Are you ready to step into a world where your resourcing headaches disappear? That’s how many companies reaping the rewards of outsourcing IT and accounting talent offshore describe the experience. Ready access to top talent, competitive salaries, and employee loyalty combined with a service provider that effortlessly takes care of local compliance matters equals a considerable lightening of your HR load.
But before you can embark on the journey, you need to select a service provider that meets your needs, and sign a contract with them. Let’s run through some of the critical factors to consider when signing with an offshore service provider, drawing from our robust experience as a top outsourcing partner in the Philippines..
Outsourcing Contract Duration
When you sign a Master Services Agreement (MSA) with an offshore provider, they may try to lock you into a fixed term, during which you must give them exclusive rights to hire for you offshore. Check on the contract duration, and what restraints they put on you, particularly if you find yourself with no staff assigned to your account. At Yempo, our MSA lays out the terms and conditions but does not take effect before you have staff assigned to you or after there are none. We also don’t demand exclusive rights; we want you to work with whoever is best fit for your needs.
Outsourcing Payment Terms and Late Fees
Ensure the payment terms are clearly stated either in the MSA or in the documents that support the MSA. If there are separate documents that are signed each time you add a worker, make sure you review them as part of the contract signing process. At Yempo, you will sign the MSA which covers general terms, and a Candidate Appointment Agreement (CAA) which is more specific about each hire. We have strict payment terms and make this clear upfront; a Yempo invoice should be treated with the same priority as your internal payroll.
Currencies and Foreign Exchange matters
The workers assigned to your account are Philippine residents and are paid in Philippine Pesos (PHP). How does the service provider invoice you? Do they support your currency and allow payment into a bank account in your country? How do they handle FX fluctuations – is the monthly invoice fixed with regular reviews, or will the amount you are charged vary according to changing exchange rates? At Yempo, we can invoice you in AUD, USD, GBP, EUR, JPY, HKD, SGD, NZD, CAD, and more. We fix the FX at the time of hiring, and review it annually, or if there has been a +/- 5% movement.
Termination clauses and employee release
How much notice do you need to give the outsourcing service provider if you need to exit an employee from your account? How much notice do you need to terminate the relationship entirely? What happens if you want to exit the relationship with the service provider, but retain the staff? At Yempo, we offer the lowest risk options you can find, with just 2 days’ notice required to exit a staff member or the relationship. We also allow you to exit the relationship and take your staff with you, at no extra cost.
At Yempo, we value our partnership and want clients to stay with us because they love the ease and flexibility of dealing with us. Not because we have forcibly locked them into a contract that’s difficult or expensive to exit. In any case, our client satisfaction rating currently sits at 99% and we have bagged the Best Offshoring Solutions Provider in the Philippines Award. We’d like to think we’re doing a lot of things right.
‘’I’ve been asked why we don’t directly hire Philippines based talent. My answer is that the knowledge that Yempo ensures compliance with local labour legislation is worth its weight in gold. Yempo is a really trustworthy and reliable business.’’
Talk to us about your offshore IT and accounting needs today!
Thank you for visiting our blog! We hope you found our content informative and engaging. Stay connected with us for more insightful blogs, updates, and tips on outsourcing IT and outsourcing finance in the Philippines, or shoot us an email at [email protected]. We are happy to answer your questions!
