5 Must-Know Tips when Negotiating an Outsourcing Deal in the Philippines

Outsourcing in the Philippines is good business.

In fact, the Business Process Outsourcing (BPO) industry in the Philippines is actually projected to be one of the country’s economic growth drivers this year.

After all, it’s no secret that many international firms choose to outsource operations this side of the world. Year after year, more companies are finding it lucrative to base some business tasks in the Philippines.

If you’re one of the businesses looking to get a piece of the country’s huge outsourcing pool, you’ve come to the right place. Whether your company is a bustling startup or an industry veteran, you’ll find here useful tips on cutting the best outsourcing deal in the Philippines.

1. Study the local standards
   Outsourcing in the Philippines is considerably cheaper than in most countries, especially in Western nations. Despite this, we advise you don’t go into contract negotiations blind.

   Before agreeing to a budget, take time to learn about local rates. You can do this by widening your net- check out more than one BPO company. Maybe you can avail of more services for the same price in one agency or you can get the same number of services you need but with more affordable bills.

   Companies value their profits, as we’re sure you do. That’s why many businesses are very keen on getting the best value for money. Don’t rush into a contract with the first agency you talk to. Play the field for a while and see if there are more suitable packages available for your brand.

2. Do a comprehensive background check
   Speaking of bang for your buck- good service doesn’t come cheap. If you want the job done well, reputable and battle-tested Philippine BPO companies should be at the top of your list.

   To make sure you do that, you can spend some time on a deep dive- studying the different BPO agencies in the country. This includes surveying the types of clients they serve, the feedback on their work, and the overall tenured experience of the company.

   Of course, many smaller, less established offshoring agencies are more budget-friendly. But don’t assume that they are ill-equipped to handle your operations. Tons of companies offer economical deals while still ensuring the highest quality of service possible. That’s why investing time on a thorough background check is crucial.

3. Pay attention to how the company communicates
   We can talk about budgets and services all day long, but you should also consider an agency’s communication skills.

   Making a deal with a BPO company is essentially investing in a professional partnership. You want a partner that communicates well, which in the context of making a deal means being straightforward (no dilly-dallying); flexible (regards your specific needs and is open to compromises); and punctual (does not leave you hanging for days or weeks on end).

   Remember, you’re looking for a third-party agency to be part of your team. Picture them in the workplace setting and consider if their communication skills are up to par with the standard you set for your company. After all, miscommunication can wreak havoc on or impede the work process.

4. Outline all the particular responsibilities you need done
   When drafting a TOR (Terms of Reference) for your agreement, you need to include all tasks you’re going to outsource.

   When looking at potential clients, BPO companies want an organized and no-nonsense plan of action that will guide them going forward into the deal. This helps them manage their manpower and resources better, which in turn can aid in crafting a budget that’s more attuned to your needs.

   In addition, this helps make sure that you’re paying only for what you wanted done and nothing more. And from the perspective of the BPO company, they’re more likely to sign up on an agreement where everything is precisely outlined and in which there is no leeway to ask for services that they can’t charge for.

5. Converse on the task to staff ratio
   Another way to get a cost-effective outsourcing deal is negotiating the number of people that are expected to be on the payroll.

   Usually the more people on the project means higher fees. If you can haggle for some tasks to be done by less people, you can cut a better deal.

   For this, you need to make sure that the tasks to be assigned can really be done by the number of people you prefer. You don’t want to compromise the quality of the output just to pay fewer bucks.

   Be open to consult this with your potential BPO partner; they know their people best and you know your tasks in the same way. Reaching a caucus about this would help both parties settle for a sweeter deal.

Don’t know where to begin? Do it here!
It’s never too late to start dipping your toes into the BPO industry. In fact, the best time to begin is now!

When it comes to the grand BPO search, you’ve got to start somewhere. If you’re totally new to the field or if you’re exploring new options, a consultation is a good first step.

Here at iTworks Global Solutions, we’re more than ready (and capable) to kickstart your outsourcing journey. With years of digital service experience under their belt, our teams of experts are well-equipped with the knowledge to propel your brand to new heights.

If you’ve got questions about the BPO world, do give us a call. If you want to learn more about what we do and who we work for, you can drop us a line and we can discuss options for your brand.