Utilities Corp.

This proposal, however, will materialize only if the company receives a qualifying certificate from the CNMI government.

We Manage Calls Inc. recently presented its QC application in a public hearing conducted by the Commonwealth Development Authority.

Van Der Maas said the company is seeking tax exemptions for over 10 years.

For the first three years, it wants to receive exemption from the excise tax, a five-year exemption from the Business Gross Receipt Tax, and a 10-year exemption from corporate tax.

“I think it’s very reasonable because everybody seems to be asking for 25 years. We’re asking for something that’s very reasonable,” he said in an interview yesterday.

He said that in the first three years, the excise tax exemption would save them money since the business requires bringing in a lot of equipment.

A relief from BGRT in the first five years, he said, would be most helpful since it is the period “when you’d be struggling to make money.”

“Then after 10 years, we’d pay the corporate tax,” he said.

CDA administers the government’s qualifying certificate program, which grants various tax incentives of up to 100 percent in tax rebates for 25 years to investors who build, expand, and operate commercial projects in the CNMI.

A call center business refers to reservation centers, help desks, information lines or customer service centers.

Van Der Maas said We Manage Calls is an inbound call center, which means that it answers incoming calls from customers for order placement, selling, and related customer services.

He said the proposed call center on Saipan would not be competing with the Philippines and India.

“We have a ready market of clients. We’re focused on providing services to companies that are currently utilizing call centers in Canada and USA but for a more competitive price,” he said.

We Manage Calls is owned by Van Der Maas, who has a 35-percent share, and his Los Angeles-based business associate Hans Smit, who has a 65-percent share. Both investors are originally from Holland.

Van Der Maas is into the computer business while Smit is into telecommunications.

Van Der Maas said he came to Saipan five years ago. Before this, he lived in Taiwan for 15 years.

“Saipan is a nice place. Nice weather, nice people and it’s still close to Asia,” he said.

The call center will be located at the Nauru Building, which, he said, would undergo major renovation work in the coming months.