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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.
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.
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.
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.
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.
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.
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.
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.
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:
Your answers can help you find the right timing to scale your business with minimal financial risks.
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.
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.
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.
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.
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.
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:
Keep things realistic (but challenging), so everyone can meet the goals and targets outlined in the plan.
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.
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.
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:
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.
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.
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:
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.
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:
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.
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!
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.
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.
From human resources to marketing, COOs manage various departments to ensure each one maintains operational excellence.
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.
COOs analyze data and key performance indicators (KPI) to improve the company’s operational excellence with well-informed, data-driven decisions.
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.
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.
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.”
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.
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.
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.
Leaders need to think like scientists. Embracing scientific thinking entails continuous observation, hypothesis, experimentation, analysis, and learning to improve processes.
This principle doesn’t subscribe to the overproduction of goods. Business leaders must ensure that the production of goods is equal to the demand.
Businesses must detect and reject defective products right away. The organization’s operational process must be continuously refined to avoid defects in the future.
Improvement is everywhere, a never-ending journey that businesses undertake. This builds a mindset of continuous improvement.
While change is inevitable, a business must have guiding principles and direction to ensure organizational alignment.
Business leaders analyze the organization as a whole, including the interconnectedness of relationships, to guide improvements and decision making.
Businesses must deliver customer value across the board, from meeting customers’ needs to creating high-quality goods and services.
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.
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.
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.
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.
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.
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.
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.
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.
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!
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.
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!
At the start of 2020, KDCI Outsourcing had numerous plans for the growth of the company and its clients.
Unfortunately, with COVID-19 spreading across the globe and countries going on immediate lockdown, we had to make strategic pivots to protect our employees while keeping our production and operations 100% efficient. We executed a mandatory work-from-home policy as part of our business continuity plan. We ensured that all of our employees could work remotely by allowing them to bring their work computers home.
We also provided portable WiFi so they can stay online in case of connectivity issues. In just a few weeks, everybody adjusted to working in their bedrooms, backyards, and home offices. However, as the lockdowns continued for months, we had to face another challenge that most work-from-home employees face: mental health and work-life balance.
As a result, our marketing and HR teams worked together to find ways to make working from home more productive and engaging for everyone. We conducted online learning initiatives, regular games, watch parties, and sent out emails and social posts about coping with the challenges of working remotely.
Eventually, everybody treated remote work as the “new normal.” We even welcomed new clients and new faces into our teams as our company continued to grow during the pandemic. With the health crisis behind us, we remain steadfast in our commitment to helping our clients grow their businesses.
Whether you need help with outsourcing accounting and finance, graphic design, digital marketing, e-commerce support, or property management, we can provide you with an effective offshore team that can handle your tasks with care and deliver stellar results.
Start building your dream team of offshore staff with KDCI Outsourcing today. Contact us and let our outsourcing expert walk you through the first few steps of your outsourcing journey.
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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.
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.
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.
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.
There are many non-core business activities to outsource , including 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.
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.
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. This is why many US companies that outsource customer service rely on offshore teams to maintain consistent service quality regardless of volume spikes.
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.
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.
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.
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
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.
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.
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 design need with creative services outsourcing.
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.
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 a mortgage 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.
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.
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.
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.
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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 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.
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.
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.
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.
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.
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.
From agility to outsourcing, this section explores how mid-sized companies are competing with big companies.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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!
The digital landscape is continuously growing and evolving, and YouTube is at the forefront of this with its powerful platform. With over 1 billion hours of content being consumed daily by viewers, it is clear that YouTube is an essential part of today’s media landscape.
However, creating and producing quality video content is no small task and can be incredibly time-consuming and challenging. As a result, more and more businesses are beginning to outsource YouTube video editing services. This begs the question, “Should I outsource video editing too?”
In this blog post, we explained thoroughly how outsourcing Youtube video editing services work, what specific tasks you can outsource, its benefits, and what to consider when looking for the right service provider.
Outsourcing YouTube video editing services involves hiring a third-party company or individual to handle the editing and post-production aspects of YouTube video creation. This means that you, as the content creator, do not have to spend time and resources on editing your videos, and can instead focus on creating more content or other aspects of your business.
The outsourcing process typically involves finding a reputable, professional video editing service provider that specializes in YouTube videos. You can find such providers through online platforms, such as freelancing websites or social media groups, or by reaching out to reliable outsourcing service providers on their websites.
Once you've found a provider, you will typically discuss your editing needs and preferences with them, such as the type of videos you create, your preferred style, and any specific editing requirements. You will also provide them with access to your raw footage, as well as any additional assets, such as music or graphics, that you want to include in your videos.
The video editing service provider will then take care of the editing and post-production process, using their skills and expertise to create a polished and engaging final product. They may also provide additional services, such as color correction, audio mixing, and adding special effects.
Once the editing process is complete, the provider will send you the edited video for review and approval. You can provide feedback and request revisions if needed, and the provider will make the necessary changes until you are satisfied with the final product.
YouTube video editing services are essential for creating high-quality videos that engage viewers, attract more subscribers, grow your YouTube channel, and elevate your content creation endeavors. There are many different types of video editing services that can be outsourced to the best BPO companies. These are:
This involves trimming and cutting footage, adding music and simple transitions, color correction, and adjusting audio levels. This is a good option if you're looking for a simple, no-frills professional editing service.
This includes more complex edits, such as adding text overlays, special effects, green screen removal, and motion graphics. This is a good option if you want to create more visually engaging YouTube videos.
A thumbnail is the image that appears next to your video on YouTube, and it's important for attracting viewers. Outsourcing thumbnail creation to a BPO company can ensure that your thumbnails are high-quality and visually appealing.
Adding closed captions to your videos can make them more accessible to viewers who are deaf or hard of hearing, and it can also improve your video's search rankings. Outsourcing closed captioning can save you time and ensure that your captions are accurate.
A BPO company that offers digital marketing services can help you promote your YouTube videos on social media platforms, such as Facebook, Twitter, and Instagram. This can help you reach a wider audience and increase your views and subscribers.
In the United States, the cost to outsource YouTube video editing services can vary widely depending on the complexity of the project and the experience of the freelance video editor or the outsourcing video editing company hired. A freelance video editor typically charges between $45 USD to $60 USD per hour, while basic jump cut packages can cost around $50 USD.
If you are looking to save on costs, outsourcing video editing to the Philippines can be a great option. The country's cheap labor costs make it an attractive destination for foreign companies looking to outsource YouTube video editing services. And the best part is, you can expect to receive the same quality of service, with fast turnaround times, when outsourcing to the Philippines.
Companies that don’t have in-house expertise for YouTube video editing opt to outsource this task to a trustworthy outsourcing vendor. Hence, they are able to take advantage of the following benefits:
When you outsource YouTube video editing services, it allows you to work with skilled editors who have experience and expertise in creating high-quality videos. They have access to advanced equipment and video editing software that can enhance the overall production value of your videos. By working with experts, you can ensure that your videos look polished and professional, which can help you stand out from the competition and attract more viewers.
Editing videos can be a time-consuming process that can take away from your other responsibilities. By outsourcing video editing, you can free up your time and focus on other aspects of your business or personal life. You can also avoid the frustration and stress that come with trying to learn new video editing software and techniques on your own. With more time and energy, you can create more content or focus on growing your brand.
Hiring a full-time professional video editor can be expensive, especially if you're just starting out. Outsourcing allows you to pay only for the services you need, without having to worry about employee benefits and overhead costs. Additionally, outsourcing can be more cost-effective than investing in video editing software and equipment, which can quickly become outdated or require expensive upgrades.
By working with an outside team, you can benefit from fresh perspectives and new ideas. A professional YouTube video editor can help you create a unique and engaging video that stands out from the crowd. They can also provide guidance on video length, content, and style, helping you to optimize your videos for maximum engagement.
If you outsource YouTube video editing, it can help you ensure that your videos have a consistent look and feel. This can help build brand recognition and increase viewer engagement.
By working with professional editors, you can create a style guide that outlines your brand's colors, fonts, and visual elements. This guide can then be used to ensure that all of your videos have a consistent and cohesive look.
As a small business owner, outsourcing your video editing needs can be a great way to save time and focus on other aspects of your business. However, choosing the right service provider can be a daunting task. Here are some factors you should consider:
Looking for professional video editors at a low cost? Consider hiring experts in the Philippines with the help of a reputable service provider like KDCI! We are a Philippine-based creative agency with a professional team of content creation experts, including outsourced multimedia designers, who can help you boost your efficiency in video post-production and get your videos live faster.
With our streamlined video editing process, we can function as a high-volume production powerhouse, using advanced techniques and the latest software and equipment for our post-production services.
Our team of professional editors is equipped with the technical expertise needed to handle everything from YouTube video editing to After Effects post-production, storyboarding, color grading, sound mixing, 2D animation, and motion graphics.
Whether you need short but impactful video ads, helpful video testimonials, informative corporate videos, engaging YouTube shorts, or marketing videos that show off your company in the best light, KDCI Outsourcing has got your video editing needs covered. We pride ourselves on delivering high-quality video content on time and within budget.
So, if you're looking for the best professional video editors in the Philippines, get in touch with KDCI Outsourcing and let us help you build your take your YouTube video content to the next level!
Although the country has a culturally diverse workforce, the hefty cost of hiring in the US is no laughing matter. It’s not just the high labor cost that’s making companies have second thoughts in hiring locally, but also the stiff competition caused by the war for qualified talent, along with the post-pandemic trend of early retirement and the rise of entrepreneurship among employees and the youth.
That’s why businesses in the United States are integrating outsourcing into their business model. With outsourcing, companies can optimize their workflow without driving up the total cost of hiring employees. Having said that, weighing the cost of hiring in the US versus outsourcing remains an important step in building or growing your workforce.
This is a million-dollar question for business owners. While in-house employees are valuable, they’re actually one of your most expensive investments! According to the Society for Human Resource Management (SHRM), a new hire costs $4,683 USD. However, this is only a benchmark figure, a point of reference. In reality, recruitment costs vary from company to company, and can be higher depending on internal and external factors.
When calculating the cost of a new employee, salaries, benefits, and bonuses are just one part of the hiring equation. If you sprinkle recruitment efforts, employee training and retention, office infrastructure, and IT software, you can expect a surge in cost per hire and overall recruiting costs.
Let’s not forget an employee’s experience level. Entry-level hires are cheaper, typically averaging $39,525 USD a year. But if you’re hiring candidates for senior positions, they’ll set you back around $122,377 USD to $174,508 USD per year.
Industry demand, America’s aging population, Federal Insurance Contributions Act (FICA) and federal and state unemployment and taxes, and the cost of living per state can likewise influence the total cost of hiring in the US.
Business owners shoulder the cost of office infrastructure, utilities, and recruitment. The above section briefly mentions factors influencing the overall cost of hiring in the US. This section, however, will only cover the four main drivers of hiring costs.
Recruitment efforts are costly. Creating a job posting on different job search platforms may be a minuscule investment, but these can accrue additional costs on your recruiting budget. On Indeed, for example, you can create Sponsored Jobs (i.e. paid job postings) to improve your posting’s visibility and reach more candidates, resulting in faster time-to-hire.
When combined with paying HR staff, background checks, and HR management tools, your recruitment expenses can soar over time. Expect the cost per hire to be as low as $4,683 USD or as high as $28,329 USD — that is, if you’re hiring executives.
Onboarding means acquainting a new hire with your company’s culture, organizational structures, and internal policies. Part of the onboarding process is providing them with a dedicated office space, computer, and software — all of which cost money.
New employees undergo training, as well. This, again, costs money as businesses invest in training manuals and resources. Outside of that, training employees causes a temporary loss in productivity and efficiency since newbies need time to catch up and get used to the workflow.
According to Training Magazine and HR Daily Advisor, training costs are around $1,207 USD to USD$1,512 USD per employee.
Health insurance, social security, and PTOs — these benefits are a win for employees. For employers, it’s a different playing field, mainly because the cost of employee benefits depends on various factors, including the type of benefits offered, company size, demographics, and industry.
The average cost of benefits for employees in the private sector is $12.19 USD per hour, slightly less than those who work in the civil sector ($13.58 USD per hour). State and local sector employees have the highest cost of benefits, averaging $22.81 USD an hour. While costs add up, employers use benefits to balance return on investment and employee satisfaction and retention.
When a company can make employees stay, that’s retention. For any employer, retaining top talent is as essential as ensuring positive growth and outcomes. Of course, it’s not always possible to retain employees. They part ways with your company for higher salaries or better career growth, or sometimes, employees relocate or want a company that values them more. When this happens, it’s called employee turnover.
Like recruiting new hires, employee turnover is also costly. The cost of a turnover can vary, though. On average, each hourly worker who quits can set you back $1,500 USD. If a C-suite employee leaves your company, turnover will cost you around 213% of their yearly salary. For technical roles, the percentage ranges between 100% to 150%.
Beyond the financial aftermath of employee turnover, this can also lead to institutional knowledge loss as well as reduced morale and productivity.
In-house employees have their perks. They know the US market well and are easily available on-site. However, maintaining an in-house team is expensive due to high overhead and labor costs. That’s why it makes sense to outsource jobs.
Outsourcing means delegating tasks or a whole department to a third-party service provider, usually based in a nearby or faraway country. Hybrid teams are also the norm, combining in-house and offshore teams for increased flexibility and cost savings.
It’s never too late to venture into outsourcing. Because we live in a hyper-connected world, leveraging outsourcing and other business strategies is the only way to go up. Here’s what makes outsourcing a worthwhile business endeavor.
Cost-effectiveness is what draws companies to outsourcing. Brazil, India, Mexico, and the Philippines make the best outsourcing destinations because of their low cost of labor, which increases your savings while maintaining high-quality work.
The average cost of a Filipino BPO employee is around $7,890.47 USD to $9,635.4 USD, which can vary according to role and seniority level. From these figures alone, there’s no denying the significant cost savings that outsourcing brings to recruiting new employees.
Outsourcing opens your talent pool to a wider scale. That means you’re not only limited to candidates in San Francisco, Los Angeles, or any US city or state. Outsourced employees are as knowledgeable and skilled as local hires, providing a delicate balance of credentials, experience, and cost-effectiveness.
Because outsourced staff are cheaper, you can easily source talent that is otherwise not available or financially feasible in your local area. This makes filling open job positions and closing talent gaps easier, helping you grow your team at a lower cost.
Overall, international hiring gives you a competitive edge in the market, rewarding your efforts with customer growth and success.
BPO companies in the Philippines (and other parts of the world) take care of the recruitment process from start to finish. Clients provide the project specifications and employee qualifications, and the outsourcing company will source, vet, and hire potential candidates based on those requirements.
This reduces the likelihood of employing a bad hire who can cost your company thousands of dollars. Not only does outsourcing reduce your recruitment expenses and streamline hiring processes, your in-house team also has more time for job functions that require their attention and expertise.
Outsourcing and low-quality work don’t go hand-in-hand. Outsourcing companies have a designated project manager or team leader who handles the account, trains team members, and ensures quality assurance. The right service provider will not only promise a significant reduction in hiring costs, they will also meet your performance standards.
Outsourcing means embracing diverse perspectives from a diverse group of people. It also comes with overcoming cultural and linguistic barriers. In the Philippines, outsourced employees are fluent in English and culturally compatible with Western values. This leaves little room for misunderstandings arising from language and cultural differences.
Time zone differences are not necessarily a liability. By outsourcing, your business can operate 24/7 without interruption. Whether it’s outsourced data entry, customer service, or graphic design, your offshore team can cover your post-business hours and provide round-the-clock support while your onshore team sleeps.
Then, on the following working day, all deliverables will be processed by your in-house employees. This minimizes delays and improves operational efficiency. BPO companies have employees working different shifts, so you can definitely find offshore team members who can align their schedules with US time zones.
Evaluating the cost of outsourcing is key to any successful business venture. Below are factors that influence outsourcing costs.
Outsourced employees receive benefits from their BPO employers. In the Philippines, for example, these benefits include night differential pay, social security, Home Development Mutual Fund (HDMF) or Pag-IBIG, PhilHealth, and the like.
Since BPOs are private employees, night differential pay is 10% of the individual’s salary per hour of work starting from 10:00 pm to 6:00 am. The contribution rate for social security is 15%, 2% for Pag-IBIG, and 5% for PhilHealth. Though dependent on the employee’s salary, the total cost of benefits can start at least $120 USD a month.
An employee’s expertise and seniority level play a role in influencing outsourcing costs. For example, an entry-level Filipino graphic designer costs around $430 USD a month, whereas a senior graphic designer costs $924 USD. Junior employees have less professional knowledge and experience than their senior peers, so the difference in rates is understandable.
The number of entry-level or senior outsourced employees also affects outsourcing costs. A realistic budget and a clear vision of your project help you and the outsourcing partner plan your workforce headcount and balance expertise with cost.
Complex projects require specialized talent and are therefore costlier than tasks that don’t involve specialized expertise. Larger and urgent projects also command higher price points, as BPOs need to reallocate their workforce or hire more staff to complete your project. Be transparent about expected turnaround times so the BPO company can provide an accurate price quote.
There are different types of outsourcing pricing models. The fixed price (FP) model is a common pricing structure among BPOs. As the name implies, you pay an agreed fixed price for the outsourcing provider’s services. The hourly pricing structure is another popular model, which charges you according to the number of hours rendered by your outsourced staff.
With the savings-based pricing model, the overall cost of outsourcing is based on how much you can save from a BPO company’s services. Finally, the outsourcing cost under the full-time equivalent (FTE) model is determined by several factors, including employee expertise, headcount, project complexity, and output quality.
These models add a complex layer to budgeting and determining total outsourcing costs. Do your research so you can identify which model fits your project.
Outsourcing companies are businesses, too. Service fees cover overhead costs, including infrastructure, technology, equipment, and office lease or rent. Unlike in-house hiring, the service provider covers the training cost of employees.
The cost of hiring in the US remains high and will continue to soar in the following years. For businesses, outsourcing is a blessing. It expands your hiring pool, keeps hiring costs down, and maintains efficiency. Like any business venture, outsourcing requires financial investment. Being strategic with your outsourcing endeavors is key to getting the return on investment (ROI) your company deserves.
If you’re looking for a reputable BPO company to partner with, consider KDCI Outsourcing. Since 2011, we have worked with brands from different parts of the globe, providing them with tailored, high-performance offshoring solutions that promise innovation and growth.
Request a price quote, send a proposal, or inquire with our outsourcing expert. The sooner you contact us, the faster we can build your Filipino offshore team.
Healthcare BPO, or healthcare business process outsourcing, is the practice of hiring an external contractor, either an agency or individual, to perform some or all of a healthcare institution’s non-clinical or non-core operations.
The objective of healthcare outsourcing companies is to help hospitals, clinics, healthcare professionals, and other medical facilities optimize their efficiency and improve their flexibility and agility by having others manage less-relevant tasks while pooling their efforts on everything that requires their clinical expertise.
Among the many business processes outsourced in 2025, healthcare is one of the most popular. According to Precedence Research, the current global healthcare BPO market size is at $466.64 billion USD, and by 2034, it’s set to grow to over $1030.34 billion USD. And the reason for its recent popularity has to do with technological advancements, as well as recent events that highlighted the importance of innovation and adapting to technological changes.
With advancements in technology making waves in various industries, the healthcare industry is also affected. With pressure to innovate and transform processes, there’s a growing number of non-clinical functions in healthcare, which are more efficiently outsourced than managed in-house.
Besides this, the COVID-19 pandemic presented obstacles that highlighted many inefficiencies in the healthcare system, including operational and technological gaps that proved problematic.
Collectively, these urge hospitals and healthcare providers to prioritize innovation to provide better patient care and improve treatment outcomes. This demand primarily drives the growth of outsourcing in the healthcare industry, especially to healthcare BPO companies in the Philippines that are popular for their high-quality call center and help desk services.
Because healthcare outsourcing involves having third-party service providers take over non-clinical operations, it makes sense to outsource tasks like customer support, data entry, and accounting and finance to more affordable countries with a track record of providing excellent healthcare BPO services in the industry.
The Philippines is one of the top outsourcing destinations in the world and is even called the world’s call center capital. This makes working with healthcare BPO companies in the Philippines very attractive for the following reasons:
When outsourcing your healthcare operations, it’s important to work with a great healthcare BPO company you can trust to provide the best service, so you can focus on accomplishing clinical work, caring for your patients, and ensuring the best treatment outcomes.
We’ve listed the top healthcare BPO companies in the Philippines below, discussing their healthcare business process outsourcing services in detail.
KDCI Outsourcing is a leading outsourcing firm based in the Philippines that provides a wide range of services, including customer support, creative design, and back-office solutions. In the healthcare sector, KDCI Outsourcing specializes in medical billing, medical coding, and revenue cycle management, offering healthcare solutions designed to improve accuracy, compliance, and operational efficiency. Their healthcare services stand out for their integration of technology and personalized approach, ensuring that clients receive tailored solutions that meet their specific needs. This BPO healthcare service provider primarily serves healthcare providers, insurance companies, and organizations looking to optimize their healthcare operations through reliable and cost-effective outsourcing solutions.
Hinduja Global Solutions, also called HGS, is a leading business process management company known for delivering exceptional customer experience and digital transformation solutions. They specialize in providing comprehensive healthcare outsourcing services, including medical billing, medical coding, and claims processing, all with a focus on enhancing patient outcomes and operational efficiency. Their services are designed to meet the needs of healthcare providers, payers, and pharmaceutical companies, making them a trusted BPO provider in the healthcare industry.
Acquire BPO Philippines is a global outsourcing company that stands out for its commitment to delivering high-quality outsourced customer service and back-office solutions. They offer healthcare BPO services such as patient support, medical coding, and medical claims management, distinguished by their integration of technology and focus on compliance. Their primary target market includes healthcare providers and insurers seeking reliable, cost-effective outsourcing solutions.
Fusion BPO Services is a prominent player in the outsourcing industry, recognized for its diverse service offerings and global delivery capabilities. In the healthcare industry, Fusion BPO provides patient engagement and telemedicine support, leveraging their expertise to ensure accuracy and compliance. Their healthcare BPO services are tailored for healthcare providers and insurance companies looking to enhance patient experience and care on top of operational efficiency.
Helpware is a fast-growing outsourcing company known for its customer support and back-office solutions, with a unique approach to building customized teams. In the healthcare sector, they offer patient support, appointment scheduling, and medical billing services, emphasizing personalized service and technology integration. The target market of this healthcare BPO company includes healthcare providers and startups looking for scalable, client-focused outsourcing solutions.
Visaya Knowledge Process Outsourcing Corporation is a dynamic BPO company that specializes in delivering customer service and back-office support. Their healthcare BPO outsourcing services include records retrieval, appointment setting, medical coding, and billing, designed to enhance accuracy and patient satisfaction. Visaya KPO stands out for its commitment to compliance and quality, making it an ideal partner for healthcare providers and insurance companies seeking reliable outsourcing solutions.
KKC Outsourcing Corporation is a versatile BPO firm known for providing a wide range of outsourcing services with a focus on flexibility and client satisfaction. In healthcare, KKC offers patient support, medical claims processing, and medical billing services with a strong emphasis on efficiency and cost-effectiveness. Their services are geared towards healthcare professionals and insurance companies looking for tailored, reliable outsourcing solutions.
LaQuest Inc. is a business process outsourcing company that is recognized for its client-centric approach and expertise in various sectors. Their healthcare services include medical billing, medical coding, and revenue cycle management, all designed to improve operational efficiency and compliance. LaQuest Inc. primarily serves healthcare providers and organizations looking to optimize their financial processes through outsourcing.
Access Healthcare is a leading healthcare BPO service provider, renowned for its comprehensive revenue cycle management services. This healthcare solutions provider specializes in medical billing, coding, and accounts receivable management, offering solutions that are tailored to enhance financial performance and patient outcomes. Access Healthcare’s primary clients are healthcare organizations and providers seeking to improve their revenue cycle processes with a reliable outsourcing partner.
Flatworld Solutions is a global outsourcing company known for its wide range of services across multiple industries. In healthcare, they offer services like medical billing, medical coding, and medical claims processing, with a strong focus on efficiency and compliance. This outsourced healthcare provider targets healthcare providers and organizations looking for cost-effective and scalable outsourcing solutions to streamline their operations.
Finding reliable healthcare BPO companies in the Philippines that can address your needs and meet your demands is a challenge. We understand the struggle of finding a healthcare BPO outsourcing partner who is not only there to provide an outsourced healthcare service but is also invested in your business success.
At KDCI Outsourcing, we have over 10 years of experience supporting various healthcare organizations and companies in optimizing their operations through our healthcare back-office outsourcing, healthcare IT outsourcing, and healthcare call center services. Our goal is to build you the best offshore healthcare team in the Philippines, to ensure business success.
Learn more about healthcare outsourcing in the Philippines. Contact us today!
Legal process outsourcing, or LPO, is the practice of a law firm or legal department enlisting outsourced legal services from a third-party agency or individual to provide support for their legal processes. The most common reasons for outsourcing legal processes are to access specialized legal expertise, improve operational efficiency, eliminate staffing concerns, and reduce costs.
The types of legal services involved in LPO may be as simple as administrative support or as complex as litigation, with the most commonly outsourced jobs being legal support roles including paralegal, legal researcher, and contract manager.
There’s been a surge in demand for legal support services in the last few years — and as a top destination for global outsourcing — the Philippines is experiencing this trend. However, of all places, why are people outsourcing legal processes and services to the Philippines? Here are five reasons why.
Compared to Western countries, the Philippines has a significantly lower cost of living, reflected in the lower labor rates of legal professionals. For instance, the average rate of a paralegal in the US is $4,465 USD per month while it’s only $503.96 USD a month in the Philippines. With the other fees involved in outsourcing such as management, equipment, and benefits, the cost of outsourcing one paralegal to the Philippines is around $2,900 USD.
By outsourcing legal processes to a Philippine BPO service provider, law firms and legal departments can reduce their spending on staffing by up to 70%!
The Philippines has thousands of law graduates every year, most of whom are well-versed in common law systems similar to those in Western countries. By working with Filipino legal professionals, law firms and legal departments can expect high standards of legal expertise and a smaller learning curve.
The Philippines is the third largest English-speaking country globally, ranking second for English proficiency in Asia. Not to mention, Filipino culture shares similarities with Western culture, making it much easier to communicate and collaborate well with legal support staff from the Philippines.
In line with the global demand for innovation, most legal outsourcing companies in the Philippines are picking up new technologies such as AI, machine learning, and blockchain to make legal process outsourcing more effective, secure, and cost-friendly.
These advancements allow companies to offer more flexibility in outsourcing engagement models that tend to focus on volume rather than full-time equivalents (FTE).
With Philippine legal outsourcing companies undergoing digital transformation, they can better scale their legal operations, providing clients with improved flexibility so they can adapt to changes in business demands and the market.
This becomes a great advantage to maintain competitiveness in the market, and this reason alone makes the Philippines a good destination for outsourcing legal processes.
Looking to outsource your legal services? Below are the top legal outsourcing companies in the Philippines.
Based in Ortigas CBD, KDCI Outsourcing is one of the best LPO companies in the Philippines that provides tailored legal process outsourcing services. This BPO company is known to build great offshore legal services teams by finding the right fit through sourcing roles such as paralegals, legal researchers, and contract administrators.
For law firms and legal departments looking for extensions of their in-house teams, KDCI Outsourcing is a great option for high-quality legal support at competitive costs.
Connext Global is a foreign-owned Philippine legal process outsourcing company known for its committed teams and flexible legal outsourcing services. With extensive knowledge in the outsourcing industry, this BPO service provider can customize the legal services they provide to individual clients.
Some of the key legal positions that are available in Connext Global include legal assistants, compliance officers, and intellectual property specialists. This LPO provider is ideal for businesses looking for highly customized LPO solutions with a focus on quality and client satisfaction.
With headquarters in the United States and other countries, Flatworld Solutions is another key player in the outsourcing industry with a global spread of service centers in the Philippines. Its outsourcing service solutions involve handling voluminous legal projects with a cost-effective and time-bound approach.
Specializing in legal research, litigation support service, and document management, Flatworld Solutions is one of the best Philippine BPO firms for companies seeking scalable legal support services and a strategic outsourcing partner.
Sourcefit is a foreign-owned outsourcing company — headquartered in Metro Manila and other parts of the Philippines — that provides an unmatched customized LPO, or legal process outsourcing. Their unique selling proposition (USP) lies in the integration of sophisticated technologies and skilled legal professionals to deliver the most accurate legal solutions.
The company’s top outsourced roles are legal administrators, document reviewers, and compliance specialists. Promising excellent customer experience, Sourcefit is ideal for businesses looking for innovative, technology-driven legal process outsourcing.
Baer Reed is based in the Philippines and is a foreign-owned company that specializes in top-class quality LPO services. The company's USP is its team of experienced U.S. lawyers who supervise and take responsibility for the quality of all work sent out. Important job roles include contract reviewers, legal researchers, and legal project managers.
This LPO provider is a highly recommended company for U.S. law firms and corporations looking to maintain very high legal standards while outsourcing their corporate legal departments.
A multinational company, Infosys BPM has numerous service centers across the globe, one of which is in the Philippines. Their USP in the LPO market is strong process automation and analytics capabilities, making them highly efficient and accurate.
Their BPO services include contract management, litigation support, and legal research. This outsourcing service provider is the best option for big companies seeking a dependable and technically advanced LPO associate.
Based in the Philippines, PITON-Global is an onshore outsourcing firm distinguished for its LPO expertise. Their USP demonstrates a deep understanding of local and international legal landscapes that enable one to provide individualized legal solutions.
This outsourcing service company is particularly good at legal transcription, document review, and paralegal support. This BPO company fits best with those law firms and businesses that seek effective yet low-cost solutions, where knowledge is power in terms of legal support.
A BPO company, though LPO-capable, primarily operating from the Philippines with its headquarters there, is Microsourcing. It has flexible outsourcing models and a commitment to high-quality service delivery. This LPO firm mainly deals with the management of compliance in legal research and the drafting of documents. This company would be recommended for any organization looking for adaptability and reliability in legal outsourcing services.
Emapta, the Philippines-based foreign-owned outsourcing company, offers an extensive array of LPO services. Their unique selling point is the building of dedicated teams that are an extension of the client's in-house team. The LPO provider offers outsourced roles for legal researchers, compliance officers, and contract administrators. Emapta is best if you're looking for a seamlessly integrated outsourced legal staff within your internal legal operations.
Outsourced PH is an LPO company established in the Philippines and is foreign-owned. This BPO service provider stakes its reputation on quality assurance and solutions specifically designed for its clients. Their LPO services include legal counseling, legal transcription, and compliance. Offering legal assistance with speed and accuracy, Outsourced PH is ideal for any enterprise or legal firm in need of very reliable, customized legal outsourcing services.
Legal process outsourcing can help streamline operations, reduce costs, enhance efficiency, ensure compliance with regulatory requirements, and improve overall service quality. If you’re on the hunt for the best LPO companies in the Philippines, check out KDCI Outsourcing.
At KDCI Outsourcing, we will build your offshore legal support team in the Philippines based on your requirements to ensure seamless integration with your in-house operations, as well as provide advanced technological capabilities with AI to enhance efficiency and compliance in your legal processes.
Contact us today, and let's help you establish an offshore legal department in the Philippines.
What started out as a few agents, has grown into an invaluable partnership with KDCI. With more than 40 team members, we are lucky enough to count as part of our Cedar Family. Thank you so much KDCI for making our Company better!
We have found KDCI to be a consistently reliable partner, always willing to ‘go the extra mile’ to ensure our valued customers receive the best possible service.
KDCI plays a very important role in our catalog and content operations. They are responsive, kind, and always willing to help us as much as possible. We have been working together for more than 4 years, and we hope our partnership will be even more fruitful in the future.
Having collaborated with KDCI.co for our creative needs, I can confidently attest to their unparalleled expertise and dedication. Their team consistently delivered innovative solutions that not only met, but often exceeded our expectations. Their professionalism and attention to detail are commendable.
KDCI were able to grow with us with any future requirements. We have a lot to do when it comes to our business, and everytime we come back, they're right there with us and able to deliver.
KDCI's team has been instrumental in helping us not only modernize our platforms but also increase the experiences for the customer, and to deliver on the tsunami of content that came their way.
We had a lot of difficulty finding qualified talent in the United States. Honestly, I don't think we had thought about outsourcing at all as a potential option, but we were very open to it once we heard about it. We love our KDCI team. They're just like a regular part of our team, it's just that they're thousands of miles away.
It's been five years since we started working with KDCI, and it just keeps getting better and better. We've grown together and achieved a lot of shared success. Overall, they're incredibly professional yet fun to work with. We are incredibly happy to have found them.
We're so glad we partnered with KDCI to develop a unique platform that delivers personalized customer experiences without compromising functionality or security. It was an amazing experience, I won't hesitate to start another project with them again.
