Outsourcing Tip > BPO Contract Negotiations: Learn About Both “the Big Picture” and “the Fine Print”

This is the title of a seminar I put together awhile back for small and medium-sized BPO owners, executives and managers. The objective was to address the latest business challenges in the BPO Sector as related to contract negotiations.

We engaged several practitioners to come up with an approach to empower the audience with new and innovative ways to optimize their contract negotiation process.

Here are some of the highlights:
• The biggest challenge that comes with contract negotiations is generally around money. A well thought out and detailed business proposal is key in mitigating misunderstandings and conflict around the cost of outsourcing work.
• The smoothest transitions are generally ones managed by a seasoned project manager, but if you don’t have one, we outlined what needs to be done.
• We also talked about how process mapping can lead to process improvement and how to account for that in the contract.
• Using models to show base, best and worse case scenarios is key to making sure the contract will not become a negative business hindrance to either party.
• We will discuss the importance of clearly and consistently engaging and communicating with key players both internally and with overseas partners.
• Many time negotiations begin informally and just involve the principles as they have a handshake agreement.
• Service Level Agreements and Production Quotas should either be included in the contract or in an addendum that clearly outline expected results.
• If pricing is depending on meeting certain metrics, its imperative that both the goals and how the goals will be measured and reported are included in the contract.


At the end of the workshop, attendees should have walked away with the following items of knowledge:
1. An appreciation for all the work that needs to happen before the actual contract is signed between the business and the overseas partner.
2. Several tips on how to make sure the contract is an ironclad as possible in terms of anticipating challenges.
3. Several tools and resources to help them in preparing the BPO contract.
4. A checklist of things to not forget to account for in the actual contract language itself.

So, when it comes to setting up an outsourcing partnership, don’t fall victim to charging ahead without a clear idea of what you need to happen in the contract negotiations process to ensure success!

Analytics Outsourcing – DMAIPH has successful set up Filipino analytics teams for over a dozen U.S. based businesses. Offering both virtual and office based teams that specialize in problem solving using data, new technology and analytics techniques is our strength. Finding and empowering analytics talent is increasingly challenging, but we have it down to a science. Contact DMAIPH now at analytics@dmaiph.com or connect with me directly to learn more about how to set up an analytics-centric team in the Philippines.


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