Avoiding hidden cost of outsourcing to call centers in the Philippines

Avoiding hidden cost of outsourcing to call centers in the Philippines

February 28, 2014

Facing the situation where ongoing costs keep surfacing even after finances have been settled is one of the fears that keep businesses from outsourcing to call centers in the Philippines or any other offshore destination.


This is understandable, especially because these charges “add an average of 25% to the price of the engagement,” according to a study by IT advisory firm Info-Tech Research Group. The report, entitled “Discover the Hidden Costs of Outsourcing,” shared pointers that businesses must do to ensure that all expenses are made clear to both parties before signing the outsourcing deal. Here are some of the tips in the report:

Be updated about currency exchange

Currency fluctuations could change the service prices that you and the outsourcing firm agreed on. To avoid this, both parties should share responsibility for currency adjustments if it reaches a certain rate. If the changes go beyond the agreed range, it is advisable for you two to renegotiate prices.

Choose the right staff

You can reduce training costs by outsourcing to only one vendor for all your projects. This way, the people who would handle your new tasks are already aware of your company’s background, capabilities, and preferences. Of course, you would still need to provide sufficient training for the additional processes, but the knowledge they already have would help lessen the time, resources, and compensation you shell out on a typical training.

Directly manage the vendor’s staff

Define a two-tier management structure both for your side of the engagement and the vendor’s side. By having only the trusted and capable people overseeing tasks, you get to have a closer supervision of the outsourced tasks and lesser people under your payroll.

Define terms of contract termination.

Know the factors upfront that could cause the termination of the contract and the possible charges it may entail so that if you reach that point, you won’t be caught unprepared by the costs.

Outsourcing to call centers in the Philippines where wages and operational costs are affordable could give your business significant savings. However, the cost-reduction effort may amount to nothing if you are not aware of the conditions stipulated in your contract, so define these upfront to avoid paying hidden costs.

Open Access BPO grew from a telemarketing startup to an all-around outsourcing firm that provides its clients voice and non-voice solutions including web development and rich media development. 

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