You’ve looked at the benefits and risks. You’re convinced by the lower outsourcing labor rates, potential reduction in cost and the opportunity to concentrate your resources on your chief business functions. You’ve also made a list of how to find potential BPO service providers.
Now it’s time to discuss the outsourcing contract. To increase the chances of success of your project, from the onset it’s best to plan ahead and create a contract that covers the most important areas you should consider.
1. Modes of payment and pricing terms
Though most companies transact using dollars, this is not always the case for all businesses. An excellent contract takes into account that companies may use or support different forms of currency. Aside from these payment options, the client’s frequency of payment or billing schedule preference should also be considered.
2. Performance standards and expectations
To be certain of the continuity and eventual improvement of your product or service quality, set standards and expectations for your service provider. Establish quantitative measurable criteria for evaluating the performance of your outsourcing team and make this clear in the conditions of your contract. These measures lead to a good relationship between you and your provider.
3. Flexible contract period
SMEs may be more keen on short term contracts for simple projects while larger organizations may also opt for a shorter initial contract period depending on the business need, peak season demand, for instance. The length of the contract period should allow for some flexibility, with the option to extend the contract upon review.
4. Conditions for termination of contract
In connection to allowing for flexibility, some businesses prefer having an option to terminate the contract sooner than expected when it’s necessary. BPO service providers may offer this option with appropriate conditions on how and when clients can end their contract without having to pay termination fees. They may still need to compensate the company, however, for specific costs incurred.
5. Information security
The safety and confidentiality of your data and that of your customers’ are valid concerns. Theft especially through online means is a serious threat to all businesses. It is practical therefore to have security measures stipulated in your contract, including which uses of your intellectual property you will permit.
If you’re looking for a dependable BPO service provider, Forward BPO is a call center company in the Philippines offering top quality inbound and outbound services, such as lead generation, technical support, back office administrative work and sales. Contact us today for your business needs.