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Offshore Outsourcing Philippines – Outsourcing Best Practices

One of the best ways to fully enjoy the benefits of outsourcing is to do it the right way. Outsourcing best practices involve the right selection process among other factors. So, if you are considering hiring offshore outsourcing Philippines, you need to follow the best practices in order to do it right.

Selecting an Offshore Partner

The success of outsourcing efforts is largely hinged on choosing a vendor that would offer cost saving, plus the quality of service required. A company that sets out to outsource should bear in mind that the contract is usually a long-term project. Therefore, choosing the wrong partner (vendor) may end up increasing costs – this is the cost associated with failure to deliver and poor response time.

Factors that Drive a Company’s Choice of Outsourcing Partner

Sometimes, some companies may be solely driven by cost factors in selecting an offshore vendor for its business functions.  On the long run, the company may discover that the job quality and the vendor’s level of responsiveness are not up to standard. Therefore, since it would cost the company more to switch to another vendor, the organization would be forced to accept the sub-standard service from the current vendor throughout the life of the contract. Ultimately, the company will not achieve efficiency benefits that were intended by choosing to outsource.

So, adequate selection process is necessary while trying to hire offshore outsourcing Philippines vendor or providers from other locations. Ultimately, cost reduction shouldn’t be the sole driving force, other factors should be placed side by side. One of the great ways to monitor offshore projects is to set up an in-house or in-country liaison between the outsourced company and the offshore vendor. Hence, a line of communication should stay open 24/7.

Operational Analysis

A great outsourcing strategy is to carry out detailed operational analysis. The company planning to outsource should embark on a study to find out the business functions or processes that are best suited for outsourcing. The study should also review the phases that may necessarily require responsibilities transfer. The study can be set up in-house. Alternatively, a potential outsourcing vendor may be involved in the study. 

Typically, business functions that are purely technical and repetitive in nature (e.g. systems/ database administration and help desk management) should be subjected to preliminary transition.  Following closely are maintenance and application development; these require technical skills as well as domain knowledge.

Finally, successful effort with offshore outsourcing Philippines or vendors from other locations involves putting a performance measurement system in place.  This is the only way a company can determine if the outcome is desirable or not. Once you follow the best practices, your company will enjoy the full benefits of outsourcing.

Daven Michaels is an award-winning outsourcer and  author of the book, ‘Outsource This!’ Daven has been  honored more than any other individual or outsourcing organization. You can get more information on  outsourcing by visiting


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