Hidden Costs in Outsourcing

A few years ago, when we launched a quoting tool on our website, we included salary data for common roles in the Philippines—backend developers, accounts payable analysts, technical support analysts. Not long after, a potential client approached me for a quote. I sent him our comprehensive proposal, and he accused me of a bait-and-switch. His issue? The numbers didn’t match what he’d seen on the website.

The misunderstanding came down to this: the site displayed base salary information, while our proposal reflected the total cost of employment. The salary is the largest part of the cost, but it’s far from the whole picture. And that’s where things get complicated.

Why Outsourcing Price Comparisons Aren’t Always Apples to Apples

At Yempo, we’ve built our business on transparency. We don’t hide costs, and we don’t tack on petty charges to inflate invoices. Unfortunately, not every offshore service provider operates this way; and it makes price comparisons tricky.

We often meet clients who started with another provider but ended up disappointed. One of the most common complaints? Hidden charges on their invoices. What one company calls “all-inclusive” may turn out to mean something very different in practice. That’s why I encourage prospective clients to dig deeper and ask the right questions.

When Yempo says “all-inclusive,” we mean it. Our pricing covers every known and predictable cost involved in employing an offshore staff member. We aim to eliminate surprises.

Yempo’s All-Inclusive Pricing: What You See Is What You Get

So, what does that include? Quite a lot, actually:

• Recruitment: End-to-end candidate sourcing and selection
• 13th Month Pay: In the Philippines, as with many other Asian countries, employees receive a mandatory 13th-month salary in December. It’s not a bonus; it’s a legal entitlement
• Performance Bonus: Yempo offers an annual performance bonus equal to one month’s salary to help attract and retain top talent. You decide if this is released, and if it’s not, you’re not charged
• Variable Benefits: These can include health insurance, government-mandated contributions, and other statutory benefits
• Service Provider Support: HR, IT, and Finance services for both clients and employees
• Office Facilities: Meeting rooms, printers, shared spaces, and other amenities
• Employee Engagement: Regular HR check-ins, performance reviews, and cultural alignment sessions
• Events and Incentives: Monthly, quarterly, and annual events, gift programs, and team activities – all designed to promote retention
• Office Accommodation: We include this for office-based staff; we apply a discount if your team member works from home
• Travel Assistance: Help with visas and flight bookings when staff need to travel
• Training Support: We help source courses and upskilling opportunities
• Client Management: You’ll have access to a senior Western director who oversees client relationships and ensures cultural alignment

These aren’t add-ons—they’re part of our standard service.

What’s Not Included: Predicting the Unpredictable in Outsourcing Costs

The only costs not included are those that can’t be predicted in advance; and even then, they’re passed through at cost with no markup.

These might include:

• Overtime, night shift differentials, and public holiday rates paid to staff
• Visa and travel costs for business trips
• Custom events or gifts that are specific to your team

So, when you’re comparing service providers, it’s rarely apples to apples. A lower headline rate might look attractive, but what’s hiding underneath? Are you being quoted a salary-only model with dozens of small surcharges to come? Or are you being presented with a complete picture, free of smoke and mirrors?

It’s easy to focus on price, especially in uncertain economic times. But offshore outsourcing is not a commodity, it’s a partnership. And in a good partnership, transparency matters. It builds trust; it reduces friction; it saves time.

I always encourage potential clients to go beyond the numbers and consider alignment in values, approach, and expectations.

Key Questions to Ask Your Offshore Outsourcing Partner

If you’re vetting an offshore partner, make sure you ask:

• What exactly is included in the monthly fee?
• What is not included?
• How are salary increases handled?
• Who pays for redundancies or severance?
• Are third-party expenses marked up?

The answers to these questions will reveal far more than a simple quote ever could.

At Yempo, we may not always be the cheapest, but we never aim to be. We focus on quality, integrity, and delivering an experience that meets both client and employee needs. When the true cost is known upfront, relationships last longer – and expectations are met.

Partner with Yempo for Success

If your current outsourcing provider struggles to deliver loyal, qualified talent, it’s time to switch to Yempo. Our proven track record, client testimonials, and employee-focused approach make us the ideal partner for outsourcing to the Philippines.

Book a quick chat with Michelle today, to know more about our best practices in providing offshore accounting and IT staff from the Philippines – or shoot us an email at [email protected]. We are happy to answer your questions!

Learn more:

• The definitive guide to outsourcing in the Philippines
• Working with Yempo