What if you discontinue outsourcing to call centers in the Philippines?

OABPO Blog Team Published on October 10, 2013
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There may be cases wherein your call center outsourcing project in the Philippines is not yielding positive results for your business.

This is not uncommon and is ultimately a natural part of the process, just like evaluating whether you will fire an in house employee. If you do decide on discontinuing the contract with your outsourcing provider, all you have to do is to inform them of your decision and serve a notice of termination.

This is usually in compliance with the requirements of most basic contracts.
Before you decide to end the contract, however, there are still factors you need to consider.

When to end an outsourcing project

According to Forbes, ending a deal should only be done after all options has been exhausted.
First, you need to determine the real cause of the failure. If the provider has shown poor performance, it should be given an opportunity to improve or deal with the issue.

In some cases, the company’s behavior may also be the cause why its efforts to outsource are failing. They may fail to effectively communicate or give consistent support to their outsourcing partner. In situations like this, changing the third party service provider won’t solve the problem.

Second, review the written contract between you and the outsourcing call center in the Philippines. Sourcing Speak suggests that the review should encompass information regarding your termination rights, costs, and what you end up with after terminating the deal.

Lastly, you need to evaluate the consequences and risks associated with ending the outsourcing agreement. This includes the costs of finding a new offshoring partner and integrating new internal systems and processes to accommodate them. You must also understand that there are risks involved when changing providers, such as possibilities of downtime during the transition which can disrupt operations and affect your customer’s experience.
Ending your outsourcing contract will also present you with the opportunity to plan ahead and find another outsourcing provider who is up to the task or bring the services back in-house.

The point here is to assess whether walking away from the outsourcing deal is the best option. If there are performance issues or mismatched expectations, the project can still be saved as long as you and your provider are committed to work with each other. In extreme cases, quitting may be necessary to avoid wasting more time or incurring heavy losses.

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