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A big part of your business success depends on the people you’re working with. However, an efficient and reliable team can be hard to come by without investing too much time or money. This is why a lot of companies turn to building their own offshore teams in the Philippines.
By working with a Philippine offshore team, companies like Amazon and Target can streamline their business processes for lower costs without sacrificing quality.
In this guide, we’ll walk you through the step-by-step process on how to build an offshore team, so you can meet your business objectives, achieve operational efficiency, maximize competitive advantage, and unlock new growth opportunities.
Building dedicated teams in the Philippines can greatly benefit your business. Here’s why:
Unlike in the US, where the average annual salary is $66,621.80 USD, the Philippines has a much lower average salary at $3,870.12 USD per year — that’s $322.51 USD or ₱18,423 PHP per month. In the Philippine BPO industry, salaries range from $3,236.60 USD to $9,512.95 USD a year.
From this data, it’s clear why many companies from developed countries prefer hiring a full team of offshore Filipino employees. Without the high operational costs of maintaining an internal staff, you can save on labor and overhead by at least 70%.
Offshoring means an expanded global talent pool. Building an offshore team entails fewer budget constraints on labor, allowing you to hire specialized Filipino professionals at a lower cost than local talent.
Because the Philippines is ahead of the US by 12 hours (or more depending on your company’s location in the US), your offshore Filipino employees can cover business and after-hours support to keep your operations running 24/7 and ensure fast turnaround times.
When building an offshore team, consider your capabilities when it comes to budget, available time and resources, as well as your current business condition. Here are the three main ways you can do this:
The most effective method in building a dedicated offshore team in the Philippines involves partnering with a specialized outsourcing company that manages all aspects of recruitment, training, and management, aligning the team with your business needs.
Setting up your own offshore office in the Philippines offers direct control over your team and operations but requires significant investment in time, finances, and resources to manage all operational aspects.
Using freelance platforms for building a remote team in the Philippines provides flexibility and cost-effectiveness, especially for small projects or budgets, but requires more hands-on management for coordination and quality control.
Unfortunately, not all freelancers are reliable. Some freelancers underdeliver on their promises, while others may refuse high-priority tasks because they have conflicting deliverables with other clients. Between freelancers and offshore teams, companies will opt for the latter as they are more reliable and consistent.
There are many ways you can build an offshore team in the Philippines, but the most efficient method involves finding a reliable outsourcing provider. Let’s go through how you can do this.
As a business owner, the first step in building an offshore team is identifying your needs and business and project goals. You can do this by closely examining your current operations. Look at what's working well and areas that need improvement, such as customer service, technology, or market expansion.
You should also pinpoint the specific challenges your business is facing. For instance, if rapid growth is overwhelming your current staff, you might consider whether adding offshore team members to perform certain functions could alleviate pressure. Conversely, if innovation is your goal, pinpoint the skills and expertise needed to drive this, and assess if these are present within your existing team.
This phase is about aligning your operational needs with your strategic goals. Are you looking to cut costs, improve efficiency, or expand your offerings? Each goal will require different resources and approaches, and recognizing this early on is key to successful offshore team management.
Choosing the right offshoring partner in the Philippines is a critical decision that can significantly impact the success of your offshoring venture. Begin by conducting thorough research to create a list of potential offshore outsourcing companies in the Philippines.
This can be achieved through online searches, ChatGPT, recommendations from business networks, and reviews and case studies.
Pay close attention to each candidate’s track record, particularly in your industry or for the specific services you need. It's important to evaluate a potential outsourcing partner not just based on cost but also on their proven ability to deliver quality work and their experience in handling similar offshoring operations.
Once you've shortlisted potential partners that can help you build an offshore team in the Philippines, assess their compatibility with your business by evaluating their communication skills and their company culture to ensure a good match with your own. An ideal partner should not only be capable of fulfilling your business needs but should also be flexible and adaptable to your working style and values.
Once you've selected a reliable outsourcing provider, it's time to leverage their expertise in building an effective offshore team tailored to your specific business needs and objectives. Here are the things that your partner will do for you.
Your outsourcing partner begins the process of building your offshore team by assessing your business and project requirements to determine the ideal team size and the specific roles needed. They consider factors such as task complexity, necessary skill sets, and the level of support your onshore team requires.
They also plan the role specifications and task distribution, deciding whether your team needs generalists for various tasks or specialists for certain areas, based on the nature of the work and your long-term goals. This ensures a balanced team dynamic with members whose skills complement each other.
Once there’s a concrete plan for the team structure, they will start finding the right people through their recruitment team, who are responsible for making job posts, sourcing talent, as well as vetting, screening, and interviewing candidates.
Your outsourcing partner will also handle and manage the training and onboarding process of your team.
For the training process, they will prepare and hold specialized on-brand training that involves equipping the new talents with complete knowledge about your brand. By training them for your brand, you can ensure that you’ll get an offshore team that can work using your brand’s voice, values, and management styles.
To further guarantee a high-performing team, the best business process outsourcing (BPO) companies like KDCI Outsourcing certify talents through assessments, exams, live situational demos, and more.
Your outsourcing partner will also handle the onboarding process, which involves providing the talents with the systems and project management tools that your business uses for its operations. They’ll also take care of the necessary infrastructure and equipment.
Another key responsibility of your outsourcing partner involves managing your offshore team. They will monitor and oversee the operations and ensure that your staff maintains high levels of productivity and service quality.
To achieve this, the outsourcing provider monitors key performance indicators (KPIs) and ensures that the service level agreements are met. If not, then the partner will determine the areas for improvement and the possible resolutions to take.
Your partner will also prepare a report containing data-driven insights based on customer feedback and interactions, giving your business a better overview of the team’s efficiency. They will also provide regular updates and meetings to keep all parties aligned on project goals, timelines, and changes.
We created this short FAQ to help you better prepare for effective offshore team management and building.
Outsourcing companies usually take four to six weeks to build a full offshore team. However, timelines may vary between providers, so we recommend asking the company’s outsourcing expert for the average timeline.
You should use your company’s preferred communication tool. If your company uses Microsoft Teams, your offshore employees must have their own Microsoft Teams account for seamless communication and collaboration during working hours.
We recommend Asana, ClickUp, or Trello. Your choice of project management tool depends on your preferences as well as the tool’s features, reliability, and security capabilities.
When it comes to offshore team management, communication is always the key! Regularly discuss your project goals and expectations to avoid misunderstandings and keep everyone aligned on important matters.
Yes! Virtual team building activities let you connect and bond with your offshore team members beyond chats and video conferencing meetings. Your team’s project manager can also choose to hold virtual team building activities — especially if most (or all) offshore team members are working remotely.
However, these activities don’t take too much of your employees’ time, so they can still work on their deliverables and maintain momentum.
Building an offshore team in the Philippines is not an easy task. You need to allot ample time and resources to ensure that each step goes well, but this may not be possible for businesses with limited capabilities.
That said, make sure to work with a trusted offshore partner who will take care of everything for you, from finding the best people for your team to managing them and ensuring high-quality service.
At KDCI Outsourcing, we build a Philippine offshore team based on your needs, goals, and project requirements. Whether you’re outsourcing software development, accounting and finance, content creation, or customer service, we’ll find the right talent, train and certify them for your brand, and oversee your offshore business operations, giving you more time to focus on your core business processes.
Ready to progress on your goals and achieve business success with your own offshore team? Contact us to learn more!
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Human resources is the key that holds your business together. While HR departments play a significant role, managing them comes with its own set of challenges, such as labor shortages, burnout, skill gaps in AI, budget constraints, and operational inefficiencies. To address these challenges, businesses resort to human resources outsourcing.
HR outsourcing offers significant advantages that in-house HR teams can’t. If this strategy is on your radar right now, this guide will teach you how to outsource human resources the right way.
This tutorial helps you understand the process and best practices for outsourcing human resources. Put the following procedures into action, and you can reap the many benefits of outsourced HR.
If outsourcing is a new venture for your company, you have to understand what outsourced HR is as well as its benefits and drawbacks.
To start, HR outsourcing is a process of delegating HR functions to a third-party vendor in a foreign country, providing HR support in outsourced human resource management, background checking, benefits administration, payroll, HR management, and recruitment.
Some of the benefits of outsourced HR include:
On the other hand, HR outsourcing has its drawbacks, such as:
By researching HR outsourcing, you’ll know what to expect and make smart decisions for your business.
HR outsourcing is not an overnight decision; it’s a commitment and an investment for long-term success. Before you outsource human resources, it’s important to have a good, hard look at your company’s HR functions — some even use HR consultancy services to find clear answers. For starters, here are four signs you need to outsource human resources:
Remember, employees are looking for more than just a good paycheck. They also want to work for companies with ample professional development opportunities, competitive benefits, and a non-toxic work environment.
HR outsourcing providers can enhance your talent acquisition and retention strategies, refine your training programs, and improve your workplace culture, so you can attract and retain high-performing employees.
This data exemplifies the demand for automation and efficiency while addressing evolving workforce needs. However, when done in-house, technology upgrades can be expensive.
But when you outsource human resources, the service provider can integrate advanced HR technologies and tools into your day-to-day workflow to automate tedious processes and simplify the HR experience for internal staff.
Outsourced HR compliance officers can take care of your compliance needs, leveraging their expertise to ensure your company is free from workplace hazards and discriminatory employment practices.
Just by looking at the signs above, you already have a rationale for outsourcing as well as a clear idea of which HR services to outsource. Don’t solely rely on observation, though. Interviews, surveys, and data analytics can shed light on blind spots and provide data-driven insights on the current state of your HR department and workplace.
HR outsourcing may be a more cost-effective venture, but it doesn’t mean coming in unprepared for all the possible costs you might incur. When you outsource human resources, expect the following expenses:
Scope of work, project complexity, experience level of outsourced employees, headcount, pricing model, and location can also affect your total outsourcing fee.
While it’s hard to determine the exact amount of money you’ll need for outsourcing HR, understanding outsourcing costs can help you prepare a realistic monthly budget, minimize overspending, and measure your outsourcing ROI.
Don’t forget to account for long-term business goals. At some point in the partnership, your business will grow, and you’ll want a budget that will scale to your current business needs.
It’s so easy to be overwhelmed by the ubiquity of human resources outsourcing companies online. Even Googling “HR outsourcing companies” yields a lot of results.
If you’ve grown tired of the classic Google method, consider chatting with ChatGPT for prospects. Here’s a fun fact: Our lead asked ChatGPT for the best Philippine AI companies, and one of the recommendations included KDCI Outsourcing.
By using ChatGPT, you can find and shortlist potential outsourcing providers much faster than a traditional Google search. These recommendations are not random, though. In fact, they are based on multiple factors, such as the company’s reputation and expertise as well as the SEO rankings and quality of published content. These data make it easier for ChatGPT to curate HR outsourcing companies.
Another method — albeit a more human one — is by asking your network (virtual or otherwise) for suggestions. All it takes is the right people to help you find the right provider.
Whether you’ve found 10 or 20 potential outsourcing companies, the next step is to vet your prospects. When evaluating potential outsourcing partners, take note of the following:
At this point, you’ve probably removed a few potential partners from your list. Let’s move on to the next step.
The vetting doesn’t stop at the initial screening. Booking a meeting with an outsourcing partner is a huge opportunity to dive deep into their capabilities as a provider. Here are questions you can ask during the meeting:
Transparent and trusted outsourcing providers are more than eager to answer all your questions. They understand that you’re risking your data and investing money into their services, so they want nothing but the best for you.
Most importantly, use this meeting to set your expectations and performance metrics with the vendor.
It’s normal to feel reluctant when making big decisions. Most of the time, marketing claims are just claims until they’re proven right in front of your eyes. Those answers from your interview questions? Maybe they’re not enough to make you fully commit to the partnership. Thankfully, HR outsourcing companies offer trial periods.
Think of trial periods (or trial projects) as a “demo” or “preview” of the provider’s expertise and service quality. What’s great about accepting a trial project is that it exposes most of the green and red flags of your offshore HR team and the HR outsourcing company itself.
Here are the green flags to look out for:
Conversely, here are the red flags:
If the trial period did not work out as expected, it’s okay to move on to other prospects. It’s better to go through the whole vetting process than waste time and money on the wrong HR outsourcing partner.
What if my offshore HR employees passed the trial period? Congratulations! You can now officially outsource human resources. To build a long-lasting outsourcing relationship, follow these tips:
Outsourcing partnerships take time to build. So long as the relationship is grounded in trust, accountability, and shared responsibility, there’s a huge chance that it will last for years.
At KDCI Outsourcing, we help medium to large-sized businesses scale their in-house HR department with a dedicated offshore HR team from the Philippines. Our staffing solutions are designed to augment your existing team with outsourced roles in payroll, HR data analysis, recruitment, talent acquisition, and many more.
With our strict hiring process and commitment to innovation, we ensure that our AI- and human-driven HR services exceed your expectations and meet your business needs.
If you’re looking to outsource human resources and build your own team, contact us now for assistance!
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About 68% of US companies engage in offshore outsourcing today.
And when we say companies, we’re also talking about multinational, successful businesses. The brands that we know and love. Top brands like Adidas, Google, Telstra, and Amazon outsource their operations to companies like KDCI because of benefits such as cost efficiency, access to a wider, global talent pool, and staffing flexibility.
That’s how much offshore outsourcing impacts the business world. With the right outsourcing partner, you can tap into this impact and empower your business to scale smarter with an outsourced team, too.
So, let’s talk about it! In this blog, we’ll answer the questions “what is offshore outsourcing?” and “how does it actually work?” We’ll also cover the key benefits of having an offshore team as well as the best practices in finding a reliable offshore outsourcing partner.
Here’s everything you need to know.
Offshore outsourcing is a business strategy wherein companies hire external firms or a third party service provider in other countries to handle tasks like customer service, IT support, software development, and manufacturing. It could mean having a handful of staff working for you from across the globe, or a dedicated team for the function you are outsourcing, say an entire HR department operating from offshore destinations like the Philippines, serving as an extension of your in-house team.
This allows businesses to save costs and access specialized skills that are more readily available or more cost effective abroad. As opposed to onshore outsourcing, an offshore outsourcing service allows businesses to leverage lower labor costs from outsourcing providers, giving them both reliable workers and substantial cost savings. That’s a win-win!
The tasks outsourced depend on the company’s unique operational and business needs, such as a tech firm hiring foreign developers for their expertise or a manufacturer seeking lower labor costs or an eCommerce company needing more customer service agents. Since the global BPO market has grown and evolved over the years, almost every service can now be outsourced. The test? If a task can be done remotely, then you can delegate it to an offshore team.
Offshore outsourcing services can be broadly classified into five types, each catering to different operational needs and strategic objectives of businesses.
More popularly known as ITO or IT Outsourcing, this type of offshore outsourcing involves contracting external organizations located in other countries to handle various technical support and IT-related tasks, such as software development, application maintenance, network management, and IT support. It’s one of the most common forms of offshore outsourcing, driven by the need for technical expertise and cost savings.
Curious about IT Outsourcing? Check out ITO Meaning: Benefits and Use Cases of IT Outsourcing.
Business Process Outsourcing (BPO) entails outsourcing non-primary business activities and functions such as customer support, administrative tasks, human resources, finance and accounting, and data entry to specialized service providers overseas. The aim is to improve operational efficiency and allow companies to concentrate on their core competencies.
Knowledge Process Outsourcing extends beyond traditional BPO by outsourcing more complex, knowledge-intensive tasks that require specialized skills (that, of course, still come at a lower cost). This includes research and development, financial analysis, advanced engineering services, legal processes, and consultancy services.
Learn more about the difference between BPO vs. KPO here: BPO vs KPO Explained: Essential Insights You Should Know.
Legal Process Outsourcing focuses on outsourcing legal services to external firms located in jurisdictions with lower labor costs. Services commonly outsourced include document review and management, legal research, contract management, and compliance services.
This type of offshore outsourcing service is typically used by legal forms or large corporations with their own legal departments who need to fill some roles while reducing the overhead costs of recruiting and training legal staff.
If you want to know more about LPO, read: LPO: A Comprehensive Guide.
This offshore outsourcing type involves contracting manufacturing processes or production tasks to foreign companies. Manufacturing outsourcing is adopted by companies looking to benefit from lower labor and as well as production and operational costs, access to advanced manufacturing technologies, and the ability to scale production based on demand without significant capital investment.
Offshore outsourcing follows a structured process that allows companies to delegate certain tasks or business functions to third-party service providers located in countries other than where the company is.
While there is no one-size-fits-all approach and the journey may vary depending on your outsourcing needs as well as the nature of your chosen provider, the process typically involves the following key steps:
Companies first need to identify the tasks they want to outsource. These can range from IT services, customer support, and manufacturing, to specialized tasks or short-term projects like legal processing or knowledge-based work, depending on every specific business need.
The next step involves researching and selecting the best offshore outsourcing companies with the expertise, resources, and capacity to meet the company's needs. This selection is based on various factors, including cost, reputation, quality of work, tech innovation, and the provider's ability to communicate effectively across cultural and linguistic barriers.
Usually, companies from developed nations and economies outsource to developing countries like the Philippines to maximize cost savings. This strategy leverages lower labor costs and access to a skilled workforce, allowing businesses to reduce expenses and improve efficiency with a trusted BPO company.
Companies conduct due diligence to assess the capabilities, financial stability, and track record of the chosen offshore outsourcing company. Following due diligence, the company negotiates terms, including scope of work, engagement models or service level agreements (SLAs), pricing, confidentiality agreements, and timelines with the outsourcing provider.
This phase involves transferring the identified business processes to the offshore outsourcing provider. It may include training the provider’s team, setting up communication and project management tools, and integrating systems and processes to ensure smooth operation and oversight across the entire outsourcing journey.
Effective communication and management are crucial for the success of offshore outsourcing. Regular meetings, progress reports, and performance reviews help manage the relationship, address any issues, and ensure that the outsourcing objectives are being met.
Establishing quality control measures and feedback loops is also essential to maintain the quality of the offshore outsourcing services availed. This can involve periodic audits, performance metrics analysis, and implementing changes based on feedback to continually improve the process and outcomes.
Ensuring compliance with legal and regulatory requirements in both the company's home country and the provider's country is critical. This includes data protection laws, intellectual property rights, labor laws, and tax implications.
Aside from the nature and process of outsourcing, among the most frequently asked questions about working with a BPO company are about its benefits. Let’s talk about what’s in it for you when you outsource specific business functions.
Offshore outsourcing comes with a number of advantages. Listed below are some of the most common benefits:
Offshore outsourcing greatly lowers costs by using cheaper labor from other countries, saving money on salaries, office space, and equipment.
It enables access to a vast pool of skilled professionals worldwide, providing expertise that may be scarce or costlier domestically.
Businesses can concentrate their resources on core activities that drive growth and revenue, enhancing their competitiveness.
Offshore outsourcing offers the ability to scale operations quickly in response to market demands without large capital investments or long-term commitments.
Partnering with specialized offshore companies leads to improved workflows, productivity, and turnaround times, thanks to optimized processes and best practices.
While offshore outsourcing offers significant advantages, it also requires careful planning, effective communication, and diligent management to address challenges such as cultural differences, time zone discrepancies, and ensuring quality standards are met.
Want to learn more about the benefits of offshore outsourcing? Read: Offshore Outsourcing Guide: Benefits & Best Practices.
While outsourcing can now benefit almost every industry, there are still services that are preferred over others. For organizations all over the world, the five most commonly outsourced business operations are:
software development services, web development, IT support, network management, and cybersecurity
Such as call centers, help desks, and customer interaction management
payroll processing, benefits administration, recruitment, and training
Such as bookkeeping, tax preparation, financial analysis, and auditing
outsourcing the physical manufacturing process of goods, especially to countries with lower labor costs
These offshore services are commonly outsourced due to their universal demand across industries, coupled with the availability of specialized global providers who offer cost-effective and scalable solutions.
Didn’t find the exact service you need on the list above? Check out In-Demand Offshore Outsourcing Services for US Businesses.
Where should you find a trusted offshore outsourcing service provider? The top offshore outsourcing destinations are renowned for their skilled labor pools, cost-effective services, and business-friendly environments. As of 2025, the best countries for outsourcing include:
With a strong emphasis on customer service and English language proficiency, the Philippines excels in providing offshore employees for call center services, customer support, and creative outsourcing.
Known for its vast pool of IT talent, India is a premier destination for software development, IT support, and business process outsourcing (BPO).
A global leader in manufacturing outsourcing, China offers a broad manufacturing base and access to a large, skilled workforce.
Recognized for its IT and software development expertise, Poland has become a preferred choice for companies seeking advanced technical skills in Europe.
With a growing reputation for its IT and software development talent, Ukraine offers highly skilled professionals in these fields at competitive rates.
By leveraging the strengths of these leading outsourcing destinations, companies can enhance their competitive edge, improve operational efficiency, and drive growth in the global marketplace.
Choosing the right outsourcing company is crucial for enhancing your business operations and achieving strategic goals. Here are the top five tips you can follow when choosing a service provider:
Clearly outline your objectives and the specific services you need to outsource to ensure alignment with potential partners.
Conduct in-depth research to identify outsourcing firms with a strong track record and relevant industry experience.
Choose a partner with excellent communication capabilities to ensure smooth interactions and project management.
Verify the outsourcing firm’s technical capabilities and infrastructure to handle your projects efficiently and securely.
Review the pricing structure and contract terms carefully to ensure transparency and flexibility to meet your business needs.
By following these tips and approaching the selection process systematically, you can find an offshore outsourcing partner that not only meets your current needs but is also well-positioned to grow and evolve with your business over time.;
Ready to choose an offshore outsourcing provider to work with? Check out 10 Best Offshore Outsourcing Companies in the Philippines.
Or better yet, take the first step by discussing your offshore outsourcing needs with an offshore outsourcing provider that you can trust. Just reach out — we’d be happy to answer any other questions you might have about offshore outsourcing.
It’s difficult to navigate offshore outsourcing with little knowledge, especially if you have specific business requirements to fulfill. With several things you need to consider, how do you get started?
This is where KDCI Outsourcing comes in. We take the time to understand your needs and requirements, company culture, and pain points to build you the perfect offshore team. With over 20 years of industry expertise, we’ll do everything for you, from finding, vetting, training, and certifying the right talents for your brand, up to managing your operations, saving you time and money — so you can focus on growing your business..
Learn more about our offshore staffing services and how it can empower your business to scale smarter. Contact KDCI to get started.
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For businesses today, customer experience is EVERYTHING. So much so that a smooth, personalized, and reliable interaction with your brand can mean the difference between winning a long-term client and losing one to the competition. The stakes are high.
So, off the top of your head, how much is your business currently investing on customer service? More to the point, are you getting maximum return on investment out of it?
For a lot of medium to large businesses (those who are in a space of continuous growth and are currently looking to scale their operations), keeping customer service in-house can be expensive and often unsustainable. Recruiting, training, and retaining skilled customer service agents takes significant time and budget — valuable resources that could be redirected to driving core business growth instead.
With an outsourced customer service industry so rich, it has been dubbed as the “call center capital of the world,” the Philippines has become the go-to destination for businesses that want to deliver top-notch customer service while keeping costs manageable.
With a large pool of English-speaking talent, a strong cultural alignment with businesses in the US, Australia, and Europe as well as decades of proven expertise in business process outsourcing, the country continues to attract companies of all sizes across various industries.
The good news for growing businesses: outsourcing customer service is one of the smartest ways to scale your business operations. Whether it’s managing calls, responding to live chats, or handling escalations, outsourcing to the Philippines lets you access skilled professionals without the overhead of hiring in-house.
So, in this guide, we’ll walk you through the benefits of outsourcing customer service to the Philippines, key considerations before making the move, practical tips for success, and the top providers in 2026 that are well-suited for businesses like yours.
Keep reading to learn more.
The Philippines has been the global leader in BPO services for more than two decades. While the outsourcing space in the country has now expanded to various spaces including finance, human resources, and even AI-powered recruitment, customer service remains to be one of the most in-demand offshore outsourcing services for US businesses.
But what exactly makes it such an attractive option, especially for businesses like yours who are looking for cost-efficient yet high-quality customer support outsourcing services?
Here are 5 of the key reasons why Philippine customer service outsourcing is highly preferred:
The Philippines ranks consistently as one of the largest English-speaking nations in the world, with strong proficiency in both written and spoken communication. Filipinos are also known for their neutral accent, making them easily understood by Western customers.
When you hire a customer service team from the Philippines, you are tapping into a pool of skilled professionals who can clearly and effectively connect with your English-speaking customers.
On top of their excellent communication skills, Filipino customer service representatives are often praised for their professionalism, empathy, patience, and customer-first mindset.
The country’s cultural alignment with the US, Australia, and Europe makes it easier for businesses to outsource without worrying about tone or communication gaps. This way, you’re not only meeting your customers expectations in terms of language, you’re also strengthening your business with customer service operations that are aligned with your team’s culture.
Outsourcing to the Philippines allows companies to save up to 60 to 70%, because of lower labor costs as opposed to hiring in-house staff in Western countries. Typically, the average monthly cost of having one customer service representative ranges from $349.79 USD to $437.23 USD.
The best part is, this affordability doesn’t come at the expense of quality — Filipino BPO agents are trained to deliver professional, world-class service. So, you can rest assured that your customers will be getting excellent customer service, at a fraction of the costs. Talk about value for money!
With decades of experience, the Philippines boasts mature outsourcing ecosystems and strong call center services that empower all types of businesses.
From robust telecommunications infrastructure and tools to Philippine government support through tax incentives and training programs, the customer service and BPO industry in the Philippines is an intricate system that you can fully depend on. Businesses outsourcing here can rest assured that the systems in place are reliable and sustainable.
Known for enterprise-scale outsourcing which often requires hundreds of agents, the Philippines is also friendly to smaller setups. Many providers now offer flexible engagement packages where medium-sized businesses can start with just a few agents and scale as needed.
If you’re currently in a growth phase and just looking for ways to take some of the tedious tasks off your staff’s plate, having an offshore team for your customer service function might just be the best way to go.
Want to learn more about outsourcing customer service to the Philippines? Explore this further here: The Pros & Cons of Outsourcing Customer Service to the Philippines.
For now, let’s move on to the benefits of customer service outsourcing.
From a holistic perspective, customer service outsourcing is mostly about creating a lean, competitive advantage that allows businesses to grow faster. If you’re managing a business that is currently in this phase, you can definitely consider having a Philippine team of customer service agents to help you scale faster (and, of course, smarter).
Here’s how medium to large businesses can benefit from outsourcing their customer service functions:
Outsourcing your customer support is one of the most effective ways to lower your operational expenses without sacrificing quality.
Instead of shouldering the significant financial burden of an in-house team — including salaries, benefits, rent for office space, training materials, and tech infrastructure — you can tap into a more cost-effective model. Outsourcing significantly reduces these overhead costs, allowing you to invest your savings back into your business.
Most managers know this: finding, hiring, and training a high-performing customer support team can be a time-consuming and expensive process.
When you outsource, you skip the extensive (and expensive) recruitment and onboarding stage and get immediate access to a pool of seasoned professionals who are already vetted, trained, and prepared to handle a variety of customer interactions, from voice support to live chat and email. These experts from customer service outsourcing companies bring with them a wealth of experience, ensuring your customers receive top-tier service from day one.
Freeing up your internal resources from the day-to-day demands of customer service allows your leadership team to concentrate on what truly drives your business forward. Think of it as a way to take your time back.
By entrusting support to a specialized partner, you can redirect your attention and energy toward strategy, product innovation, and market expansion. This strategic shift ensures that your core business objectives remain the priority, accelerating your company’s ongoing growth and competitive advantage.
Of course, the ultimate goal of any support function is to create a positive experience for your customers, and Philippines customer service outsourcing can help you achieve this.
Philippine customer service agencies are known for their commitment to service excellence. Their agents are not only highly trained but also possess a natural sense of empathy, leading to quicker issue resolution, smoother interactions, and a more positive overall experience for your customers. This level of service helps you build brand loyalty and a strong reputation.
Business needs can change quickly, and your support team needs to be able to adapt.
Outsourcing gives you a level of flexibility and scalability that is difficult to match with an in-house team. Whether you need to start with just a few agents or plan to double your team in response to a growth spurt or seasonal demand, your outsourcing partner can seamlessly adjust the team size to meet your needs. This ensures you always have the right level of support without the logistical hassle or long-term commitment of hiring new full-time employees.
To maximize all these benefits, it’s important to make sure that you are doing outsourcing right.
While there is no one-size-fits-all approach to having a successful offshore team for your customer service needs, there are industry best practices that you can follow in order to make the most out of customer service outsourcing.
Once a business decides to outsource, it’s easy to view the relationship as a simple transaction: simply paying another company to handle a task. However, the most successful outsourcing relationships are built on collaboration.
The key here: outsourcing is a partnership. Consider your outsourced customer service team as an extension of your own company, with your chosen provider acting as a true collaborator in achieving your business goals. By following these best practices, you can ensure your outsourcing partnership will truly empower you to have a more efficient, scalable, and customer-centric organization.
Before you begin the search for a partner, you must first define your goals. What do you want to achieve through outsourcing? Is your primary goal to reduce costs, extend your support hours, or perhaps improve your customer satisfaction scores?
Clearly outlining these objectives will help you select the most suitable partner and establish a clear framework for measuring success. This first step ensures that your partnership is built on a strong foundation of shared understanding and purpose.
Jumping in with a massive team from the start can be risky. A better approach is to begin with a manageable team, maybe around 5 to 10 customer service agents.
This “crawl before you run” strategy allows you to test the waters, refine your processes, and build trust with your outsourcing partner without a huge upfront investment. Once you’re confident in the process and the partnership, you can seamlessly scale your team as your business grows.
It’s easy to think that more channels are always better, but that’s not always the case.
Take a strategic look at your customer base and determine which communication channels — such as live chat, email, phone support, or social media — are most effective for your business. Focusing on the right channels prevents you from wasting resources on platforms that don’t resonate with your customers and ensures you’re meeting them where they are.
When outsourcing customer service and technical support services, it’s crucial to maintain a healthy level of involvement.
This means establishing regular check-ins, performance reviews, and robust reporting systems to ensure your customer service operations remain aligned with your business goals. Active oversight ensures that you retain visibility and control, keeping the outsourced team integrated with your business and aware of your expectations.
The agents you hire will be the voice of your brand. Therefore, it’s essential to choose a partner whose culture and values align with your own.
Look for a provider who shares your commitment to customer service, communication style, and ethical standards. This alignment ensures that your outsourced team acts as a natural extension of your company, providing a seamless and authentic experience for your customers.
While these are typically the tips that businesses who successfully outsource customer service follow, it’s important to identify the approach that works best for your own business. After all, no one knows your business like you do.
If you need more information about the customer service outsourcing process, read: How to Outsource Call Center Services to the Philippines.
Now that we’ve gone through the what, the why, and the how, it’s time to discuss the who of customer service outsourcing. As we’ve already established that this is a partnership, who you’re outsourcing this function to can make a huge difference.
Not all outsourcing providers are made equal, that’s a fact. So, to help you choose one, here’s a look at some of the leading outsourcing companies in the Philippines that are well-suited for medium to large businesses looking for dedicated customer service teams in 2026.
Based in Pasig City, KDCI Outsourcing specializes in building custom, on-brand call center teams for businesses. Their process involves a personalized approach, from vetting and training agents to aligning them with your brand’s unique voice and goals. They focus on quality and efficiency by providing certified customer service agents for various channels like email, live chat, or phone.
Beyond offshore staffing, KDCI ensures continuous improvement through managed operations. They provide a dedicated account manager to oversee your customer service and gather data, ensuring your business has the necessary insights to refine and enhance its support strategy for optimal performance.
Sutherland Global Services offers comprehensive, data-driven customer interaction services. They provide seamless omnichannel support across voice, chat, and email, ensuring a consistent customer experience. Their use of data analytics helps businesses gain valuable insights into customer behavior for more personalized and effective interactions.
With an established global presence, Sutherland offers scalable solutions and multi-language support while maintaining local expertise. They also invest heavily in specialized training for their agents and integrate advanced technologies like AI to streamline processes, ensuring high-quality and efficient service.
As a global leader in customer experience, Concentrix focuses on a strategic approach to enhance customer engagement. They specialize in customer journey mapping to identify key touchpoints and opportunities for improvement. Their omnichannel strategy ensures a cohesive experience across all channels, from online to phone.
Concentrix leverages data and analytics to personalize each interaction, making it relevant and engaging for the customer. They also prioritize employee experience, recognizing that a motivated and engaged team is key to delivering superior customer service.
Alorica provides a wide range of customer experience solutions designed to transform how businesses interact with their customers. They create customized strategies for various industries, offering everything from customer service and technical support to sales solutions. Their services are supported by digital innovations like chatbots and a strong global presence.
A key part of Alorica’s strategy is a strong focus on workforce solutions. They use a data-driven approach to understand and predict customer behavior, enabling businesses to make informed decisions while managing a talented and well-equipped team.
Foundever offers a suite of customer experience solutions aimed at fostering meaningful customer interactions. Their core strength lies in their omnichannel approach, which ensures a consistent and integrated experience across all communication channels. This is backed by a global presence that provides multi-language support with local cultural expertise.
Foundever utilizes data-driven strategies and innovative technology, including AI, to enhance efficiency and customer engagement. They place a strong emphasis on their human resources, providing continuous training and development to ensure a skilled and motivated workforce that is ready to deliver on-brand service.
If you are looking for more options, check out: The 10 Best Call Centers in the Philippines.
Now, let’s talk about your business specifically! Let’s find out if you’re ready to outsource your customer service function.
Go ahead and ask yourself (and your team) these questions:
If you answered “yes” to at least one of these, outsourcing customer service and support could be the strategic move your business needs in 2026.
The Philippines has long been the world’s customer service hub — and for good reason. With its skilled workforce, strong cultural alignment, and cost-efficient solutions, it offers medium-to-large businesses the opportunity to provide world-class customer experiences without breaking the bank.
At KDCI Outsourcing, we specialize in building dedicated customer service teams tailored to your business needs. Whether you need a few agents to cover multiple channels or a growing support team to scale with your operations, we’re here to help you deliver seamless customer experiences.
Let’s talk about how we can support your customer service goals in 2026 and beyond. Contact KDCI Outsourcing today.
The COVID-19 pandemic forced a lot of companies, schools, and other establishments to impose a remote work setting. Although we’re now past the post-pandemic era, remote work is still a relevant workforce trend. From cost savings resulting from the absence of daily commutes to increased productivity due to fewer distractions, this setup is the key to balancing work and personal obligations.
While some businesses already have some experience in managing employees working remotely, other employers struggle with fully implementing the remote work model. Add to the fact that overseeing a remote team is a whole new territory altogether.
Don’t worry, we’ve got your back. In this guide, we’ll share our top 10 tips on managing employees working remotely.
In remote work, new policies need to be established, your employees will encounter struggles, and other preparations need to be rushed. Luckily, there are plenty of ways to manage your remote workforce.
The cliché, “communication is key,” is now one of the essential elements that will keep your business alive. You always have to know the current capabilities of your workforce. Perform daily check-ins with your remote teams to see how they’re doing.
Ask them about what might affect their productivity and respond accordingly. If your remote work employees have personal issues at home, empathize with them to show that you care. If it’s operational risks, like information security or network latency, have them reach out to your IT staff to guide them through it.
Part of communication includes being communicative with both credit and feedback. As your business engages in a remote work setup, your employees can’t see you, and therefore some of them will spend more time overthinking what you actually meant with your “okay” or when you don’t reply. Give credit to ease their feelings of isolation that come with working remotely.
A little “good job” or “this looks great” can go a long way. On the other hand, if you don’t like what they did, give constructive criticism so that they know how to improve. This is best done on a call so they can gauge your emotions through your voice. Moreover, constructive criticism will boost their morale as it shows you’re open to improvement.
Managing employees working remotely doesn’t stop at conducting regular virtual meetings, following up on deliverables, and monitoring performance metrics. Just like your in-office employees, you also need to prioritize your remote team’s professional development.
LinkedIn Learning, cited by Thirst, found that employee development investment can increase the likelihood of employees (93%) staying employed in a company. If you want to build a remote company culture that’s not only grounded in inclusivity but also continuous improvement, here’s what you should do:
In conclusion, professional development rewards remote employees with a career path brimming with opportunities and success. It also makes your workforce more adaptable to new industry demands and technological advancements.
Remote employees deserve praise for their hard work. While celebratory lunches and pizza parties are out of the picture for remote work, you can still celebrate your team’s milestones and achievements in your own way.
A heartfelt message in the group chat, or even a token of appreciation you’ll send to each team member is enough to show your gratitude. This, in turn, improves your staff members’ morale and engagement — thus inspiring them to work harder.
Luckily, the technology to keep a purely remote work business going has been around for the longest time. Since you can’t have a physical meeting for brainstorming, collaboration, updates, or feedback, use other communication channels.
Use Google Hangouts, Zoom, or Discord for conferences that require screen sharing. For communication channels, you can always rely on Slack — our client's favorite.
If you want your teams to be organized while giving you the capacity to track their progress, use project management tools like Trello, Asana, or Basecamp.
To maintain remote work productivity, you have to set expectations in sprints. Sprints could be weekly, bi-weekly, monthly, or quarterly tasks that you expect them to accomplish in that period.
In the middle of these sprints, it can also be helpful to have a quick meeting to talk about their progress, action items for the next couple of days, any impediments to work, and if they need help with anything.
This will build your trust with your remote employees and give you peace of mind as you focus on production, not screen time. At the same time, your remote team members won’t feel like they’re being micromanaged, which can also affect their motivation to work.
Loneliness is one of the downsides of remote work. Since there is a lack of social interaction, you have to check on your remote work employees regularly. And by that, we mean to check on them as a person and not as an employee.
Ask how they’re doing at home and encourage them to communicate if they have any problems with their remote work environment. Your employees need to know that you really have their backs. Employees who feel like their company cares about their well-being will work better. And when they work better, your business will grow further.
Building a strong bond between your remote workers also involves a sprinkle of casual fun. Game nights, online challenges or contests, happy hours, coffee chats, and other virtual social events and team-building activities promote camaraderie and encourage remote workers to get to know each other in informal settings.
Create dedicated Slack channels for these activities to keep everything organized and separate work from fun. While virtual events are a breather from the modicum of work (and regular meetings), these events shouldn’t be scheduled in excess.
Promoting DEI is one of the most vital remote work best practices for modern businesses. DEI is not a trend, but a standard that companies must strive for. According to Glassdoor, poor workforce diversity in a company can make 32% of job seekers and employees not consider applying for a job.
Moreover, retention rates are 5.4 times higher in companies with diverse and inclusive workplaces, as reported by Great Place to Work. Hence, when managing a remote team, it’s important to prioritize diversity and inclusivity.
Here are some ways to cultivate DEI values:
By fostering an inclusive remote office environment, your team members will feel more valued and hence are more likely to perform better and remain committed to working with you.
Remote work can blur the lines between our personal and professional lives. The lack of a good work-life balance can lead to burnout and poor mental health. Thankfully, there are plenty of ways to maintain this balance, such as:
Managing employees working remotely involves a lot of trust and accountability. By trusting your remote team and keeping them accountable, your employees will have the motivation to bring their A game to work.
At the end of the day, it will all come down to how much you care about your remote work employees. Whether there’s a crisis or not, you know you can always rely on your remote team for your business needs. If you effectively manage your remote workers, don’t be surprised if your business is still growing to this day.
At KDCI Outsourcing, we make building a dedicated offshore team of remote professionals easier and cost-effective for businesses.
Our outsourced project managers and employees in accounting and finance, customer service, graphic design, marketing, and real estate use your preferred workplace communication software to ensure that every correspondence is consolidated in one place.
Our commitment to employee well-being helps our work-from-home staff cope with the rigors of remote work, so they can remain productive and continue exceeding your expectations from the comfort of their homes.
Together, let’s harness the power of Philippine remote work in the outsourcing industry. Start outsourcing your projects to KDCI Outsourcing. Reach out to our experts now!
Technology becomes obsolete — fast! Breakthroughs in technology have not only opened doors for hyperconnectivity, but also convenience and advancements in many industries. Hence, businesses are now faced with a silent obligation to modernize and keep up with technological advancements.
Even employees, including IT staff, are pressured to upskill to meet industry and business demands. It’s not just that, though. From heavy workload to skill and knowledge gaps, IT teams have become overwhelmed and stretched thin with too many things on their plates.
For forward-thinking companies and employees, one strategy reigns supreme: Information technology outsourcing (ITO). As one of the commonly outsourced departments, IT outsourcing has become a vital avenue for business innovation and success.
Whether it’s hiring external experts for a project or bolstering cybersecurity for an extra layer of protection, outsourcing empowers businesses for the future of IT and futureproofs them against sophisticated cyber threats. This article explores ITO meaning, benefits, and use cases. If you’re looking to harness IT outsourcing, read on below.
Information Technology Outsourcing, or ITO in short, is when a company contracts with a third-party outsourcing provider in a developing country to perform IT functions and processes, including cybersecurity, software development, IT support, and web hosting. Businesses engage in ITO to cut costs, maintain competitive advantage, and enhance operational efficiency.
Onshore outsourcing IT is a practice of partnering with a domestic outsourcing partner. Since the client will be working with locally outsourced employees, this strategy eliminates cultural barriers and promotes a collaborative experience that isn’t bound by significant time zone differences.
However, this model may be the most expensive due to the cost of local labor. With labor shortages and limited geographical scope, companies may find it challenging to hire a specialized IT expert within their home country.
Nearshore outsourcing is when a company outsources IT processes to external providers in a nearby geographical location. In this case, a US company outsources IT projects to Brazil, Colombia, or Mexico.
Nearshore ITO offers the right balance of lower labor costs, cultural compatibility, and minimal time zone differences. Unfortunately, political instability and a limited talent pool may push companies away from nearshoring IT.
Offshore ITO is the full package of outsourcing: Cost savings, a wider talent pool, and linguistic and cultural compatibility. It is when a company partners with an external service provider in a faraway geographical location. Hence, if a US-based business offloads IT projects to the Philippines or Malaysia, it’s considered offshore outsourcing.
Offshore outsourcing companies provide round-the-clock support to ensure faster development cycles and project completion. They also employ IT professionals who are proficient in English for seamless communication with clients.
Although this outsourcing model is the most cost-effective among all models, its success lies in clear, regular communication and effective team management.
Businesses — even those with existing internal IT teams — benefit from ITO. Below, let’s explore how the advantages of IT outsourcing pave the way for business success:
One of the best benefits of information technology outsourcing is increased access to external experts with the same expertise and qualifications you’re looking for locally. But if there’s one thing that sets global talent apart from local hires, it’s cost-effectiveness.
To begin with, the average hiring costs in the US sit around $4,683 per hire. However, this amount can be higher in the IT industry. Let’s look at how much each IT professional takes home in the US per year:
On the other hand, here’s how much a Filipino IT professional earns for the same roles annually:
By hiring talent from a developing country like the Philippines, you can save on labor, training, and equipment costs by as much as 70%!
These professionals are also equipped with world-class skills that they acquire and hone from their college education, certifications, and work experiences. This ensures that all outsourced projects will be handled and accomplished by top-notch experts.
While tools and software are staples of the 21st-century business environment, they constantly evolve. Spiceworks found that IT budget increases were planned by more than half of surveyed companies (66%), citing IT infrastructure upgrades as their rationale (52%).
Upgrades come not just with training and consulting costs, but also operational delays and lost productivity. Hence, companies are then faced with two choices: Keep up or get stuck. However, not upgrading also costs businesses lost opportunities for scalability and innovation and puts them at a higher risk of cybersecurity threats.
If you want that much-needed upgrade without the significant capital investment, you can partner with an IT outsourcing company. The best IT outsourcing companies come equipped with the most sophisticated tools — including artificial intelligence and cloud technology — to support your IT needs and integrate into your workflow. This also minimizes learning curves associated with learning a new tool or software.
Speaking of upgrades, enhanced cybersecurity deserves its own spot here. According to the World Economic Forum, survey participants were most concerned about the following organizational cybersecurity risks:
Statistics also found that by 2029, companies can lose $15.63 trillion USD due to cybercrimes, up from a 2025 forecast of $10.5 trillion USD. Thankfully, ITO can help minimize your company’s risk of cybercrime.
ITO offshore outsourcing companies boast secure IT infrastructures, deploy on-site security systems, and implement data security practices. They also employ URL filtering systems, firewalls, VPN tools, updated antivirus programs, and end-to-end data protection solutions for safe data access, processing, handling, and storage.
With a round-the-clock IT team that monitors network activity, conducts security audits, and executes response strategies outlined in the company’s business continuity plan, your business is less likely to face downtimes caused by cyber threats.
To further ensure data integrity and confidentiality, ITO companies conduct rigorous employee background checks to avoid insider threats and internal data breaches. Because these providers train employees on cybersecurity, your company will get the peace of mind it deserves.
The fast-paced nature of today’s business environment thrives on productivity and efficiency.
Thankfully, outsourcing brings the gift of operational efficiency. Engaging in information technology outsourcing doesn’t mean laying off or firing your entire internal IT team; it’s about augmenting your organization with the right external expertise.
Collaborating with an IT outsourcing partner allows you to build a dedicated offshore team for non-core IT tasks, enabling your in-house staff to focus on core business activities and IT competencies. This eliminates delays in internal IT projects and builds operational efficiency necessary for business growth.
As they say, time is money. After all, the first business to make waves in the market can mean gaining a huge competitive advantage over other competitors. What if your company wants to accelerate development and be the first to release an all-new, groundbreaking software? Of course, the solution is information technology outsourcing.
Partnering with one of the best BPO companies speeds up time-to-hire and helps you scale your workforce, significantly cutting out development time without increasing labor costs. Combine round-the-clock external expertise with the provider’s advanced technologies, and you’ll be launching your software before your competitors do.
Here are four examples of IT functions to outsource to an ITO company:
If your business develops software or platforms, you’ve probably had your fair share of making users wait as your help desk specialist escalates the issue to a more qualified specialist.
Increased ticket volume is another problem if your company lacks manpower, which further delays ticket resolution. For customers, this screams poor and inefficient technical support.
Outsourcing help desk support to one of the top help desk outsourcing providers or ITO companies can do wonders. Benefits include:
Developing software is a rewarding experience. But the work involved in development is rife with challenges associated with software development. On top of unclear project requirements, software developers are grappling with tight deadlines, quality assurance, frequent upskilling, and evolving software requirements.
Partnering with a reliable IT outsourcing partner eases these challenges. Let’s take a look at the perks of outsourcing software development:
Those stunning websites you see online are all thanks to the hard work of web developers and designers. But when one website looks good on a certain browser (say Google Chrome or Firefox), but looks bad in another, it’s poor cross-browser compatibility.
If we throw in mobile compatibility, website optimization, user-friendliness, and security threats into the mix, you’ll end up with a stressed-out team of web developers. That’s where outsourcing web development comes into play. By collaborating with an IT outsourcing company, you’ll get:
Whether your customers are using desktop computers or smartphones, cybersecurity should never be taken for granted. Alarmingly, cyber threats have now permeated mobile phones through dubious applications, unsecured networks, and network spoofing.
With the sophistication of cyber threats, businesses are left scrambling for the best cybersecurity talent. Looking at the average salary of a US cybersecurity specialist, hiring one costs a lot of money. Labor shortages at home add to the challenge, as well.
On the other hand, cybersecurity specialists struggle with not just stress, but also with compliance and security management. After all, businesses rely on these professionals to protect and ensure resilience against cyber risks and disruptions.
As mentioned earlier, ITO can bolster cybersecurity. The benefits of outsourcing cybersecurity include:
As companies rely on technology for productivity, ITO has inevitably become the present and future of business strategies. IT outsourcing enables businesses to find qualified IT talent, adopt new technologies, drive innovation, and reallocate resources to high-value IT operations. In the Philippines, there are a plethora of IT outsourcing providers.
The best one is no other than KDCI Outsourcing. Our offshore staffing solutions are designed to harness your business’s growth potential in your industry, whether that’s finance, human resources, IT, property management, or real estate.
From software developers to security analysts, our outsourced IT professionals will handle your non-core IT tasks and fortify your business security framework with cutting-edge cybersecurity solutions.
Ready to outsource your next (or pending) IT projects? Get in touch with our outsourcing team today, and let’s help you get started!
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What do business leaders often think of when HR is brought up? In the past, it would be the number of paperwork associated with managing people, employee records, payroll documents, and a never-ending pile of compliance forms.
To some extent, this is still true today. But it’s 2025. The field of human resources has gone through a shift reflective of the global workforce’s changing landscape. At a time where hybrid work, global talent mobility, and rapidly shifting employee expectations shape the people aspect of businesses, HR has successfully transcended the realm of transactional paperwork into a strategic, core business function that drives business growth.
This means that the stakes are higher for HR departments. And when the stakes are high, so are the costs. That’s where (some of) the challenges arise.
With an added pressure to create great employee experiences without foregoing the compliance requirements, as well as integrate advanced HR tech while reducing turnover rates — we know, that’s a lot — a lot of businesses worldwide have turned to Human Resources Outsourcing (HRO) providers who can take most, if not all, of these functions from their plates and empower the business with globally-competitive HR.
So, in this blog, we’ll explore this transformation and what businesses should look for in an HRO partner. We’ll also give you a rundown of the 10 best human resources outsourcing companies that can empower you to empower your team this year and beyond.
Let’s get started.
To fully understand the advent and popularity of human resources outsourcing, it’s important to place it in the context of the evolving demand for HR departments across all types of businesses in various industries.
In truth, outsourcing HR is nothing new. For years — nay, decades — companies have already been relying on external providers for shared services and key HR functions like payroll processing, benefits administration, and even employee engagement. This 2025, the HRO industry has taken on an improved approach, influenced by several global shifts that the workforce has seen in the past couple of years. These changes and trends include, but are not limited to, the following:
The COVID-19 pandemic, the rise of outsourcing options, and the clamor for work-life balance all contributed to the rise of remote and hybrid work setups. Today, most teams are distributed and working across different geographies. As such, HR management has become more complex in that every HR professional is now expected to ensure compliance with varying labor laws, manage cross-border payroll, and support virtual team collaboration.
AI-powered and AI-driven HR technology, automated payroll systems, and predictive analytics for talent retention are now being adopted by HR departments across the US, Australia, and Europe. Is AI replacing HR professionals? We don’t think so. However, HR experts who can and do use AI are definitely way ahead of the game and would most likely replace those who refuse to adapt. Thankfully, today’s leading HRO providers (including the ones we have included in the list below) provide HR tech platforms as part of their outsourced HR services.
Gone are the days that employees only stay with businesses to make a good salary. This 2025, most talent put a prime on great employee training and overall experiences. It could be the difference between a valuable employee staying or moving on to another company.
Who is most affected by this change? Your HR department. In order to build engaging workplaces that employees would like to stay in, HR experts are expected to launch initiatives and wellness programs that will support career growth and engagement. This demand is met by getting offshore staffing services with an HR outsourcing provider, too.
With all these changes considered, it is imperative for forward-thinking organizations — be it a multinational corporation or a budding small business — to have an HR department that empowers you to keep up with all these trends. If you’re considering working with an outsourced HR company, there are factors you need to look into to make sure that you are partnering with the right one.
Companies that outsource HR know that the process of selecting a provider can be overwhelming, especially with so many options available. While cost-savings has always been the top reason for outsourcing, businesses are no longer choosing the cheapest option when it comes to outsourced HR.
In fact, they are (and you should) evaluate providers based on these six key aspects:
Can this HR outsourcing company manage employees in multiple countries with varying local laws and tax regulations?
If you have team members across the globe, with different compliance requirements and employee regulations, you want an outsourcing service that will handle all of these efficiently, from HR administration to payroll processing and performance management.
Does the HR outsourcing service offered come with an integrated HR platform with features like payroll automation, AI-driven recruiting, and data analytics?
This is a non-negotiable aspect of HR today. The best HR outsourcing solutions are those that seamlessly integrate AI so you can benefit from automated HR functions and improved employee relations.
As an HRO provider, can their solutions grow WITH and FOR your business?
Whether you’re hiring 10 employees or 1000, can this HRO provider keep up with the pace of your business? One of the key reasons why businesses get HR assistance from external providers is to get agile HR expertise that match the exact needs of the business.
Does the HR provider go beyond compliance to help improve retention, engagement, and workplace culture?
Again, it’s not just about delegating tedious paperwork. Human resources outsourcing services are supposed to address a business’ HR needs in a holistic sense, from employee onboarding to training and ongoing engagement.
Will this HR outsourcing provider help you save on costs but still give you measurable improvements in your HR operations?
The key here is value for money. Businesses are not looking for the cheapest provider, even though the costs of outsourcing are definitely less than that of in-house hiring. In reality, companies deem a provider as the “best HR outsourcing company” if it helps them yield maximum outsourcing ROI through efficient HR admin, employee relations management, and in some cases, added HR consulting services.
Do their values, communication style, and service model align with your company’s way of working?
Think of the provider as an HR business partner. With that perspective, it’s quite crucial to find one that fully gets what your business needs. Since HR is mostly a people function, you need a team that fully aligns with your mission, vision, and values as a business.
Now that we have clarified what to look for, let’s go ahead and answer the question “Who should you outsource your HR function to?” With the abovementioned criteria in mind, let’s look at the 10 companies leading the HR outsourcing industry this 2025.
Here’s our curated list of standout HRO providers, as well as their approach to specific HR challenges that most businesses face today.
KDCI Outsourcing is best for businesses looking for tailored offshore HR staffing solutions.
Headquartered in the Philippines, KDCI is a reliable go-to partner for businesses of all sizes, particularly for companies looking to scale. KDCI allows businesses to hire fully-outsourced HR teams with a wide range of HR services — from recruitment process outsourcing and payroll management to employee engagement programs — all delivered through a bespoke strategy and AI-powered HR efficiency.
Having worked with businesses in the US and Australia, their strong cultural alignment with global businesses, combined with cost-efficient solutions, makes them an attractive option for startups and enterprises alike. If your business is growing quickly and needs an HR partner that can scale operations smoothly without sacrificing quality, KDCI is a good option for you.
ADP is best known for its payroll accuracy and decades of HR innovation.
With over 75 years of experience, ADP has grown into a global leader in human capital management, offering cloud-based solutions that integrate payroll, HR, talent, time, tax, and benefits administration. Backed by advanced analytics, compliance expertise, and a proven track record, ADP helps organizations transform HR from a back-office task into a strategic advantage. If you’re looking for a partner that combines reliability, innovation, and scale, ADP remains one of the most trusted HR outsourcing providers worldwide.
Insperity is popular for delivering scalable HR solutions that meet businesses where they are.
Whether you’re a startup, a growing midsize company, or a large enterprise, Insperity provides dynamic HR services and technology to support every stage of growth. From risk management and HR infrastructure for small businesses, to efficiency-driven HR operations for midsize companies, and advanced solutions for enterprises of up to 5000 employees, Insperity adapts to every business’ unique needs. If flexibility and growth-focused HR support are what you need, Insperity can be your trusted partner.
For combining technology, data, and human experience, Accenture is a top choice.
With expertise in HR transformation, managed services, and organizational design, Accenture helps companies thrive at the intersection of people and technology. Their talent consulting solutions focus on leadership development, cultural transformation, and change management, ensuring businesses are ready for disruption. Accenture enables organizations to close talent gaps, boost productivity, and unlock human potential at scale. If you’re looking for a partner that unites innovation with people-first strategies, Accenture is the HRO provider for you.
IBM is the go-to for businesses looking for an AI-driven approach to HR.
IBM applies an AI-first framework that modernizes HR functions, automates routine tasks, and delivers consumer-grade employee support across payroll, benefits, and workforce services. Their operate-and-transform model enhances agility, reduces costs, and frees HR teams to focus on innovation. With deep industry expertise and a strong ecosystem of technology partnerships, IBM helps businesses redesign HR workflows to deliver personalized employee experiences and measurable business outcomes.
Rippling has quickly risen to prominence by offering an all-in-one HR, IT, and finance platform.
Startups and small-to-medium businesses love Rippling’s simplicity and flexibility. From onboarding to payroll to benefits, everything is managed in one place. Its automation features save time for lean HR teams, while its scalability supports companies as they grow. If you’re a fast-scaling startup or SMB that needs a simple, powerful HR system, Rippling is a reliable starting point for outsourcing your HR.
For businesses with distributed teams, Remote is a reliable HRO partner.
As remote and hybrid work remain the norm, Remote has carved out a niche as the go-to provider for managing distributed teams. They specialize in employer of record (EOR) services, making it possible for companies to hire employees globally without setting up entities in every country. Remote also offers payroll, benefits, and compliance management for international teams. So, if your company employs talent across multiple countries, Remote simplifies compliance and global HR management.
Similar to Remote, Deel focuses on helping companies hire and manage international workers.
Their strength lies in compliance: Deel ensures that every contract, tax form, and benefits package aligns with local regulations. With a user-friendly platform and strong legal infrastructure, Deel is trusted by companies expanding globally at speed. If your biggest challenge is navigating the legal complexities of global employment, Deel is your ideal HR business partner.
TriNet is best known for industry-specific HR services and solutions.
TriNet is a professional employer organization (PEO) that tailors its HR outsourcing solutions to specific industries like tech, nonprofits, healthcare, and retail. They provide payroll, benefits, compliance, and risk management, all while understanding the unique needs of each sector. Their approach helps companies avoid “one-size-fits-all” solutions. If you want HR outsourcing tailored to your industry, TriNet can help you tap into specialized expertise.
Paychex is a trusted name in HR outsourcing, particularly for small to medium businesses across the US.
Their services include payroll, HR technology, retirement services, and compliance support. With 24/7 support and easy-to-use platforms, Paychex remains a reliable choice for companies that want straightforward outsourced HR management. If you’re managing a growing SMB and seeking reliable, all-around HR services, Paychex is a great option.
After reviewing these top HR outsourcing companies, you may still be wondering whether outsourcing HR is the right move for your business right now. And that’s totally fine. The truth is, not every organization is immediately ready to take that step.
So, one last check! To help you assess your readiness, we’ve prepared a quick checklist of key factors to consider before deciding to outsource your HR functions.
Before choosing from the top providers above, answer these questions to help you assess if HR outsourcing is the right move for your company:
If you answered “yes” to at least one of these, then it’s settled — outsourcing human resource services to the Philippines could be the strategic advantage your business needs this 2025, especially with the country’s growing ecosystem of creative services outsourcing companies in the Philippines and other specialized providers ready to support your operations.
You can get started by asking KDCI Outsourcing about our HR outsourcing services.
At KDCI Outsourcing, we specialize in building dedicated HR teams tailored to your business needs. Whether you’re looking for a single HR professional to work on specific functions or a complete offshore HR department, we’re here to help you streamline operations, improve compliance, and support your people.
With a client-focused approach and a proven track record of helping businesses scale sustainably, we make it easier for you to focus on growth while we handle your HR functions.
Contact us today. We’d love to chat about your HR outsourcing needs.
Businesses are built and run on numbers. Money, financial data, taxes, cash flow, you name it. No matter how the market shifts, this will always be true. As such, every business — in every phase, at every stage, of any size — will need some sort of accounting function to thrive.
It’s this strong need that drives businesses all over the world to find solutions that will enable them to maximize the benefits of a strong accounting team, without the excessive overhead costs of managing one.
The answer: the rise of outsourced accounting services.
As with every novel solution, this one also comes with questions. What is it, really? What are the benefits of using an outsourced accounting service? Is it a good solution for your business? And if it is — how exactly does it work?
So, let’s discuss it! Let us go through each one of these frequently asked questions about outsourced accounting services and explore how you can outsource your accounting and finance function to the Philippines.
Accounting is the process of organizing, recording, and managing financial transactions, making it a vital part in many companies. Since it is a non-negotiable aspect of every business, and is therefore one of the sources of business expenses. Of course, that can be a challenge. It’s also the reason why several companies opt to outsource accounting to grow their companies, and keep records of financial transactions, in order to ensure accurate reports and success.
Having a reliable accounting team is an important part of managing your business’ bookkeeping, financial statements, and audit requirements, among other financial needs. Accounting professionals can offer support when handling transactions, and effortlessly adjust to any needs you may have. Do you need an in-house team for this? Not necessarily.
Although some companies are able to hire an accounting team in-house (as a matter of fact, this used to be the default), not all companies have the resources to do so. The solution many businesses have found, is to outsource their accounting team to the Philippines.
With the business process outsourcing (BPO) industry in the Philippines growing 8-10% annually, the country has become an ideal place to outsource accounting. Outsourcing or offshoring is a great option if you are looking to maximize in-house resources and reduce the burden of running an in-house accounting team. Accounting outsourcing your team to the Philippines, allows you to have the flexibility to focus on other areas of your company. While ensuring that your offshore financial activities are being taken care of efficiently.
Furthermore, hiring an accounting team in the Philippines provides you access to a wide range of experienced professionals that are skilled in managing your accounting needs. Whether you need a full team or just someone to handle your tax preparation, outsourcing remains to be a good option for every business owner looking for a cost-effective solution.
Another question often raised: can you just outsource everything? Of course! But more specifically, there are services and functions that both multinational corporations and small businesses across the US, Australia, and Europe tend to delegate to an outsourced accounting partner in the Philippines.
Outsourced accounting and finance services are typically grouped into four key categories, namely:
There are various finance and accounting roles across the abovementioned categories that you can hire through top accounting firms in the Philippines, depending on your exact needs as a business. For example, you may opt to hire one accounting professional to work on your accounts and invoices or build an entire team of offshore accounting experts that will manage your end-to-end finance function, from completing compliance requirements and preparing your reports for audits and addressing issues that may arise when it comes to your business’ finance.
Although several countries throughout the globe are well-known for providing outsourcing services across various industries, including accounting, finance, and bookkeeping services, many companies have their own reasons to outsource to the Philippines, such as:
With over 233,000 seasoned professionals, in the field of business administration and accounting, the Philippine workforce has many experienced accountants who are well-educated in the field of accounting and finance. These accountants are well-reversed in keeping a record of business transactions and managing any company finances and are more than capable of supporting your finance and accounting operations. With accounting staff and finance experts from the Philippines, businesses benefit from specialized expertise and years of experience.
Beyond expert accounting and reliable bookkeeping services, Filipino accountants are also preferred because of their excellent communication skills. With the Philippines being the 3rd largest English-speaking country in the world, many Filipinos are fluent in English. This means that Filipino accountants are proficient in speaking English, which allows them to communicate clearly and better understand and address any needs you may have. This makes collaboration easier because, when you can openly communicate with your outsourcing partner you can easily convey instructions and information to boost efficiency and ensure accuracy.
Many Filipinos are experienced in using the latest accounting technology in order to give the most accurate financial records possible. By using tools and software such as Quickbooks, Xero, and Sage 50cloud, outsourcing agencies can efficiently get accurate data on financial records, in order to maintain quality in financial management.
Moreover, Philippine outsourcing companies use AI tools to effectively analyze data and record information accurately and efficiently, which is vital when handling important financial information. Using the most advanced technology, your outsourcing partner can track your finances and ensure precise data analysis.
Another reason for the high demand for outsourced accounting services from the Philippines is the time zone advantage. The Philippines is generally 12-13 hours ahead of Eastern Standard Time (EST) and 15-16 hours ahead of Pacific Standard Time (PST). This time difference allows for a more productive working day, flexible working hours, and can benefit your outsourced accounting team.
The time zone advantage gives you the flexibility to arrange your team's schedule in a way that can be more effective in the long run. This gives you a competitive edge among other companies, allowing you to adjust your schedule and maintain a continuous workflow. This edge is especially beneficial when there are critical financial transactions.
The labor costs in the Philippines are much lower in comparison to countries like the United States and Canada, because of this, the cost of outsourcing is way lower as opposed to having a local, internal team. By outsourcing your accounting team to a Philippine BPO company, you can save on overhead expenses, such as employee benefits, utilities, and office equipment. This gives you the flexibility to focus more on core company activities such as sales and marketing, which help drive revenue.
We understand that the outsourcing process can be confusing, and starting can seem like a daunting task. Below, we’ve outlined 5 steps on how to build your outsourced accounting team in the Philippines!
Here’s your step-by-step guide on how to outsource your accounting function:
To make an informed decision, the first step is to know exactly what you need to outsource. Understand what your business needs are, and how you should clearly communicate those needs with an outsourcing agency. Do you need one full-time bookkeeper? Do you need someone to prepare your financial statements for audit during tax season? Do you need an entire accounting and finance team? It’s important to clearly define the service that you need.
Create an outline or list your accounting needs; and be open when sharing those needs. Assess the work you need completed and be ready to elaborate on the specific roles you want for your accounting team.
Finding an outsourcing partner such as KDCI Outsourcing, a company committed to helping you grow your offshore accounting and finance team, is a vital component when outsourcing your accounting team to the Philippines. This will help minimize the risk of errors and allow you to take advantage of the full benefits of an outsourced accounting service.
Based on your accounting needs, you can further determine what company would work best for you. Find a company that is reliable, has experience, and can be a valuable asset to your offshore team. The best way to find a company is to do thorough research on their accounting services or contact the company for any further questions you may have.
Your outsourcing partner should be able to support your company’s accounting and finance needs and be able to adapt to business and regulatory changes.
To ensure your business’s success in accounting, it is important to formulate a thorough plan. Outline steps for different accounting tasks and inform your outsourcing partner of any expectations.
Ensure data security when discussing financial transactions to make sure information is not leaked on unsecure. Communicate with your outsourcing partner any questions or concerns you may have about security and confidentiality. With a clear accounting plan in place, it will be easier for you to plan ahead and make sure that your finance function is always aligned with your overall business goals.
Once your team is built, it’s also crucial to maintain open and clear communication lines across the entire process. Inform your team of any requirements you have and state your needs in an organized and clear manner to help ensure quality work. Be able to communicate with your offshore team any vital information about the accounting process or any preferences you may have when managing financial transactions.
Since your team is well-versed in accounting and finance, you will not need to give them any basic training, but just inform them about procedures you want done in a specific manner. This way, you can get both expertise and a strong culture match. Talk about a win-win for all!
The final step is to continually monitor or evaluate accounting and financial processes.
Hold regular meetings and give constructive criticism about any financial management concerns. Continue to collaborate and discuss what is beneficial for your company in the future, and how your offshore accounting team can further support your business. Raise concerns promptly and prepare for any future obstacles such as changes in accounting regulations or client demands.
Your outsourcing partner should be like an extension of your own team, helping grow your business and helping you reach your company’s full potential.
And that’s it! Five easy steps and you’ll already have your accounting and finance processes covered. Now, it’s just a matter of getting started. If you’re looking for a sign, this is it. Outsource your accounting functions today, your future self will thank you later.
We understand that it can be difficult to build a reliable outsourced accounting team that can seamlessly collaborate with your business and contribute to the future growth of your company.
Here at KDCI Outsourcing, we find skilled professionals who are highly experienced and can help you with your accounting and finance needs. We are committed to helping you build your offshore team to the Philippines and have several professionals in general ledger management, financial specialist, credit control, and more! These individuals are experienced in offshore finance & accounting services and can assist you with any of your needs.
Learn more about outsourced accounting and finance. Contact us today!
Building an in-house team in the USA involves various costs, including salaries, benefits, office space, and equipment. Salaries can range widely, with tech roles often commanding a median salary of $61,550 USD to $140,910 USD annually, and operational roles like marketing, sales, and administration varying from $37,460 USD to $159,660 USD.
Benefits, including health insurance and retirement plans, can incur an additional 20-30% on top of salaries. Office space and equipment costs depend on location and needs, but can significantly increase total expenses.
For a small team, annual costs can quickly sum up to several hundred thousand dollars, with exact figures depending on the team's composition, the company's location, and the benefits package offered. This amount of money can be used to fund future business investments.
Meanwhile, outsourcing to Southeast Asia can significantly bring down overhead and labor costs. If you’re choosing the Philippines as your outsourcing destination, you made the right choice. We created this guide to help you understand the cost of outsourcing in the Philippines.
The cost of outsourcing in the Philippines varies based on each job function. Here is a breakdown of the average monthly cost of hiring a Filipino worker for the following roles:
If you want a more comprehensive price and breakdown of costs, it will vary from one outsourcing company to another. However, more often than not, the standard pricing on outsourcing solutions is based on a certain computation.
The total cost to outsource to a Philippine outsourcing company is usually calculated based on the skill of the resource, the number of people you want to hire, and the tenure of the contract. In the Philippines, offshore outsourcing companies calculate fees based on workforce cost, service fees, and government-mandated benefits. This allows an outsourcing provider to come up with unique service models to fit their respective target markets.
All workforce cost is always charged to you since outsourcing rates are driven by the market rates for the positions you want to fill. Moreover, these costs will vary depending on skill level — whether entry-level, experienced, or expert prospects.
For example, the cost to hire a Filipino graphic designer at the entry level is $440.16 a month, whereas a senior graphic designer will cost $868.94 USD per month.
Note: Conversions will vary from time to time, depending on exchange rates ($1 USD = ₱57.13 PHP, as of this writing).
Every BPO (business process outsourcing) company will have its respective service fees as part of its outsourcing cost, which generally include a fixed fee per employee per month to cover all their operational costs. These operating expenses will typically cover equipment, utility bills, taxes, and more.
Some outsourcing companies in the Philippines will give you perks depending on the total size of your outsourced team, which may or may not be part of your negotiation stage.
As prescribed by Philippine labor laws, each employee is entitled to several benefits. Don’t worry, your outsourcing partner will handle all of these for you, as this is part of the business's cost to outsource and falls under its payroll department. Feel free to have them explain all these benefits in detail once you come into contact.
According to the Philippines’ Department of Labor and Employment, the 13th-month pay is equal to 1/12 of the basic salary of an employee. This is usually given at the end of the year, with pro-rated values depending on the start date of the employee.
The Philippines is hours ahead of the US, and this depends on which state you are in (Washington, DC = 12 hours, California = 15 hours). If you want your outsourced team to work at your hours, they are entitled to a night differential pay of not less than 10% of their basic salary.
Social security contributions are shared by the employer and the employee and are a part of the cost to outsource business services in the Philippines. As of January 2025, the contribution rate is 15%, with 10% shouldered by the employer and 5% by the employee.
Pag-IBIG is the government’s way of ensuring that the Filipino workforce will have savings while they work. This is usually for housing purposes, or when an employee needs to borrow money. An employer's contribution rate is 2% of their employee’s basic salary.
The PhilHealth premium rate is 5% per month. This serves as a health insurance benefit, albeit some outsourcing companies still give a separate health insurance benefit from a private provider, as healthcare in the Philippines is expensive.
Below, we answer questions related to pricing models, hidden outsourcing costs, and whether you should choose a cheap outsourcing company.
There’s no right or wrong answer here. Your choice of pricing structure depends on your budget and business needs. Here are common examples of outsourcing pricing models:
Hidden costs in outsourcing include:
Being aware of these hidden costs helps you anticipate potential challenges and avoid financial risks down the line. These costs also manifest in poor performance and lackluster work, so it’s important to thoroughly vet and evaluate your potential outsourcing partner before signing the contract.
Here’s a word of warning: Don’t work with a cheap outsourcing provider — even if you’re an owner of a small and medium-sized enterprise (SME). While outsourcing costs are dependent on headcount, project complexity, and other factors, choosing a dirt-cheap BPO company can backfire and leave you with more expenses than savings.
Thankfully, many outsourcing companies offer flexible and affordable pricing models for SMEs that enable them to achieve cost savings while enjoying high-quality outsourced services. This flexibility also helps businesses better understand the cost to outsource help desk services, allowing them to budget more accurately while still accessing reliable technical support.
After having an overall idea about the cost of outsourcing in the Philippines, the challenge now is to balance cost-effectiveness, the quality of the service you’ll get, and how well your needs will be met.
One company can achieve this delicate balance: KDCI Outsourcing. We help you build a dedicated offshore team based on your custom requirements. This way, you’ll only invest in the resources you need, when you need them, all without sacrificing quality and operational efficiency. You also won’t be tied to fixed pricing commitments.
As a BPO company with deep industry knowledge in finance, healthcare, human resources, software development, and other fields, KDCI Outsourcing stands as your business partner who will drive your business to success.
Contact us today to learn more about our services.
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.
