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Increasing the efficiency of businesses has never been as easy as it is today, thanks to offshore outsourcing. With the high cost of labor and pressure to maintain a competitive advantage, this strategy has paved the way for companies to expand their capabilities, enhance operational efficiency, and boost their profit.
As globalization made hiring borderless, companies are leveraging offshore staffing solutions to onboard high-performing global talent into their workforce at a lower cost.
If you’re looking to explore offshore staffing, this article is for you. Here, we’ll walk you through the benefits of offshore staffing and share key tips and insights on Philippine offshore staffing.
But before we get into the meat of this blog, let’s first define offshore staffing.
Also called staff leasing, offshore staffing refers to a type of outsourcing in which you hire employees from another country. Offshore outsourcing companies like KDCI Outsourcing offer offshore staffing solutions to augment clients’ headcount at scale and bridge skills gaps without ramping up the cost of hiring.
Your business is unique in its own way. What may work for big companies may not be the right decision for you. So, if you’re looking to benefit from offshore staffing, here are the things that you can expect and how you can incorporate them into your business:
A common promise of offshore staffing is cost-effectiveness. It’s a force multiplier, and you gain a competitive advantage because you can funnel money elsewhere and grow other aspects of your business.
You also have the option to DIY or hire an outsourcing company with offshore staffing services. There is, however, a risk to DIY-ing as it’s challenging to source highly qualified people, or you may employ substandard talent.
CareerBuilder, cited by Business News Daily, found that hiring the wrong person sets you back as much as $17,000 USD. Rather than saving money, you’ll end up paying more for mediocre talent.
On the other hand, building a team through an offshore staffing company makes it more than just for cost-cutting. It brings value to your investment through highly capable and experienced talent who are focused on growing your business. Moreover, you get to save up to 70% of costs in:
Therefore, to actually achieve value for money, find an offshore outsourcing partner that fits you and see how you can capitalize on what they can offer. If you own an Ecommerce business, then it would make sense to partner with an Ecommerce outsourcing company.
Untimely events like natural disasters, power outages, security breaches, or pandemics can affect business operations. Therefore, having a robust business continuity plan ensures that your company can still survive when untimely events occur.
Offshore staffing is one of the best strategies for business continuity because you have an unaffected team overseas to help you.
To use offshore staffing for business continuity, you need two things:
Through these, you can rest assured that your business can and will survive whatever unforeseen circumstances your company may face—allowing you to manage Q4 chaos with smarter business operations and maintain stability even when challenges arise.
Outsourcing staffing solutions to a country with a different time zone gives you the advantage of running your business 24/7. Additionally, having an offshore staffing agency to help you manage your offshore team means you can sleep well at night knowing that your company is running smoothly.
Businesses in the US can benefit from this time zone advantage by outsourcing to countries with an 11- to 12-hour (or more) time difference, such as Indonesia, Malaysia, and the Philippines.
Some of the most common offshore outsourcing services are:
If you don’t like the idea of 24/7 business operations, many offshore staffing agencies are willing to work at your hours and provide fast turnaround times.
You won’t have to worry about getting your products or services months down the line. By working with an experienced offshore team from a reputable offshore staffing company, you can get access to the same quality of service and skilled professionals as you would in a local market.
Many offshore professionals can utilize industry-leading technology to collaborate and provide timely digital deliveries that will improve the capabilities of your company.
Offshore staffing comes packaged with the benefits of expanding your company’s operational capabilities, ensuring speedy turnaround times, and improving in-house efficiency. Since you can outsource your minor — but critical — tasks, you can develop your internal workforce further.
For example, if you’re just starting to build an online store counterpart for your brick-and-mortar business, that would require a lot of product data entry and content creation.
These tasks, although seemingly effortless, take quite a while to accomplish. If you delegate these tasks to your internal employees, it can slow down your overall progress and delay your launch date.
With offshore staffing, your staff gets extra support from overseas. You can then delegate higher-value tasks to your internal team, or even move them up into leadership roles.
Expanding departments is one of the most evident signs that your business is growing.
As your business grows, the offshore model helps you respond quickly to increasing demand and workload. Because it enables you to expand your team headcount and infrastructure rapidly without significant upfront investments, such as capital expenditures, taxes, and other operational costs.
Offshore staffing solutions can help you expand without overcrowding your current office space and without overspending. Moreover, hiring an offshore staffing company means you have someone to take care of your employees, including housing, HR management, taxes, and more.
Working with an outsourcing company will give your business the option to have an account manager who will manage your team for you. As a company, this means you just need to report the services and the type of skilled employees you need.
An outsourcing company will most likely have a team of experts for whatever task you need, making sure that they fit your requirements and can deliver project deliverables on time. This can free up management resources to add to your level of production at home.
Below, we answer common questions about Philippine offshore staffing:
Here are two reasons you should hire Filipino offshore workers:
If you’re building a team of offshore workers from a Philippine BPO (business process outsourcing) company, it can cost you between $269.91 USD and $793.30 USD per employee every month. Role and seniority level can, however, influence the cost of labor. Even so, it’s still cheaper to hire a professional from the Philippines rather than in your home country.
Filipinos are inherently non-confrontational. When working with Filipino professionals, you’ll notice their politeness and respect manifest in the “Yes Po” culture.
While the “Yes Po” culture cultivates trust and harmony between individuals, it can widen communication gaps and send vague and ambiguous signals to cultures with straightforward communication styles. Hence, a simple “yes” can mean multiple things, from a literal “yes” to “I don’t understand.”
Building a relationship grounded in respect, trust, and open communication encourages your Filipino team to speak up without compromising their values.
You can form your team of offshore professionals with the help of KDCI Outsourcing and other top BPO companies. These service providers are experts in sourcing, screening, and onboarding the right offshore employee for your team. From human resources to property management, they offer a myriad of outsourced roles for any business function.
Yes, you can. Offshore staffing service providers offer scalable offshore staffing solutions to support your evolving business needs and requirements. Since Filipino offshore staff are cheaper than in-house hires, scaling your business up and down according to demand and seasonality becomes less of a financial hurdle.
A good rule of thumb to keep in mind is to maintain regular communication with your offshore team to avoid misunderstandings. It’s also a great way to track progress and address any issues before the final output is delivered. Scheduling a weekly check-in is vital for aligning future goals and performance expectations.
Offshore staffing comes with many benefits for the growth of your company. However, doing it the right way by partnering with an experienced outsourcing company with an excellent track record will help you achieve more.
KDCI Outsourcing’s tailored offshored staffing solutions are designed to maximize your business’s efficiency and growth by augmenting your internal team with high-powered talent specially sourced, screened, and onboarded by our expert recruiters.
Whether you need data processing or content creation services at scale, KDCI Outsourcing can support your non-core tasks while your internal staff handles core business needs.
Start building your offshore team and contact us today!
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Human resources departments juggle multiple tasks, including getting up to speed with compliance regulations, industry trends, and new technologies.
Since HR departments are swamped with workload and menial administrative tasks, work-life balance is tipped towards perpetual productivity and employee burnout — leaving little to no room for strategic, more purposeful HR tasks.
This is where outsourcing human resources comes in. Human resources outsourcing (HRO) is a godsend for overwhelmed HR departments, as it divides the labor between internal and offshore teams and innovates HR systems while driving up cost savings.
While there have been success stories, there are also stories of failed outsourcing initiatives. Statistics found that in two years, there’s a 20 to 25% chance that your outsourcing partnership will fail. By the fifth year, this goes up by 50%.
If you want a successful outsourcing experience, read on for our six best practices for outsourcing human resources.
Outsourcing partnerships fail due to:
Thankfully, these issues can be avoided (or at least mitigated) with the right human resources outsourcing company.
Before entering the negotiation table, here are six human outsourcing tips to keep in mind:
HR outsourcing, like any form of outsourcing, is a long-term investment for your HR department and whole company. Hence, it’s important to identify your HR needs and define your objectives for outsourcing human resources. These questions can guide you in your needs assessment:
Beyond observation, aim to understand your employees’ perspective. You can do this by conducting interviews, giving survey questionnaires, or forming focus groups. Benchmark reports, SWOT (strengths, weaknesses, opportunities, threats) analysis, and exit interviews can be used as data-gathering tools.
The goal here is to see the big picture from different perspectives and understand the ripple effect of HR challenges on your company.
From here, you can establish clearer, more specific objectives for outsourcing human resources. Whether it’s to attract potentially culture-fit candidates or improve benefits administration, your objectives must align with your short- and long-term business goals.
One big outsourcing mistake to avoid is being unprepared for the costs of outsourcing HR functions. Understanding what goes into these costs helps you prepare an appropriate budget, avoid overspending, and enjoy the ROI of outsourcing HR services. Below is a general breakdown of expenses when outsourcing human resources:
Since each business has unique HR needs, outsourcing expenses may vary from one company to another. Before outsourcing human resources, be sure to account for the following factors in your budget:
While some factors (like foreign exchange rates) are outside your control, it’s recommended to keep your outsourcing budget flexible and review it periodically. You may also consider negotiating with the HR outsourcing provider if its services are already exceeding your budget.
We can’t stress this best practice enough. An outsourcing HR provider can make or break your HR goals. Working with a third-party vendor doesn’t mean sacrificing quality for cheaper services, costing you financial and productivity losses.
The best BPO companies for HR are highly expertised, transparent, and reliable. But how do we know if a service provider is the right fit for you? It boils down to the following:
As a client, evaluating a potential outsourcing partner is the most challenging part of outsourcing. You’ll come across outsourcing service providers who are not compatible with your values and goals, or may not provide you with the expertise or technology you need.
What’s important is choosing an outsourcing provider that fits into your business like a glove and can support your HR operations now and in the future.
In today’s hyper-connected world, no company can afford to take cybersecurity for granted. While cybersecurity is typically an IT job function, HR can also do its part in protecting employees from online threats. Since HR departments process volumes of data, they become an attractive target for cyberattacks (28%).
If you’re outsourcing HR functions, choose an ISO-certified HR outsourcing partner with a robust cybersecurity infrastructure and industry-standard data security practices. Thankfully, many HR outsourcing companies are transparent with their cybersecurity capabilities.
Before signing a contract, here’s a checklist for assessing a provider’s cybersecurity capabilities:
Some employees are malicious and can use sensitive information for their own gain. Hence, we also recommend asking the provider about their screening and background-checking processes.
By outsourcing HR services, you are entrusting a third-party vendor to handle and store employee data. The last thing you want is a data breach or ransomware that could put your employees’ information at risk. The right human resource outsourcing company will prioritize cybersecurity and your peace of mind.
Doing business is about mutual interest and benefit. This is where the SLA comes in. This document includes the expectations and responsibilities of both negotiating parties — that is, you and the HRO provider. Below are the main components of an SLA:
The SLA minimizes conflicts of interest and confusion between parties. It also clarifies expectations surrounding deliverables, goals, performance, and data security. If your business needs evolve, negotiate the SLA with the service provider to maintain alignment on service delivery, standards, and expectations.
A well-drafted (and negotiated) SLA strengthens outsourcing partnerships and contributes to cost savings as well as business growth.
In outsourcing, communication doesn’t wait until the next month. Effective outsourcing relies on regular communication to maintain operational efficiency, productivity, and service consistency. Since interactions mostly take place virtually, there’s no excuse for not interacting and engaging with your outsourced HR team.
If you want your HR staff to feel connected with your team, you need to prioritize communication. You can do this by:
By following the tips above, you can reap the benefits of outsourcing human resources and working with an offshore team that feels like an extension of your internal team.
Looking for more? Read: How To Outsource HR Services: A Guide.
At KDCI Outsourcing, we understand the daily rigors HR departments face. As the best HR outsourcing service provider, our goal is to ease the burden from your internal HR team by providing you with HR offshore staffing solutions that help your company stay on top of efficiency and HR innovation.
Our offshore HR professionals will take care of everything, from payroll processing to HR compliance, so everyone on your team can concentrate on their core competencies without delay.
Supercharge your HR department with KDCI Outsourcing. Contact us for a proposal or inquiry, and we’re happy to answer all your questions!
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The legal industry has always been a high-stakes one. After all, legal firms are concerned with people’s life, liberty, and property. With this much on the line, it is crucial for the legal services that firms offer to both be dependable and at par with global standards.
Now, that is where the challenge usually begins (or in some cases, escalates). As if the existing pressure for the industry is not high enough, the evolving demands of today’s market and the changing needs of clients have raised it even more. Today, law firms and corporate legal departments are expected to deliver faster, more cost-effective services — all while navigating complex legal landscapes.
Because of all these, traditional models of hiring large, highly-experienced in-house teams to handle every aspect of legal work have been rendered unsustainable, especially for firms that need to juggle rising operational costs alongside fluctuating caseloads.
Over the years, outsourcing specific legal tasks to qualified professionals — often offshore — has become a go-to for legal firms across the US and beyond. Though a relatively new solution, LPO has been an indispensable asset for firms looking for efficiency, scalability, and competitive advantage. Given the fact that it's relatively new, it’s no surprise that a lot of frequently asked questions about legal process outsourcing remain unanswered.
So, in this guide, we’ll break down LPO’s meaning, its scope, and impact for law firms. We’ll explore the type of legal processes that your firm can outsource, the benefits and challenges of outsourcing legal services, and all the other ins and outs of legal process outsourcing that every legal firm needs to know about.
Let’s get started. Read on.
Legal Process Outsourcing, more commonly known as LPO, is a process that involves a law firm or an organization’s legal department acquiring legal support services from external service providers, be that another law firm or a dedicated LPO provider that’s either based locally, nearshore, or offshore.
That being said, LPO services can cover a wide spectrum: from repetitive tasks like document review and legal research, all the way to specialized services like compliance management, contract drafting, or intellectual property support.
At its core, LPO is a nearly 16-billion-dollar industry driven by efficiency without compromise: law firms can continue focusing on high-value, client-facing work, while a trusted legal process outsourcing partner offshore (since 63% of LPO firms are located in the APAC region) handles the equally important but time-consuming processes behind the scenes.
Legal Process Outsourcing has come a long way from its early beginnings. In the 1990s and early 2000s, outsourcing was largely seen as a cost-cutting measure. Law firms then began experimenting by delegating labor-intensive back-office functions, such as document review for litigation and due diligence checks, to offshore teams. These were repetitive yet critical tasks that consumed valuable in-house resources. This set the foundation for what would later become a global industry.
By the 2010s, outsourcing had matured into a sophisticated service model. Countries like the Philippines and India as global hubs, building specialized expertise in areas such as contract management, regulatory compliance, and intellectual property support. What was once primarily about volume and cost reduction evolved into a value-driven partnership, where firms could tap into highly skilled professionals with legal expertise
Today, the LPO industry mostly centers on creating strategic partnerships that enable faster turnaround, higher accuracy, and measurable improvements in client outcomes. Legal outsourcing providers now position themselves as extensions of law firms, helping them stay competitive in a demanding global market.
If you came here looking for more clarity on LPO, then you’ve probably heard about the concepts of KPO and BPO, too. While closely related, there are key differences among the three that are important in delineating and understanding the priorities of each industry.
Business Process Outsourcing (BPO) refers to delegating or subcontracting general business functions. Think HR, payroll, accounting, and customer support. These are not industry-specific tasks but essential administrative functions that companies across different sectors need.
Knowledge Process Outsourcing (KPO) goes a step further. Unlike BPO, KPO involves specialized, knowledge-based processes that require domain expertise, such as financial analysis, market research, and data interpretation. The focus here is acquiring knowledge-based work, insight, and expertise that add value to business decisions.
Now, Legal Process Outsourcing (LPO) is considered a subset of KPO, but it has carved out its own unique niche. As defined above, LPO focuses solely on legal tasks. Unlike BPO, it isn’t about handling generic, high-volume tasks. It’s about precision, compliance, and trust, ensuring that firms like yours meet the highest legal and ethical standards as you optimize operations.
Now, let’s answer the question: what exactly can you outsource?
While the scope of LPO continues to expand, most legal firms today delegate a mix of administrative, research-based, and specialized legal tasks to outsourcing partners. Some of the most commonly outsourced legal industry roles include:
LPO providers allow you to hire paralegals to assist attorneys with case preparation, manage filings, and organize legal documents, ensuring cases move forward smoothly and efficiently.
Outsourced legal research services provide thorough case law, statutory, and regulatory analysis, giving firms the data and insights they need to strengthen arguments and strategies.
You can outsource the drafting, reviewing, and management of contracts, helping firms minimize risks, ensure compliance, and maintain clear, enforceable agreements.
LPO teams can work on accurate transcripts for hearings, depositions, and client meetings, converting audio records into properly formatted legal documents.
Outsourced secretarial support allows you to get an offshore team member who takes care of scheduling, correspondence, and other administrative tasks, freeing up attorneys and partners to focus on high-value legal work.
Offshore experts can assist with comprehensive analyses of patent applications and existing patents. Their work is crucial in assisting clients with patent filings, preventing infringements, and identifying opportunities for innovation and business process strategy.
With outsourced compliance services, you can monitor internal policies and track evolving regulations, reducing legal risks and helping firms stay aligned with industry standards.
Your firm’s clients can access on-demand expertise in specialized areas such as mergers, acquisitions, or employment law, without the cost of maintaining full-time specialists in-house.
LPO providers can also provide you with teams that manage high-volume discovery processes, ensuring documents are reviewed accurately, securely, and in compliance with strict deadlines.
Outsourcing IP services allows firms to safeguard trademarks, copyrights, and patents across multiple jurisdictions, ensuring consistent protection in a global market.
By outsourcing these roles, law firms gain access to skilled professionals and advanced tools without the costs of expanding in-house teams. This flexibility allows law firms to cover both day-to-day functions and specialized expertise as needed.
Now that we have outlined what LPO is — and to some extent, what it isn’t — we move on to the key reasons why it has become an ideal solution for legal firms looking to stay ahead.
As the industry grew, law firms and corporate legal departments are realizing that the true value of LPO lies in its ability to transform the way they operate. Here’s why more and more law firms are continuously adopting LPO:
Reducing overhead costs is still a powerful driver for outsourcing. By delegating tasks such as document review, research, and compliance monitoring, firms can avoid the expenses of hiring, training, and maintaining large in-house teams.
In the legal industry, there are periods of high demand, such as litigation peaks or regulatory deadlines, followed by downtimes. With LPO, firms can scale resources up or down seamlessly, ensuring enough manpower during both quiet times and busy periods.
With offshore teams working across different time zones, firms benefit from a near 24/7 work cycle. While in-house teams wrap up their day, outsourced teams can continue progress overnight, cutting turnaround times dramatically.
One of the biggest hidden benefits of outsourcing is the relief it provides to in-house staff. When repetitive, time-consuming tasks — such as encoding data or tedious research — are taken off their plates, your attorneys and paralegals can focus on more substantive work. This improves morale, retention, and long-term productivity within the firm.
The greatest value of LPO (and outsourcing in general) is the time it gives back to your team. With legal process outsourcing, your partners and associates can dedicate more time and energy towards serving clients, strategizing cases, and growing the firm. By shifting routine yet essential work to outsourcing partners, firms can dedicate their best talent to high-value, client-facing tasks, strengthening relationships and driving organizational growth.
While the benefits of Legal Process Outsourcing are compelling, no solution is entirely without its challenges. For high-stakes organizations like law firms, outsourcing legal work naturally involves potential risks.
While many firms have found success in leveraging LPO providers, it’s important to approach the practice with a clear understanding of the risks involved and strategies to mitigate them. Here are some of the challenges you need to be aware of in order to make informed decisions.
Legal work often involves highly sensitive information including, but not limited to, corporate trade secrets to personal data. Outsourcing increases the risk of breaches if the provider does not have robust cybersecurity measures in place. This makes it crucial for firms to work only with partners who comply with global data protection standards.
Legal systems and practices vary widely across countries. Even when outsourcing research or document review, subtle differences in legal terminology or cultural context may cause misalignment. As such, law firms must ensure that outsourced teams are trained in the relevant jurisdiction’s laws and are culturally attuned to the expectations of US or other global clients.
Clients hire legal firms because of the trust and confidence they have in their lawyers. Some may view outsourcing as a dilution of that trust, particularly if they’re not informed beforehand. Firms need to be transparent with clients about how outsourced services are managed, ensuring them that confidentiality, quality, and compliance remain non-negotiable.
Now that you know both the opportunities and risks of Legal Process Outsourcing, the next step is finding the right legal services provider who aligns with your law firm’s goals, values, and overall culture.
The right outsourcing provider will empower you to maximize all the benefits we have outlined above and transparently discuss all the risks so you can manage them before they even become actual issues. So, to help you find the right partner for your law firm, here are five essential questions to ask before making a decision:
Asking these questions will help you evaluate potential partners AND give you clarity on how outsourcing can best serve your firm.
You can take the first step and ask KDCI Outsourcing these five questions today — we’d love to see if our outsourced legal services are the right match for your organization.
At KDCI Outsourcing, we empower law firms like yours by building dedicated offshore legal teams that combine expertise, efficiency, and reliability. From paralegal support to compliance monitoring to reliable legal research, our solutions are designed to reduce overhead costs while enhancing client service.
If you’re ready to streamline your legal processes and focus on high-value work, feel free to contact us today and ask us how we can tailor an LPO solution for your firm.
Today, businesses — whether big or small — are offshore outsourcing to business process outsourcing (BPO) companies like never before. Statistics show that 52% of small businesses plan to outsource for increased business efficiency and skills. However, only 37% do so.
Little did some business owners know that those who capitalize on outsourcing solutions can scale up operations, access hard-to-source talent, enjoy high cost savings, and expand the capabilities of their business.
It’s understandable, however, that some business owners are anxious because of the time difference. At the same time, some have no idea how to choose an outsourcing company that suits their business. So, we’re here to help you with that.
While many organizations are focused on where to outsource and which outsourcing companies would best serve their business needs, it’s vital to learn how to choose an outsourcing company for your business’s success.
To help you make an informed decision, here are 10 factors that go far beyond financial concerns when evaluating a potential outsourcing partner:
One of the main goals of hiring an outsourcing firm is to reduce the work you already have on-site while you focus on other business matters. So, you have to ensure that the outsourcing vendor is capable of producing high-quality work with minimal revisions.
It’s easy to see how an outsourcing company performs because they’re most likely to have a website. There, you can browse through their About Us page, portfolio, case studies, or testimonials from current or previous clients.
When you’re limited by the screen of your computer or phone, trust becomes an integral part of your partnership with an outsourcing provider. Hence, don’t hesitate to ask about everything you want to know about their company to see if they’re a good fit.
Most of our first-time business owner clients worry about trusting outsourced work — and for an understandable reason. This is why we always take the extra mile in proving them that we’re a trustworthy and experienced outsourcing company through our detailed case studies.
A service-level agreement (SLA) is a document that details the services and project requirements as well as the performance levels your potential outsourcing partner is expected to perform and meet. It also contains exemptions, service-level objectives (SLOs), escalation and termination procedures, security standards, penalties, and remedies.
This legally binding document ensures that you and the service provider mutually benefit from each other, while also adding a layer of protection against misunderstandings, misaligned timelines and expectations, and disputes.
However, it’s important to note that SLAs are not set in stone. Periodically review all clauses in the document, so you and the outsourcing firm remain aligned on goals and expectations despite evolving business needs.
Attrition rate refers to the percentage of employees who leave the company — whether through resignation, termination, or other forms of employee attrition — without those positions being filled over a given period. A high attrition rate leads to disruptions, burnout, knowledge loss, and a high cost of hiring and training.
One big factor that affects attrition is company culture. Poor company culture leads to higher costs in the long run, as employees are more likely to leave the company. Training replacements causes you to lose out on their productivity during the ramp-up period, as it usually takes a few weeks before new employees reach full productivity levels.
Therefore, it’s better overall to retain employees, and that’s usually done through good company culture, skills training, fair compensation, and more.
While you have the choice to still be in charge of managing your offshore team, you can outsource project management as well. Don’t hesitate to ask details about who will be responsible for leading your outsourced team.
Aside from being an outsourcing company, KDCI Outsourcing also specializes in offshore staffing. We handle talent searching, shortlisting, and other HR tasks, while you have the final say on who gets hired for what job role. With our experience in the BPO industry, you can trust our standards in looking for specialized expertise for your business.
While you may be able to cut costs through an outsourcing company easily, the best partnerships are the ones that give you the most value for your money. One of the critical factors you have to consider to ensure profit is taking advantage of time zones.
It’s a good idea to choose an outsourcing company that has a location in a time zone that will match well with your company, or a service provider who will adjust to your time zone. Doing so will help your business have more operational flexibility and allow you to service a broader client base.
Outsourcing companies like KDCI Outsourcing always accommodate clients from different time zones. We go out of our way to communicate with you in real-time. Because we operate 24/7, you also have the flexibility to have your offshore outsourcing team work in your time zone.
There are some areas of the world where the process of outsourcing can be more challenging. Logically, you would want an outsourcing partner in a country where the government provides adequate support for the industry.
The Philippines, for instance, provides incentives and benefits to companies that outsource to the country as well as to employees. However, there are some nitty-gritty aspects to consider, such as taxes, leases, payroll, and more. But hiring through the right outsourcing partner lets you work through all legalities seamlessly.
An outsourcing company’s access to talent determines how big they are as a business. It’s better to put your trust in a more prominent, experienced outsourcing company so you can be sure that you’re putting your money in the right place. Outsourcing services to the Philippines is a great way to have access to the right talent.
Based on a report by the Philippine Statistics Authority (PSA), 10- to 64-year-old Filipinos boast a functional literacy rate of 70.8% and a basic literacy rate of 93.1%. This isn’t surprising as the Philippines churns out around thousands of graduates a year, ready to be hired for any job.
Moreover, you can be sure that members of your offshore team are trained and certified to produce industry-standard products or services.
Because you’re going to rely on a lot of online communication and technology to keep your businesses connected, it’s essential that you find a service provider that has excellent access to technology.
Make sure your potential outsourcing partner has a reliable system in place for transferring files and communicating with your in-house team. In terms of infrastructure, an outsourcing company should ideally have an office for offshore operations. This is a good sign that they are professional, and your offshore team will be in a healthy working environment.
Quick note: Before signing with an outsourcing company, ensure they have contingency or business continuity plans. This way, they are prepared for power outages, internet issues, data breaches, and other scenarios that can interfere with work.
Speaking of communication, language is also essential in any offshore team. Make sure that your outsourcing vendor has people that you can actually communicate with.
Effective communication plays a big part in maintaining efficiency and ensures that the time and money you spend are appropriately utilized. Luckily, the Philippines is considered to be one of the best English-speaking countries in Asia, second only to Singapore according to the Education First English Proficiency Index (EF EPI). This makes interactions with your internal team and customers a complete breeze.
We understand that outsourcing or building a dedicated offshore team can be a huge leap for you and your company. As a country abundant in BPO companies, finding the ideal outsourcing partner can be overwhelming. Not to worry, though, because KDCI Outsourcing is here to help you out.
At KDCI, we make outsourcing less of a daunting venture by providing customized offshore staffing solutions for businesses needing expertise in finance and accounting, customer support, digital marketing, graphic design, software development and IT, and other fields.
With our deep industry knowledge and talented outsourced professionals, you can guarantee that our outsourcing services will give you the best value for your money.
We’re more than happy to answer any questions or inquiries you may have, so don’t hesitate to contact us!
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Day by day, a mortgage processor handles, organizes, verifies, and reviews paperwork. They make sure that all documents and financial information are accurate and complete before turning them over to the loan underwriter for final approval. Behind this meticulous process lies a high-stress profession that demands focus and precision.
No wonder professionals in mortgage processor jobs are experiencing burnout (and quiet quitting). On top of meeting deadlines and closing mortgage loans, they are also grappling with the overarching challenges of the mortgage industry — soaring housing prices, evolving regulations, and resistance to new technologies.
Since the mortgage industry is a volatile market, organizations must step up and modernize their mortgage process not only to streamline the daily job responsibilities of mortgage loan processors but also to comply with regulations and maintain a competitive advantage.
If your mortgage loan processor team is stressed out, don’t wait until they hand in their resignation letters. Get more helping hands by hiring a mortgage processor from reputable outsourcing firms.
Finding the right outsourcing company for mortgage processing can transform your organization’s mortgage application and processes from start to finish. Below, we rounded up the best companies to hire a mortgage processor:
KDCI Outsourcing is a BPO company founded in 2011 that empowers businesses and their departments with world-class outsourcing services.
Having worked with clients from multiple industries, this Philippine-based vendor has grown to be one of the best offshore outsourcing companies offering diverse (and specialized) outsourced roles in accounting and finance, IT, property management, real estate, and many more.
Magellan Solutions is a company with almost two decades of experience in the outsourcing industry, proudly earning the trust of hundreds of small and medium-sized enterprises (SMEs). From call center services to outsourced loan processing solutions, this service provider offers a carousel of services to support any business need.
However, do take note that the cost of outsourcing mortgage processing depends on several factors, including headcount, contract duration, and the experience level of the mortgage loan processor.
Emapta is an outsourcing firm that has worked with thousands of clients from different industries. For 15 years, this company has helped businesses harness their potential through various outsourced solutions in accounting and finance, graphic design, loan processing, and many more.
Helpware is an outsourcing firm with a tightly knit, team-oriented work environment, treating clients not just as business partners, but as part of Helpware’s growing family. Its outsourcing services include AI-powered customer support, digital marketing, mortgage processing, software development, and the like.
Flatworld Solutions is an outsourcing company composed of passionate visionaries who deliver efficient, growth-driven outsourced services in any field of work — from healthcare to data science.
Based in Clark Freeport, ShoreAgents is a company that lets clients hire one outsourced employee or build a dedicated offshore team or workforce. It excels in mortgage processing, property management, real estate, and virtual assistance.
With the ability to scale your team on demand, you can stay agile, adapt to market demands without compromising productivity.
What ShoreAgents Brings to the Table:
Outsourced is an industry-standard outsourcing company known for its top performers and results-driven outsourced services. From customer service to financial services, this firm can provide any offshore talent for any role — specialized or otherwise.
What Outsourced Brings to the Table:
NeoWork is a company that provides clients with a professional remote team from the Philippines (and Colombia). It specializes in AI, creative production, customer experience, IT and development, and virtual assistance. NeoWork handles all types of loans, from personal loans to mortgages.
Founded in 2020, The Remote Group is an outsourcing company that has quickly earned the trust of clients across the globe, promising growth and cost savings throughout the partnership. Its field of expertise includes accounting and finance, digital marketing, mortgage processing, real estate, and more.
Unity Communications is a BPO company that has helped Fortune 500 companies and small businesses overcome market challenges and experience unprecedented growth. It offers Contact Center as a Service (CCaaS) and outsourcing solutions for a variety of industries, including e-commerce, real estate, and healthcare.
The mortgage industry is volatile and evolving fast. Financial institutions and mortgage organizations are still set in their ways, relying on manual processes and analyses that slow down the mortgage loan application. Inevitably, as regulations evolve, the need for accurate documentation becomes all the more vital for clients and institutions.
Unfortunately, local hiring is not the best solution to your mortgage processing woes. In this case, you need to widen your reach — and that’s where outsourcing comes in. Outsourcing slashes labor costs while elevating productivity, efficiency, and client satisfaction.
If you’ve already weighed the pros and cons of outsourcing to the Philippines and now want an outsourcing company to work with, choose KDCI Outsourcing.
We help financial institutions enhance their workflow with advanced AI and automation tools, integrating them with your technology infrastructure to drive productivity. As a company that values client success, we only onboard property management professionals who have the skills, experience, and cultural compatibility to elevate your business.
Cut out manual tasks and upgrade your mortgage loan processes with KDCI Outsourcing.
Contact us now and get an opportunity to work with our top talent!
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When was the last time you needed customer service but the agents are already offline and you’ve just been informed that they will get back to you on the next working day? Picture that moment, when your urgent concern — maybe an issue about your purchase or some sort of trouble with the app you’re using — had to wait until the next business day.
Frustrating, right? The frustration you felt is exactly why companies are starting to offer after-hours support. And if you’re offering services or products that customers may still be using beyond regular business hours, then it might be worth considering investing in after-hours support for your business, too.
In this article, we discuss the importance of after-hours support services as well as the key reasons why most US businesses opt to outsource this business function to the Philippines. Spoiler alert: it’s because it’s the most practical way to provide support to your customers when they need it, as they need it.
Read on to learn more.
After-hours support services refers to the process of providing customer support (or, in some cases, technical support) to your customers outside of your usual business hours. This covers the time beyond the regular 9 to 5 office hours, weekends, and even holidays. It could come in different forms including, but not limited to, call center services, email support, chat support, and quite recently, even automated systems that provide real-time support to your customers, even, and especially when your team is not in the office.
According to a Salesforce research, as much as 77% of customers expect to immediately interact with a person when they contact a company. But as of 2023, only 54% of companies offer customer service after office or regular business hours.
In an ideal world, of course, most of the work should be done within the typical office hours. However, customers who utilize your products and services may encounter issues at any time of the day. And when a customer feels that a resolution is urgent, they may not think it’s ideal to wait until the next day. In the same way, you can’t expect your team to come pick up the phone and take calls in the middle of the night to address a specific concern.
Providing after-hours support not only enhances customer satisfaction but also increases brand loyalty and customer retention, crucial factors in today's competitive market. Extended support hours can lead to higher customer lifetime value and positive word-of-mouth referrals. These give companies that offer extended customer service a competitive edge over other brands.
Having established after-hours support as a necessity now raises the point of how challenging it is to build an onshore team so that you can provide a 24/7, in-house answering service.
For one, it would be a rather costly investment. You’d have to account for higher wages, overtime pay, additional HR and administrative costs, as well as the tech & utilities you need to keep operations running round the clock. For another, the talent pool for employees willing to work graveyard or weekend shifts is often limited — making hiring yet another concern. Provided that you do build an after-hours customer service team, you now have to worry about high turnover rates prompted by burnout and work-life balance challenges. Then, you’d have to recruit again and the cycle goes on.
Sounds pretty overwhelming, doesn’t it? Fortunately, building an in-house after-hours support team is not the only option.
By outsourcing to countries with time zones that are naturally different from that of the US’, after-hours support becomes more cost-efficient and more effective. For example, the regular business hours in Southeast Asian countries like the Philippines coincide with the “after-hours” of the US (plus they also offer support during regular business hours, in case that is what you need). This round-the-clock availability makes the Philippines an ideal destination for US businesses looking for an offshore after-hours support team, among other reasons.
Now, let’s go beyond this round-the-clock availability and discuss the reasons why most US businesses — from startups that want to hit the ground running to established multinational corporations — opt to outsource their customer service function, especially the after-hours support services, to top customer service agencies in the Philippines.
There are many countries offering excellent customer service. But why does the Philippines hold almost 15% of the global market share for global BPO, with customer service as its leading outsourced service?
Why outsource after-hours support to the Philippines? Here are just some of the reasons cited by business owners like you:
Hiring a customer service agent to work after-hours costs 10-20% more in the US as night shifts require premium pay. Such additional costs can be too heavy for some companies, especially when there are lower cost options such as outsourcing to developing countries like the Philippines where cost of labor is lower.
In an after-hours customer service case study conducted by KDCI Outsourcing, US companies can reduce their staffing costs by 45% while extending their customer service coverage to 24/7 support.
More than the difference in labor costs, the significant cost reduction is attributed to the FTE outsourcing model, wherein companies can build their customer service teams offshore while the outsourcing partner takes care of everything from hiring and training to onboarding and management for a fixed outsourcing cost.
39.2% of companies looking to outsource to the Philippines are interested in customer support services. This is unsurprising considering the Philippines is the world’s call center capital with over 700 call centers and over 1.3 million professionals supporting brands globally.
The demand for Filipino customer service agents can be attributed to their excellent English skills, high literacy, and hospitality.
Because the Philippines is the 3rd largest English speaking country in the world, ranking 2nd in English proficiency in all of Asia, its customer support professionals are renowned for their excellent communication skills with English speaking customers in the US, UK, and Australia.
It also helps that the country has a very high literacy rate of 97%, and has hospitality ingrained in their culture. Such skills make Filipinos in high demand for BPO, especially as a top destination for offshore customer service.
The benefit of hiring after-hours support in the Philippines is not only due to lower labor costs, but also because they are located on the other side of the world, with very different time zones as the US, Europe, and Australia.
It makes outsourcing off hours to the Philippines a viable option since their after-hours are normal working hours in the Philippine time zone. Not to mention, customer support outsourcing companies in the Philippines are used to shifting schedules.
This means that companies not only have the option to hire after-hours customer service, they can choose to do so for any shift, even if that means 24 hours a day, 7 days a week, and during weekends and holidays.
The top customer service outsourcing companies in the Philippines have been operating for years or even decades. They already have systems in place to ensure the highest quality service when it comes to customer support.
To keep up with tech advancements, these firms leverage advanced technologies like AI and automation, which streamline routine inquiries and allow human agents to handle complex issues requiring empathy. They also invest heavily in comprehensive training programs and maintain rigorous quality assurance systems to consistently deliver superior service.
Supported by favorable government policies and initiatives in the Philippines, these companies also benefit from a robust infrastructure, making the Philippines a global leader in customer service outsourcing.
Philippine customer support outsourcing is quickly adopting new technologies in a bid to stay competitive in a fastly evolving digital environment. The best customer service outsourcing companies in the country are using technologies such as artificial intelligence (AI), robotic process automation (RPA), data analytics, blockchain, virtual reality (VR), and augmented reality (AR) for efficient, personalized, data-driven, and secure customer service.
This offers an attractive proposition for global companies looking to leverage the power of technology while also enjoying the other benefits of Philippine customer service. When it comes to after-hours support services, you can trust Philippine outsourcing providers to empower your team (and customers) with a blend of tech-driven and human services.
The Philippines has a long colonial history that “places them in a strategic position where they can relate and understand several nations while still embodying their principles, such as hard work, perseverance, warmth, and friendliness,” according to experts at Outsourcing Accelerator.
This cultural compatibility is especially important in after-hours customer support, where the need for empathetic and effective communication is heightened. During after-hours, customers often face urgent issues and require immediate assistance, making it crucial for support agents to not only understand but also relate to the customers' cultural context and emotional state.
Outsourcing to the Philippines offers significant value in this regard. Filipino agents, with their high level of English proficiency and cultural affinity with Western countries, particularly the U.S., can provide seamless and empathetic support. This reduces the likelihood of misunderstandings and enhances customer satisfaction.
Lastly, the Philippine government is a proactive supporter of the local BPO industry, creating special economic zones managed by the Philippine Economic Zone Authority (PEZA). These zones offer a range of benefits to BPO companies, including tax holidays, which can last for up to six years, and exemptions from certain local taxes and duties. These incentives reduce operational costs for companies, making the Philippines an attractive destination for outsourcing customer service.
Meanwhile, the IT and Business Process Association of the Philippines (IBPAP) created Roadmap 2022, which was designed to help the Philippine economy rebound and continue growing despite the challenges posed by the global pandemic. The strategies included are aimed at strengthening telecom infrastructure to support long-term remote work, accelerating investments in talent development programs, and enhancing digital and cybersecurity initiatives.
Now that we’ve outlined these reasons why MOST businesses outsource customer support, it’s only natural to wonder whether you actually need this solution for your business. After all, it’s a bold move and a huge business investment that will affect both your team and your customer relationships. So, we’ve prepared something that can guide you through the decision-making process.
Yes, it’s something businesses (possibly even your competitors) have already invested in. But not all businesses are alike — so let’s see whether it’s time for your business to have an after-hours answering service.
The first sign: not all customer calls are received during the typical 9 to 5 — and the number of these calls is increasing exponentially. You will notice it: a few missed calls when you start the next day, and then more, all because no one was there to answer them. You can’t adjust the timing of these calls. You have to make sure that someone’s there to answer them.
That, of course, is a natural consequence of missing a call. As already discussed above, customers expect immediate response. When you can’t provide it, it’s only a matter of time before they call again to berate your team, or worse, call your competitor and check if they have the after-hours support services that you cannot provide.
An angry customer is one thing, but a lost potential customer is yet another issue. Imagine the revenue you could have gained had there been someone to answer that late phone call. This is not a loss per se, but it’s a growth opportunity that passed you by just because the phone call was received after-hours.
Of course, not all the signs are negative. Investing in after-hours customer service can be a proactive move, too. If the holidays are coming up and you have promotions that may draw more customers in, then it might be an ideal time to have outsourced after-hours call center services that can address customer concerns 24/7.
Another way to be more proactive during an expansion is to make sure that clients can reach you (or at least, you customer service team) at any time of the day. This is important if you are now servicing multinational clients, with varying time zones. This way, there will be no delays in responses and it’s easier to ensure customer satisfaction.
If you’re seeing any of these signs in your business, then that’s your go-signal to consider having an outsourced after-hours support team. Whenever you’re ready to get started, all you have to do is ask us — we’d love to discuss how our outsourced customer service team can empower your business.
Delight your customers and keep them coming back by providing them the support they need when they want it.
At KDCI Outsourcing, we take after-hours support seriously, and make it a point to build offshore customer support teams in the Philippines that not only have the skills and expertise you’re looking for, but also the soft skills and cultural fit needed to integrate well with your organization and serve as ambassadors of your brand.
Learn more about after-hours customer service outsourcing in the Philippines. Contact us today!
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With the evolving nature of workforces all over the world, most businesses are now facing challenges (or, in some cases, the need to step up) when it comes to managing people. Today’s employees are global, remote, and diverse — a reality that is true for most companies, from growing SMEs to thriving multinational companies.
What does this shift mean for businesses? First, it means that staff are now expecting far more than a paycheck from their companies; they now want flexibility, personalized experiences, meaningful development opportunities, and ongoing career growth. Subsequently, this results in an increasingly complex demand for employers to retain staff while keeping up with the new trends in the job market.
For many organizations, this shift makes in-house HR management challenging, if not unsustainable. That’s where Human Resource Outsourcing comes in.
What was once seen as a cost-cutting solution has now become a strategic partnership model, allowing companies to tap into specialized expertise, advanced HR technology platforms, and scalable support that keeps employees engaged while ensuring compliance and efficiency.
This is what outsourcing HR in 2025 actually is for: a move towards creating a future-proof, resilient, and employee-first workplace.
So, in this article, we’ll explore the 10 best HR outsourcing services in 2025. We’ll cover the functions that forward-thinking companies are delegating to expert providers to stay ahead and stay competitive in the market.
Before everything else, let us briefly define what Human Resource Outsourcing is.
Human Resource Outsourcing (also referred to as HRO, HR Outsourcing, and Outsourced HR among other things) is the practice of delegating HR functions to third-party providers. These services can range from transactional tasks, like payroll, to strategic functions, like employee engagement or workforce analytics. Most US companies outsource these HR services to the Philippines, since there are a number of top HR outsourcing companies across the country.
The scope of HRO has grown dramatically in recent years. Once seen primarily as a way for businesses to cut costs and increase operational efficiency, human resources outsourcing is now a $33-billion dollar industry way to enhance workforce performance and employee experience. With the rise of global remote teams as well as advanced HR technology, HR outsourcing has become a strategic necessity. In terms of numbers, a Deloitte survey notes that 57% of companies worldwide have outsourced at least one HR function.
Now, what are these functions that businesses tend to delegate to an HR outsourcing company? Let’s find out!
Payroll processing remains to be one of the key services in HR outsourcing. With global teams working across different areas with varying compliance requirements, inaccuracies in paychecks can instantly damage employee trust and satisfaction. By outsourcing payroll, businesses ensure timely, compliant, and error-free salary processing across multiple regions.
Modern payroll outsourcing also goes beyond just cutting checks. With the help of Human Resource Information Systems (HRIS), outsourced payroll administration can now include:
In 2025, payroll providers also utilize AI to detect errors before they happen, reducing costly compliance risks.
Finding and hiring the right people is harder than ever in a competitive labor market. Through HR outsourcing service providers, you can find Recruitment Specialists and C-level Recruitment Specialists who can manage sourcing, screening, and onboarding global talent for your company efficiently.
Instead of spending weeks or months filling positions, companies that outsource recruitment gain access to pre-vetted talent pools, advanced applicant tracking systems, and employer branding expertise. For US companies especially, an offshore HRO provider offers both cost savings and speedy recruitment processes without sacrificing quality.
First impressions matter. So do last impressions. This is why onboarding and offboarding are among the most outsourced HR services. Smooth onboarding increases retention, while structured offboarding protects company reputation and reduces legal risks.
Outsourcing onboarding functions ensures that employees receive consistent training, compliance paperwork is handled correctly, and technology access is set up from day one. On the flip side, outsourced offboarding from a reliable human resources organization ensures proper exit interviews, secure data handover, and final payments that are compliant with the relevant employment law.
This way, you get to manage the entire journey of each employee through a reliable outsourcing solution — from talent acquisition to offboarding.
Employee benefits are no longer limited to health insurance and retirement plans. Workers today expect flexible benefits packages that may include mental health programs, wellness stipends, childcare assistance, and even remote work support.
Outsourcing compensation and benefits administration allows businesses to manage these complex offerings without overwhelming their internal HR teams. An external provider can negotiate better rates with insurers, ensure compliance with benefits regulations, and offer digital self-service portals where employees can manage their own plans.
HR compliance is one of the most complex aspects of running a business, especially for those operating across multiple states or countries. From wage laws and overtime regulations to anti-discrimination policies, the risks of noncompliance are high.
Outsourced HR compliance teams stay updated on evolving labor laws, conduct internal audits, and ensure HR policies are always compliant. Some outsourced HR Compliance Officers also utilize AI-driven compliance monitoring tools, which track data real-time and alert businesses to potential risks before they escalate.
As mentioned above, employees expect growth opportunities. So much so, that a high salary may not be enough to make an amazing employee stay if they feel that their career in a company is stagnant. As such, companies that fail to provide internal training opportunities see higher turnover rates.
Outsourcing learning and development ensures businesses can provide structured training programs, leadership development courses, and certifications without building internal training departments from scratch.
Providers often offer access to e-learning platforms, blended training methods, and data-driven insights to measure employee progress. With a Training and Development Specialist, your company can provide employees with upskilling for AI, digital literacy, and leadership in remote-first environments.
Engaged employees are more productive, loyal, and innovative. But measuring and improving engagement can be tricky for in-house HR teams that are already stretched thin.
HR outsourcing providers now specialize in employee engagement services, including surveys, culture-building initiatives, recognition programs, and wellness offerings. Some even provide real-time engagement dashboards powered by analytics to help leadership identify morale issues before they affect performance.
By delegating some HR responsibilities like creating employee engagement, you can boost staff retention and improve employee relations without adding additional tasks to your current HR teams existing to-do lists.
Traditional annual performance reviews are outdated. This 2025, performance management is about continuous feedback, personalized goals, and data-driven evaluations.
Outsourcing this function gives businesses access to structured performance review frameworks, AI-powered evaluation tools, and expert HR consultants who can train managers in effective coaching. This ensures fairness, consistency, and alignment between employee goals and company objectives.
Today, HR is inseparable from technology. From HR information systems to advanced workforce analytics, HR tech enables better decision-making and efficiency.
Many companies outsource HR tech management to specialists who can implement, customize, and maintain these platforms. Outsourcing ensures businesses get the most value from their HR software without overwhelming internal IT teams. With an outsourced HR Data Analyst, you have a dependable partner in integrating AI tools for predictive analytics in retention, hiring, and workforce planning.
All things and HR outsourcing services considered, there are businesses that don’t need a specialized HR function outsourced. Sometimes, a business needs an all-around HR partner who can cover the basics. This is where HR generalist outsourcing comes in.
HR generalists provide broad support across multiple functions, such as employee relations, policy creation, onboarding, documentation, compliance tracking, employee benefit management, and day-to-day employee support. For small to medium-sized businesses, or for companies without an in-house HR department, outsourcing generalist services offers a more cost-effective way to ensure HR operations run smoothly.
By partnering with HR generalists, companies gain the advantage of experienced professionals who can step in as an extension of the business. This ensures employees have a consistent point of contact for HR needs, while leadership can focus on higher-level strategy and growth.
Now that we have explored the best HR outsourcing services shaping HRO in 2025, it’s clear that businesses today have more options than ever when it comes to optimizing their HR and people operations. But understanding what services are available is only half the story — let’s now discuss why companies turn to HR outsourcing in the first place.
Companies across industries are leveraging human resources outsourcing to strengthen their teams and keep pace with the changing workforce. Among the key benefits of outsourcing HR include:
Cost-savings is still a key benefit, of course. Since, by outsourcing HR functions, businesses eliminate the need for large in-house teams, HR infrastructure, and additional overhead. This allows companies to reinvest those savings into growth initiatives while still gaining access to HR experts with specialized knowledge in payroll, compliance, and talent management.
As business cycles fluctuate, HR outsourcing makes it easier to adjust HR resources without delays. From speeding up recruitment for rapid expansion or scaling down after seasonal peaks, outsourcing partners provide the flexibility needed to match workforce demands.
In today’s talent-driven market, employee satisfaction directly impacts retention and productivity. Outsourcing HR functions allows you to tap into specialized HR expertise and ensures employees receive professional, structured onboarding, timely payroll, competitive benefits, and ongoing engagement initiatives — all of which improve morale and reduce turnover.
Employment laws are changing as rapidly as employment trends, especially with the rise of remote and global work arrangements. A dependable HR outsourcing provider naturally adapts to these changes, safeguarding your business against costly compliance mistakes while maintaining operational stability.
When HR’s routine administrative functions are handled externally, business leaders and internal teams can redirect their energy toward innovation, strategy, and core growth activities. In essence, delegating core HR functions to an outsourced HR department frees up your team to focus on the things that matter the most.
Of course, getting these benefits depends heavily on choosing the right HR outsourcing partner. Not every provider offers the same depth of expertise, technology, or cultural alignment, and the wrong fit can create more challenges than solutions.
So, for our final takeaway for this article, we give you a list of 10 questions you need to ask an HR outsourcing provider.
Here are 10 questions to ask your pool of HR outsourcing providers:
By asking these questions, you’ll be able to separate transactional providers from reliable partners who can elevate your HR function and support you as you grow your team today, and long into the future.
For more information on how to outsource HR services, check out our step-by-step guide.
For businesses in the US looking to build scalable, employee-focused HR functions, outsourcing to trusted providers in destinations like the Philippines offers the perfect balance of expertise, cost-efficiency, and cultural alignment.
At KDCI Outsourcing, our focus is on empowering the best teams with the best people by building dedicated offshore HR teams that feel like an extension of your own. From payroll and compliance to employee engagement and recruitment, we tailor our HR outsourcing services to your unique business needs, ensuring scalability, compliance, and employee satisfaction.
If you’re ready to transform your HR strategy, KDCI Outsourcing can help you build a dedicated offshore HR team tailored to your business needs.
Contact us today.
A quick research of good offshore staffing countries will lead you to several articles pointing to the Philippines — a country from Southeast Asia known for being one of the top BPO (business process outsourcing) providers in the world.
The country has long been established as a key player in the outsourcing industry, along with India, Brazil, and Eastern Europe. However, as with all things, there are pros and cons of outsourcing to the Philippines, and we made a quick list to help you think it over
The Philippines is a reputable outsourcing destination renowned for its fluent English, skilled workforce, world-class outsourcing services, and thriving BPO sector. Below, let’s learn about the perks of outsourcing your business operations to the Philippines:
The first advantage of outsourcing to the Philippines is the country's English proficiency. One of the major concerns of some companies when it comes to offshore outsourcing is the language barrier. Luckily, unlike outsourcing to countries like Ukraine, China, or Thailand, you will hardly ever experience this with Filipinos.
According to the Education First English Proficiency Index (EFPI), the Philippines ranks 22nd globally and 2nd in Asia as the country with the highest English proficiency. So, if you are planning on outsourcing to the Philippines, it won’t be difficult at all to work and collaborate seamlessly.
You’ll have strong communicators who you can understand, have discussions with, and resolve issues with a lot easier than accents and other things language barriers may present.
Another benefit of outsourcing to the Philippines is that the country has a good understanding of Western culture. The US colonized the country for 48 years, from 1898 to 1946, before the US recognized the independence of the Philippines.
After that, some Americans chose to stay in the Philippines, while the country itself held strong ties with the US, which greatly influenced the culture of the Filipinos. This led to Filipinos adopting Western culture, including food, language, education, and religious freedom.
A diverse pool of talent is the third advantage of outsourcing to the Philippines. Philippine universities churn out thousands of highly capable workers yearly, leading to a large and diverse talent pool. Not just that, they are also more than qualified and capable of handling work for you.
Moreover, according to the Philippine Statistics Authority, the Philippines currently has a median age of 25.3 years. Hence, in terms of technological competency, the Philippines has an edge as it has a young population that is familiar and capable of understanding technology to streamline business operations.
Depending on which state you live in, the US has a higher cost of living — housing, utilities, healthcare, food, and taxes — compared to the Philippines. According to World Population Review, expenses among US households amount $61,334 USD per year. Meanwhile, Filipino households only spend $4,504.68 USD per year on expenses.
Let’s also not forget that the cost of hiring in the US averages $4,375 USD per hire, whereas you can hire a Filipino BPO employee for as low as $268.95 USD a month. Therefore, statistically, you will always have to pay more for local talent (even when you’re onshoring or backsourcing) compared to an outsourced Filipino worker.
The reason behind this difference is the currency movement and current economic gains of the PHP being weak compared to the USD. At the time of writing, the exchange rate of PHP to USD is 57.28 PHP to 1 USD, making employment costs lower than in developed countries. For this reason, outsourcing to the Philippines is one of the top choices that businesses consider.
The fifth advantage of outsourcing to the Philippines is the country's security, flexibility, and scalability. : While you can technically DIY an offshore team or opt for BPO seat leasing options for your own offshore hires, the most secure way to outsource to the Philippines is still through a company (or companies, if you’re considering multisourcing) like KDCI Outsourcing.
KDCI Outsourcing (and other best BPO companies) work as your business partner, and hence are flexible in terms of developing effective, customized outsourcing solutions that work for you.
Outsourcing providers talk about your business, goals, and objectives and recommend the best course of action. On top of that, outsourcing allows you to scale your business without additional infrastructure costs. You have the freedom to expand your team and operations, depending on the type of work your business needs at the moment.
eLearning solutions like the Learning English Application for Pinoys (LEAP) help senior high school students and college students prepare to meet call center demands after graduation. There are also BPO employee-targeted training programs offered by the Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD).
Moreover, the IBPAP, an organization solely dedicated to improving the IT-BPM industry in the Philippines, focuses on innovation and getting government support for enabling the IT-BPM industry in the Philippines.IBPAP works to continuously further and maintain global competitiveness by getting the country to provide higher-value services.
The continuous government support for the BPO industry helps Filipinos remain efficient amid the AI and automation revolution. One of the objectives of multiple government initiatives is to elevate the proficiency of Filipino professionals, enabling companies outsourcing to the Philippines to flourish and expand.
The family-oriented culture of the Filipinos complements their hardworking attitude. They have an innate desire to support their families and give them a more comfortable life, which ultimately becomes their reason to work harder.
However, as a new generation of Gen Zs enters the Filipino workforce, the value of work-life balance also becomes essential. Hence, you might have to coax them into working overtime or working during weekends if you really need them to.
Businesses are not only getting the best out of outsourcing to the Philippines, but they are also able to provide opportunities to millions of Filipinos.
By outsourcing to the Philippines, you can reduce the number of management tasks you need to handle, enabling you to concentrate on your core competencies and responsibilities more effectively. Choosing to partner with outsourcing providers like KDCI means you have an offshore human resources and management team that will help manage your team.
This means the outsourcing firm takes care of handling employee attendance, tax headaches, leave reporting, and many more. Additionally, while you have full control over your outsourced team, you can also choose to hire a project lead for training and team management.
All you have to do now is check on them from time to time, or read reports while you focus on other aspects of your business.
However, outsourcing to the Philippines comes with several risks. Let’s take a look at them below:
On the other hand, one of the disadvantages of outsourcing to the Philippines is its changing weather conditions. The Philippines is a tropical archipelago resting just in the western side of the Pacific Ocean.
Every year, the country experiences an average of 20 typhoons that can cause power interruptions and cancellation of work and school in flood-prone areas within a typhoon’s path.
Moreover, being within the Pacific Ring of Fire means the Philippines experiences earthquakes and volcanic eruptions. On average, 100 to 150 earthquakes occur each year, and while the country has 24 active volcanoes, eruptions rarely occur.
Fortunately, Filipinos are more than capable of handling remote work. Some outsourcing companies, including KDCI, also provide the option to work from home to maintain business continuity in case of natural disasters.
Compared to the US — which only has 11 official holidays — the Philippines has a total of 18 official non-working government and religious holidays. Thus, businesses planning on outsourcing to the Philippines may also want to consider this factor.
With the Philippine population being predominantly Christian, a lot of culturally important holidays are officially deemed holidays by the government.
However, employers are allowed to ask their employees to come to work. Hence, outsourcing providers leave this in our client’s discretion, as Philippine labor laws mandate that employees get paid more when they work during legal holidays.
Businesses that are planning on outsourcing to the Philippines should take note of the country's labor code. An employer cannot fire an employee at will in the Philippines. A justifiable cause and proper documentation are required to terminate any Philippine employee.
Termination of any employee also requires that the company provide the allocated severance pay. However, labor codes that favor employees do lead to significantly lower turnover rates.
The Philippine labor code requires organizations in the Philippines to pay employees an additional 13th-month pay annually. This incremental month of payment is paid in December as a mandatory bonus to employees and is done to show concern for the plight of the Filipino working masses.
Every country and race has stereotypes, and the Filipinos are no exception. Some foreign companies that planned to outsource to the Philippines and tried to DIY their offshore teams have had poor experiences with hiring Filipino talent.
Because of the DIY-ing, they were more prone to hiring a less capable demographic, which led to generalizations that Filipinos are lazy or incompetent. Hence, to avoid this experience, put your trust in the best offshore outsourcing companies so that you hire quality talent and have proper HR to take care of them.
If you made it this far, you’re probably considering the Philippines as your potential offshore outsourcing destination. Here are three signs you need to outsource to the Philippines:
The Philippines is a treasure trove of highly skilled professionals, many of whom excel in specialized roles. Since the country has lower labor costs, you gain access to their expertise without paying more for the same specialized professional in the US.
Essentially, Philippine outsourcing is the right balance of cost-effectiveness and high-caliber talent. Before partnering with a Philippine-based outsourcing partner, make sure you’re aware of the costs of outsourcing to the Philippines.
Filipinos show pride in their English skills. They can write in fluent, cohesive English and speak the language like a native. English is also integrated into the facets of Filipino life — from education to law. By partnering with a Philippine outsourcing company, you can seamlessly communicate and collaborate with your Filipino professionals.
Deciding to outsource work to the Philippines means you already know what you’re signing up for — that is, Filipino culture (the good and the bad), holidays, political climate, and the weather.
It’s understandable to be worried about the weather, as the Philippines is prone to typhoons and floods during the rainy season. Make it a habit to read the news, check weather forecasts, and touch base with your outsourced team members to show that you care about their safety.
Bad traits aren’t exclusive to any country. However, with KDCI, our teams actively work towards turning our weaknesses into strengths and uphold the pros that are intrinsic in our work ethic.
This breeds a culture of reliability and professionalism with our partners who trust us to provide expertise in accounting and finance, creative production, customer support, e-commerce and retail, digital marketing, and software development and information technology (IT).
Our clients who took the leap to work with us now have their business operations up by high-performing KDCI teams who take their businesses further.
Contact us today to learn how you, too, can take your business further!
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Outsourcing has become a vital aspect of many businesses to the point that its 2030 market value is projected to amount to $525.23 billion USD.
In a quest to cut costs while maintaining production quality and competitive advantage, nearshore vs offshore outsourcing becomes a subject of debate among US business owners. There’s no right or wrong outsourcing model, but it’s a matter of weighing which one is the better option for your needs.
This guide teaches you about nearshore vs offshore outsourcing (see also shared services vs. outsourcing), starting with the definition of each model, followed by their pros and cons.
Nearshoring is a type of outsourcing wherein a company partners with a service provider in a nearby country to perform outsourced tasks. In this case, a US-based business owner will collaborate with a nearshore BPO company in Mexico, Colombia, or Jamaica due to the proximity of these countries to the US.
This is different from onshore outsourcing, as it involves outsourcing to a vendor in the same country as the client. Nearshore outsourcing can be used as an entry point to offshore outsourcing.
Nearshore outsourcing is the right balance of proximity, cost savings, oversight, and cultural and linguistic compatibility. Let’s explore these benefits below:
One of the best advantages of nearshore outsourcing is the greater time zone overlap. When you work with a nearshore team, you won’t experience significant delays in communication due to minimal time zone differences.
Let’s say you’re a business owner in California, US, who’ll outsource customer service to Colombia. The time difference between the two countries is two hours. This means your Colombian nearshore team can offer near-real-time support during your business’s operating hours, leading to higher operational efficiency and faster response times.
Because there are fewer conflicts in schedule and time, you can easily set meetings and feedback sessions with your nearshore partner.
Cost savings are another advantage of nearshore outsourcing. If you’re hiring locally, the cost of hiring can be as high as $4,683 USD per employee and $28,329 USD per executive-level hire.
Again, let’s say you're hiring a customer service agent. A Colombian and Mexican customer support agent earns $8,640 USD and $19,300 USD each year, respectively. Meanwhile, a US agent costs $69,139 USD annually. In this case, the better choice would be either Colombia or Mexico, both of which have lower average salaries than the US.
Hence, you can save more while enjoying the greater efficiency, tighter communication, and better cultural compatibility that come with nearshore outsourcing.
Speaking of which, cultural and linguistic compatibility are integral to nearshoring. To begin with, the US and Latin America share a common history, specifically immigration — which played a significant role in shaping US culture, from values to cuisine. Hence, it’s not surprising for Latin American professionals to easily adapt to US business practices and communication styles.
Additionally, Latin American countries are fluent in English. According to the Education First English Proficiency Index (EFEPI), Suriname and Argentina are the countries with high English proficiency, scoring 563 and 562 points, respectively. Interestingly, Spanish is one of the most common spoken languages in the US, with 42 million speakers.
By nearshoring, companies can hire bilingual professionals who are fluent in English and Spanish to deliver bilingual support and culturally connect with Spanish-speaking customers.
The beauty of nearshore outsourcing is having better control of your nearshore staff. In outsourcing, correspondence is done virtually. But because your nearshore team is just a flight away from the US, you can conduct regular in-person visits and meet everyone in the flesh.
This way, you can personally see how your staff is faring well in their tasks. Face-to-face meetings will also allow you to interpret non-verbal cues and experience seamless communication without being bothered by audio, video, or connectivity issues. Urgent issues can also be addressed without the risk of miscommunication or misunderstandings.
Since you have better oversight of your nearshore staff, you can strengthen camaraderie, build trust, and form a more authentic bond with all team members.
Despite the above benefits, you have to prepare for the following risks when nearshore outsourcing:
Political instability and other unforeseen circumstances are outside of your control. However, these can disrupt operations and affect overall productivity.
While not all countries in Latin America (or the Caribbean) experience the same level of political instability, we recommend reading up on current events and analyzing a country’s political climate before nearshore outsourcing.
Likewise, natural disasters can pose a threat to your outsourcing efforts. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) and the United Nations Office for Disaster Risk Reduction (UNDRR) found that Latin America and the Caribbean is second only to Asia and the Pacific as the region most affected by disasters.
In fact, from 2000 to 2022, 1,534 disasters have already affected 190 million individuals in Latin America and the Caribbean. The region’s disaster proneness is attributed to climate change, poverty, mass immigration, and other factors. Hence, always choose a nearshore BPO partner with a strong business continuity plan.
Latin American and Caribbean professionals excel in many fields, including back-office support, customer service, IT, and many more. However, you might find it harder to source professionals in highly specialized roles since you’re limited to only Latin America and the Caribbean. Hence, you might have better luck if you expand your search to include Eastern Europe and Asia.
Between nearshore outsourcing and onshore outsourcing, offshore outsourcing is the most popular of all models. The offshore model is the practice of collaborating with an outsourcing company in a distant geographical location (Think, Southeast Asia). When a company in North America decides to outsource accounting to the Philippines or Malaysia, that’s offshore outsourcing.
Offshore outsourcing is touted for its cost savings, access to skilled professionals, round-the-clock support, and potential for market expansion. This section tackles these benefits in more detail:
Like nearshore outsourcing, you’ll also get high cost savings from offshoring. To illustrate, let’s compare the average annual salaries of a graphic designer in the following countries:
Based on the above data, it’s easy to see why offshoring (and nearshoring) appeals to companies. Since developing countries have a lower cost of labor and living, they make attractive outsourcing destinations for developed countries. More cost savings translate to more resources for future business endeavors.
With offshore outsourcing, you have more options on your plate. Rather than limiting your talent pool to Latin America and the Caribbean, you can now hire skilled professionals from Eastern Europe and Asia.
If you’re looking for IT expertise, you have India, Poland, and Ukraine. These countries are IT hubs because of their skilled tech talent and advanced infrastructure.
For customer service, you have the Philippines. Apart from being the BPO and call center of the world, its colonial history has produced college-educated professionals who can write in fluent English, speak in a neutral English accent, and adapt to Western workplace culture.
In terms of time zone alignment, offshore outsourcing offers the best of both worlds of real-time and round-the-clock support. The US has multiple time zones that synergize with Asian time zones. Imagine you have a company in Atlanta. If you outsource to the Philippines, there’ll be a 12-hour time difference. If it’s morning in the Philippines, it will be nighttime in Atlanta and vice versa.
For companies that require round-the-clock support, time zone differences are a game-changer. Even if the rest of your in-house team is asleep, your offshore team is awake and busy accomplishing the day’s tasks. By the time your offshore employees clock out, all deliverables are ready for your review. This ensures fast, seamless turnaround times.
Time zone differences are also an advantage for outsourced customer service. By covering after-hours support, your customers can access your business’s customer care without waiting until the next business day.
Alternatively, your offshore team can work the graveyard shift to align with your business hours — that is, if you prefer real-time support. BPO companies operate all year round for 24 hours, so you won’t have problems building a dedicated offshore team that can work in the same time zone as yours.
Since offshore teams handle administrative tasks, you have more time and resources for strategic initiatives. That’s why customer service outsourcing and its benefits is an avenue for market expansion. When you outsource to an offshore destination, there’s always that untapped potential to explore a new market and scale your market share.
Outsourcing companies can conduct market research and offer fresh ideas to help you appeal to the local market as well as enhance your brand visibility.
On the other hand, here are the possible challenges you may encounter when offshore outsourcing:
English is a universal business language. While your offshore team is proficient in English, there might still be barriers to communication due to differences in accents and cultural nuances. Misunderstandings may arise during important meetings, causing potential conflict between you and your offshore employees.
Cultural compatibility is also integral to smoother collaboration. When both in-house and offshore teams don’t learn about each other’s cultures, it becomes another source of conflict and miscommunication that can deteriorate the partnership.
Your outsourcing strategy should involve learning the culture of your offshore team’s country. For example, Filipinos prioritize harmony and hence avoid conflicts or disagreements. It’s important to create a safe space where your Filipino team can share their thoughts without judgment.
At the end of the day, outsourcing is about learning and adjusting to each other’s cultures to ensure a harmonious partnership.
Unlike nearshore outsourcing, offshore outsourcing makes in-person visits less frequent due to travel costs, so you don’t have direct oversight over your team’s performance and productivity.
However, quality and performance issues only become a problem when you don’t have clear metrics or regularly communicate with your team.
To avoid such issues, dedicate one day (or two) of the workweek for catch-ups and feedback, and create concrete metrics to keep your team accountable for their performance. This ensures better alignment in expectations, standards, and goals.
Choosing between nearshore vs offshore outsourcing can be a tough decision for any first-time (or seasoned) outsourcer. Thankfully, the list below will help you settle on a decision:
Offshore outsourcing is a strategic venture for US business owners to diversify their workforce, harness untapped markets, and slash labor costs. If you’re on the market for an outsourcing partner, choose KDCI Outsourcing.
Based in the Philippines, KDCI Outsourcing is a BPO company offering personalized staffing solutions for offshore software development, human resources, accounting and finance, administrative support, and many more.
Backed by a pool of skilled professionals and cutting-edge technologies, we deliver world-class outsourcing services that drive real growth and operational efficiency to your business.
Outsource tasks (or better yet, your whole department) to KDCI. Get in touch with our outsourcing experts to learn how!
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