7 essential criteria for choosing the right outsourcing partner in the Philippines
Outsourcing is now a $30+ billion industry in the Philippines, but not all providers deliver long-term value. In fact, research shows that around half of outsourcing relationships fail within five years due to misaligned expectations, poor talent fit or compliance risks.
The good news? With the right evaluation framework, you can avoid these pitfalls and choose a partner that helps you scale securely, sustainably and with confidence.
That’s why we created this checklist - a practical tool to help you compare providers across hiring, technology, pricing, retention, data security and compliance.
Talent sourcing and hiring
Why it matters: 70% of outsourcing failures are linked to poor talent fit and cultural misalignment (Everest Group). Choosing a partner with a curated hiring model ensures you build teams that integrate smoothly and add value quickly.
What to look for:
- Curated hiring (technical + cultural fit)
- Candidates are vetted for skills on platforms and technology
- Access to top talent
- Cultural alignment assessed alongside technical skills
- Transparent recruitment timelines communicated upfront (e.g. 10–14 days)
- Industry and skill-specific hiring, not generalist resumes
- Evidence of low mis-hire rates
- Clear onboarding framework
- Transparent recruitment process
Red flags:
- Bench-filling / bulk CVs with little related experience
- No visibility into hiring quality or metrics
Tech and platform-readiness
Why it matters: 65% of organisations outsource to gain digital capabilities, not just save costs (Deloitte). A provider’s ability to deliver platform-ready, tech-trained staff is critical for competitiveness.
What to look for:
- Candidates vetted for skills in AI, automation and cloud-based platforms
- Continuous upskilling programs
- Integration with your existing tech stack
- Relevant certifications or platform expertise
- Experience recruiting for successful digital transformation projects
- Strong cyber hygiene practices
Red flags:
- Reliance on outdated systems
- No structured digital training program
Pricing flexibility and transparency
Why it matters: Organisations using flexible outsourcing pricing models achieve up to 30% higher ROI than those tied to rigid contracts (PwC). Flexibility ensures scalability without financial strain.
What to look for:
- Hourly, FTE, subscription and value-based options - not just full time
- Transparent cost breakdowns
- Predictable, demonstrated cost savings benchmarks (e.g. up to 70%)
- Flexible contracts with fair exit clauses
- Options for both short-term and long-term engagement
- Visibility into overheads and admin costs - no surprises.
Red flags:
- Long lock-ins with high exit penalties
- Surprise fees for basic services
Role-specialisation and industry knowledge
Why it matters: One-size-fits-all outsourcing doesn’t always work. Partners with industry-specific expertise understand compliance, workflows and platforms - enabling faster onboarding and more sustainable value.
What to look for:
- Proven experience in your industry
- Expertise in both back-office and specialist functions
- Case studies and client references to build trust
- Understanding of regulatory frameworks in your sector
- Tailored delivery frameworks
- Domain expertise in complex roles
- Candidates vetted in industry-specific platforms
Red flags:
Retention and employee experience
Why it matters: High attrition erodes knowledge, IP and delivery performance. Providers that nurture staff through recognition, career pathways and engagement programs achieve continuity that compounds performance.
What to look for:
- Transparent retention metrics e.g. eNPS, average length of employment
- Career growth opportunities
- Certification and training programs
- Recognition and rewards programs
- Well-being and employee engagement initiatives
- Strong local leadership and staff support
- Continuity planning for key roles
- Retention rates 30 - 40% higher than average
Red flags:
- High turnover with no mitigation strategy
- No staff engagement investment
Data security and protection
Why it matters: Data breaches cause financial loss and reputational damage. Enterprise-grade protections, continuous audits and compliance with global standards safeguard sensitive information.
What to look for:
Infrastructure and network protection
- Hard drive encryption and endpoint lockdown
- CrowdStrike endpoint protection or similar
- Fully redundant network infrastructure
- Enterprise-grade firewall and intrusion prevention systems
- Network segmentation
- Multiple tier-1 internet providers
- VPN access for remote teams
System and endpoint controls
- Anti-virus, application whitelisting and host-based firewalls
- Web filtering and data loss prevention
- Regular patching and software updates
Physical security
- Biometric access, 24/7 building security and surveillance
- Power resilience e.g. backup generators and redundant power sources in the event of outages.
Policy and people controls
- Information security policies
- Security awareness and phishing training
- Employee background checks
- Access control and multi-factor authentication (MFA)
Red flags:
- Generic “basic compliance” claims
- No published security audits
Compliance and governance
Why it matters: The Pascua v. Doessel Group Fair Work ruling proved that misclassifying offshore contractors as independent workers can trigger legal and financial consequences. Compliance frameworks protect you against global labour risks.
What to look for:
- Employer of Record (EoR) support or local entity options
- Transparent contracts aligned with local labour laws
- Compliance monitoring and reporting
- Knowledge of global rulings and trends e.g. gig economy cases
- Documentation of governance policies
- Regular labour law audits
- Adaptability to shifting regulations
- Access to legal and compliance experts
Red flags:
- No legal framework in place
- No visibility into compliance processes
Next steps?
Now you’ve reviewed this checklist, the next step is to determine which outsourcing partner is best equipped to deliver on these essentials.
That’s where Sourcewiser stands out — offering curated hiring, tech-ready talent, flexible models, robust compliance and enterprise-grade security built for sustainable growth.
Why Sourcewiser?
| Typical provider | Sourcewiser |
| Fills seats quickly with little focus on quality or fit | Handpicks the top 1% of talent, vetted for compliance knowledge and cultural alignment |
| Lengthy recruitment cycles that stall service delivery | Faster onboarding - specialists placed in as little as 10 - 14 days |
| Teams require retraining to adapt to your systems | Your systems, our people - teams trained to use PRODA, finance and reporting tools from day one |
| One-size-fits-all delivery models | Flexible delivery - office-based, remote or hybrid to match your organisation’s needs |
| Cost cutting often comes at the expense of quality or accuracy | Up to 70% cost savings without losing compliance rigour or participant trust |
| Limited security protocols, exposing participant data to risk | Enterprise-grade compliance and security - encrypted systems, NDIA-aligned controls, background-checked staff |
| High turnover creates disruption and knowledge loss | Retention-focused culture - engagement programs and career pathways ensure continuity |
| Generic back-office outsourcing | NDIS-tailored support - claims, reconciliations, audit prep and reporting delivered by specialists |