Contracts 101
A formal agreement where a company hands over a part of its work to a service provider.
BPO contract
Salaries, utilities, and rent are examples of this type of expense.
OPEX (Operating Expenditure)
The activities after a BPO contract is signed that move the work from the client to the provider.
Transition management
The information that goes into a process, such as where it comes from, when it arrives, and how accurate it is.
Inputs
The "learn-by-doing" activity where the provider's staff watch and then practice the work alongside the client's staff
Work-shadowing
The BPO contract plus all its attachments, assumptions, and agreements.
MSA (Master Services Agreement)
This type of expense pays for things that last a long time, like buildings or equipment, so the cost is spread over several years instead of counted all at once.
CAPEX (Capital Expenditure)
The most common strategy, where the process is moved as it is first, then improved later.
Lift and Shift
Diagrams that show who performs each step and who the work is handed to next.
Process maps
Passing the output to another person for checking, adding data, or approval before the work continues.
Hand-off
The document that describes the specific work to be delivered, by when, and at what cost.
SOW (Scope of Work)
Which agency, created under the DTI, attracts direct investments into the Philippines?
Which agency, created under RA 7916, serves export-oriented enterprises in special economic zones?
BOI
PEZA
A transition is judged by two kinds of readiness. One is technology readiness, so what is the other?
Manpower readiness
Short, early reports that let onshore supervisors check the process before the final output is ready.
Flash reports
Name the three reasons for hand-offs.
Data enrichment, quality assurance, control
This pricing model charges based on the time and materials actually used, and works best when the amount of work is hard to predict.
Time and Material
Republic Act No. 10173, which created the National Privacy Commission, is better known as this law.
Data Privacy Act (of 2012)
Name any three of the five common reasons outsourcing fails.
Inadequate investment and sponsorship, unclear scope of work, training shortcuts, unclear roles and responsibilities, not retaining the experts
Documentation is only valuable if it is kept this way, and binders kept just for show are not useful.
Up to date (updated whenever the process changes)
Name the three phases of work-shadowing
Onshore personnel doing the activity, guided service provider, go-live