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Are you ready to take your business to the next level?
Picture this: a fully equipped workspace for your team that you don’t have to build on your own. Even better, this can be in a location halfway across the world, where the labor costs are lower and the top talent are just waiting to be hired. Imagine the difference this can do for your business operations — that’s what BPO seat leasing is for.
With ongoing changes in the global workforce and the rise of remote work options, BPO seat leasing is the key to unlocking your business potential by providing a cost-efficient and flexible solution for establishing a remote team — the perfect extension of your in-house team.
Whether you are a small business looking to expand or a large enterprise seeking to outsource non-core activities, BPO seat leasing has something to offer.
Read on to learn more about the definition, types, and benefits of BPO seat leasing and how it can help your business grow this 2026.
Seat leasing is a cost-effective way for companies to establish a remote office in another country without having to invest in the physical infrastructure required for it. It involves a service provider, usually a business process outsourcing (BPO) company, whether onshore or offshore options defending on the needs of the company, leasing office space and equipment to the client, and managing the facilities. The client, in turn, is responsible for recruiting, training, and managing their own employees who will be working in the leased office space.
This approach allows the clients to benefit from the BPO company’s existing investment in the physical infrastructure, such as office space, equipment, and facilities management. It also allows them to establish offshore operations without incurring high costs associated with setting up a new office, such as rent, utilities, and equipment expenses. Additionally, the client has more control over their employees, as they handle recruitment, training, and management themselves. This means they can ensure that their employees are a good fit for the company culture and have the necessary skills to perform their job functions.
Overall, seat leasing is a flexible and cost-effective way for companies to establish a remote office with fully equipped workstations, allowing them to expand their operations to another country while minimizing the costs associated with setting up a new office.
Call center seat leasing is one great example, since customer service is one of the most commonly outsourced functions, too. For example, a company that specializes in selling insurance products may not have the resources or expertise to manage its own call center.
Instead, they may start leasing call center operations from a provider that specializes in call center management. The provider would then provide the necessary equipment, technology, and personnel to handle the insurance company’s incoming calls. The insurance company would then still be responsible for recruiting and training their own customer support agents, and managing the overall operation of the call center.
Very much like the systems in short and long term leases, working with an outsourcing company for a seat leasing service gives companies the ability to utilize top notch facilities, minus the overwhelming upfront investment.
There are three different types of BPO seat leasing that every business should know:
We will explain the key features of each type and help you determine which one is best suited to your business needs as you look for a BPO seat leasing provider.
In this type of seat leasing, the BPO company provides fully-equipped workstations with all the necessary equipment, such as computers, phones, and internet access, for the client's employees to use. The workstations are also staffed with support personnel, such as IT technicians and administrative staff, to assist the employees with any technical or administrative issues they may encounter.
This type of seat leasing is similar to warm seat leasing, but the workstations are not staffed with support personnel. The client's employees are expected to be self-sufficient and handle any technical or administrative issues they may encounter on their own. The BPO company still provides all the necessary equipment and facilities, but the client's employees are responsible for setting up and maintaining their own workstations.
Co-working seat lease, as the name suggests, is a type of leasing arrangement where employees from different companies share a common workspace. This type of setup is well-suited for companies with small teams and those that wish to hire employees outside their region. For a small business, the main advantage of this type of leasing is that it provides access to all office amenities such as the reception area, pantry, and conference room, without the need to invest in them.
To sum up, the type of BPO seat leasing that is best for a company depends on their specific needs and budget. Warm seat leasing is ideal for companies that need a fully-equipped workstation with support personnel. Cold seat leasing is ideal for companies that are self-sufficient and prefer to handle their own technical and administrative issues. And lastly, co-working seat leasing is ideal for companies that need a flexible and cost-effective way to establish a remote office.
BPO seat leasing offers a lot of benefits most businesses are not aware of. For businesses running offshore operations, this is one of the best ways to save on costs, without losing full control of the hiring and management of staff.
Let us help you explore the many benefits of BPO seat leasing, so you can determine if this solution is right for your business.
BPO seat leasing is a cost-efficient solution for small and medium enterprises (SMEs) and start-ups. The cost of renting office space, especially in urban areas, can be quite high due to the high demand for commercial spaces. Established companies are willing to pay premium prices to occupy these spaces, which drives up rental costs. This can be a major challenge for SMEs and start-ups, which often have limited budgets. Leasing a seat solves this problem by providing a more affordable alternative to traditional office space. Instead of renting a whole office, companies can lease individual seats or desks in a shared office space. This can be significantly cheaper than renting a traditional office space, as the costs are shared among multiple companies.
For example, a start-up that needs 10 seats for its employees can lease them in a shared office space for a fraction of the cost of renting a whole office. This allows the start-up to focus its resources on its core operations, rather than on infrastructure and office management, without, of course, sacrificing the comfort and security of the staff when it comes to the office space and amenities available to them.
Seat leasing is a flexible and customizable solution for companies of all sizes. The contracts for seat leasing are usually straightforward, and can be modified and adjusted depending on the company's changing needs. This allows businesses to scale up or down their office space as needed, without having to worry about long-term leases or expensive cancellations.
BPO seat leasing also operates 24/7, even during weekends and holidays, which makes it an ideal solution for companies with shifting schedules. This allows businesses to maximize efficiency, by ensuring that there is always someone available to answer phone calls, answer emails, or perform back-office tasks, even outside of regular office hours.
BPO seat leasing providers typically have a lot of experience in managing office spaces and providing support services. This allows businesses to take advantage of their expertise and resources, without having to invest in them.
For example, an outsourcing service provider typically has a team of IT professionals who can help businesses with their IT needs, such as setting up and maintaining computer systems, troubleshooting technical issues, and providing software and hardware support. This can help businesses to save costs, as they do not have to invest in hiring and training their own IT staff.
To secure sensitive data, BPO seat leasing companies frequently have strong security measures in place. Businesses can benefit from this by feeling secure in the knowledge that their data is safe and being protected from data breaches.
For instance, many BPO companies have strict security protocols in place to protect against unauthorized access to their facilities. This may include measures such as keycard access, security cameras, and security guards. They also ensure that their computer systems and networks are protected by firewalls, anti-virus software, and other security measures to prevent hacking and data breaches.
BPO seat leasing allows businesses to outsource non-core activities, such as product information management, and focus on their core business activities. By outsourcing non-core activities, businesses can concentrate on their revenue generating tasks and increase their bottom line.
For example, businesses can outsource Ecommerce tasks such as product catalog management and data entry to a service provider. This allows businesses to focus on their core activities, such as product development, marketing, and sales, without having to worry about managing their office space.
Top global companies that offshore their operations to the Philippines can take advantage of 70% cost reduction on operational expenses. With the Philippines’ low cost of living and competitive wage rates, you can increase your operational efficiency while keeping a positive cash flow.
If you’re a small company with a growing demand for additional staff, building an offshore team in the world’s top outsourcing destination is a smart move. Offshore staffing companies like KDCI can help you set up the perfect extension of your in-house team in the Philippines. Our multi-layered quality assurance, effective oversight management, top-notch data infrastructure, and 100% backup power can guarantee fast ROI from your offshoring initiatives.
Are you ready to get started? Then, click the button below and get a FREE consultation with one of our experts today!
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Customer expectations have evolved (and will most probably continue to evolve) faster than ever. A good brand must combine excellent customer service with fast issue resolution and meaningful interactions to effectively turn every customer into loyal brand advocates.
This is why more businesses are turning to outsourcing customer service and support to deliver personalized experiences that leave a lasting impact.
However, as popular as outsourcing is, it still isn’t a simple plug-and-play decision. It’s a strategic investment that can transform how your brand connects with its customers, if and when done right.
So, to help your business succeed this 2026, this complete guide covers the essentials of outsourcing customer service and support in 2026:
Here’s everything you need to know about outsourcing your customer service this 2026.
Customer service outsourcing has entered a new era.
According to recent market projections, the global customer service outsourcing industry is expected to exceed $100 billion by 2030, with the Philippines, India, and Eastern Europe leading the charge as preferred outsourcing destinations.
This only means that more and more businesses will continue to adopt outsourced customer service solutions, your competitors included. The question now is: is your business keeping up? Gone are the days when call center outsourcing was simply a remedy used to cut costs.
This 2026, businesses are outsourcing to:
From Ecommerce to fintech, healthcare, and SaaS — industries are realizing that outsourcing doesn’t dilute brand quality but rather elevates it. With specialized providers offering multilingual, AI-augmented, and data-driven solutions, the outsourcing landscape is now defined by strategy that hinges on specialization and scalability.
Customer service outsourcing isn’t one-size-fits-all. So, depending on your business needs and unique business goals, you may choose to outsource one or multiple functions.
These are your first points of contact: the agents handling calls, live chat, social media DMs, and emails. To make sure that every interaction with your customers matters, providers ensure fast resolution and consistent brand tone across every channel.
From SaaS companies to consumer electronics brands, tech support outsourcing allows businesses to provide tiered assistance from basic troubleshooting to advanced software guidance. Having a dedicated tech support team is essential for managing post-purchase inquiries and encouraging repeat purchases.
Outsourcing Ecommerce support typically includes order management, returns processing, shipment tracking, and product inquiries. This is crucial for online stores during sales spikes or holiday seasons, or even during regular business periods in order to maintain smooth customer service operations.
Data entry, ticket management, and case escalation are some of the back-end functions that are easily streamlined through offshore support teams. By having a dedicated team for back office services through a customer service company, businesses can easily improve turnaround times. These tedious tasks often become bottlenecks and are best completed through offshore outsourcing solutions.
Since omnichannel support is among the key drivers of customer service this 2026, the most advanced outsourcing setups are those that combine all customer touchpoints into a unified experience, supported by AI-powered analytics dashboards, sentiment tracking, and performance reporting.
For a lot of medium to large businesses worldwide, outsourcing is considered as a core component of business strategy. Let’s break down the main reasons why companies are making the shift and adopting customer service outsourcing.
As your business grows, so do customer inquiries. Outsourcing providers bring ready-to-deploy teams trained in tools like Zendesk, Freshdesk, and Salesforce Service Cloud. They can scale quickly without the extra time and cost of in-house hiring, making the solution ideal for both startups and growing businesses.
Customers expect instant responses across time zones in every available communication channel. This is true for all types of businesses across industries. Offshore and nearshore providers allow brands to maintain “always-on” customer care, covering holidays and peak hours with ease without the additional strain on your existing staff.
Outsourcing reduces overhead costs including, but not limited to, salaries, benefits, training, and infrastructure. But cost-efficiency doesn’t (and should never) mean compromise. The best providers deliver enterprise-grade or tailored support (whichever you may need) at a fraction of the costs.
With the integration of AI being among the best practices in customer service, leading providers combine human empathy with AI-driven insights, chatbots, and CRM automation to provide seamless, omnichannel experiences across voice, chat, email, and social platforms.
Delegating non-core functions like support allows your internal teams to focus on growth, innovation, and customer retention strategies while your outsourcing partner takes care of the day-to-day customer interactions. This way, you can meet the demand for excellent customer service, while still giving your business the opportunity to keep growing.
If you’re not sure whether outsourcing is the right move for your company, here are telltale signs your business is ready:
If any of these apply to your business, it’s time to consider outsourcing customer service strategically as a proactive move toward sustainable growth. Of course, to make the most out of this solution, it’s important to find the right customer service outsourcing provider that matches your business’ culture and values.
Now, let’s talk about finding the right partner when building your outsourced customer service team.
Choosing the right partner means looking beyond price and focusing on expertise, alignment, and partnership value. Here are some of the industry best practices that businesses adopt to ensure success in outsourcing customer service and support.
Start by clarifying what you need. Are you outsourcing for cost savings, scalability, or better customer outcomes? What KPIs do you need to measure to assess if the customer service solution is working for the business? Remember: the clearer your goals, the easier it is to measure success later.
When choosing a third party provider, it’s important to ask about their clients and identify the niche where they excel. Look for a provider with sector-specific experience and specialized expertise. Ecommerce brands, for instance, need specialists who understand shopping cart systems, return policies, and payment workflows.
Ask potential providers what tools they use for CRM, analytics, QA, and workforce management. Modern contact center providers integrate AI, automation, and real-time dashboards into their daily operations.
Cultural compatibility is crucial, especially for voice support. Outsourcing providers in the Philippines, for example, are known for neutral accents, empathy, and strong English proficiency, making them ideal for Western markets.
Your outsourcing partner should comply with all relevant and applicable compliance requirements. Data breaches are costly — both financially and reputationally. As such, it’s important to find a reputable outsourcing partner that has documented policies, transparent audit trails, and a dedicated data security team responsible for regular risk assessments.
While outsourcing is a well-established space and there are industry best practices like the ones listed here that will empower you to take advantage of the full benefits, it still comes with inevitable risks.
Even the best outsourcing partnerships have cons and challenges. However, knowing them early helps you mitigate risks. Here are three of the common challenges of customer service outsourcing as well as the ways to address them.
One of the most common pitfalls in outsourcing is when both parties have different interpretations of success. If expectations aren’t aligned from the start, even the most capable service provider will struggle to meet your standards.
Solution: Set clear SLAs (Service Level Agreements) and define success metrics — such as response time, resolution rate, and CSAT scores — from day one.
Communication challenges often arise when teams work across time zones, locations, and cultural contexts. These gaps can slow down decision-making and impact service quality.
This can be addressed by using shared communication tools like Slack or Teams, conducting regular syncs, and assigning a dedicated account manager for seamless coordination.
Customer service quality shouldn’t vary from agent to agent. Without proper oversight, tone, resolution accuracy, and service delivery can become inconsistent.
How, then, can you address this? Implement continuous QA monitoring and training loops where feedback from your internal team helps refine scripts and tone of voice. Keep in mind that quality control is not a one-time setup, but a dynamic repeatable process shaped through feedback and refinement.
What sets KDCI apart is our strategic, brand-aligned approach. We build teams that embody your brand values, tone, and standards. Whether you need full omnichannel coverage, seasonal ramp-up, or technical support team, KDCI delivers the expertise to meet your customer needs and business goals.
Outsourcing customer service and support in 2026 is about achieving customer experience excellence at scale. With the right partner, your brand can deliver consistent, human, and high-quality interactions that foster loyalty and long-term growth.
If you’re ready to transform your customer experience and unlock growth, it’s time to make your next strategic move.
Scaling your operations for your online store is easier when your customers feel valued every time and across every channel.
At KDCI Outsourcing, we help global brands build customer service teams that deliver consistent, empathetic, and results-driven customer experiences. From chat and email support to omnichannel strategies, we tailor every customer service outsourcing solution to strengthen loyalty and elevate your brand reputation.
Contact KDCI today to learn how you can take advantage of customer service and support outsourcing this 2026.
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In some businesses and geographical areas, staffing shortages can be a serious problem. For instance, a survey by the Manpower Group discovered that 40% of American employers had trouble filling available positions, with skilled crafts, sales reps, and drivers being the hardest occupations to fill. Another survey from the US Chamber of Commerce on the nation's workforce crisis, 94% of state and local chambers reported that businesses in their area were finding it “difficult” or “very difficult” to hire workers.
This challenge is not isolated to the United States. With the rise of remote work options and changing workforce demands across industries, the number of unfilled positions continue to increase and the hiring market becomes more and more competitive.
Businesses may suffer from a lack of qualified personnel due to some common reasons: it could be due to the high demand for talent in the industry or overall lack of employee retention strategies that could push away current employees due to burnout. That’s why it’s critical for businesses to take a proactive approach to staffing shortages.
In this blog article, we explain what a staffing shortage is, why it happens, and how your organization can handle it before it affects your company’s bottom line.
A staffing shortage is a situation in which there are not enough people available to do the work that needs to be done within a company or organization. This can happen for a variety of reasons that will be explained later on. A staffing shortage can negatively impact a company or organization by decreasing productivity and efficiency, increasing workload for existing employees, and potentially leading to financial losses.
Let’s give this financial loss a clearer context:
The Society for Human Resource Management (SHRM) estimates that the average cost to replace an employee can equal six to nine months of that employee’s salary. The Work Institute, on the other hand, estimates that the total cost of turnover is between 33% to 200% of the employee’s annual salary. For a company losing just a handful of employees annually, these hidden costs can easily become one of the largest unplanned expenses that could have a long term impact on the business as a whole.
In reality, staff shortage is more than just an empty desk. It is a profound weakness in operations that increases employee stress, spikes replacement costs, alienates customers, and ultimately holds the entire organization back from its potential.
Potential reasons why a staffing shortage might occur vary across industries and organizations. However, here are some common causes:
If a company or organization experiences an increase in demand for its products or services, it may need to hire more employees to meet this demand. However, if there are not enough qualified candidates available, a staffing shortage could result.
This is particularly true in industries that are seasonal, experiencing a sudden growth spurt, or dealing with unexpected large projects or contracts. If the hiring process is slow or there are simply not enough qualified candidates available locally or nationally to staff the new roles quickly, a staffing shortage could result. This often puts immense strain on the existing staff, potentially leading to burnout and further turnover.
Even if there are open positions available, a company or organization may struggle to fill them if there is a shortage of qualified candidates in the job market. This can be due to a lack of skilled workers in a particular industry or geographic region, or a mismatch between the skills and qualifications required for a job and the skills and qualifications of available candidates.
One way to address this is to expand the search by utilizing offshore outsourcing solutions. This way, a company is not only limited to hiring available local talent — maximizing the chances of finding the right people for different roles and minimizing the time spent looking for qualified talent.
A high rate of employee turnover, or the rate at which employees leave an organization and are replaced, can also contribute to a staffing shortage. If a company or organization is losing employees faster than it can replace them, it may struggle to maintain an adequate workforce.
In this scenario, the challenge lies not with hiring, but in retaining existing staff. High turnover is often a symptom of underlying organizational problems, such as:
Other factors that can contribute to a staffing shortage include changes in economic conditions, competition for skilled workers, and changes in government policies or regulations.
When your company has a staffing shortage, it can be difficult to meet customer demand and maintain high levels of quality. Here are some of the best industry secrets to effectively address a staffing shortage:
Consider if your hiring process is efficient and if there are any bottlenecks that are causing delays. You may want to streamline the process or consider alternative hiring methods, such as partnering with an outsourcing company or hiring temporary or contract workers. Utilizing specialized recruitment agencies for hard-to-fill roles can also provide immediate access to pre-vetted candidates who are not actively applying through traditional channels.
Consider offering incentives to attract and retain employees. This could include things like bonuses, flexible schedules, or additional training opportunities. To effectively compete, your company must ensure that its overall compensation package, including salary and benefits, is at or above the market average for your industry and region. Beyond money, offering enhanced incentives like comprehensive health insurance, as well as clearly defined hybrid or fully remote work options can be powerful differentiators.
Encourage your current employees to take on additional responsibilities or offer them the opportunity to advance within the company. This can help you fill positions without having to go through the hiring process. This requires a dedicated focus on succession planning, where high-potential employees are identified early and given targeted mentorship and training to prepare them for leadership or specialized roles before the position becomes vacant.
If you have a short-term staffing need, consider outsourcing some of your job roles to an offshore staffing solutions company. This can be a good option if you don't want to commit to a long-term hire. Outsourcing is most effective for non-core business functions such as IT help desk support, payroll processing, data entry, and customer service. By leveraging the large, specialized talent pools available through Business Process Outsourcing (BPO) firms, your internal team is freed up to focus exclusively on strategic, high-value tasks that require specialized knowledge.
If you have the option, consider allowing your employees to work remotely. This can help you access a larger pool of candidates and may make it easier to find the right fit for your team. Alternatively, you can explore remote staffing solutions as well. EEmbracing a remote working policy or flexible work hours that eliminates geographical constraints, allowing you to recruit top talent from across the country or globally, effectively mitigating local labor shortages. For jobs that require some physical presence, a hybrid model — where employees split time between home and the office — is a major retention tool that signals flexibility and trust, making your company more attractive to highly skilled candidates seeking better work life balance.
Investing in the training and development of your current staff can help you retain employees and increase their skills and productivity. This can also help fill gaps in your staffing needs. Beyond basic training, offering employees personalized upskilling programs in high-demand areas (like new software or data analytics) is a powerful, proactive strategy to future-proof your workforce.
Consider partnering with other organizations or businesses in your area to share resources and personnel. This can help alleviate staffing shortages and reduce costs. Formalizing partnerships with local universities, community colleges, and trade schools is essential for establishing a reliable talent pipeline through internships, apprenticeships, and other similar programs.
Having explored all the options organizations can explore — from optimizing internal hiring and incentivizing staff to strategic cross-training and building academic partnerships — what remains true is that time is often the most critical factor when addressing staff shortage.
Unfortunately, many internal fixes, while necessary for long-term health, take months to yield results. So, when faced with an immediate and urgent talent gap, the fastest and most scalable solution is to look outside your walls. This is where outsourcing shifts from being a mere option to the most effective solution for handling critical staffing shortages right now.
Companies might use outsourcing to get access to specialized talents or expertise that might not be present within their own organization. It enables them to hire outside expertise on a temporary or permanent basis, which can be a perfect solution to deal with staffing shortages. Even in the face of staffing issues, this can help the organization achieve its goals and keep running efficiently.
Consider KDCI, an offshore staffing solutions provider with a long-decade of leadership and experience in Ecommerce outsourcing. We offer outsourced and offshore staffing services at an affordable rate in customer support, product information management, web development, digital marketing, and accounting.
Let us help you improve your staffing levels and improve your overall work environment. Click the button below to get your FREE consultation with one of our outsourcing experts today!
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In today’s digital-first marketplace, ecommerce customer service outsourcing has evolved from a convenient option into a powerful growth strategy. As the world of commerce becomes increasingly competitive, online businesses—from fast-growing startups to global retailers—now view outsourced customer support not just as a cost-saving measure, but as a way to scale operations, improve response times, and enhance the customer experience through meaningful, high-quality customer interactions.
As ecommerce competition intensifies and customer expectations rise, brands are under pressure to deliver quick, reliable, and personalized support—across multiple channels, time zones, and platforms. The solution? Partnering with a specialized outsourcing provider that offers tailored customer service packages designed to meet your brand’s unique business needs while supporting everything from live chat support and email to multilingual phone assistance and technical support.
This guide breaks down what’s typically included in ecommerce customer service outsourcing packages, how they create measurable ROI, and what to look for when choosing the right provider for your business.
While early outsourcing decisions were driven by cost efficiency, today’s ecommerce leaders prioritize enhanced customer interactions, scalability, and global support coverage. Outsourcing partners have evolved into strategic extensions of the brand—offering skilled agents, advanced tools, and 24/7 availability to meet modern shopper expectations.
In essence, outsourcing gives ecommerce brands the flexibility to grow faster without overloading internal teams. It transforms customer service from a reactive function into a proactive driver of brand loyalty and sales retention, supported by an agile and performance-driven outsourced team.
Ecommerce customer service outsourcing packages may vary by provider, service scope, and business size. However, most reputable providers offer a combination of core services, advanced add-ons, and technology integrations designed to align with current and future business needs.
Customers don’t stick to one communication channel—and neither should your support system. Outsourced agents are trained to manage customer interactions across:
Agents help manage order tracking, shipment updates, lost packages, and delivery concerns, reducing the workload of internal teams and enhancing the post-purchase customer experience.
Outsourced specialists trained in refund policies and payment dispute resolution ensure customer trust is maintained while minimizing unnecessary losses.
Agents equipped with product knowledge assist customers by answering detailed customer inquiries, recommending alternatives, and even upselling related products—boosting conversion rates and average order values.
Empathy-driven complaint handling helps retain customers. The outsourced team follows brand-aligned scripts, escalation procedures, and feedback loops to ensure proper resolution and consistent tone.
Many outsourcing packages include proactive monitoring of online reviews, feedback collection, and sentiment responses to maintain the brand’s credibility and improve overall customer experience.
Comprehensive reports typically highlight:
These insights enable ecommerce companies to continuously fine-tune support strategies and performance.
The value of outsourcing extends far beyond cost reduction, influencing everything from scalability and operational efficiency to long-term loyalty.
Brands can cut operational expenses by 30–50% by eliminating the costs associated with hiring, training, staffing, office spaces, and technology licensing.
With pre-trained agents experienced in managing high volumes of customer inquiries, turnaround times are reduced, especially during peak shopping events or seasonal surges.
Having a dedicated outsourcing provider that ensures responsive 24/7 support, multilingual coverage, and quick technical support contributes to stronger loyalty and repeat purchases.
During flash sales or seasonal marketing campaigns, businesses can instantly scale support resources through an outsourced team instead of going through lengthy hiring processes.
By delegating customer service tasks, internal teams can focus on product innovation, marketing strategies, and long-term business development rather than tracking tickets or managing live chat support queues.
A D2C Apparel Brand Scales for Holiday Demand
A rising fashion retailer struggled to manage holiday-related customer inquiries, returns, and shipment delays.
Solution: Partnered with a Philippines-based outsourcing company to build a 24/7 chat and email support team.
Results:
A Global Beauty Brand Expands Multilingual Support
A European beauty retailer expanding into North America and Asia needed multilingual support agents.
Solution: Outsourced support in English, Spanish, and Mandarin.
Results:
A Tech Gadget Store Minimizes Return Disputes
This electronics store faced increasing refund disputes due to inconsistent responses.
Solution: Outsourced dispute resolution and returns management to an experienced BPO partner.
Results:
When implemented correctly, outsourced customer service enhances reputation, consistency in tone, and emotional engagement during customer interactions.
A high-quality outsourcing provider doesn’t just follow scripts—they immerse themselves in your brand identity.
Regions like the Philippines, India, and Latin America offer strong English proficiency, cultural compatibility, and customer empathy.
Custom workflows, escalation ladders, and communication guides ensure brand alignment and better support outcomes.
Before selecting a provider, evaluate the following:
To optimize performance and ROI:
Outsourcing is not a one-time transaction—it’s a long-term partnership that evolves alongside your ecommerce growth.
Whether you’re a startup aiming to provide round-the-clock service or a large retailer seeking to optimize global operations, KDCI delivers fully customizable ecommerce customer service outsourcing solutions aligned with your business needs. We also provide a comprehensive guide to help you better understand and select the most suitable Ecommerce Customer Service Outsourcing solution for your business.
Our expert outsourced team manages everything from live chat support, ticket handling, and order management to returns, technical support, dispute resolution, and multilingual customer care.
Get in touch with KDCI today and discover how our ecommerce outsourcing solutions can elevate your brand through exceptional customer experience and performance-driven support.
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Onshoring is quickly becoming a popular trend in the global economy, with companies reconsidering their strategies and localizing more of their processes over offshoring to an overseas service provider. In this post, we will provide an in-depth overview of onshore BPO — or business process outsourcing — and discuss the relationship between the onshore model and the practice of outsourcing business processes. By the end of this, you will be able to understand if onshore BPO is the best solution for your present business needs.
Onshoring — also called domestic outsourcing — is a business practice where a company utilizes the BPO services of a local company. Onshore outsourcing is different from offshoring, which is defined as the outsourcing of business processes to a foreign country, like the Philippine, to bolster operational efficiency.
In addition, onshoring is often driven by a desire for better quality control, as well as the desire to reduce unemployment in the home country. However, cost savings can also be a factor, as labor and raw materials in the home country may be less expensive than in a foreign country.
Onshore BPO should not be confused with insourcing — which involves a company using its own employees to perform business operations instead of outsourcing to an external service provider. To put it simply, onshoring involves finding service providers within the same country, while insourcing is limited to the company's current workforce.
Finally, onshore outsourcing differs from nearshore outsourcing, where the latter involves outsourcing to neighboring countries.
Onshore outsourcing and offshore outsourcing are two distinct business practices with key differences:
Onshore BPO refers to bringing business processes back to the home country, while offshore outsourcing involves outsourcing operations to a foreign country.
With onshore outsourcing, a company has more control over its operations as they are located in the same country, while offshore BPO outsourcing may result in reduced control due to distance and cultural differences.
The cost of labor and raw materials can be a factor in both onshoring and offshore outsourcing, but the specific costs will depend on the location and the nature of the business operations being performed.
Outsourcing allows a company to tap into a wider talent pool across the globe, while onshoring may limit the available pool of skilled workers.
Domestic outsourcing can improve the quality of operations as the company is closer to the service providers, while offshore BPO outsourcing may result in reduced quality due to language barriers, time zone differences, and other factors. That’s why it’s important to choose the right outsourcing partner to mitigate these problems associated with moving business operations abroad.
There are several factors that contribute to the growing popularity of the onshore model in recent years. Let's check them out below:
As countries like China and India continue to experience economic growth, the cost of labor in these countries has also increased. This makes it more expensive for companies to manufacture goods in these countries as wages and benefits for workers rise. As a result, some companies are starting to consider bringing production back to their home countries, where labor costs may be lower.
Political tensions between countries can sometimes result in trade disputes, which can lead to the implementation of tariffs on goods imported from certain countries. For example, the United States has imposed tariffs on Canada, China, and Mexico. These tariffs make it more expensive for companies to import goods from these countries, motivating some companies to bring production back to the United States instead.
Supply chain disruptions caused by health crises, natural disasters, and other factors can lead to delays in the delivery of goods, further exacerbating the risks of relying on these complex and far-reaching supply chains. As a result, many companies may reconsider their supply chain strategies and look for ways to reduce their dependence on suppliers in other countries. This may include bringing production closer to home, as domestic outsourcing makes it easier to control and monitor the supply chain and respond quickly to any disruptions.
Many companies are transitioning to onshoring to better align with sustainability goals, ethical sourcing, and fair labor practices, which are more challenging to enforce overseas.
Consumers are increasingly valuing products and services produced domestically, prompting companies to onshore in order to build brand trust and local loyalty.
Companies that work with an onshore outsourcing company for their business processes can reap the following benefits:
When a company engages in onshoring, they have more direct control over their production processes, enabling them to produce products that meet their standards. They can also address issues faster, further improving the quality of the final product.
Because a company's production facilities are closer to the point of consumption, they can reduce the costs of shipping and contribute to a lower carbon footprint.
Companies resorting to the onshore model of business process outsourcing are more capable of responding to changing customer demands and preferences, leading to higher customer satisfaction and loyalty.
By onshoring, companies can demonstrate their commitment to the local economy and community, improving their reputation and brand image. This can also help business owners build trust with consumers and other stakeholders.
Onshore outsourcing can reduce the risks associated with transferring sensitive information across borders, as the information remains within the country where the company is based. This can be particularly important for companies in regulated industries.
Onshore outsourcing can reduce a company's dependence on distant suppliers, minimizing the impact of disruptions and improving the resilience of their supply chain. This helps ensure the availability of products even amidst crises.
Onshoring can lead to cost savings in certain regions, where labor and production costs may be lower. This enables companies to be more competitive and improve their bottom line. However, it's important to consider all the costs associated with onshore outsourcing, including the cost of setting up production facilities and the cost of training workers.
Onshoring can be applied to various industries as well, depending on their specific needs and requirements. But here are some of the industries that are more likely to onshore their business processes:
Many manufacturers have been onshoring production in recent years due to a combination of factors, including rising wages in developing countries, the high cost of transportation, and increased concerns about intellectual property protection.
By bringing production back to the home country, manufacturers can reduce their shipping costs and have greater control over the quality of their products. Additionally, they can benefit from the use of advanced technologies and the availability of skilled labor in their home country.
Retail companies have been onshoring certain operations — such as product assembly and distribution — to have better control over the quality of their products and ensure timely delivery to customers. Retailers may also choose onshore operations to reduce the risk of product recalls and improve their responsiveness to changing consumer preferences.
Technology companies may onshore certain functions — such as technical support and customer service — to be closer to their customers and improve response times. By availing of these functions in an onshore call center instead of outsourcing to offshore call centers and offshore BPO companies, technology firms can better understand local market needs and provide better support to their customers. Additionally, onshoring technical support and customer service can also help companies comply with local data protection regulations.
Healthcare companies may onshore certain functions, such as medical billing and coding, to ensure better data security and compliance with privacy regulations. Onshoring these functions can help healthcare companies maintain the confidentiality of patient information and ensure that sensitive information is handled by trained and qualified personnel.
Financial institutions may onshore some of their operations — including back-office functions — to reduce costs and improve efficiency. By bringing these functions back to the home country, financial institutions can enjoy lower labor costs and ensure better control of the quality of their services. Additionally, onshoring back-office functions can help financial institutions comply with local regulations and maintain the confidentiality of sensitive financial information.
While onshoring is deemed effective for some local companies, it can also have negative impacts on the labor market. Here are some of them:
Onshoring can have a significant impact on workers in countries where jobs were previously outsourced to a foreign BPO partner. When companies bring production and jobs back to their domestic markets, workers in countries where the jobs were previously located can face unemployment. This can have a significant impact on local economies and result in a decrease in the standard of living for affected workers and their families.
Onshoring can result in higher production costs due to factors such as increased wages, regulatory compliance, and supply chain disruptions. For example, if a company moves production back to its domestic market, it may have to pay higher wages to its workers, which can increase the overall cost of production.
In addition, companies may face increased costs due to regulatory compliance and supply chain disruptions, as they may need to adjust their supply chain processes to meet new regulations and meet the demands of a new market. This can result in higher costs for both the company and the consumer, as the increased cost of production is often passed on to the consumer in the form of higher prices.
Onshore outsourcing can also result in a skill mismatch between the available skills of workers and the skills required by new jobs. When companies bring production and jobs back to their domestic markets, workers may need to acquire new skills to meet the demands of new industries. This can negatively impact the labor market and result in a decrease in the standard of living for affected workers.
Onshoring can also disrupt global supply chains, leading to higher costs and longer lead times for manufacturers and suppliers. When companies move production back to their domestic markets, they may need to adjust their supply chain processes to meet the demands of a new market.
Consequently, it leads to longer lead times for manufacturers and suppliers, as they need to find new sources for raw materials, components, and other supplies. This can increase costs for both the company and the consumer, as the increased cost of production is often passed on to the consumer in the form of higher prices.
As businesses move operations back onshore, there is often a growing need for training initiatives to help workers adapt to new job requirements and emerging technologies.
Companies that have been dependent on onshoring often encounter the following challenges:
Onshore outsourcing often involves higher labor costs than offshoring, as wages and benefits are typically higher in the domestic market. This can make it difficult for companies to remain competitive, especially if they are used to the lower labor costs associated with offshoring. Additionally, onshoring may require investments in new equipment, facilities, and other infrastructure, which can further increase costs.
Onshoring requires a highly skilled workforce that may not be available in some regions. This can lead to difficulties in finding and retaining the right employees. Companies may also need to invest in training and development programs to bring new hires up to speed, which can be time-consuming and expensive.
Onshore workers may not be as flexible as offshore workers, making it difficult to accommodate changes in business needs or product demand. For example, onshore workers may be more likely to resist changes to work hours, shifts, or responsibilities, which can limit a company's ability to respond to market demands.
Onshore outsourcing often leads to longer lead times due to the need for additional transportation and handling. This can make it more difficult for companies to meet customer demands, as well as increase the risk of product damage or loss.
Onshoring may involve more complex supply chain management and increased logistics and transportation costs. For example, companies may need to coordinate with multiple suppliers and carriers, which can be time-consuming and expensive.
Onshoring may require businesses to navigate complex legal and regulatory requirements, such as labor laws, immigration laws, and taxes. Companies may need to consult with legal experts and accountants to ensure that they are compliant with all relevant laws and regulations.
Offshore BPO companies often offer significantly lower rates, requiring onshore providers to justify higher operational costs through superior quality or service.
Migrating operations back onshore may require extended phases of restructuring, retraining, and integration, which can temporarily disrupt productivity.
Before fully transitioning to an onshore outsourcing model, businesses should carefully evaluate the following key considerations:
Companies must assess not just labor savings but also the cost of infrastructure, training, compliance, taxes, and operational overhead.
Businesses need to ensure that the domestic talent pool can adequately meet their technical and operational needs.
Onshoring may limit scalability compared to offshore models, where larger talent pools offer more rapid expansion opportunities.
Operating locally may involve stricter legal, tax, and industry-specific regulations that businesses must comply with.
For companies serving a specific geographic region, being closer to customers can enhance responsiveness and customer satisfaction.
Leveraging automation can help offset higher domestic labor costs, making onshoring more cost-effective over time.
Choosing between onshoring and offshoring for your business needs depends on several factors, including:
Offshore outsourcing can result in significant cost savings as labor costs in other countries may be lower. However, you need to factor in communication, travel, and cultural differences that can offset the initial cost savings. Onshoring may be more expensive in terms of labor costs, but it can reduce these additional costs and increase efficiency.
Onshore outsourcing provides better control over the quality of work as the team is in-house and easily accessible. Offshoring may result in quality issues due to language barriers and differences in business practices. Additionally, it can be challenging to monitor the work remotely.
If your business requires close coordination and collaboration with your team, being in the same time zone is important. Onshore teams provide the advantage of being in the same time zone, reducing the potential for miscommunication and delays.
If your work involves sensitive data, onshoring may be more secure since it gives you greater control over access. Offshoring may result in security risks due to differences in data protection laws and a lack of control over data access.
Offshoring may result in compliance issues if local laws differ from those in your home country. It is essential to research and understand local regulations before offshoring work to ensure compliance and avoid potential legal problems. It's also important to carefully weigh the pros and cons of each outsourcing model and consider the specific needs, priorities, and constraints of your business. It may be helpful to consult with experts and gather input from stakeholders before making a decision.
KDCI is the premier outsourcing service provider for those seeking to build and manage the best offshore team in the Philippines. With our extensive pool of Filipino talent, we are prepared to provide the best services, quality assurance, and customer satisfaction. We offer scalable offshore staffing solutions for a wide range of services from creative design and marketing to ecommerce, customer support, finance, and web development.
Our team of experts is always available to ensure a smooth process, ensuring that your business has the right offshore team to meet your organizational goals and objectives. Are you interested to learn more about our offshore staffing solutions? Contact us now!
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Outsourcing to low-cost countries (LCCs) has become a strategic move for businesses looking to scale faster, reduce operational costs, and access specialized global talent. Regions such as the Philippines, India, Vietnam, Eastern Europe, and parts of Latin America have emerged as top destinations for outsourcing services across industries like IT, customer support, design, finance, engineering, and digital marketing.
But while outsourcing to LCCs offers significant advantages—such as cost efficiency, workforce scalability, and round-the-clock operations—it also introduces concerns around communication challenges, data protection, cultural alignment, quality assurance, and long-term control.
That’s why today’s key question is no longer “Should we outsource?” but rather:
“How can we outsource to low-cost countries effectively while minimizing risk?”
In this blog, we’ll dive into the advantages and disadvantages of outsourcing to LCCs, explore the most common challenges businesses face, and share practical strategies for mitigating risk while maximizing value—especially when partnered with a trusted outsourcing company.
In the outsourcing world, “Low-Cost Countries (LCCs)” refer to locations where labour and operational costs are significantly lower than in developed markets, yet sufficient infrastructure, education and business-service ecosystems exist to support offshored functions. For businesses, LCCs offer a blend of cost savings and access to talent—in other words, the potential to scale operations without the expense of fully onshore staffing models.
When you outsource to an LCC, you’re paying less per hour for services, but you’re also expecting the quality, reliability and integration of those services to meet your global standards. As one benchmarking study puts it, global outsourcing rates “range from $6/hour in Southeast Asia to over $100/hour in North America.” Thus, in a business context, an LCC is selected not simply by cost alone—but by the balance of cost, talent quality, infrastructure readiness, cultural alignment and regulatory environment.
Some of the most widely adopted LCC destinations include:
The takeaway: businesses aren’t just choosing “cheap labour” locations—they’re choosing global hubs where cost + capability align.
Across industry verticals, LCC outsourcing is widespread—here are some of the most common use-cases with data:
If you need to scale a team for a digital product, customer experience operation, back-office finance workflow or creative/design pipeline—and you want cost efficiency with scalability—LCCs are a go-to option.
Outsourcing to LCCs offers businesses more than just labor savings—it provides a pathway to scalability, global market adaptability, and long-term growth. When done strategically, outsourcing enables organizations to operate efficiently, boost ROI, and access specialized skills that may not be readily available domestically.
One of the most compelling reasons companies outsource to LCCs is the significant reduction in operational expenses. According to Deloitte, cost savings remains the top driver for outsourcing decisions, with 57% of organizations citing it as their primary motivation.
Here’s why outsourcing delivers higher ROI:
In short, outsourcing doesn’t just lower costs—it increases return on investment by optimizing both workforce spending and resource utilization.
Outsourcing to LCCs gives businesses instant access to deep, specialized global talent pools without the challenges of local hiring.
Examples of skilled expertise available in LCCs:
According to Statista, over 92% of top global firms outsource IT functions, largely due to the abundance of well-trained engineers in LCCs.
Benefit: Companies can quickly onboard highly skilled professionals without spending months on recruitment, training, and onboarding.
Agility is critical in today’s fast-changing business environment. Outsourcing supports rapid scaling without the heavy burden of in-house hiring.
Key benefits include:
This flexibility is especially valuable for startups, e-commerce platforms, SaaS providers, and growing enterprises navigating unpredictable demand.
Outsourcing to different time zones—especially in markets like Asia or Eastern Europe—enables continuous operations across the clock.
The “follow-the-sun” support model ensures:
For example, a U.S.-based company outsourcing to the Philippines or India can maintain uninterrupted service while internal teams are offline—boosting service continuity and customer satisfaction.
By outsourcing operational and support functions, businesses can redirect time and resources toward mission-critical activities.
Internal teams can focus on:
Meanwhile, outsourced teams manage execution-heavy areas such as customer support, back-office tasks, IT operations, or digital production.
The result? Higher productivity, improved business agility, and accelerated growth through better allocation of internal expertise.
While outsourcing to LCCs offers undeniable economic and operational advantages, it also comes with inherent challenges. Failing to address these risks proactively can lead to communication breakdowns, compliance issues, or inefficiencies that negate the cost savings. Understanding these disadvantages is the first step toward building a more resilient, well-managed outsourcing strategy.
Language proficiency and cultural communication styles can sometimes lead to misunderstandings or delays in project execution. While countries like the Philippines rank highly in English proficiency, others may have varying levels of fluency, which can affect clarity in technical discussions or client interactions.
Additionally, differing time zones can delay collaboration, especially in organizations that rely on real-time communication for decision-making. Without structured communication frameworks and overlapping work hours, response times may suffer, slowing project momentum.
Risk if unmanaged: Misaligned expectations, project delays, reduced productivity.
Working across diverse cultural backgrounds can lead to differences in communication tone, decision-making styles, and interpretations of urgency or responsibility.
Examples of cultural misalignments include:
When not addressed, these differences can affect team cohesion, collaboration efficiency, and stakeholder satisfaction.
Risk if unmanaged: Misaligned teamwork, lower engagement, unclear accountability.
Outsourcing often involves sharing sensitive customer, financial, medical, or proprietary data with external teams—raising concerns around data privacy, regulatory compliance, and intellectual property protection.
Key challenges include:
Risk if unmanaged: Legal liabilities, financial penalties, loss of trust, reputational damage.
Not all outsourcing partners in LCCs adhere to global performance benchmarks. If providers lack strict hiring standards, domain expertise, or quality assurance processes, businesses may encounter:
Maintaining high standards becomes especially difficult when working with multiple remote contributors without strong QA systems or performance tracking mechanisms.
Risk if unmanaged: Rework costs, customer dissatisfaction, disrupted brand consistency.
While outsourcing is marketed as a cost-effective solution, there may be unforeseen expenses linked to implementation and oversight, including:
If the outsourcing partner lacks mature systems or structured processes, the business may need to invest more time and money into oversight, reducing expected ROI.
Risk if unmanaged: Profit erosion, management burnout, diminished cost advantages.
Though outsourcing to Low-Cost Countries comes with certain risks, these challenges can be effectively managed with the right strategy, partner selection, and governance framework. Businesses that approach outsourcing deliberately—not just as a cost play—are able to build high-performing offshore teams that deliver long-term value, scalability, and consistent quality.
Cost savings shouldn’t be the only deciding factor when choosing an outsourcing provider. The most effective outsourcing relationships are built on expertise, reliability, scalability, and transparency.
Key evaluation criteria include:
A partner that understands your goals, brand values, and quality standards will always offer higher ROI than a low-cost provider with inconsistent performance.
Effective communication is critical when managing global teams across different time zones and cultural contexts.
Best practices:
Structured communication eliminates confusion, increases accountability, and ensures everyone is aligned toward the same business objectives.
Quality control starts with clear expectations and continues through measurable tracking.
Recommended strategies:
A data-driven performance model ensures output quality stays high and aligned with brand standards.
Security and privacy must be built into the outsourcing process from day one—especially when dealing with customer, financial, or healthcare data.
Critical data protection steps:
Choosing providers with certified security frameworks reduces legal liabilities and safeguards business reputation.
For companies hesitant to fully outsource, hybrid or co-managed models offer a safer, more controlled pathway.
How hybrid models work:
This model ensures better quality consistency, easier governance, and seamless integration between onshore and offshore operations.
With the right partner, tools, and management structure, outsourcing to LCCs becomes not just a cost-saving initiative—but a long-term strategic advantage.
Among Low-Cost Countries (LCCs), the Philippines consistently ranks as one of the top outsourcing destinations globally—particularly for customer experience (CX), digital services, finance, IT, and creative roles. Its success is driven by a unique blend of cultural alignment, skilled talent, and strong government support, making it a strategic choice for companies seeking both cost efficiency and service quality.
One of the Philippines’ strongest competitive advantages is its high level of English fluency and Western cultural alignment.
Culturally, Filipinos are highly familiar with Western media, communication styles, and workplace norms, making collaboration easier and reducing friction in client interactions and team integration.
Result: Seamless communication, customer satisfaction, and strong client alignment.
The Philippines is home to a fast-growing pool of skilled professionals across multiple industries.
Industry strengths include:
According to the IT & Business Process Association of the Philippines (IBPAP), the IT-BPM industry is projected to reach US$59 billion in revenue by 2028, fueled by talent demand from international markets.
Result: Businesses get access to skilled, scalable teams that can support complex, high-value functions—not just transactional work.
The Philippine government has long recognized outsourcing as a key economic growth driver and continues to support the industry through tax incentives, infrastructure investment, and workforce development.
Notable advantages include:
With more than 1.3 million Filipinos working in the outsourcing sector, the country has built a mature, well-supported ecosystem that ensures business continuity, workforce sustainability, and service reliability.
Result: A stable outsourcing environment designed for long-term success.
At KDCI Outsourcing, we help companies maximize the cost-efficiency and scalability of Low-Cost Countries—without the usual pitfalls of outsourcing. By operating out of the Philippines, one of the world’s leading outsourcing hubs, we build dedicated offshore teams that are fully aligned with your brand standards, performance goals, and long-term business strategy.
KDCI doesn’t offer one-size-fits-all staffing—we build specialized, role-specific teams designed to meet your exact operational requirements. Whether you need a single high-performing role or an entire department, we help you scale with talent experienced in global standards.
We help businesses successfully:
Each team is matched not only by skill—but also by industry experience, communication fit, cultural alignment, and scalability needs.
KDCI ensures consistent quality and low operational risk through structured delivery models and compliance-driven processes.
Our risk management and compliance practices include:
This ensures that when you outsource customer service and sales, outsource finance and accounting services, or outsource software development and IT services, you’re working with teams who deliver high standards consistently and securely.
We don’t just assign remote staff—we build fully integrated, dedicated teams that function as an extension of your in-house operations.
Our dedicated team model enables:
This approach ensures that whether you outsource engineering services, outsource human resources solutions, or expand your digital capabilities, your offshore team becomes a true strategic asset—not just a workforce cost saver.
KDCI provides flexible engagement options that allow you to control cost, scale at your own pace, and maintain oversight at every level.
Our models support
This flexibility ensures that you can start lean and strategically grow with confidence—whether you're looking to outsource graphic design, scale a DevOps team, or build a full-service finance and accounting department offshore.
With KDCI, outsourcing becomes a strategic advantage—not a gamble. We help you scale smarter, faster, and safer using world-class Philippine talent backed by structured delivery, security, and performance excellence.
Outsourcing to Low-Cost Countries (LCCs) offers businesses a powerful opportunity to scale faster, optimize costs, and access global expertise across functions like IT, customer service, design, engineering, finance, and HR. However, success doesn’t come from choosing the cheapest provider—it comes from working with a partner who prioritizes quality, compliance, scalability, and seamless team integration. With the right outsourcing model and governance in place, companies can transform offshore teams into long-term growth engines that drive innovation, resilience, and operational excellence.
At KDCI Outsourcing, we help global businesses leverage the advantages of outsourcing—without the risks. Whether you want to outsource software development and IT services, outsource customer service and sales, outsource graphic design, outsource engineering services, outsource finance and accounting services, or outsource human resources solutions, we build dedicated offshore teams in the Philippines that are aligned with your goals, culture, and performance standards. Ready to scale smarter with a high-performing offshore team built for long-term success? Contact us today and let’s build your global workforce together.
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When Amazon Web Services (AWS) experienced a major outage on October 20, 2025, the internet felt it instantly.
From global streaming platforms and gaming apps to smart home systems like Alexa and Ring, critical digital services went offline within minutes. Major news outlets including Reuters, CNN, BBC, and Al Jazeera reported disruptions that affected millions of users and countless businesses worldwide. For companies relying on AWS to power their websites, e-commerce systems, or customer support operations, every second of downtime translated to lost revenue, damaged trust, and operational chaos.
And this wasn’t just a technical glitch—it was a warning.
This event reminded business owners, CTOs, and startup founders of a hard truth: even the world’s most reliable cloud provider isn’t immune to failure. As more companies move their operations into the cloud, the risks of over-reliance on a single provider become harder to ignore.
So, what exactly happened during the AWS outage? Why did it take down so many major platforms? And more importantly—what does this mean for businesses moving forward?
Let’s break it down and uncover what the outage truly signals about the future of digital resilience.
When a platform like AWS goes down, it doesn’t just affect one company—it affects the foundation on which thousands of companies operate. Amazon Web Services is responsible for powering a massive portion of the world’s digital infrastructure, which means any disruption has immediate, global consequences. To understand the magnitude of the October 20, 2025 outage, we first need to look at what AWS is and how deeply it is embedded in business operations worldwide.
Amazon Web Services (AWS) is Amazon’s cloud computing division—a platform that provides on-demand access to computing power, storage, databases, artificial intelligence (AI), machine learning (ML), analytics, security tools, and more. Instead of maintaining expensive physical servers, businesses across the globe rely on AWS to host their websites, run their mobile and web applications, manage their data, and scale operations with ease.
AWS isn’t just popular—it’s dominant. According to market share reports from multiple industry analysts (such as Statista and Synergy Research Group), AWS remains one of the top cloud providers globally, serving companies from startups to Fortune 500 enterprises. Its widespread adoption is driven by:
Because AWS is the backbone for so many websites, mobile apps, streaming platforms, e-commerce systems, IoT devices, and enterprise workloads, any outage doesn’t just “slow the internet”—it sends shockwaves through global business operations.
On October 20, 2025, businesses and consumers across multiple regions began reporting widespread disruptions to major apps and websites that rely on Amazon Web Services. According to Reuters, the outage was first detected when monitoring platforms and users began flagging service interruptions across popular platforms hosted on AWS.
While full details were still emerging, early analysis and historical outage patterns suggest a likely connection to heavily used data hubs such as US-East-1, one of AWS’s most critical regions. This region has been historically prone to high-impact incidents due to its central role in handling traffic for North American clients and several global services.
As AWS continued to investigate the root cause, businesses relying solely on affected regions experienced full-service disruption without failover mechanisms or multi-region redundancy.
When AWS went down, it triggered a domino effect across consumer, enterprise, and IoT ecosystems. According to TechRadar’s live coverage, services ranging from entertainment platforms to smart home devices were hit within minutes of the outage spreading.
CNBC reported that several e-commerce websites, streaming platforms, and fintech apps dependent on AWS infrastructure were affected, resulting in checkout failures, login issues, and delayed transactions.
NBC News confirmed that multiple U.S.-based retailers experienced site interruptions, preventing users from completing purchases during peak shopping periods.
Global news authorities confirmed the scale of disruption:
From personal communication and gaming to critical e-commerce and financial services, the outage demonstrated just how dependent modern businesses and consumers have become on AWS's underlying infrastructure. While large enterprises with multi-region redundancy saw limited disruption, thousands of SMBs without robust failover systems experienced a complete halt in operations.
Early reporting points to issues inside AWS’s own networking and control-plane layers—specifically around how traffic is monitored and routed. Reuters reported that AWS traced the disruption to “a malfunction in the health monitoring system of network load balancers” within the EC2 internal network, with the incident originating in US-EAST-1 before cascading across dependent services.
Other coverage described closely related symptoms. The Verge’s roundup highlighted widespread DNS resolution problems tied to the EC2 internal network, which would explain why so many applications simultaneously failed to reach critical backend resources.
International outlets reinforced the emerging picture: Al Jazeera summarized Amazon’s initial diagnosis and the scale of impact as AWS worked through recovery, noting the concentration of effects in core U.S. regions that underpin global workloads.
On the community side, engineers debated likely failure modes on Hacker News, with several threads discussing how a fault in monitoring or routing for high-traffic services (e.g., CloudFront, load balancers) can produce internet-scale ripple effects—useful context even while Amazon’s formal post-mortem is pending.
For the official record, AWS publishes Post-Event Summaries (PES) after incidents that meet a defined impact threshold. Expect a PES to clarify the exact chain of events once AWS closes the investigation.
From an engineering standpoint, the facts reported so far map to three common AWS failure classes:
At the time of writing, AWS’s Health Dashboard status stream shows the sequence of advisories and recoveries for October 20, 2025—useful for correlating internal remediation with external symptoms.
AWS communicated through two primary channels:
For near-real-time situational awareness beyond AWS channels, reputable news outlets also maintained live coverage and confirmations throughout the day, which many teams used to triangulate customer-facing comms while internal SREs focused on mitigation.
KDCI perspective: incidents like this underline why resilient architecture (multi-AZ, multi-region, tested failover) and clear escalation paths matter. Our guidance to clients is simple: design for failure, rehearse the playbook, and staff a follow-the-sun ops capability so you can respond the moment the Health Dashboard turns yellow.
An AWS outage is not just a technical incident—it’s a business emergency. When AWS services go offline, the effects reach far beyond server rooms and engineering teams. E-commerce sales stall, financial transactions fail, customers lose trust, and operations come to a halt across entire industries. Because AWS underpins so much of the digital economy, every minute of downtime can translate into thousands (or even millions) in lost revenue and long-term reputational damage.
Downtime is incredibly expensive, especially for businesses that operate in real-time digital environments.
During the 2025 AWS outage, marketplaces, subscription services, and digital platforms reported significant transaction failures, with some businesses calculating losses in the hundreds of thousands before systems came back online.
In today’s digital-first world, users expect instant access—and when platforms go down, frustration builds fast.
Even when services are restored, the damage lingers. Customers may question reliability, churn to competitors, or hesitate to trust platforms lacking clear outage response strategies. In industries like fintech, healthcare, or IoT, trust is a core value—once lost, it’s difficult to win back.
Business continuity relies heavily on the smooth coordination of interconnected systems. When AWS falters, internal operations suffer alongside customer-facing services.
In organizations with just-in-time logistics or rapid turnaround workflows, even short-lived disruptions can compound into shipment delays, missed SLAs, or strained client relationships.
Not all businesses are equally prepared for outages—and that’s where the gap becomes costly.
SMBs that lack in-house DevOps or cloud resilience expertise often remain offline longer and have difficulty communicating realistic recovery timelines to their customers.
Takeaway: The AWS outage highlighted a crucial reality—cloud dependency without resilience planning can put businesses at financial risk, damage customer trust, and disrupt long-term growth trajectories.
The 2025 AWS outage isn’t just an isolated breakdown—it’s a reminder of the risks companies take when they put their entire digital infrastructure into the hands of a single provider. While AWS is one of the most trusted cloud platforms in the world, even industry leaders are not immune to failure. For businesses relying solely on a single cloud provider without backup or failover strategies, an outage can quickly escalate into a full-scale operational crisis.
When an entire business ecosystem is built on just one cloud service—like AWS—any disruption to that service instantly becomes a single point of failure.
The key lesson? Scalability without resilience is risky. While AWS allows companies to grow rapidly, relying on one cloud without a safety net exposes businesses to major continuity risks.
This isn’t the first time AWS outages have disrupted businesses at scale. A look back at historical events reveals a concerning pattern:
These recurring incidents prove one thing: No cloud, no matter how advanced, is outage-proof.
Enterprises that survived these past outages with minimal disruption typically had:
Those that did not often experienced extended downtime, growing customer frustrations, and post-incident churn.
Despite the known risks, a surprising number of companies still lack formal Business Continuity (BC) and Disaster Recovery (DR) strategies for cloud failures.
The AWS outage exposed these gaps, revealing which companies were architected for resilience—and which were just hoping for uninterrupted service
Key takeaway: Outages are inevitable, but failure doesn’t have to be. Businesses that strategically plan, diversify infrastructure, and stress-test resilience can withstand future cloud disruptions without collapsing.
While companies can’t prevent third-party cloud providers from experiencing outages, they can dramatically reduce operational risk through smarter architecture, proactive planning, and the right talent strategy. The businesses that stay resilient aren’t the ones who avoid disruption entirely—they’re the ones that prepare for it.
Depending on a single provider like AWS introduces a clear failure risk. That’s why forward-thinking companies are increasingly turning to multi-cloud or hybrid cloud models.
Benefits include:
When AWS experiences a service degradation, businesses with workloads spread across multiple platforms can fail over to unaffected providers, minimizing downtime and preserving customer experience.
Cloud resilience requires intelligent system design. Businesses that suffered the least during the AWS outage were those with automated backup and failover capabilities.
Key components of an outage-ready architecture include:
The goal is to ensure your systems don’t just detect an outage—they respond to it instantly.
A well-written BC/DR plan is only effective when tested, updated, and understood by the entire organization.
Best practices include:
Companies that treat outage drills like fire drills are better equipped to respond with confidence rather than confusion.
Resilience requires expertise—not all businesses have that expertise in-house.
That’s why many companies choose to outsource software development and IT services or outsource engineering services to experienced partners who understand how to build, manage, and monitor fault-tolerant cloud ecosystems.
By outsourcing cloud operations and infrastructure management, businesses gain:
With the right outsourcing partner, businesses can build reliable infrastructure while freeing internal teams to focus on innovation and growth—not firefighting downtime.
Cloud outages are not just a technical problem—they’re a business continuity risk. When minutes of downtime can translate into lost revenue, churn, and damaged reputation, having the right people in place to detect, respond, and recover quickly is critical. That’s where outsourcing becomes a strategic advantage—not just as a cost-saving measure, but as an operational resilience solution.
In a digital economy that never sleeps, uptime monitoring and incident response can’t be limited to local working hours. Offshore teams enable continuous coverage across time zones, ensuring issues are caught and resolved before customers even notice.
With an offshore outsourcing model:
For companies with customers in multiple regions, outsourcing offshore helps maintain a consistent, always-on digital experience.
A resilient infrastructure doesn’t happen by accident. It requires proactive architecture design, continuous observability, and constant optimization—areas where outsourced DevOps and IT specialists excel.
How outsourced DevOps and IT teams contribute to resilience:
With outsourced experts focused on uptime, in-house teams can prioritize strategic development rather than emergency firefighting.
At KDCI Outsourcing, we help businesses future-proof their operations by building cloud-ready, resilience-focused remote teams tailored to their needs.
Examples of roles we provide to support business continuity:
What sets KDCI teams apart:
By partnering with KDCI, companies can build dedicated remote teams that not only maintain business operations during outages—but proactively prevent disruptions and strengthen long-term digital resilience.
The October 2025 AWS outage wasn’t just another tech incident—it was a wake-up call for every business that depends on cloud infrastructure. When critical systems fail unexpectedly, the companies that survive are not the ones with bigger servers, but those with stronger resilience strategies and the right people managing them.
Outages are inevitable. Whether caused by network failures, configuration errors, or cascading system breakdowns, cloud disruptions are part of the modern digital landscape. What separates resilient businesses from vulnerable ones isn’t the ability to avoid outages—it's how well they prepare for and respond to them.
When uptime equals revenue, trust, and competitive edge, resilience becomes a board-level priority.
No cloud provider, not even AWS, can guarantee 100% uptime forever. Historical data proves that failures will occur—and often at the worst possible times.
So the real question is no longer:
“What happens if AWS goes down?”
It’s:
Companies that wait for the next outage to act will always be playing catch-up. Those who act now will lead with confidence.
At KDCI Outsourcing, we help businesses build the kind of offshore teams that don’t just support uptime—they protect it. Whether you need dedicated DevOps engineers, cloud support specialists, or full IT and engineering teams, we create scalable workforce solutions designed for reliability and performance under pressure.
When the next outage hits, don’t hope your systems will survive—know your team is ready.
Don’t wait for the next outage to expose vulnerabilities in your cloud strategy. Build a dedicated offshore DevOps, IT, or engineering team with KDCI Outsourcing and ensure your business stays resilient, scalable, and always online—even when the cloud isn’t. Ready to future-proof your operations? Contact us today and let’s build your uptime-ready team today.
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This 2026, running a successful Ecommerce brand is no longer just about great products or fast shipping. Well, the truth is, it hasn’t been limited to that since the past couple of years. If anything, consumers make buying decisions based on aspects that are beyond the products themselves — one of those factors is customer service. In fact, the cost of bad customer service for businesses worldwide is estimated at $3.7 trillion, with 43% of consumers claiming that terrible customer experiences discourage them from making repeat purchases.
If you’re running an online store, the demand for an always-on and highly personalized customer experience sure sounds familiar. From pre-sale inquiries to post-purchase support, the way you communicate with customers can define (in a make or break way) your brand reputation and directly affect your business’ bottomline.
That’s why many growing online stores today choose to outsource Ecommerce customer service to expert providers. While it’s usually for reasons involving cost savings, outsourcing customer service functions also help unlock scalability, multilingual reach, and even 24/7 contact centers while ensuring that your customers feel genuinely cared for.
In this guide, we’ll highlight the top 10 providers to outsource Ecommerce customer service in 2026, including their strengths and what makes each a standout partner for online stores. Whether you’re a global retailer or a fast-scaling online brand, this list will help you make an informed choice and find a partner that fits your growth strategy.
Let’s get started.
Before we dive into the list, we’ll discuss the “why” first. In the past couple of years, customer service has always been among the most commonly outsourced functions. This allows businesses to maintain a reliable contact center while focusing on other core functions.
For Ecommerce businesses where the demand for customer support is quite unique, customer service outsourcing has proven to be an ideal solution for a number of businesses, too — and for several good reasons.
Let’s go through some of them.
When working with an outsourcing provider, it’s easier for online stores to add more customer support agents as sales grow, especially during peak seasons. In the same way, it’s more convenient to scale back as the demand changes.
The beauty of working with offshore outsourcing partners (particularly those based in the Philippines) is the opportunity to take advantage of varying time zones. Because of time zone differences, customer service providers can take calls 24/7, without the need to manage overnight shifts or different time zones.
Outsourcing companies train agents specifically in Ecommerce platforms, CRM systems, and brand tone adaptation. This way, you get fully-trained agents who are dedicated to serving your customers.
Since they are solely focused on customer service alone, outsourced customer service teams help boost satisfaction and loyalty. With highly-organized systems to expert communication skills, you can fully trust outsourced customer service teams to represent your online brand well.
Since BPO companies handle the entire onboarding process of customer service agents, you also save on hiring, training, and overhead expenses when outsourcing. Once the team is set up, they will be ready to handle all customer inquiries, making sure that every customer interaction counts.
Now that we have covered the why, let’s talk about the who. When done right, outsourcing transforms customer service into a loyalty engine. To maximize returns and ensure that Ecommerce customer service outsourcing works for your online store, it’s crucial to find the right outsourcing partner.
Get to know some of the companies who can help you connect with your customers through better customer experiences.
Below are some of the leading BPO companies in the Philippines who excel in offering outsourced Ecommerce customer service solutions:
Based in Pasig City and specializing in end-to-end Ecommerce customer support for medium to large global brands, KDCI Outsourcing is a top choice for those looking for flexible engagement models and personalized customer solutions.
When it comes to outsourcing Ecommerce customer service, KDCI stands out as the leading choice for brands seeking a flexible, scalable, and genuinely human approach to customer experience. They specialize in building custom customer service teams that align with your brand voice, handle high-volume inquiries, and support every channel — from live chat and email to social media and marketplace communication.
KDCI’s edge lies in tailored strategies as KDCI designs workflows, scripts, and escalation paths that reflect each client’s unique operations and brand personality. Their solutions are ideal for online stores using Shopify, WooCommerce, Magento, and Amazon, among others. KDCI works with businesses in the US, Australia, or Europe that want to scale customer service operations offshore without compromising service quality or customer experience.
Teleperformance remains one of the most recognized names in the BPO world, specializing in working with enterprise Ecommerce brands with international operations. They offer enterprise-grade customer experience management with deep expertise in omnichannel support and analytics. Their core strengths include advanced analytics and CX automation as well as strong compliance and data security standards
Their Ecommerce teams manage high ticket volumes across multiple regions, providing coverage in dozens of languages — ideal for retailers selling in global markets. If you’re running an enterprise that needs global 24/7 coverage and want to combine human and automated support seamlessly, Teleperformance is an ideal partner for you.
For online retailers looking to modernize customer experiences, Concentrix is a good option. Concentrix combines CX strategy, technology, and delivery, making it perfect for Ecommerce businesses looking to transform their entire customer support function — not just outsource it.
Their team helps brands integrate AI, chatbots, and automation into customer journeys while ensuring every touchpoint feels consistent and personal.
Concentrix excels in consulting and process optimization, AI-powered automation, and integration with CRM and marketing platforms.
TTEC takes a unique approach — blending marketing, sales, and service to help brands deliver profitable customer experiences. They focus on connecting customer care with customer acquisition, upselling, and retention.
Their Ecommerce customer service offering is particularly strong when it comes to:
TTEC is usually chosen by Ecommerce companies worldwide who are looking to turn support into sales and improve lifetime customer value.
TaskUs is popular among fast-growing digital brands for its modern, agile approach to customer experience. The company is known for handling support across chat, social media, and online communities, and for maintaining a youthful, energetic team culture.
With expertise in digital-native brand support, focus on social media and community moderation, as well as flexible scaling and fast onboarding, TaskUs is ideal for brands targeting Gen Z and millennial audiences through social-first engagement.
Next on our list is Foundever, which combines AI efficiency with human empathy, enabling brands to handle large support volumes without sacrificing personalization. Their teams are trained to balance automation (like chatbots for basic queries) with empathetic live interactions for complex cases and customer inquiries.
Foundever is an ideal partner for retailers managing massive order volumes, returns, or marketplace queries. They are best known for their:
TELUS International stands out for combining CX delivery and AI data operations. They’re the go-to provider if you want to use machine learning or conversational AI to improve your Ecommerce customer service workflows.
TELUS offers multilingual customer service operations, AI training and data annotation for call center agents, and advanced automation and analytics to streamline workflows and processes. For brands exploring AI-enhanced self-service or AI-assisted agent support, TELUS is an ideal customer service outsourcing partner.
VXI Global Solutions combines large-scale customer support delivery with intelligent automation and data-driven performance management. They specialize in designing workflow systems that improve resolution times, reduce operational inefficiencies, and maintain service consistency at enterprise volume.
With strong QA frameworks and a highly secure delivery model, VXI is a reliable choice for brands that require compliance, visibility, and continuous optimization in their customer service operations. For enterprise organizations aiming to enhance efficiency without compromising customer experience, VXI is a strong outsourcing partner.
Enshored is known for supporting high-growth DTC and subscription-based ecommerce brands that value authenticity and brand-aligned customer interactions. Their teams are intentionally smaller and more agile, allowing them to adopt brand voice, internal processes, and product knowledge quickly. This makes them particularly effective for lifestyle, apparel, beauty, and niche consumer brands where tone and personalization matter.
For companies seeking a boutique, collaborative outsourcing experience rather than a large-scale call center environment, Enshored is an ideal partner.
Digital Minds BPO is a cost-efficient customer service outsourcing provider headquartered in Manila. They specialize in providing offshore CX teams that are both budget-friendly and fluent in Western communication styles, making them especially attractive for brands expanding global support coverage.
Their approach focuses on dependable service delivery while maintaining a strong understanding of ecommerce workflows, particularly order management and post-purchase inquiries.
Digital Minds is chosen by their clients for:
With all these options available (and a lot more that are not included in the list), selecting a provider can be overwhelming. Keep in mind, however, that choosing your Ecommerce customer service outsourcing partner isn’t just about pricing but also about finding the right operational and cultural fit.
To help you find the right match, here’s a quick checklist that you can refer to:
Once you’ve assessed these key criteria and identified the right Ecommerce customer service outsourcing partner who can help you with your business goals, you can get started on building your offshore customer service team.
Here’s how:
Launch a small-scale pilot to test alignment and workflows before scaling full volume. If you’re just testing the waters, working with a few agents and establishing clear systems with a small team can help you prepare and mitigate the risks of having a full-scale, offshore customer service department.
The key to any good Ecommerce partnership is setting clear expectations. In the context of outsourcing customer service functions, Key Performance Indicators (KPIs) help you assess the quality of service you’re getting. As such, it’s important to set measurable goals for CSAT, average handle time (AHT), and response time upfront.
While Ecommerce call center agents from trusted outsourcing companies already have the technical and communication skills, they still need guidance when it comes to delivering personalized experiences to your customers. The best way to make sure that the service is tailored to your business’ customers is to provide guidelines on tone, empathy, escalation, and product FAQs.
Collect customer feedback during the first 90 days to refine scripts and processes. After all, it’s your customers who are directly interacting with the customer service agents. Use their feedback in order to identify the strengths and address the gaps in the customer service workflow.
As with any business process, the initial steps will naturally involve assessments, feedback, and ongoing improvements in your customer service process. Think of it as a long-term investment in your business growth. Once quality stabilizes, that’s when you can add more channels (voice, chat, social) to your contact centers.
The future of Ecommerce customer service is AI-assisted, data-driven, and globally distributed. Brands that thrive will be those that blend human empathy with intelligent automation to create experiences that are efficient, consistent, and emotionally resonant.
Outsourcing partners like KDCI Outsourcing are already leading this shift in trends — combining human expertise with CX analytics and automation to help brands deliver top-tier experiences at scale. In 2026, ecommerce success hinges on how well you care for your customers. The right outsourcing partner helps you do exactly that: enhance customer satisfaction while freeing your internal team to focus on growth.
So, if you’re looking for a trusted partner for your Ecommerce customer service operations, look no further than KDCI Outsourcing.
Scaling your operations for your online store is easier when your customers feel valued every time and across every channel.
At KDCI Outsourcing, we help global Ecommerce brands build customer service teams that deliver consistent, empathetic, and results-driven customer experiences. From chat and email support to omnichannel strategies, we tailor every outsourcing solution to strengthen loyalty and elevate your brand reputation.
Talk to our Ecommerce outsourcing specialists and discover how we can help your store scale smarter in 2026. Contact us to learn more.
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The comparison between managed services vs outsourcing has grown over the last few years. As of 2024, the market value of global managed services was $348.12 billion USD. This value is expected to soar to $393.02 billion USD and $1037.46 billion USD in 2025 and 2033, respectively.
It’s the same case with outsourcing. According to Grand View Research, the global business process outsourcing (BPO) market’s 2024 value was around $302.62 billion USD. By 2030, this value is expected to skyrocket to $525.23 billion USD.
As various industries and business arrangements constantly evolve, many ask if a managed service is just a narrower concept of outsourcing or a new breed of business model.
In this article, we’re going to thoroughly explain how managed services vs outsourcing differ, their benefits, and which best suits your rapidly growing business needs.
Outsourcing is a business strategy that involves hiring an external service provider, specifically a business process outsourcing (BPO) company, to perform tasks, provide services, or manufacture products instead of doing them in-house. The objective of outsourcing is to save money, access specialized expertise or technology, or increase operational efficiency.
Some common examples of outsourcing include hiring a recruitment process outsourcing (RPO) firm to handle a company's payroll, partnering with a manufacturer in another country to produce goods, or working with a call center company to outsource customer service.
Traditional outsourcing offers several benefits for businesses, including:
Outsourcing can be a cost-effective way to get work done because it allows companies to take advantage of lower labor costs in other countries and access specialized expertise without having to hire full-time employees or maintain additional internal resources.
By outsourcing certain tasks or processes, a company can focus on its core competencies — which can often lead to better results and higher levels of operational efficiency.
Outsourcing allows companies to access specialized external expertise or technology that they may not have in-house. This can be particularly useful for companies that need to tap into specific knowledge or capabilities on a project-by-project basis.
Outsourcing can provide companies with increased flexibility and scalability because it allows them to easily ramp up or down their operations as needed. This can be particularly helpful for companies that experience fluctuating demand for their products or services.
By outsourcing certain tasks or processes, companies can often improve the quality of their products or services, which can lead to higher levels of customer satisfaction.
Managed services refer to a business model in which a company provides a defined set of services to its clients on a proactive, ongoing basis. While associated with IT, managed services can also include human resources, marketing, and procurement.
For example — if you’re availing of IT managed services — these may include everything from managing and maintaining a customer's IT infrastructure and applications, to providing expertise and technical support in areas such as cloud computing and cybersecurity.
The goal of managed services is to help businesses improve their operations and increase efficiency by providing expert support and guidance in a business function. This can help businesses save time, money, and resources while also enabling them to focus on their core competencies.
Partnering with a managed service provider offers significant advantages to businesses, including:
Managed service providers (MSPs) are experts in their field and can handle a wide range of tasks, allowing your in-house team to focus on more strategic, high-value projects.
By outsourcing certain business functions, you can save on labor and training costs, as well as avoid the need to invest in expensive equipment and software.
A managed service provider typically has the expertise and resources to implement and maintain strong security measures, helping to protect your organization from potential cyber threats.
Like the best outsourcing companies, managed service providers can help you develop a comprehensive disaster recovery plan and provide the necessary tools and support to ensure your business stays up and running in the event of an unforeseen disaster.
Managed services providers can help ensure that your organization is compliant with industry regulations, helping to reduce the risk of fines and other penalties.
Managed services vs outsourcing are often used interchangeably, but they actually refer to two different types of arrangements. Outsourcing involves transferring certain business functions or processes to an external provider, while managed services refer to the ongoing management and maintenance of those functions or processes by the provider.
In other words, outsourcing is a one-time arrangement in which an organization contracts with an external provider to handle a specific task or function, such as customer support or product information management.
If you want to scale your operations during peak business seasons, outsourcing to a service provider is the best move. You can also scale down with outsourcing after peak periods.
On the other hand, unlike traditional outsourcing, managed services are ongoing, long-term arrangements in which the provider takes on a more proactive role in managing and maintaining certain functions or processes for the company.
This may include tasks such as monitoring and maintaining the company's IT infrastructure, providing ongoing technical support and maintenance, and implementing security measures. The managed services provider acts as an extension of the company's own IT team, offering expertise and support to help the company operate more efficiently.
Both practices are different. Shared services focus on centralizing functions, like IT support, across all departments, whereas managed services center on delivering and maintaining diverse outsourced services for a business function.
Shared services also involve internal expertise. This means you can hire new employees or provide professional development opportunities to existing staff. On the other hand, managed services rely on an external provider with a competent workforce that’s already at the level of your desired expertise. Unlike shared services, you don’t have to train your external team.
Much like choosing between shared services vs outsourcing, your choice of practice is highly dependent on your business needs and goals.
However, you should choose managed services if you want:
Alternatively, you should opt for outsourcing if you want:
Managed services providers usually offer a flat monthly rate for their services. Hence, it’s easier to anticipate next month’s expenses and plan your budget accordingly.
Traditional outsourcing, however, offers more pricing structures, including time and materials, project-based, hourly-based, incentive-based, and the like. Service providers also create flexible and custom pricing solutions according to your requirements.
While it’s possible to anticipate outsourcing costs, be prepared to anticipate circumstances that may increase your expenses, such as software updates, legal and compliance fees, power outages, project delays, and quality issues.
Are you planning to outsource some of your non-core business functions to the best offshore outsourcing companies? If so, consider partnering with KDCI Outsourcing.
We are a leading outsourcing company that has collaborated with global companies for over 10 years, offering scalable staffing solutions in graphic design, content creation, real estate, and many more.
Experience our world-class outsourcing services and build the best offshore team in the Philippines.
Contact us to get a FREE consultation with one of our outsourcing experts!
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.
