Close
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Back to All Blogs

Search Results for "Outsourcing"

Showing 40 result(s)
Offshore Staffing
KDCI vs Freelancer Networks: Why US Firms Choose Dedicated Offshore Teams Instead
With the growing frustration that US companies have with freelancers, discover the many advantages of outsourcing over freelancing.

The gig economy has deconstructed traditional employment. With freelancers and independent contractors making big waves in the world of work, companies can access short-term talent globally without the long-term commitment of a full-time employee. 

While gig workers enjoy greater freedom and exhibit similar skills to employed professionals, they may not necessarily be preferred by US companies that value consistency, reliability, and quality. Freelancers, though not all, have a bad reputation for wanting to earn as much cash as they can without putting in the work of delivering premium services.

Understandably, companies want services that are worth their time and money, and outsourcing provides the return on investment (ROI) they need for success. While freelance networks and business process outsourcing (BPO) companies have their edge, US businesses must remain objective and assess whether hiring freelancers or offshore talent suits their needs and goals.

Why Are US Companies Frustrated With Freelancers

From poor communication to missed deadlines, clients have a long list of disappointments they’ve had with freelancers. Many freelancers see freelance work as a get-rich-quick scheme, which can contribute to the growing number of low-quality services in the market. Here are other reasons behind companies’ frustration with freelancers.  

1. Some Freelancers Are Scammers

Freelancing is a partnership between the individual and the client. The world has 1.57 billion freelancers, but how many of them can you trust? If you’re not careful, they can run off with your money and leave projects unfinished. 

These freelancers lurk on social media and freelance platforms. While the latter may be safer, exercising vigilance through a thorough background check makes a huge difference. At the end of the day, you can’t be too complacent.

2. They May Not Have the Skills for the Task

Freelancers can add whatever skills they want to their profiles, but these skills may not be at a level to deliver high-quality services to clients. While this can be their way of getting their foot in the door, asking the right questions and having them complete a test task can filter out unskilled freelancers from the skilled ones.

3. They Don’t Have Good Equipment

A good laptop or desktop computer is the tool of the trade of any freelancer. This comes in handy for tasks that demand stronger processing power, such as graphic design, video editing, and programming. 

However, freelancers without reliable equipment or a stable internet connection set themselves up for delays, productivity loss, and low-quality outputs,  which are every client’s worst nightmares.

4. Freelancers Lack Commitment

Not every freelancer lacks commitment. However, the reality of working with freelancers is that they may not always be available for urgent tasks as they juggle multiple clients and assignments. If your business operates in a highly regulated industry, one missed deadline from a freelancer can put you at risk of legal and compliance issues. 

5. Their Offer Is Too Cheap or Sounds Too Good to Be True

Some freelancers overinflate their proposals to secure clients, resulting in outputs that don’t deliver the expected results. Likewise, freelancers who sell themselves short may produce substandard work. In other words, you get what you pay for. 

6. Communication Can Be A Roadblock

In business, inconsistent communication is a no-no. Freelancers are based in different parts of the world, and sometimes, they may not respond quickly due to their busy schedules and heavy workload. This can cause delays in correspondence for urgent issues that require the freelancer’s immediate attention. 

7. Quality of Service Can Be Inconsistent

Working with multiple freelancers can result in inconsistent quality of outputs, which can affect brand reputation and customer satisfaction. Sticking to a single freelancer is great; however, as mentioned earlier, they may not always have the time for your tasks — especially if they are also working on assignments that demand more of their attention. 

8. Data Can Be Mishandled

Unlike top BPO companies and agencies with robust security infrastructure, freelancers may put sensitive data, such as customer information and bank details, at risk of unauthorized access and disclosure. If data is leaked, whether intentionally or otherwise, customers can lose their loyalty and trust in your brand — thus leading to legal and financial repercussions.

Freelance vs BPO: Why BPO Reigns Supreme

While freelancers offer specialized expertise and cost-effectiveness, BPO companies are often better choices for US companies. Here are the advantages of a BPO company.

1. Outsourcing Services Are Consistent

The client and the outsourcing partner sign a contract outlining the responsibilities of both parties. That means all deliverables are submitted on deadline, ensuring smooth productivity throughout the workweek. 

If you have urgent tasks, a BPO employee is available to complete them without hesitation. Because of that, outsourcing companies like KDCI Outsourcing make for a more reliable long-term partner than freelance talent.

2. BPO Companies Promise Cost Savings

Many BPO companies are based overseas, specifically in developing countries such as India and the Philippines. Because the cost of hiring in the US is more expensive, companies resort to offshore outsourcing to cut overhead and labor costs while still being able to scale their operations and maintain top service quality.

Outsourcing companies do most of the lifting, from sourcing to training candidates. Understandably, they shoulder the cost of employee sourcing and training, so you can enjoy higher cost savings throughout the partnership. 

Although you can always hire a freelancer for cheap, building an offshore team is a better long-term investment — if you choose the right BPO partner, of course.

3. An Outsourcing Partner Operates 24/7

A BPO partner operates round-the-clock and on Philippine and US holidays. This allows the outsourcing company to maintain continuity of service to its clients. In addition, BPO employees work different shifts to accommodate the client’s time zone. 

Thus, employees onboarded into a US account tend to work the graveyard shift so they can better communicate and collaborate with their client. Hence, any issue that arises during the team’s shift can be escalated and addressed immediately. 

4. Communication Is More Reliable

When working with KDCI Outsourcing, client-team correspondences are centralized on a single platform, such as Slack or Microsoft Teams. This makes it easier for the client and team members to contact each other for feedback and technical issues. 

5. BPO Employees Are Qualified

Filipino culture places a high value on education. Hence, in most BPO roles, a college degree is required along with relevant work experience or a portfolio. Like most service providers, KDCI Outsourcing has recruiters who carefully vet candidates to ensure that all endorsed employees are the perfect fit. 

This way, you can work with individuals who are committed to excellence and can help your business achieve success — whether that’s improved agility or increased website traffic.

6. BPO Firms Maintain Excellent Quality Control

Any reliable BPO company aims to deliver world-class outsourcing services. At KDCI Outsourcing, team leaders and project managers implement quality control protocols to maintain a high standard of output for all team members. They also create manuals and briefs to help members stay on brand, optimize content, and maintain compliance.

Because KDCI Outsourcing and other BPO firms value quality, clients are satisfied with the work offshore teams deliver. 

7. Service Providers Have the Right Technology

A BPO firm is not complete without the right technology. From Zoho Books to ChatGPT, KDCI Outsourcing leverages the latest technologies to drive innovation, promote operational efficiency, and enhance data analysis.  

8. Outsourcing Companies Prioritize Data Privacy and Security

The BPO industry is known for processing, storing, and handling data. In the Philippines, outsourcing companies are mandated by law to protect confidential data from security threats, including unauthorized data processing and disclosure. 

In addition to their strong data encryption protocols, these companies also employ competent IT staff who help minimize the risk of cyberattacks. At KDCI Outsourcing, employees — especially remote workers — are required to practice data privacy measures to maintain confidentiality at all times.

Outsourcing Vs Freelancers: Factors to Consider

The freelance vs BPO debate is a never-ending one. While hiring freelancers is riskier, there are instances when freelancing is a better choice than outsourcing and vice versa. Before outsourcing a department, business leaders must first consider the following factors.

1. Budget

Outsourcing is not a dirt-cheap investment. The cost of outsourcing typically includes the service fee and benefits as well as the hourly or monthly cost of each team member, which varies according to their role and seniority. Skilled freelancers put a high price tag on their services. In most cases, a high price point equates to premium services that drive real results for your business. 

However, just as there are cheap freelance services, there are also low-cost outsourcing services — and one must choose carefully. Work with a freelancer or outsourcing partner that aligns with your goals and culture. Before closing a deal, ask questions and request a price quote to avoid surprises. 

2. Goals and Tasks

What are your goals? What kind of tasks will you outsource? Do you plan to outsource long-term? Your goals and the nature of tasks you plan to outsource influence your choice between a freelancer and a BPO partner. A BPO company is more suitable for achieving long-term business goals and completing multiple big projects and urgent work on demand. 

Freelancers are also suitable for long-term partnerships. However, since they work flexible hours and are not tied to a single client, they may have multiple high-priority tasks that need to be completed before yours. Thus, freelancers are best for non-urgent, short-term projects. 

3. Quality

Both outsourcing companies and freelancers can deliver top-tier work and tailor their services to your needs. But for a more uniform quality of output, partnering with an outsourcing service provider is a better choice, as team leaders and project managers assess all deliverables to ensure they meet your standards and expectations. 

4. Availability

Unlike the stable availability of an offshore team, partnering with a freelancer can lead to delays in communication, disrupted productivity, and missed deadlines. This doesn’t mean that all freelancers are bad communicators. If you plan to work with a freelancer, set clear expectations and ensure they are responsive throughout all stages of the project or tasks.

5. Security

Joining freelance platforms or freelance social media groups increases your risk of fraud and scams. While there are freelancers who put your best interests at heart, some of them just want to rip you off. Moreover, freelancers who don’t practice cybersecurity or educate themselves on current cyber threats can jeopardize data security. 

For your peace of mind, choose an outsourcing company. Outsourcing service providers are legitimate businesses that comply with local laws and regulations, so rest assured that you’ll be in safe hands.

Tips In Developing A High-Performing Offshore Team

When building an offshore team, it’s important to treat it as an investment and an extension of your own team. Here are a couple of tips to help you out:

  • Know your goals for outsourcing and identify any talent gaps in your business operations. This allows you to develop a concrete vision of your ideal offshore team and how all members will contribute to your business’s goals.
  • Set expectations and establish clear key performance metrics (KPI) to point offshore team members in the right direction. 
  • Communicate with your offshore team. Schedule weekly check-ins to ensure everyone is on the right track.

Build An Offshore Team With KDCI Outsourcing

Freelancing and outsourcing are the best ways to build a dedicated offshore team. With the unstable nature of freelancing, US companies are now choosing outsourcing companies. BPO firms are safer and more reliable during high seasons, not to mention that they can consistently deliver stellar work under pressure.

Since KDCI Outsourcing’s founding in 2011, we have supported clients in building their businesses and producing results that yield a positive ROI, as evidenced in our case studies, design portfolios, and client success stories. We also employ experts who have experience working in the same industry as your business. 

Whether you need an outsourced accountant or a graphic designer, KDCI Outsourcing has got you covered with the right talent for the job. 

Need help with forming your dream offshore team? Send an inquiry on our Contact Us page, and our outsourcing expert will take care of the rest!

Read Now
Offshore Staffing
Inside the Metrics: How Fast-Growing U.S. Companies Are Scaling ARR and Market Share
Reap the rewards of scaling ARR and market share with our expert-approved tips, which include acquisition and outsourcing.

Scaling ARR and Market Share: How to Grow Your US Business Fast

Starting a business is a calling as it is a passion. When you have a business, your primary goal is to drive profitability and revenue. That’s why profit and revenue are kings. However, today’s business landscape is forcing US businesses to redefine growth metrics and approach success with the 21st-century customer in mind. 

Two metrics are central to maintaining competitive advantage: annual recurring revenue (ARR) and market share. While revenue growth is the underlying goal of scaling ARR and market share, this article takes on a more grounded approach to improving these metrics. 

Why Is Measuring ARR Important?

ARR is a metric that refers to the annual recurring revenue that a company — particularly a software-as-a-service or Saas business — earns from customers’ contracts or subscriptions. 

By measuring ARR, businesses can holistically assess their financial health and performance, allowing them to make strategic, data-driven decisions that further elevate their growth. Below are the benefits of measuring ARR.

1. Anticipate Revenue

Because ARR helps you forecast future revenue, you can create long-term financial plans and ensure effective resource allocation for hiring, marketing campaigns, and more.

2. Gain Investor Trust

ARR also serves as a benchmark for investor trust. The more financially stable your business is, the more it will attract investors, increasing the chances of future funding and acquisition.

3. Create Opportunities for Scalability

Scaling a business is an investment in itself. A good ARR — along with a realistic scalability plan that includes your risk management strategies — gives you the foundation and confidence to scale your business. 

4. Guide Decision-Making Processes

ARR offers data-driven insights that allow you to develop competitive pricing options, identify patterns in customer preferences, optimize product development, and expand to a high-value market — driving more revenue to your business.

Why Does Market Share Matter?

Market share refers to the percentage of your business’s sales relative to the sales of its industry over a given period. Let’s say your company has sold $50 million USD worth of clothing, and industry sales amounted to $200,000 USD for one year. Divide the company sales by industry sales, multiply the quotient by 100, and your market share is 25%. 

Essentially, market share shows the competitiveness and relevance of your business in relation to your industry competitors. Calculating and maintaining your market share in an ever-changing market opens a world of opportunities for your business. Here are reasons why it matters.

1. You Can Negotiate to Your Advantage

A large market share makes you the star of the industry you’re operating in, and this often comes with more leverage in business negotiations. By bargaining for lower prices and beneficial terms and conditions with your suppliers, your business will enjoy increased profitability and customer satisfaction.

2. You Can Invest In Other Business Ventures

Maintaining a large market share comes with the gift of consistent revenue streams. When your company has a stable revenue, you can confidently invest in research and scalability efforts that guarantee success.

3. Your Business Can Dominate An Industry

Market dominance is an achievement. When a business is at the top of the market share food chain, it can influence market dynamics and set unprecedented standards among its competitors. Companies with a solid foothold in the market also tend to be more reputable, making it easier to attract new customers and boost revenue.

How to Scale ARR and Market Share to Grow Your Business Fast 

Scaling ARR and market share is one of the best gifts you can give to your business. If you’re looking to gain a competitive edge in your industry without losing your loyal customers, here are five tried-and-tested tips on how to scale ARR and market share. 

1. Work On Your Business’s Product Market Fit

Scaling ARR and market share boils down to achieving product-market fit. Coined by Marc Andreesen, an American entrepreneur, product-market fit is a process that involves developing a product that caters not only to the needs of your target market, but also meets demand. In other words, even if you created the best product, no one will buy it if there is a lack of demand. 

Steve Blank, an American entrepreneur and writer of “The Four Steps to the Epiphany,” asserts that product market fit is when the product’s features meet (i.e. match) its customers’ needs. In summary, product market fit centers on creating products or services that satisfy your target market’s underserved needs and demands.

Netflix is a good example of product market fit. Before it was the popular streaming service we know today, Netflix was a DVD-by-mail service. As DVDs and DVD players become obsolete, Netflix pivoted to streaming and on-demand entertainment.  The company’s shift in media delivery shows that products must change with the times; otherwise, they’ll be left in the dust and fade into non-existence.

To achieve product market fit, you must have a deep knowledge and understanding of your target market, including demographics, pain points, and interests. Having a clear value proposition helps you create a product or service that is as unique as it is helpful for your customers. 

If your offerings receive a positive reception from your customers, or your business is earning a higher revenue, your product or service is a good product-market fit. As a business owner, you must always be open to feedback. This way, you can refine your products and services to ensure alignment with your customers’ needs.

2. Create More Pricing Options

As they say, “the more, the merrier.” When scaling ARR and market share, this phrase makes a lot of sense. By offering multiple pricing tiers, customers have more options to choose from. Not only does a multiple pricing tier model retain existing customers, but it also attracts new ones to your service — which, in turn, boosts revenue. 

Let’s take Netflix as an example. The streaming service features multiple subscription plans for every type of viewer. Netflix then introduced a non-ad-free subscription plan in its catalog. Because the pricing plan appealed to viewers with tight budgets, AdNews reported that it contributed to more than 45% of signups. As of this writing, Netflix’s ad-supported plan boasts a monthly active user base of 94 million.

Before launching a new pricing tier, study your target audience and their needs. What are their motivations? What kind of features are they looking for? These questions help you create pricing plans that meet their pain points and budget. 

Whether it’s yearly cost savings or exclusive features, each pricing plan must have unique perks that are perfectly crafted for every buyer. Too much of a good thing is bad, though. Shopify recommends limiting the number of pricing plans to just three (as much as possible). 

According to Shopify, having too many pricing tiers sets your future buyers up for analysis paralysis. At the end of the day, the success of your tiered pricing model is dependent on its execution. And a successful one can improve ARR and increase your company’s market share.

3. Build Customer Trust

Customer trust refers to an individual’s faith and confidence in a brand and its offerings. Like interpersonal relationships, trust is the bedrock of a solid customer relationship. Without trust, how can customers rely on your products? How can they trust your brand enough that it will deliver what is promised?

Data from PwC shows a perception mismatch between customers and business leaders. Most executives (90%) are confident that their customers trust their businesses; however, only a small percentage of customers (30%) trust businesses. They lose trust because of poor communication and a lack of accountability.

Thankfully, there are plenty of ways to build customer trust. Offering high-quality products and services is one thing, but nowadays, business owners must go beyond that. As customer relationships are pivotal to trust and growth, you can optimize your customer service channels for real-time and self-service support and approach customer queries with empathy and personalization in mind.

Most importantly, keep communication lines open and deliver on your promises with actions. Be accountable for your mistakes, as well. When you earn your customers’ trust, they’re more likely to make repeat purchases and spread positive feedback about your brand. As a result, this solidifies your reputation in the industry, spurring ARR growth and improving market share.

4. Acquire Brands

In business, growth comes in the form of an acquisition — a transaction that involves buying most, if not all, assets or shares of another company. Apart from increasing your market share, acquiring a brand or competitor can expand your customer base, enabling you to explore a new demographic for your existing (or new) products and services. 

Furthermore, acquisition also means increased access to a brand’s resources, including manpower and equipment. These resources enable your business to gain new perspectives, share best practices, boost profitability, and optimize day-to-day workflow. Plus, you can also bolster revenue by selling your competitor’s products and services. 

Let’s recall Microsoft’s acquisition of Activision Blizzard, which started back in 2022. For $68.7 billion USD, Microsoft intended to acquire Activision Blizzard with the goal of expanding its gaming market share. If successful, Microsoft would have access to Activision Blizzard’s beloved titles, such as “Call of Duty” and “Overwatch,” and become a key player in the gaming industry.

There was a regulatory tussle, but despite that, Microsoft successfully acquired Activision Blizzard in 2023. Thanks to the acquisition, Microsoft has added Activision Blizzard’s games to the Game Pass, promoted cloud gaming, and innovated accessibility options. The Microsoft-Activision Blizzard acquisition shows how purchasing a company positions your business for market share dominance and brand visibility. 

However, acquisition should be approached with caution. Do your research and see if your competitor shares similar values, culture, and objectives with your business. Failing to do so can lead to conflicts of interest and issues in resource allocation and management. You could also end up spending more on overhead, or worse, take on additional debt if the competitor has financial issues.

5. Outsource to A Service Provider

Outsourcing is your cheat code to scaling ARR and market share. This business strategy is a partnership between your business and the service provider to benefit from the latter’s services and manpower. 

While there are different outsourcing models, you’ll get the most bang for your buck with offshoring — a type of outsourcing model where you collaborate with a service provider from a distant country like the Philippines. 

Outsourcing is beneficial for US business owners like yourself. In a country where the average cost of hiring an American employee is $4,683 USD, hiring outsourced staff is a more financially sound option as salaries in the Philippines and other developing countries are lower than in the US. This means you can build larger offshore teams composed of members of various seniority levels.

The best part? Employees from top BPO companies possess college degrees and specialized skills in their respective industries — eliminating the need for training. Outsourced team members also have a knack for innovation, so any marketing collateral they produce is fresh, engaging, creative, and on-brand. This enhances brand visibility and makes products and services more appealing, driving up ARR.

Most importantly, outsourcing paves the way for global expansion. You can tap into your outsourcing partner’s market and seize emerging business opportunities, which enhances brand presence and increases your market share in the industry.

To ensure the success of your outsourcing efforts, carefully compare the pricing models of BPO companies. Cheaper doesn’t mean better, so choose a service provider that may give you the best return on investment (ROI). 

Scale ARR and Market Share With KDCI Outsourcing

At KDCI Outsourcing, we make scaling ARR and market share a less intimidating endeavor for growth-minded US businesses, from SMEs to SaaS companies. 

As a Philippine BPO company with more than a decade of experience in the outsourcing industry, we provide our clients with world-class offshore solutions for any industry — whether it’s real estate, accounting and finance, or creative and design.

With our advanced technologies, competent staff, and strong work ethic, KDCI Outsourcing helps your business innovate its branding and workflow and gain the confidence of future investors — all while slashing labor and overhead costs by 70%. 

Ready to scale your ARR and market share with our offshore team? Head on to our Contact Us page and fill out a short form. Once submitted, wait for our outsourcing expert to reach out to you!

Read Now
Offshore Staffing
KDCI vs Traditional Accounting Firms: Which Drives Better ROI for Growing US Businesses?
Between KDCI and accounting firms, find out in this article which one offers a higher ROI for U.S. businesses.

Businesses can’t survive without an accounting department. However, as regulations evolve and technology advances, the demand for accounting and finance services continues to rise. In the US, despite being a leader in the global financial industry, accounting is one of the most outsourced departments by businesses.

This article tackles the reasons why growing US businesses outsource accounting services to overseas service providers. We’ll also compare and highlight the differences between an outsourcing firm and a traditional accounting company to help you make the best decision for your business.

Why Do US Accounting Firms Outsource Accounting Services?

It’s a given that cost savings is the primary motivation for outsourcing accounting services. But if we take a closer look at America’s labor landscape and accounting industry, there’s really more to the story at hand. Below, let’s explore the motivation of US accounting firms in outsourcing accounting services. 

1. There Is A Shortage of Talent

According to the US Bureau of Labor Statistics, there are 7.2 million job openings in the US. Unfortunately, these positions are left unfulfilled due to the dwindling participation of Americans in the workforce. This results in more openings than there are workers. There are factors that are at play, though.  

America has an aging workforce. Adults aged 65 years and older stay employed to finance their retirement and maintain a sense of purpose in their aging years. Many (75%) Certified Public Accountants (CPA) have also retired, which means America is short of 340,000 accountants.

With younger Americans spending more time in school, aiming for post-graduate degrees, and birthing fewer kids, there’s not much supply of fresh talent to cover unfulfilled positions. Entrepreneurship is also an attractive venture for the youth. 

Although entrepreneurship is risky, the possibility of earning more in a business than in an office job makes it tougher for employers to draw in candidates into corporate accounting roles. Even if there are eager job seekers, some employers are unsatisfied as these candidates are not qualified enough or have higher salary expectations for the role.

2. There Is An Increase In Accounting Errors

Mistakes are a grave sin in the accounting and finance industry. In the US, accounting errors are skyrocketing. In fact, Ideagen Audit Analytics found that 140 public companies in the US needed to revise their financial statements due to accounting errors. 

This can be blamed on talent scarcity. While Americans are enrolling in school for longer, not everyone is interested in taking up accountancy. Heavy workloads, tight turnaround times, overworking, and burnout force accountants to quit their jobs and look for greener pastures. 

Because there is a shortage of qualified accountants, accounting firms are more likely to commit errors and inconsistencies in financial reports, potentially putting them under regulatory trouble. 

3. Accounting Regulations Become Complex Over Time

With accounting regulations becoming more complex, regulatory compliance can mean nothing but a struggle for companies, especially smaller ones. Regulatory changes entail not just complex calculations, but also foresight and critical thinking from the accountants themselves. 

Unfortunately, companies with limited financial resources for hiring skilled accountants and implementing cutting-edge accounting software are more susceptible to making accounting errors, resulting in inaccurate, low-quality financial reports that can spiral into legal penalties and loss of investor trust. 

4. The Cost of A New Hire Is Expensive

Did you know that the average cost of hiring in the US is a staggering $4,683 USD? Of course, hiring costs vary according to role and experience level. According to Indeed, CPAs earn an average annual salary of $91,957 USD, with the highest sitting at $144,778 USD. Junior accountants earn $57,155 USD, while senior accountants earn $83,840 USD every year. 

It’s not only employees that are expensive, but also the cost of training new hires. That’s why it’s no surprise that companies can spend around $1,207 USD to $1,512 USD for every newly hired employee. Employee benefits and overhead for maintaining an in-house accounting team also add up to the cost, setting accounting firms back tens of thousands of dollars (or more) each year.

KDCI Outsourcing Vs. US Accounting Firms: Where to Outsource Accounting Services?

For growing businesses, choosing between outsourcing and partnering with a traditional accounting firm is a decision that can make or break their return on investment (ROI). To help you make an informed decision, this section compares KDCI’s offshore accounting model with accounting companies based on cost efficiency, scalability, and other factors.

1. Cost Efficiency

US Accounting Firms

While you have the advantage of working closely with local accountants, they require more financial investment due to the cost of labor, overhead, benefits, employee training, and turnover costs. Additionally, US accounting companies charge higher for bookkeeping, tax filing, auditing, and other accounting services.  

KDCI Outsourcing

KDCI Outsourcing offers a suite of cost-effective outsourced accounting services for small and medium-sized enterprises (SME), ranging from financial reporting to credit control. Clients share their needs and pain points with KDCI’s outsourcing expert, who will create a tailored offshore outsourcing solution that best fits their budget and requirements. 

Unlike traditional accounting firms, KDCI Outsourcing prides itself on cutting costs by 70%. Labor is cheaper in the Philippines, with Filipino CPAs earning $10,433 USD each year. Compare this with the average annual salary of a CPA in the US ($91,957 USD), and it’s a difference of $81,524 USD! 

That means you can build a whole outsourced accounting department without sacrificing your budget. What’s more, overhead and training costs are shouldered by KDCI Outsourcing, so you’ll only be paying for the company’s service fee, employee rates, and other relevant costs.

2. Operational Efficiency and Time Zone Advantage

US Accounting Firms

Time zone is the biggest advantage of a traditional accounting firm. In-house accountants can easily coordinate with their colleagues in case of issues. Unfortunately, accountants in traditional accounting firms juggle multiple tasks, leading to delays, financial errors, and inefficiencies in workflow. 

KDCI Outsourcing

KDCI Outsourcing is based in the Philippines. While a 12 to 13-hour difference may seem like a disadvantage, this offshore accounting firm can make American time zones work in its favor.  For starters, BPO companies in the Philippines are open 24/7, including holidays. Thus, they can provide round-the-clock offshore services to American clients. 

KDCI Outsourcing’s offshore accountants also work the graveyard shift, so they can seamlessly coordinate with your in-house accounting department. When you outsource accounting and bookkeeping to the Philippines, you get an extra pair of hands that can help minimize the workload and streamline the day-to-day financial operations of your in-house accounting team. 

Not only does an outsourced accounting department improve operational efficiency, it also helps maintain data integrity and accuracy, as in-house accountants have more mental space for high-quality, error-free work.

3. Access to Talent

US Accounting Firms

For local accounting firms, hiring is confined to a limited geographical area. With America’s exorbitant hiring costs, shortage of CPAs, and candidates’ high salary expectations, companies struggle to attract talent that best fits their requirements. 

These accounting firms may not even accept new clients as they are already short-staffed and overwhelmed, causing you to miss important deadlines during busy seasons. 

KDCI Outsourcing

The Philippines is abundant with fresh talent, producing around 500,000 college graduates annually. The country is also said to have 200,000 registered CPAs. KDCI Outsourcing employs college-educated accounting professionals with ample experience in bookkeeping, accounts payable processing, and many other accounting operations. 

The company boasts a rigorous hiring process, backed by a team of expert recruiters who can thoroughly vet candidates according to your preferred requirements. As a leading accounting BPO firm, KDCI Outsourcing endeavors to empower and support your in-house team with competent accountants who can drive efficiency and ensure compliance. 

4. Access to Technology

US Accounting Firms

US accounting firms have the technology to perform accounting processes. When it comes to upgrading or experimenting with new technology, it’s a whole new league of time and monetary investment. As in-house accountants learn the ropes of new accounting software, they can make mistakes and compromise workflow efficiency. 

KDCI Outsourcing

As a premier BPO accounting company, KDCI Outsourcing has the right financial services software for any accounting need. Need to shift to a new accounting program? This Philippine accounting firm can source or provide you with offshore accountants who are trained and proficient in a particular software, so you don’t have to invest in in-house professional development programs.

KDCI Outsourcing can also find Filipino accountants who are proficient in Quickbooks, Zoho Books, or any software your accounting department uses. This way, you don’t have to worry about disruptions in productivity caused by training new hires. With the company leveraging automation tools, manual accounting tasks such as expense reporting and accounts payable can be accomplished with little risk of human error. 

5. Scalability

US Accounting Firms

Busy seasons — especially tax filing season — are a stressful period for accountants, who are overwhelmed with workload and tight deadlines on top of complex regulations, stress, and long working hours. 

Although an increase in workload calls for scalability, local accounting firms are more difficult to scale. This is because hiring a new full-time employee is expensive, and internal hires may not possess the skills and technical acumen for high-level accounting tasks. 

KDCI Outsourcing

KDCI’s outsourcing solutions can help you scale without ballooning costs. Thanks to the Philippines’ lower cost of labor, you can scale your accounting department according to demand and seasonality. During tax and audit seasons, for example, you can hire more outsourced accountants to help your accounting department prioritize tasks, meet deadlines, and optimize processes.

6. Regulatory Compliance

US Accounting Firms

Traditional accounting firms are familiar with accounting standards and regulations. Despite their knowledge, the lack of adequately trained manpower exacerbates the struggle of accounting companies in avoiding reissues and keeping up with complex regulatory changes. 

KDCI Outsourcing

Philippine accounting firms like KDCI Outsourcing are well-versed in US accounting standards and regulations. As a company that places value in offering world-class accounting services, KDCI Outsourcing’s accounting experts keep abreast of standard and regulatory changes, making it easier to create accurate and compliant financial statements. 

The Verdict: KDCI Outsourcing Wins

When growing US businesses outsource accounting services, they can enjoy the same benefits they get from a traditional accounting firm, albeit at lower costs. Below is a summary of the benefits of collaborating with KDCI Outsourcing: 

  • Cost efficiency: KDCI Outsourcing shoulders overhead costs. You can also hire more accountants as salaries are lower than in the US.
  • Operational Efficiency and Time Zone Advantage: KDCI Outsourcing’s offshore accounting team is built for efficiency as they work the night shift to deliver real-time accounting services.
  • Access to Talent: Whether it’s a bookkeeper or a general ledger accountant, KDCI Outsourcing sources the best candidates for your needs. 
  • Access to Technology: KDCI Outsourcing has automation tools and cutting-edge accounting and finance programs to support any accounting process. 
  • Scalability: KDCI Outsourcing helps you build scalable teams to meet evolving accounting needs.
  • Regulatory Compliance: KDCI Outsourcing’s accountants are meticulous, calculating and interpreting complex financial data correctly to ensure compliance with regulatory bodies.

Whether it’s cost efficiency or talent accessibility, it’s clear that outsourced accounting services take the cake and drive the most ROI in terms of cost, talent accessibility, and efficiency. As growing businesses produce compliant, error-free financial reports, they can build their reputation and gain the trust of investors.  

Outsource Accounting Services to KDCI Today

US businesses that outsource accounting services enjoy higher cost savings, more accurate financial reporting, and faster turnaround times. Outsourcing solutions, though promising, carries an inherent risk. Working with the wrong service provider can be a costly investment, one that creates a negative ROI. 

But with the right one? Your growing business will get its much-deserved ROI. So, take a leap of faith and start collaborating with KDCI Outsourcing. Our high-quality offshore accounting services are designed to streamline operations, bolster productivity, and meet our clients’ highest standards. In addition to accounting and finance, we also offer outsourced professional services in the creative, real estate, and IT industries.

Get in touch with KDCI Outsourcing today so we can up your accounting game with the help of our ever-reliable offshore accounting team!

Read Now
Offshore Staffing
Beyond the Bottom Line: How US Companies Are Redefining Growth Metrics
Discover how US companies are redefining growth by moving beyond revenue. Learn the key metrics shaping long-term success — from efficiency to employee retention.

What truly defines success in today’s business world — profit, people, or purpose?

For decades, revenue growth and profit margins were the north stars of business performance. But times have changed. In an era shaped by remote work, rising customer expectations, and unpredictable markets, US companies are expanding their definition of success — and rethinking what growth really means.

More businesses are now shifting their focus from purely financial metrics to more holistic indicators of performance. These new growth metrics reflect the evolving demands of customers, employees, investors, and society — measuring not just what a company earns, but how it operates and why it matters.

Why Traditional Growth Metrics Are No Longer Enough

Revenue still matters — but it’s no longer the whole story. A company can be financially strong on paper and still face significant internal issues, such as high employee turnover, burnout, inefficient processes, or poor customer retention.

According to a McKinsey study, companies that incorporate non-financial metrics into their performance reviews are better equipped for long-term success. These organizations are not only more adaptable — they’re also more likely to outperform competitors in profitability and innovation over time.

Simply put, tracking only the bottom line leaves blind spots. Today’s leading companies are filling those gaps with new performance indicators that offer a clearer view of true, sustainable growth.

New Growth Metrics: What Modern Companies Are Measuring

Here are five key performance areas that forward-thinking US businesses are now prioritizing:

1. Employee Retention and Engagement

According to Gallup, a growing number of companies recognize that people are their most valuable asset — and that engagement directly impacts performance. High attrition rates signal deeper organizational issues that can stall growth.

To address this, businesses are investing in:

  • Wellness programs
  • Flexible work policies
  • Career development pathways
  • Internal surveys and pulse checks

They’re also tracking retention rates and employee satisfaction scores to ensure that their teams remain motivated and aligned.

2. Customer Lifetime Value (CLV)

Gone are the days when companies only focused on customer acquisition. Now, it's about how long customers stay, how much they spend over time, and how satisfied they are with the experience.

CLV reflects the depth of customer relationships, making it a powerful growth metric. High CLV signals customer loyalty, strong service delivery, and well-executed retention strategies.

3. Operational Efficiency

Revenue means little if your operations are burning through cash or causing employee fatigue. Modern companies are now focusing on:

  • Process automation
  • Lean workflow
  • Smart delegation of tasks

Many are turning to outsourcing for non-core business functions to reduce internal friction and boost scalability — optimizing both cost and performance.

4. Innovation Velocity

Speed matters in a digital-first economy. Companies are measuring how quickly they can take an idea to market, adapt to trends, and roll out new features or services.

This includes tracking:

  • Product development timelines
  • R&D output
  • Adoption rates of new initiatives

By measuring innovation velocity, companies can evaluate how agile they truly are in staying ahead of competitors and evolving market demands.

5. Scalability of Teams

It’s not just about growing your headcount — it’s about building a workforce that’s flexible, scalable, and efficient.

Companies are asking:

  • Can we scale without compromising quality?
  • Are we able to downsize responsibly when needed?
  • Do we have the right systems and partners in place?

Many are addressing this by working with offshore teams, allowing them to expand operations without ballooning costs.

What’s Driving the Shift in Growth Metrics?

The evolution of success measurement didn’t happen overnight. Several key factors have accelerated the change:

  • Remote and hybrid work models have placed greater emphasis on team engagement, output, and culture.
  • Customer expectations have risen sharply — they want personalization, speed, and seamless experiences.
  • Sustainability and social responsibility are no longer optional. Companies are expected to show measurable impact.
  • Cost control has become critical in uncertain economic climates — especially for startups and mid-sized firms.

As a result, businesses are recognizing that financial performance is a lagging indicator. Today, they need real-time insights that guide smarter decisions.

From Metrics to Mindset: A Culture of Holistic Growth

Redefining growth requires more than changing what you track — it demands a mindset shift across the entire organization.

This involves:

  • Aligning each department with updated KPIs
  • Creating data visibility across functions
  • Empowering teams with tools that track impact, not just activity

It’s no longer enough to grow fast. Companies must grow smart — sustainably, ethically, and collaboratively. Leaders who adopt this mindset are the ones building future-proof organizations.

KDCI’s Role in Redefining Growth for US Companies

At KDCI Outsourcing, we understand that modern businesses need more than just staffing — they need growth-enabling partners.

That’s why we offer offshore solutions that are:

  • Aligned with your KPIs
  • Built to scale with your business
  • Focused on performance, quality, and long-term value

Our teams support key metrics like customer satisfaction, service-level efficiency, and team scalability — enabling US companies to build future-ready operations without overextending internal resources.

Whether you're in e-commerce, SaaS, design, or support — our approach goes far beyond the bottom line.

Growth is More Than Just Revenue

Success today is no longer measured solely by financial performance. It’s reflected in employee well-being, customer loyalty, operational agility, and innovation speed.

US companies that embrace new growth metrics are better positioned to adapt, scale, and lead — even in volatile markets.

Let KDCI Help You Redefine Success

Ready to build a future-proof growth strategy?
Partner with KDCI Outsourcing to scale your operations and align your team with modern performance metrics.

 Contact our team today to get started!

Read Now
Offshore Staffing
Global Talent vs Local Hiring: How US Companies are Optimizing their FTEs
Discover how US companies are optimizing FTEs by balancing global talent and local hiring. Learn how a hybrid workforce model can cut costs and boost scalability.

In today’s competitive business landscape, hiring decisions aren’t just about filling roles — they’re about shaping the future of a company. Many fast-growing organizations find themselves at a crossroads: continue relying on traditional local hiring, or explore the potential of global talent to build a flexible and scalable workforce. The right balance can unlock growth, reduce overhead, and increase operational agility.

Hiring the right talent is essential to a company’s long-term success. But in today’s globalized economy, US companies are facing a critical decision: should they continue investing in expensive local hires, or tap into global talent pools that offer cost-effective hiring solutions and specialized skills?

As more businesses prioritize workforce optimization, the way they build their teams is evolving — and full-time equivalents (FTEs) are at the center of this shift. From hybrid workforce models to global hiring strategies, companies are reshaping how they scale.

Why the Traditional Hiring Model is Being Reconsidered

For years, local hiring has been the go-to method for filling roles. However, this traditional model comes with significant overhead — from recruitment costs and benefits to limited scalability and rigid team structures.

According to the Society for Human Resource Management, the average cost of hiring a new employee in the US can exceed $4,000, not including training time and lost productivity. These figures are pushing many businesses to rethink how they manage their full-time equivalents (FTEs).

That’s where global talent enters the picture.

Global Talent: A Cost-Effective and Scalable Solution

Hiring global talent isn’t just a trend — it’s becoming a core part of the modern talent acquisition strategy. Whether through outsourcing or direct remote staffing, companies are leveraging offshore talent to optimize FTEs while boosting productivity.

In a Deloitte survey, 42% of executives cited better talent access as the main reason for outsourcing, followed by cost savings and improved performance.

Here’s why global hiring strategies are gaining traction:

1. Lower labor costs

Hiring offshore talent in regions like the Philippines or India significantly reduces overall hiring costs.

2. Scalable workforce

Easily scale your team up or down based on demand.

3. Specialized skillsets

Fill technical and support roles with experienced global professionals.

Local Hiring Still Has Its Place

Despite the appeal of global talent, local hiring continues to play a vital role — especially for leadership, creative, or client-facing positions.

Advantages of local hiring include:

  • Cultural alignment and communication fluency
  • In-person collaboration and management
  • Market familiarity and compliance knowledge

For most companies, the solution isn’t “either/or” — it’s a hybrid workforce model. Strategic use of both global and local hiring allows companies to play to each approach’s strengths while optimizing FTEs for efficiency.

How US Companies Are Balancing Global and Local Talent

Today’s fast-scaling businesses are redefining their FTE optimization strategies. By leveraging remote staffing solutions and maintaining a core local team, they are building agile, flexible, and highly productive organizations.

According to Harvard Business Review, hybrid teams are the future. They allow businesses to expand their capabilities, serve global markets, and reduce overhead without sacrificing team cohesion.

Key Considerations for Building a Global FTE Team

It is an inspiration in a business to know that you have a great workforce. So before transitioning to a global hiring model, here are essential steps to optimize your workforce:

1. Define Core vs Non-Core Roles

Identify which roles must stay in-house and which can be outsourced through offshore outsourcing or remote staffing.

2. Prioritize Communication & Training

Effective onboarding and clear communication processes are key to managing offshore team members across time zones.

3. Choose the Right Partner

Partnering with a trusted BPO provider like KDCI Outsourcing ensures that your offshore team is aligned with your goals and company culture.

Real-World Example: Scaling Support with Offshore Talent

Let’s say your US-based customer service team is overextended. Hiring more local staff might not be financially viable. But with offshore outsourcing, you can:

  • Provide 24/7 coverage
  • Save on operational costs
  • Access trained, English-speaking professionals

This global talent solution empowers your local team to focus on strategic tasks while your offshore team handles daily inquiries — improving both efficiency and employee well-being.

FTE Optimize, Don’t Compromise!

In the debate of global talent vs local hiring, the most successful companies understand that it’s not a matter of choosing one over the other. It’s about FTE optimization — building a team that’s flexible, cost-efficient, and built for growth.

By blending local hires for high-impact leadership with offshore outsourcing for scalable operations, businesses can position themselves for long-term success.

Optimize Your Workforce with KDCI Outsourcing

At KDCI, we help companies unlock the full potential of global talent. Whether you’re building an offshore team or looking for remote staffing solutions, we’ll help you create a workforce that’s built to scale.

Contact our outsourcing experts today and start optimizing your FTEs with KDCI Outsourcing.

Read Now
Offshore Staffing
Scaling A Business In the US: Overcoming Growth Challenges Like A Pro
Once you apply our scaling tips, scaling a business will be less of an intimidating business venture for you and your team.

Expanding and scaling a business is as risky as they are rewarding. MIT Sloan Management Review finds that the scaling of business endeavor ideation and incubation was only a success among a small percentage of companies (16%). Meanwhile, Igor Buinevici and the Economic Times reported a different finding in which only 8% of organizations were successful in scaling (versus 92% of organizations that failed).

Don’t let these figures stop you from scaling. With ample preparation, a concrete business plan, and organizational alignment, you can scale your business to new heights.

5 Signs You Need to Scale Your Business

Scaling a business is a calculated risk. As a business owner, it’s important to weigh the pros and cons of scalability before committing to this initiative. While scaling a business improves customer satisfaction and boosts revenue, scaling without sufficient preparation can cost your business. 

In a journal article by Saerom (Ronnie) Lee and J. Daniel Kim, the chance of failure rises by 20% to 40% for early-scaling US startup businesses. Scaling within a year (or even six months) of establishing a business is a double-edged sword; it can curb imitation, but it can also lead to market mismatch, poorer brand reputation, and less time for experimentation. 

In this case, scaling slower is much more beneficial, but not too slow to the point that you miss out on new market opportunities. How do you know if it’s the right time to scale? Take a look at these five signs. 

1. Your Team Struggles to Keep Up With Demand

Increased customer demand for your products and services is a good sign of success. After all, your team has done the hard work of tapping into the needs of your target audience and differentiating your offerings from competitors. However, increased demand comes with the inevitable burden of heavier workloads.

According to the American Psychological Association, half of employees (50%) in the US cited heavy workload as one of the causes of stress in the workplace. If your team is spending the work week rendering overtime or crunching tasks to meet deadlines or targets, it’s a clear sign you need to scale your business through hiring to keep up with the increase in workload. 

2. Employees Are Leaving

Employees (63%) leave because there’s no room for career growth. By quitting their jobs, they can negotiate for a higher salary, move out of their comfort zones, and blossom into their careers. If your company’s turnover rates are higher than usual, scaling your business can help retain high-performing talent and promote sustainable growth. 

3. Your Business Is Meeting Goals

Success doesn’t stop at achieving goals and metrics. If you want to drive operational excellence and business growth, employing a mindset of continuous improvement is a must. This could mean scaling your business to ensure exponential growth and enhanced customer satisfaction. In business, one must not settle for complacency.

4. You Have A Concrete Business Plan for Scalability

You may have the right people and systems to achieve scalability, but having a realistic business plan makes the difference between unexpected costs and a successful scaling endeavor. It helps you stay grounded and accountable for your decisions. So when crafting a business plan, make sure to include concrete ways of scaling your business. 

5. Your Business Model Has Been A Success

Much like a business plan, a business model is a foundational staple of any company. Business models typically feature your target market, value proposition, metrics, and cost structure. 

If your business model has not gained traction yet — or lacks focus and clarity — it’s best to hold off on scaling efforts to avoid risks. But if you have a successful, flexible, and profitable business model, it’s a sign that you can scale your business. 

5 Challenges of Scaling A Business

Growth is mesmerizing, but it also blinds business owners. Those who don’t have foresight find themselves in a situation where they are unprepared and ill-equipped to handle the rigors of scaling a business. If scalability is on your radar, take a look at the potential obstacles to business growth you can potentially encounter.

1. Finding the Right Time to Scale

Timing is everything. As discussed earlier, scaling your business too soon sets you up for an increased chance of failure. This is when timing works against you. Before scaling, ask yourself:

  • Are goals and targets being consistently met?
  • Are there unmet customer needs?
  • Has there been an increase in employee turnover?
  • Does my organization have a scalable business model?

Your answers can help you find the right timing to scale your business with minimal financial risks. 

2. Needing Specialized Knowledge and Skills

Growth and scalability require overcoming a learning curve. Unfortunately, with the talent shortage and high cost of hiring in the US, finding the right people with the specialized knowledge and skills is like finding a needle in a haystack. However, this can be addressed by outsourcing. 

3. Focusing On Employee Quantity Rather Than Quality

Increasing your headcount makes the workload more manageable. But don’t fall into the trap of solely hiring for quantity. Employees are your biggest assets, and one wrong hire can hinder your business’s scalability. 

Smart business owners know that scaling initiatives require the right people for the job. While there’s merit in hiring more in-house or outsourced employees, assessing their qualifications, work experience, and skills primes your scaling initiatives for success. 

4. Having Outdated Technology

Outdated technology can create inefficiencies in workflow, lower productivity, and put your business at risk of cyberattacks. Investing in new technologies not only helps maintain optimal productivity, it also protects your infrastructure and customers’ data from online threats.  

5. Adjusting to Change

Change can throw teams off guard. It’s recommended to align team members and communicate how each individual’s role and skills contribute to the success of your scaling efforts. Most of all, give your team members a grace period to adjust to the changes and challenges brought by scaling. 

Customer needs change as well. In the case of Slack, the company leveraged feedback from app users so it could refine its workplace communication platform with customers’ ever-changing needs in mind. This example shows how adapting to changes can lead to growth and scalability.

How to Scale Your Business

Scaling a business can be daunting, overwhelming even. That’s why we put in the work and listed seven scaling business essentials you need to prepare for the next chapter of your organization’s growth.

1. Create A Scalability Plan

Failing to plan is recklessness in its purest form. Even if you own a startup, planning ahead helps you anticipate opportunities and threats your business can face as it grows. Make sure your scalability plan includes the following components: 

  • Target audience
  • Products and services
  • Budget and projected revenue
  • Short- and long-term goals
  • Concrete steps in achieving said goals
  • Strategies for customer retention and acquisition

Keep things realistic (but challenging), so everyone can meet the goals and targets outlined in the plan. 

2. Avoid Losing Focus

Set your sights on your goals and targets. Focus on what your business does best and avoid releasing new products or services without doing deep market research. Failing to conduct market research can result in a poor product market fit that doesn’t target your audience’s needs or attract a new customer base. 

When scaling a business, avoid wasting resources on “investments” that don’t serve your customers or contribute to the fruition of your growth strategy. 

3. Work With A Consultant

Business owners need guidance, too. A mentor or consultant can provide sharp, objective insights and opinions without imposing them on you. However, make sure they are the right fit for your company. This means the mentor or consultant has to have the industry knowledge and experience, so they can better help you scale your business.

4. Grow Your Network

There’s power in networking. In a global study involving 10,500 startup companies, Startup Genome found that founders with over 41 local connections to other founders have a scaleup rate of 6.9%. The scaleup rate decreases if the founder has fewer connections, as exemplified below:

  • 21-40 connections (4.5%)
  • 11-20 connections (4.2%)
  • 0-10 connections (3.5%)

Networking and developing high-quality relationships with fellow founders (or a professional in your industry) give you access to new insights and resources or provide you with opportunities that can make a huge difference in your scaling initiatives. These connections can be potential mentors, too! Hence, always take the “it’s who you know” adage to heart.

5. Align Everyone In the Organization

While scaling initiatives involve change, it doesn’t mean letting go of core values. Core values are not just for show; they’re your organization’s facade and north star. They keep everyone grounded and create a strong company culture of unity between leaders and employees. Core values also aid in promoting employee retention.

To align employees with company values, start by leading by example so everyone can put these values into practice. Rewarding aligned behaviors also encourages employees to embody your organization’s values for the long haul. Most importantly, integrate core values with scalability efforts and outcomes, enabling employees to gain a sense of purpose and satisfaction when meeting targets.

6. Hire the Right People

As you expand your team, hiring the right people becomes a strategic game. Skills and credentials are important, but their shared values and mindset can make a huge difference in hiring decisions. In Qualtrics’ research involving US and UK employees, organizations that don’t demonstrate the respondents’ (46%) personal values can prompt the latter to quit. 

Before going on a hiring spree, take the time to understand what your organization is looking for in a candidate to minimize turnover. Think long-term because you’ll want new employees who align with the present and future of your scalability initiatives. Your HR department can filter candidates by asking a mix of standard, behavioral, and situational questions.

Here are some examples:

  • How did you find our company?
  • How do you handle conflicts at work?
  • Tell me about the time when you needed to handle multiple/heavier workloads?
  • What would you do if an irate customer confronted you?

7. Manage Your Cash Flow

Scaling your business can make cash flow management trickier than ever before. The solution? Take it by the reins. Start tracking assets, expenses, income, and liabilities using automated cash flow tools. These tools provide a forecast of your cash flow, analyze payment behavior, and predict financial uncertainties, helping you manage your cash flow and prepare appropriate contingency plans, like building a cash reserve. 

Balance sheets and other documents also illuminate your business’s financial health. Review them frequently so you can identify risks and areas of growth as early as possible. Just as it is important to expand to new markets and diversify revenue streams, it is likewise important to control expenses through outsourcing and technology.

8. Outsource Job Functions

Not every job function needs to be done in-house. For business leaders, outsourcing is a great way to expedite non-critical work. In a study by Deloitte involving over a hundred executives around the world, the respondents’ rationale for outsourcing was:

  • Better talent access (42%)
  • Increase in customer demand (35%)
  • Optimizing expenses (34%)
  • Better service performance or quality (33%)
  • Practice the global delivery model (33%)
  • Improved alignment regarding operational models and business strategy (27%)
  • A desire for a talent model that’s both scalable and flexible (23%)

This data shows the many advantages of outsourcing. Outsourced teams, in general, are cheaper, so you can expand or downsize your team according to demand and scale without ballooning costs. With service providers handling employee hiring and training, they can source the best candidates, train them in your processes, and prepare them for onboarding in your team.

From cloud-based software to AI and automation, BPO companies boast cutting-edge technologies for whatever need. This speeds up tech innovation and adaptation in your organization while optimizing costs.

The best part about outsourcing is the ability to build a hybrid outsourcing team, allowing you to get the best of both worlds of your in-house and outsourced teams — that is, local knowledge for the former and specialized skills and new perspectives for the latter. This fosters better collaboration between both teams.

It’s important to note that outsourcing can be done within your home country (onshore), a neighboring country (nearshore), or a faraway country (offshore). In terms of cost effectiveness, nearshoring and offshoring are your best bets. 

If you decide to offshore outsource, though, you’ll be working with BPO companies in countries with a big time zone difference. That means if you partner with a Philippine-based BPO company, your service provider’s time zone will be 12 to 13 hours ahead of yours. However, time zone differences should not be a hindrance to your partnership. 

Scale Your Business Operations With KDCI Outsourcing

Scaling a business is a strategic move that, when executed properly, propels your business to exponential growth. If you’re ready to take the next step, start outsourcing your job functions to an outsourcing company. 

At KDCI Outsourcing, we offer scalable offshore outsourcing solutions to meet your organization’s growing needs. Carefully vetted by our hiring team, our offshore staff have the expertise to provide world-class outsourcing services that support your organization’s scaling goals and long-term growth. From graphic design to e-commerce, our services cater to various industries. 

Build your offshore Filipino team today by getting in touch with KDCI’s outsourcing experts!

Read Now
Offshore Staffing
Inside the Minds of Modern COOs: What’s Really Driving Operational Excellence
From analytics to outsourcing, take a deep dive into the strategies COOs use in promoting operational excellence in their organizations.

Chief operating officer, or COO, is not just a title for bragging rights. It is a role befitting someone who’s a great leader, communicator, and team builder. According to LinkedIn, a COO is an organization’s second in command; they work with the chief executive officer (CEO) to steer the company to success. If CEOs are the planners and goal setters, COOs are the executors of these plans and goals, implementing them throughout the organization. 

For COOs and business leaders, operational excellence is a philosophy as it is a mindset and strategy. Whether you’re an aspiring COO or an employee, this article covers everything about operational excellence, from core principles to the engines behind achieving it.

What Is A COO?

A COO is a C-suite executive in charge of overseeing a company’s operations and achieving business goals through well-formulated strategies. They also report to the chief financial officer (CFO) and CEO. 

Though job responsibilities may vary between industries and companies, below are the usual day-to-day tasks of a COO.

1. Manage Departments

From human resources to marketing, COOs manage various departments to ensure each one maintains operational excellence.

2. Collaborate With Department Leaders and Stakeholders

COOs boast strong leadership and interpersonal relationship skills. These skills allow them to collaborate, lead, and guide department leads in fostering camaraderie between teams. COOs also form strategic relationships with stakeholders and directors to ensure success.

3. Monitor and Improve Performance

COOs analyze data and key performance indicators (KPI) to improve the company’s operational excellence with well-informed, data-driven decisions.

4. Execute Plans and Strategies

If the CEO is a leader of vision, then the COO is a leader of action. The COO breaks a company’s plans and strategies into concrete steps to achieve short- and long-term business goals.

What Is Operational Excellence?

Operational excellence and operational efficiency may sound synonymous, but every business leader — especially the COO — knows the difference between the two. Operational excellence is a strategy that aims to gain a competitive advantage and foster continuous growth, improvement, and customer value. 

However, don’t confuse operational excellence with operational efficiency. Operational efficiency aims to improve productivity and optimize costs and resources without compromising the quality of services. 

Unlike operational excellence, which focuses on continuous improvement and competitive advantage, operational efficiency centers on balancing quality with cost-effectiveness.

What Are the Principles of Operational Excellence?

The Shingo Model by Dr. Shigeo Shingo lays the groundwork for achieving operational excellence. This operational framework contains five components: “Guiding Principles,” “Systems,” “Tools,” “Results,” and “Culture.” 

In this article, we will only tackle the Shingo Model’s 10 guiding principles, which are categorized into four dimensions: “Cultural Enablers,” “Continuous Process Improvement,” “Enterprise Alignment,” and “Results.” 

Cultural Enablers

1. Lead With Humility

Business leaders are expected to exhibit humility. They are open to change and new learnings, ask for feedback, and listen to other people’s thoughts, creating a culture of respect and trust between leaders and employees.

2. Respect Every Individual

While earning and giving respect are important, the Shingo Model asserts that respect must also be felt by each individual in the company. A workplace built on mutual respect helps create a safe, empathic, and communicative work environment where every employee feels valued. 

Continuous Process Improvement

1. Focus On Process

This principle shifts the cause of problems from the employees to the process itself, allowing people to use mistakes as a catalyst for growth and improvement. 

2. Embrace Scientific Thinking

Leaders need to think like scientists. Embracing scientific thinking entails continuous observation, hypothesis, experimentation, analysis, and learning to improve processes.

3. Flow and Pull Value 

This principle doesn’t subscribe to the overproduction of goods. Business leaders must ensure that the production of goods is equal to the demand. 

4. Assure Quality At the Source

Businesses must detect and reject defective products right away. The organization’s operational process must be continuously refined to avoid defects in the future.

5. Seek Perfection

Improvement is everywhere, a never-ending journey that businesses undertake. This builds a mindset of continuous improvement. 

Enterprise Alignment

1. Create Constancy of Purpose

While change is inevitable, a business must have guiding principles and direction to ensure organizational alignment.

2. Think Systemically

Business leaders analyze the organization as a whole, including the interconnectedness of relationships, to guide improvements and decision making. 

Results

1. Create Value for the Customer

Businesses must deliver customer value across the board, from meeting customers’ needs to creating high-quality goods and services. 

How Can COOs Drive Operational Excellence?

It’s easy to be blinded by the title of “COO.” More than a prestigious title, it is a role that demands knowledge, action, accountability, compassion, and humility. That being said, here are ways to promote operational excellence in your organization. 

1. Lead With Humility

Leadership is often associated with power and prestige. It is not about ruling with an iron fist and making people obey you without question. Good leaders understand that leadership takes hard work and humility. But here’s the million-dollar question: How does a COO lead with humility while commanding respect?

First and foremost, COOs must be role models. They are expected to exhibit behaviors that mirror the organization’s values. Second, COOs must remain respectful to employees. This sets the tone for a positive work environment for everyone. Finally, COOs must be receptive to feedback, so they know what needs to be worked on. 

2. Align Values

While employees want that sweet paycheck, there’s more to work and career than money. In an interview with McKinsey & Company’s “McKinsey Talks Operations” podcast, Joris Wijpkema, McKinsey Chicago’s partner, asserted they “are looking for purpose.” 

Cultivating this sense of purpose goes beyond reiterating the organization’s mission, vision, and core values; it’s about understanding the “whys” and establishing a sense of connection between employees and the organization.

COOs know that actions speak louder than words. When they lead by example, employees can get on board with the company’s values, mission, and vision and understand the rationale for demonstrating them in the workplace. This promotes employee empowerment and builds a purpose-driven culture, which helps retain individuals or attract new ones.

3. Encourage Continuous Improvement

There’s a reason why the quote “there’s always room for improvement” holds true not just in daily life, but in business as well. Building a culture of continuous improvement helps foster a growth mindset and love for lifelong learning. This means acknowledging and learning from mistakes to improve. 

Just as employees can learn from COOs, the latter can also learn from their employees. Beyond asking for feedback, COOs can encourage employees to speak up and share their thoughts, so both parties can gain new insights, promote growth, and strive for operational improvement in the organization.

4. Value and Empower Employees

Employees want to feel valued and empowered, and the best way to do this is to practice active listening and ensure their thoughts don’t fall on deaf ears. By actively listening, you can build trust and establish a deeper connection with your employees, which helps establish a safe, inclusive environment where open dialogue between both parties is encouraged. 

In addition, investing in professional development training empowers employees to grow and succeed in their roles. Likewise, celebrating milestones and achievements makes staff members feel valued for their performance and contributions to organizational improvement. 

5. Build An Effective and Scalable Team

COOs want a high-performing team with competent members. High-performing teams are talented and goal-oriented, able to accept constructive criticism and set high standards for themselves and their work.  

To build an effective, high-performing team, COOs must ensure that all members understand their role to develop accountability and ownership. Knowing the strengths and weaknesses of each individual also helps enhance teamwork and detect and close skill gaps, thus optimizing performance and workflow. Most importantly, team dynamics must be grounded in mutual trust and respect, which can be achieved through dialogue in a psychologically safe environment. 

As workload increases, scaling teams without ballooning costs becomes a paramount strategy for achieving operational excellence. COOs can bring in more team members (but make sure they’re qualified) while equally redistributing the workload and minimizing inefficiencies on the production floor. 

Because scaling is an ongoing process, COOs must continuously aim for process optimization and excellence.

6. Take Advantage of Data Analytics

Data is a staple of the modern business world and the key to working smarter. COOs who leverage data analytics set their organizations up for a competitive advantage in the market. With the power of data analytics at their fingertips, COOs can glean insights from any information, from employee performance metrics to customer feedback and behavior. 

Such insights allow COOs to detect inefficiencies, identify high and poor performers, and assess customer satisfaction, helping them make data-driven decisions that drive operational excellence. Remember, to embrace data analytics is to embrace continuous improvement.

7. Utilize Risk Management 

No matter the industry, risk management is a vital aspect of running a company. When combined with analytics, COOs can approach historical data analysis objectively rather than subjectively, allowing them to detect patterns and take appropriate action to cushion the impacts of potential risks without delay. 

By integrating data analysis in risk management, COOs can predict future risks and implement risk management strategies — whether that’s formulating contingency plans or using best practices — to maintain operational excellence and business continuity.

8. Allocate Resources Smartly

Resource allocation refers to the delegation of assets, whether manpower or equipment, to complete a project. For COOs, smart resource allocation equals success. To effectively expedite resources, COOs must thoroughly assess the project’s complexity, scope, prioritization, and goals. Likewise, qualifications and skills must be factored in, so only the best-fit employees can work on the initiative.

Through smart resource allocation, COOs can optimize workflow, maintain quality, and avoid delays in deliverables. Not only that, employees will be more engaged and satisfied, too!

9. Outsource to A Service Provider

Businesses are hopping onto the outsourcing hype train not because it’s a trend, but because it is a strategic avenue for achieving competitive advantage and process excellence. To start, outsourcing is a practice of collaborating with a service provider, often based overseas, to expedite work and optimize labor costs.

While cost-effectiveness is one of the selling points of outsourcing, its appeal lies in its ability to achieve operational excellence through scalable outsourced teams, improved service quality, and streamlined operations. The best business process outsourcing (BPO) companies take the guesswork out of hiring and employ cutting-edge technologies that your organization may or may not have used before.

Not only does outsourcing create room for learning new technologies and processes, it also enhances employee and customer satisfaction. If your employees are stressed and overwhelmed with their workload, quality of service and customer satisfaction will deteriorate. Outsourcing, especially hybrid outsourcing, divides the labor in a way that it plays on the strengths of in-house and outsourced teams.

Tasks or job functions involving local knowledge and expertise are best left to in-house employees, while outsourced staff can take on non-critical tasks. This optimizes workflow and prevents inefficiencies from arising, which in turn, leads to enhanced customer satisfaction and higher quality of service.

Achieve Operational Excellence With KDCI Outsourcing

Operational excellence is something that every organization must strive for. Defining operational excellence involves taking its core principles to heart and demonstrating them for everyone to see. It unites people under common organizational values, creating alignment for future goals and outcomes. Most importantly, it elevates their mindsets from static to perpetual growth, which is as empowering as it is a driver for improvement opportunities. 

However, driving operational excellence in an organization is not possible without COOs. They create improvement opportunities for everyone to achieve operational excellence goals. Although COOs are second in command, they don’t see themselves as above everyone else because they are humble and have high respect for others. 

Want to drive operational excellence and provide the best customer experience? Choose KDCI as your outsourcing partner. We offer world-class outsourcing services that not only innovate your processes, but also support your business endeavors and encourage continuous improvement efforts across the board. From outsourced data entry to web design, KDCI Outsourcing’s high-performing offshore team can accomplish any task with little supervision. 

Ready to outsource your job functions and build your offshore team with KDCI Outsourcing? Get in touch with us for a price quote, and let’s turn your operational excellence goals into a reality!

Read Now
Offshore Staffing
Top 10 Departments US Companies Outsource—and the ROI Behind Each One
Do you know which departments US companies outsource the most? Find out here along with their estimated ROI based on role, headcount, and other costs.

Outsourcing is not a short-lived trend, but a norm in this highly competitive world. Data shows that around 300,000 jobs are expedited yearly by American businesses, with at least one business department being outsourced by more than half (66%) of companies. 

We rounded up the most commonly outsourced departments by US business owners, plus their estimated ROI for your future reference. 

Why Do US Companies Outsource Their Departments?

US companies are future-proofing their operations with outsourcing. Beyond future-proofing, they also want to reduce costs, fill job vacancies, expedite manual and non-critical job functions, and ensure return on investment (ROI) when making big business decisions. Let’s explore them below.

1. Outsourcing Is More Cost-Effective

Building an in-house team is an investment, and an expensive one at that. The average cost of hiring in the US is a staggering $4,683 USD per new hire. On top of recruitment expenses incurred from sponsored job ads and comprehensive background checks, companies also shoulder the cost of benefits ($12.19 USD an hour for private sector employees), training ($1,207 USD to $1,512 USD per employee), and turnover ($1,500 USD per hourly employee). 

For an in-house team to be fully operational, it needs a dedicated office space, which costs an average of $30 USD to $60 USD per square foot for Class A office spaces, $20 USD to $35 USD for Class B, and $10 to $20 USD for Class C. With office equipment and utilities to top it all off, an in-house team can set companies back thousands of dollars a year.

Outsourcing shifts most of the financial burden from the business owner to the service provider. Business process outsourcing (BPO) companies handle everything, from hiring to training employees for your offshore team. 

While employee expertise influences the cost of outsourcing, average salaries for offshore staff in a developing country like the Philippines are lower than local hires. Because of that, companies can grow their team and hire more specialized staff without sacrificing costs. 

2. Businesses Want to Fill Open Jobs

Despite the decline in unemployment, the US suffers from labor shortages. Whether it’s the increasing rates of early retirement or the promise of a higher income through entrepreneurship, these factors contribute to the unfulfilled 3.1 million job positions in America. Alarmingly, this issue affects all industries, painting a dismal picture of the country’s labor landscape.

As a response to the shortage of labor, US businesses turn to outsourcing. This business practice enables companies to access a global talent pool of professionals who are as skilled and specialized as those from the US. By outsourcing, employers can maintain business continuity, fill job openings, bridge talent gaps, and scale their teams as needed without worrying about inflated hiring costs.

3. Business Owners Want to Delegate Non-Core Tasks

Non-core tasks include customer service, content creation, and human resources, which can all take up the bulk of your time. But as the saying goes, “time is money.” 

By outsourcing non-core and manual jobs, your team’s efficiency and productivity go sky high as they can pool their time and resources on high-value tasks that demand their attention and skills. This prevents delays, quality issues, and employee stress due to an overwhelming workload.  

4. Companies Want Sustained Return on Investment (ROI)

Outsourcing is a calculated business risk. As a business owner, you’ll want your calculated risk to be worth your time and money. The ROI of outsourcing is more than calculating your potential cost savings, it is also whether your company is getting other beneficial results from the partnership, including customer retention, operational efficiency, and business agility.

When you outsource to the best BPO companies, you’ll get a sustained ROI in all aspects of your outsourcing journey, from productivity and innovation to revenue and customer satisfaction. Because clients benefit from ROI, they develop long-term partnerships with their service providers and continue availing their services.

10 Departments That US Companies Outsource

Here’s a curated list of departments that US businesses commonly outsource to an outsourcing company. We also included the benefits of outsourcing business functions for each department.

1. Customer Support

COPC Inc., citing the US Customer Experience Index by Forrester, found that only a small percentage (14%) of companies in the country have provided an excellent customer experience. This is not only rooted in extended wait times due to labor shortage, but also in the growing frustration with low-quality customer support and disconnected customer experiences caused by poor technology integration.

Customer support outsourcing provides US companies with the manpower to handle surges in customer inquiries during peak seasons. With outsourcing partners operating 24/7, American companies can enjoy uninterrupted round-the-clock support, boosting efficiency amid demand changes. 

Outsourcing partners, especially those in the Philippines, have English-proficient employees with neutral accents, making the country an attractive destination for outsourcing voice customer support. 

Service providers also understand the human element of customer support. While outsourcing companies provide AI and customer care tools to automate ticketing and streamline customer support on digital channels, outsourced human agents add a layer of personalization and nuance to the customer experience. This means they tailor interactions according to customers’ needs and expectations, which helps address the disconnect between customers and brands. 

2. Accounting and Financial Services

The US is a global leader in the financial services sector. Despite being a driver of economic recovery during the COVID-19 pandemic and a source of employment for nine million US professionals, the country’s financial services industry grapples with regulatory changes, customer retention, and the unprecedented rise of advanced technologies and cybersecurity threats.  

There’s also a shortage of 340,000 accountants due to retirement among most (75%) Certified Public Accountants (CPA), leading to delays and compliance issues. This is where outsourcing becomes a viable and sustainable business strategy. 

By having an outsourced accounting department, American companies can work with talented finance professionals and CPAs who can produce financial reports, perform bookkeeping, prepare taxes on deadline, and comply with regulations. Because these professionals are trained in the latest fintech, they can automate manual tasks and deliver data-driven analyses.

While cybersecurity is a concern when assessing the pros and cons of outsourcing accounting and financial services, a reliable outsourcing service provider employs strict data privacy measures to prevent unauthorized access and data leakage. 

3. IT Services

From Google to Microsoft, the US is one huge tech hub. No wonder America’s IT industry is a huge contributor to economic growth. Unfortunately, with cybercrime causing financial losses exceeding $639 billion USD, keeping up with the latest cybersecurity solutions is a challenge considering the shortage of competent IT professionals. Despite the demand for talent, IT positions remain unfulfilled.

As IT is a fast-paced industry with ever-evolving technologies, American companies are eyeing outsourced IT services to acquire qualified talent and fill open jobs. Whether business owners are offshore outsourcing IT to India, Poland, or the Philippines, these countries have readily available experts who can deliver cost-effective IT solutions, ranging from software development to security analysis. 

Because IT needs become complex and sophisticated, the diversity of IT professionals overseas minimizes investment in certifications and training, which add up over time when done in-house. Service providers also employ robust IT infrastructures, helping companies maintain optimal IT operations while cutting overhead costs.

4. Human Resources and Recruitment

The Society for Human Resources Management (SHRM) found that most (89%) US staff members in human resources expressed pride in their jobs. However, beyond that pride and satisfaction, HR professionals are overwhelmed with workload, forcing them to quit and look for better jobs. According to over half of professionals (56%), staff shortage is the culprit of increased workload. 

Although HR departments are deploying AI in talent acquisition (42% of HR staff members) and professional training and development (36%), only very few HR staff (12%) believe this technology is being integrated well by their companies. 

Outsourcing HR functions can resolve these issues. By working with an outsourcing company, you can hire HR professionals to alleviate workload and reduce in-house turnover. This gives local staff more room for high-value decision-making and recruitment efforts. 

With your offshore HR team’s expertise and knowledge of US HR processes, they can streamline day-to-day workflow and accelerate AI integration without hefty time and financial investment

5. Payroll

According to Remote, payroll errors occur more often to employees in the US (26%) than to UK employees. As a result of these mistakes, including late payments, the HR solutions firm found that heightened feelings of stress are experienced by a little over half of American professionals (56%). Remote cited two causes of payroll mistakes: A complicated tax system and a bi-weekly payroll cycle. 

In this case, outsourcing payroll to a third party is a great idea. An outsourcing provider employs payroll specialists with keen attention to detail, an excellent grasp of payroll calculation, and intensive know-how of the US tax system. 

External providers also integrate sophisticated payroll software to automate attendance tracking and other manual payroll processes, minimizing errors, boosting efficiency, and ensuring compliance with US regulations.

6. Digital Marketing

Though thriving, the digital marketing industry of the US is continuously evolving with emerging trends, customer needs, and technologies. Digital marketing teams are not composed of a single role but multiple roles that work hand-in-hand to execute effective marketing campaigns. Unfortunately, the shortage of in-house experts with competent digital skills is one big hurdle for companies.

Without qualified digital marketing professionals, businesses can’t reap the fruits of their marketing efforts, hindering growth and brand visibility. The solution? An outsourced marketing department. Outsourced digital marketers offer fresh perspectives on marketing and content creation, transforming your campaigns from stale to engaging. 

With their superb digital skills, outsourced marketers can provide data-driven insights and optimize workflow and content across channels. 

7. Graphic Design

Digital advertising investment cost the United States $316.9 billion USD. This investment, combined with increased social media usage and adoption, makes graphic design an attractive profession. However, the higher salary potential in freelancing steers designers from working in corporations, and the cost-effectiveness of hiring outsourced graphic designers drives companies to seek creative expertise in other countries. 

Graphic design outsourcing delivers results that go beyond cost savings and reduced in-house workload. You can tap into the creative minds of outsourced design teams, opening yourself to innovative perspectives on visual design — which results in elevated, on-brand designs that captivate, engage, and retain customers. 

Service providers also support other design services, such as motion graphics, web design, 3D design, and many more. Whether it’s a new logo or visually cohesive graphics, you can meet any creative need with outsourcing

8. Healthcare

The Nashville Health Care Council says Americans hold a negative perception of the US healthcare system. There’s a deeper reason for this, though. In addition to ballooning healthcare costs, healthcare organizations are experiencing workflow and revenue management cycle inefficiencies, cybersecurity threats, medical bill errors, and staff shortages. To improve service quality and efficiency, organizations resort to outsourcing healthcare operations.

Healthcare BPO companies can handle most healthcare services, such as medical billing, data entry, revenue cycle management, appointment setting, claims processing, and customer service. All these translate to improved operational efficiency, higher quality patient care, and fewer billing errors. 

9. Real Estate

Amid pandemic-induced disruptions, real estate remains a resilient, volatile industry as regulatory changes, political instability, housing shortages, high vacancies, and technological innovations shift market dynamics. 

Unfortunately, the challenges don’t end there. Errors in financial reports, lackluster lease management processes, and America’s complicated taxation system hinder workflow optimization and long-term success.

Outsourcing real estate to a competent service provider does wonders for real estate companies. Hiring real estate VAs can speed up the creation of property listings and entry of client information in databases, whereas mortgage loan processors can streamline loan processing by organizing financial documents and reviewing credit reports of loan applicants.  

Thanks to outsourcing, your real estate firm can ensure regulatory compliance, reduce errors, close more leads and deals, and gain a competitive advantage in the industry.

10. Retail and E-Commerce

Online shopping is the cornerstone of everyone’s lives, with 274.70 million Americans purchasing products online. While retail and e-commerce have made shopping more convenient, the industry is barraged with challenges, ranging from maintaining profit to navigating complex market shifts brought by AI and evolving buyer preferences.

To keep up, brands outsource retail and e-commerce functions, such as lead generation and product writing, to an outsourcing provider. Outsourced retail and e-commerce professionals can enhance your loyalty programs, craft product descriptions, process orders, and many more.  

As a result, brands can increase their revenue, improve their social media presence, and grow and retain their customer base.

ROI of Each Outsourced Department

Companies want ROI on their outsourcing efforts, and it all comes down to the cost of your investment versus the value it provides to your business. Here, “value” pertains to not just cost savings, but also other measurable and intangible benefits such as customer satisfaction and retention. 

However, the cost of outsourced employees, quantity and seniority level of staff, service fees, location, revenue, and other factors add a layer of complexity in calculating ROI. Hence, it’s important to assess your goals, establish a clear project scope, and plan your workforce, so you can manage your expectations and make an informed decision before outsourcing job functions.

Let’s say our US-based client spends $6,000 USD a year on overhead costs. They want to hire more staff, but with the high labor costs in America, they decided to cut costs and outsource their department to a BPO company in the Philippines with a service fee amounting $12,000 USD a year. Below is the estimated ROI (in terms of cost savings) for each outsourced department. 

1. Customer Support

In-House

  • Annual Salary of Customer Service Agent (X10): $698,550 USD ($69,855 USD per agent)
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $705,757 USD

Outsourcing

  • Annual Rates of Customer Service Agent (X10): $52,780 ($5,278 USD per agent)
  • Service fee: $12,000 USD ($1,000 USD per month)
  • Overhead: N/A
  • Total: $64,780 USD

ROI

  • Total Savings $640,977 USD 
  • Percent Savings: 90%

ROI Metrics for Outsourcing Customer Service

  • Customer satisfaction
  • Customer retention
  • Churn rate

2. Accounting and Financial Services

In-House

  • Annual Salary of Accountant (x1): $66,220 USD
  • Annual Salary of Finance Manager (x1): $117,324 USD
  • Annual Salary of Auditor (x1): $67,405 USD
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $258,156 USD

Outsourcing

  • Annual Salary of Accountant (x1): $7,871 USD
  • Annual Salary of Finance Manager (x1): $12,303 USD
  • Annual Salary of Auditor (x1): $5,196 USD
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $37,370 USD

ROI

  • Total Savings $220,786 USD 
  • Percent Savings: 85%

ROI Metrics for Outsourcing Accounting and Finance

  • Workflow efficiency
  • Revenue growth
  • Customer satisfaction

3. IT Services

In-House

  • Annual Salary of IT Support (x1): $56,398 USD
  • Annual Salary of Systems Administrator (x1): $89,916 USD
  • Annual Salary of Security Analyst (x1): $91,593 USD
  • Annual Salary of Software Developer (x1): USD 111,845
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $356,959 USD

Outsourcing

  • Annual Salary of IT Support (x1): $5,661 USD
  • Annual Salary of Systems Administrator (x1): $10,580 USD
  • Annual Salary of Security Analyst (x1): $9,189 USD
  • Annual Salary of Software Developer (x1): $10,153 USD
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $47,583 USD

ROI

  • Total Savings: $309,376 USD 
  • Percent Savings: 86%

ROI Metrics for Outsourced IT Services

  • End-user satisfaction
  • Time-to-market
  • Software quality
  • Team performance

4. Human Resources and Recruitment

In-House

  • Annual Salary of Sourcing Specialist (x1): $72,924 USD
  • Annual Salary of HR Generalist (x1): $66,118 USD
  • Annual Salary of Talent Acquisition Specialist (x1): $62,876
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $143,329 USD

Outsourcing

  • Annual Salary of Sourcing Specialist (x1): $6,388 USD
  • Annual Salary of HR Generalist (x1): $5,566 USD
  • Annual Salary of Talent Acquisition Specialist (x1): $7,128 USD
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $31,082 USD

ROI

  • Total Savings: $112,247 USD 
  • Percent Savings: 78%

Key ROI Metrics for Recruitment and HR Outsourcing

  • Turnover rates
  • Time savings
  • Time-to-hire
  • Employee Satisfaction

5. Payroll

In-House

  • Annual Salary of Payroll Specialist (x1): $42,081 USD
  • Annual Salary of Payroll Administrator (x1): $60,922 USD
  • Annual Salary of Payroll Analyst (x1): $7,491 USD
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $117,701 USD

Outsourcing

  • Annual Salary of Payroll Specialist (x1): $6,508 USD 
  • Annual Salary of Payroll Administrator (x1): $6,462 USD
  • Annual Salary of Payroll Analyst (x1): $7,491 USD
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $32,461 USD

ROI

  • Total Savings: $85,240 USD 
  • Percent Savings: 72%

ROI Metrics for Outsourcing Payroll

  • Error rates
  • Compliance 
  • Workflow efficiency

6. Digital Marketing

In-House

  • Annual Salary of Digital Marketing Specialist (x1): $65,418 USD
  • Annual Salary of SEO Specialist (x1): $62,154 USD
  • Annual Salary of Social Media Manager (x1): $62,279 USD
  • Annual Salary of Content Writer (x3): $188,451 USD ($62,817 per content writer)
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $385,509 USD

Outsourcing

  • Annual Salary of Digital Marketing Specialist (x1): $10,640 USD
  • Annual Salary of SEO Specialist (x1): $9,799 USD
  • Annual Salary of Social Media Manager (x1): $8,498 USD
  • Annual Salary of Content Writer (x3):  $18,975 USD ($6,325 USD per content writer)
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $59,912 USD

ROI

  • Total Savings: $325,597 USD 
  • Percent Savings: 84%

ROI Metrics for Outsourcing Digital Marketing

  • Lead close rate
  • Click-through rate
  • Audience engagement rate
  • Website traffic

7. Graphic Design

In-House

  • Annual Salary of Graphic Designer (x5): $307,430 USD ($61,486 USD per graphic designer)
  • Annual Salary of Web Designer (x1): $55,300 USD
  • Annual Salary of Multimedia Designer (x1): $63,756 USD 
  • Annual Salary of Art Director (x1): $86,015 USD
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $519,708 USD

Outsourcing

  • Annual Salary of Graphic Designer (x5): $42,680 USD ($8,536 USD per graphic designer) 
  • Annual Salary of Web Designer (x1): $7,967 USD
  • Annual Salary of Multimedia Designer (x1): $7,620 USD
  • Annual Salary of Art Director (x1): $8,288 USD
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $78,555 USD

ROI

  • Total Savings: $441,153 USD 
  • Percent Savings: 84%

ROI Metrics for Graphic Design Outsourcing

  • Bounce rate
  • Audience engagement rate
  • Web traffic
  • Brand visibility and loyalty
  1. Healthcare

In-House

  • Annual Salary of Medical Biller (x3): $112,632 USD ($37,544 USD per medical biller)
  • Annual Salary of Medical Transcriptionist (x2): $36,436 USD ($72,872 USD per medical transcriptionist)
  • Annual Salary of Medical Claims Processor (x3): $121,479 USD ($40,493 per medical claims processor) 
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $277,754 USD

Outsourcing

  • Annual Salary of Medical Biller (x3): $22,149 USD ($7,383 USD per medical biller)
  • Annual Salary of Medical Transcriptionist (x2): $11,306 USD ($5,653 USD per medical transcriptionist)
  • Annual Salary of Medical Claims Processor (x3): $15,552 USD ($5,184 USD per medical claims processor)
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $61,007 USD

ROI

  • Total Savings: $216,747 USD 
  • Percent Savings: 78%

ROI Metrics for Outsourced Healthcare

  • Billing error rates
  • Patient experience

9. Real Estate

In-House

  • Annual Salary of Real Estate VA(x1): $50,749 USD
  • Annual Salary of Data Encoder (x1): $50,511 USD
  • Annual Salary of Real Estate Appraiser(x1): $65,940 USD
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $174,407 USD

Outsourcing

  • Annual Salary of Real Estate VA (x1): $7,560 USD
  • Annual Salary of Data Encoder (x1): $3,240 USD
  • Annual Salary of Real Estate Appraiser (x1): $6,600 USD
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $29,400 USD

ROI

  • Total Savings: $145,007 USD 
  • Percent Savings: 83%

ROI Metrics for Outsourcing Real Estate

  • Operational efficiency
  • Client satisfaction
  • Lead generation rates
  • Real estate sales closing

10. Retail and E-Commerce

In-House

  • Annual Salary of Order Processor (x1): $46,565 USD
  • Annual Salary of E-Commerce Manager (x1): $83,647 USD
  • Annual Salary of Copywriter (x1): $67,446 USD
  • Training and Onboarding: $1,207 USD 
  • Overhead: $6,000 USD
  • Total: $204,865 USD

Outsourcing

  • Annual Salary of Order Processor (x1): $5,322 USD
  • Annual Salary of E-Commerce Manager (x1): $9,778 USD
  • Annual Salary of Copywriter (x1): $7,217 USD
  • Service Fee: $12,000 USD
  • Overhead: N/A
  • Total: $34,317 USD

ROI

  • Total Savings: $170,548 USD 
  • Percent Savings: 83%

ROI Metrics for Outsourcing Retail and E-Commerce

  • Sales
  • Conversion rates
  • Brand engagement
  • Customer satisfaction

Outsource Your Department to KDCI Outsourcing

Outsourcing changes the way modern workforces operate. Whether you want an outsourced IT department or a creative team, KDCI Outsourcing can give your business its much-deserved ROI, from cost savings to increased brand engagement. 

Ready to enjoy long-term success? Start building your offshore team today! Contact us for an inquiry or a price quote.

Read Now
Offshore Staffing
How Mid-Sized Companies Are Competing with Giants in 2025
Amid financial constraints, find out how mid-sized companies are competing with large companies without sacrificing efficiency and innovation.

Middle market companies are the engines of economic development and job creation.  Despite that, owners of mid sized businesses find themselves financially constrained and outclassed by bigger competitors with high brand recognition. But there’s still hope. With plenty of ways to grow and thrive in 2025, mid sized companies can take on the reins, step up their business game, and compete with the likes of larger corporations. 

The Middle Market Landscape In the US

The National Center for the Middle Market (NCMS) said the United States has approximately 200,000 mid sized companies, with almost 50 million employees working in these businesses and comprising one-third of the gross domestic product (GDP) of the private sector. Mid market companies also earn around $10 million USD to $1 billion USD. 

Interestingly, during the Great Recession, mid size companies stepped up and provided more than two million new job opportunities to professionals. This pales in comparison with the slashing of 3.7 million jobs in bigger companies. While mid size businesses are found in various industries, including retail and construction, they are mostly prevalent in health, education, and other service industries. 

However, mid market companies are niche and not known by most customers, who are likely familiar with smaller businesses or popular big-name brands. Despite standing the test of time and driving employment and economic growth, mid market companies deserve more recognition from the general public.  

Why Do Midsize Companies Fail?

A business is an investment as it is a risk. Mid size companies have a 31-year average lifespan, making them resilient and well-established businesses. 

Unfortunately, companies may close down due to unforeseen circumstances, but in some cases, bankruptcy is caused by mistakes business owners themselves make. Here are four reasons why mid sized companies close up shop.

1. Poorly Developed Business Plan

Starting a business is a leap of faith. But without a business plan, entrepreneurs risk shooting themselves in the foot. According to WinSavvy, most businesses (78%) with no or poor business plans ended in bankruptcy. 

Developing a sound business plan gives owners of midsize companies a blueprint for success. It highlights goals, discusses products and services, and includes a market analysis and realistic strategies on attracting and retaining customers. 

Business plans are not static, though. They evolve as market needs and trends change, so keeping business plans updated is key to staying ahead of your competitors and maintaining relevance.

2. Lack of Knowledge

In business, knowledge is power. Needless to say, the lack of financial and market knowledge is a recipe for disaster.  Hence, an owner of a mid sized business must thoroughly research their industry and customer base and make informed decisions to have their shot at success, especially if they’re breaking into a highly competitive market. 

3. Bad Hiring Practices

Hiring a family member or friend is not always a good idea, and there’s nothing personal with that. Mid sized companies deserve highly qualified employees with the experience, credentials, and skills that propel your business to success. 

4. Refusal to Delegate Tasks

Owning a mid sized business doesn’t mean taking care of everything alone. As you grow and scale your business, delegation becomes a necessity. By delegating tasks to your in-house, or even better, outsourced employees, you can free up your workload and focus on critical business functions. 

5 Ways How Mid-Sized Companies Are Competing With Larger Brands

From agility to outsourcing, this section explores how mid-sized companies are competing with big companies. 

1. Midsize Companies Prioritize Agility

Business agility is how mid-sized companies are competing with larger competitors. Agility is defined as a company’s ability to adapt and remain flexible and resilient amid the ever-evolving complexities in the market. Being agile also means innovating and thinking outside the box. 

In the case of Crumbl Cookies, established by Sawyer Hemsley and Jason McGowan in Utah, the company owes its agility to its weekly rotating cookie menu. With the menu catching the eyes and taste buds of social media users, the cookie brand has become a widely recognized and successful company, with franchises in Canada and across the United States. 

The success story of Crumbl Cookies shows that agility and innovative business approaches contribute to success and brand recognition. 

When middle market companies engage in strategic agility, they can identify emerging trends and detect changes in customer needs, allowing them to quickly innovate their processes or products and shift their business strategies to reflect the new market reality. Not only does agility aid in growth, it also evens out the competition between a mid size company and its larger competitors.

2. Middle Market Companies Utilize Data

Data is everywhere. With advanced technologies simplifying data gathering and analysis, middle market companies approach business growth with data-drivenness in mind. Sweetgreen, Inc. — an American company with a 2024 revenue of $676.8 million USD — boosted customer engagement through a personalized loyalty program as well as cut down on food wastage by anticipating ingredient demand with the help of data and data analytics. 

Thanks to data, any mid size organization like Sweegreen, Inc. can make smarter business decisions, minimize financial risks, and anticipate demand. What’s great about fostering a data-driven company culture is that it aids in agility and personalization, enabling middle market businesses to respond faster to trends and enhance the customer experience and loyalty. 

The best part? All the improvements and efficiency that come with data contribute to boosted revenue and better returns on investment (ROI).

3. They Invest In AI 

Integrating advanced technologies like AI is also how mid-sized companies are competing with large enterprises. Visionary Vogues, citing Deloitte, found that AI integration is employed in more than one functional business area of nearly half (47%) of American middle market businesses. 

AI technologies are not just marketing buzzwords; they are the present and future of business environments. While middle market businesses typically have fewer resources, this should not be a roadblock to achieving growth. Because the truth is, AI can do wonders for your business, especially in terms of analysis and efficiency. 

Aside from automating manual and tedious tasks, AI can analyze large volumes of customer and sales data. From that pool of data, it identifies trends, uncovers customer preferences, anticipates market shifts, and provides data-driven, actionable insights. 

These insights guide mid size businesses in tailoring their future campaigns, expanding their customer base and market reach, and personalizing the customer experience. Fortunately, with the growing accessibility of AI-as-a-service tools like Google Vertex AI, mid sized businesses can augment their AI endeavors without pooling their resources on employing local AI experts and data science professionals.

4. Companies Continuously Evolve

Middle market companies benefit from a growth mindset. Because stagnancy is a no-no in the business world, change could mean tapping into another business model to accommodate changes in market and customer needs, creating new products or services, or trying out-of-the-box ways to market your offerings, as in the case of Crumbl Cookies.

Likewise, business leaders and workplace culture need to evolve with the times. For example, when integrating AI, executives and employees must embrace the technology with open arms, which entails experimentation, talent upskilling, or outsourcing for effective data consolidation and ethical AI use.

While mid size companies have the advantage of leveraging new trends faster than large companies, entrepreneurs must practice effective strategic thinking when making a new business move. 

5. Mid Sized Business Owners Outsource Their Jobs

You might think outsourcing is only reserved for larger corporations like Google. But on the contrary, even a mid size organization can take advantage of outsourcing. Like any growing business, middle market companies grapple with budget constraints and operational inefficiency. Couple that with the rise of entrepreneurship and soaring labor costs in the US, and it’s clear why companies struggle with hiring qualified talent. 

Outsourcing can take care of these woes, providing a mid size company with a talented workforce and world-class services that don’t break the bank. However, business owners must remember that this practice is more than incurring cost savings; it is a strategic investment that, when executed well, can be a significant driver of growth and innovation.

How Outsourcing Can Help Mid Market Companies Compete With Industry Giants

Outsourcing opens doors for new opportunities. It helps companies, especially smaller businesses, stay flexible and resilient as they navigate shifting business environments. 

Outsourcing providers cater to larger companies and SMEs, but the best BPO companies tailor their solutions according to business size. Below are the perks of outsourcing in helping mid sized companies compete with enterprises.

1. Outsourcing Can Expand Your Talent Pool

From finance to the data science industry, the hiring landscape is competitive. Not to mention the cost of hiring in the US averages $4,683 USD, with the cost-per-hire for executives skyrocketing to a staggering $28,329 USD. For middle market companies with limited finances, the combination of stiff competition and high labor costs is a double whammy.

This is where outsourcing becomes a vital strategy. By outsourcing jobs and departments, owners of mid sized companies can explore a richer talent pool and hire experts at a fraction of local labor costs. Because outsourcing providers have readily available specialists, businesses can cut down on the cost and time of training new hires. 

This doesn’t mean letting go of your in-house team. With the norm of hybrid teams, your local staff does whatever they do best, while your outsourced staff handles specialized or less time-intensive job functions. Outsourcing is all about collaboration, utilizing the best practices of outsourced teams while covering each other’s weaknesses. 

2. Scalability is Easier

Scalability is growth. It's how mid-sized companies are competing with big brand businesses despite the former’s lack of resources. BPO companies offer cost-effective, scalable solutions for your needs. For example, if your company faces a swamp of customer inquiries after a product launch, you can ramp up your local customer support team by outsourcing customer service

This way, your in-house agents have an extra pair of hands, speeding up the closing of tickets without sacrificing customer relationships and experiences. Conversely, you can downsize your outsourced team in case of fluctuating demand. Thanks to outsourcing, mid market companies no longer endure high turnover costs and long hiring cycles.

3. Outsourcing Can Pave the Way for New Technologies

Nowadays, innovation manifests in the form of advanced technologies. Despite the accessibility of new tech like AI-as-a-service, business owners who want to innovate and gain a competitive edge faster can seek the assistance of an outsourcing provider to augment their tech efforts. 

Not only do BPOs have the tools of the trade — including AI, automation, and analytics software — they also have employees who are already proficient in the technology you use (or about to use). This leads to a faster adoption of new technologies, further enhancing operational efficiency and minimizing time and resources on in-house training programs. 

4. Outsourcing Partners Provide Quality Services

Outsourcing doesn’t equate to cheap labor and low-quality services. BPOs put quality and customer satisfaction at the forefront. BPO companies also employ high-performing candidates and assign a project manager to ensure all deliverables meet their clients’ quality standards.

While outsourced teams are more cost-effective, they provide enterprise-level capabilities that rival in-house teams. Business owners seeking world-class outsourcing services must work with a reliable service provider to avoid backlogs, production delays, and poor ROI.

Grow Your Mid-Sized Company With KDCI Outsourcing

Like most businesses, middle market companies refuse to stagnate and get left behind in the dust. After all, they have more options on their plate, ranging from AI integration to data analytics. If financial constraints and the exorbitant cost of labor are hindering your company’s growth, we recommend partnering with KDCI Outsourcing.

KDCI Outsourcing is a premier Filipino BPO company established in 2011. Since our inception, we have helped plenty of large enterprises and SMEs achieve growth, innovation, operational efficiency, and cost-effectiveness through tailored offshoring solutions. Furthermore, our rigorous hiring practices and meticulous vetting of candidates ensure you get to work with top talent.

Whether you need outsourced web design, finance and accounting, or admin support services, KDCI Outsourcing has got your business needs covered. Build your offshore team with KDCI Outsourcing today. Contact us now for a price quote or proposal!

Read Now

No results found

Our Client Success Stories
See what our clients are saying about KDCI
We Provide Amazing Services
Our training and strategic outsourcing services have helped thousands of organizations succeed
Get in touch with us
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Philippine Office
3008 One Corporate Centre, Julia Vargas Avenue, Ortigas Center, Pasig City 1605, Metro Manila, Philippines
USA Office
552 E Carson St. Suite 104, Carson, CA 90745, USA
Contact Sales
Contact Recruitment