The Outsource IT to Philippines Blog

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The Philippines is one of the world’s leading outsourcing destination. In the past years it has become the preferred outsourcing destination, especially for customer support and back office services. The country appeals more to international investors because of their low rates and quality service. This has created millions of available jobs all over the country including the island of Mindanao.  However, there is still no perfect formula on how to choose the right outsourcing partner especially in terms of rates. Many still struggle to choose what is more compatible and real cost-efficient.

Local outsourcing companies calculate fees based on workforce cost, service fees, and government-mandated benefits. This alone allows you to get a clearer look at where or how your money is being used. Hourly based rate is most common among the country’s outsourcing firms.  Workers are paid based on the number of work hours they have put in. It can also be called time work and, it is unlike workers who are paid a fixed weekly/monthly salary regardless of the time allotted in their work. Most see this as a more favorable because they are confident that work is being done. But most see this as a way of overpricing for minimal work.

Other companies like Next BPO Solutions use a different approach. They believe in transparent pricing.. This enables the client to decide major monetary decisions like remuneration and benefits. Transparent pricing also yields trust between partners and staff. The method gives you a 360-degree view of the operations and eliminates uncertainties regarding the work processes and productivity. It brings you closer to your outsourced staff making it seem like they are working directly for you.

Rules and agreements should also be followed when it comes to transparent pricing. Companies often have a predetermined percentage of service increments for salaries or equipment. Others may require bonuses or benefits for their employees since it is mandated by the country’s labor laws. Sometimes, it is already included in the basic computation of worker’s earnings. You may have to look closely and study these well. Transparency requires careful inspection and strategic decisions on both sides.

The debate on which is better depends on you as a potential investor and partner. Both have qualities that make them good for your business. Your goal is to cut costs and build a better revenue that allows your company to grow without needlessly sacrificing the quality of work and service. It is always a good idea to outsource to the Philippines. The array of available companies gives you more options to decide which one fits the best for you and your needs.