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What truly defines success in today’s business world — profit, people, or purpose?
For decades, revenue growth and profit margins were the north stars of business performance. But times have changed. In an era shaped by remote work, rising customer expectations, and unpredictable markets, US companies are expanding their definition of success — and rethinking what growth really means.
More businesses are now shifting their focus from purely financial metrics to more holistic indicators of performance. These new growth metrics reflect the evolving demands of customers, employees, investors, and society — measuring not just what a company earns, but how it operates and why it matters.
Revenue still matters — but it’s no longer the whole story. A company can be financially strong on paper and still face significant internal issues, such as high employee turnover, burnout, inefficient processes, or poor customer retention.
According to a McKinsey study, companies that incorporate non-financial metrics into their performance reviews are better equipped for long-term success. These organizations are not only more adaptable — they’re also more likely to outperform competitors in profitability and innovation over time.
Simply put, tracking only the bottom line leaves blind spots. Today’s leading companies are filling those gaps with new performance indicators that offer a clearer view of true, sustainable growth.
Here are five key performance areas that forward-thinking US businesses are now prioritizing:
According to Gallup, a growing number of companies recognize that people are their most valuable asset — and that engagement directly impacts performance. High attrition rates signal deeper organizational issues that can stall growth.
To address this, businesses are investing in:
They’re also tracking retention rates and employee satisfaction scores to ensure that their teams remain motivated and aligned.
Gone are the days when companies only focused on customer acquisition. Now, it's about how long customers stay, how much they spend over time, and how satisfied they are with the experience.
CLV reflects the depth of customer relationships, making it a powerful growth metric. High CLV signals customer loyalty, strong service delivery, and well-executed retention strategies.
Revenue means little if your operations are burning through cash or causing employee fatigue. Modern companies are now focusing on:
Many are turning to outsourcing for non-core business functions to reduce internal friction and boost scalability — optimizing both cost and performance.
Speed matters in a digital-first economy. Companies are measuring how quickly they can take an idea to market, adapt to trends, and roll out new features or services.
This includes tracking:
By measuring innovation velocity, companies can evaluate how agile they truly are in staying ahead of competitors and evolving market demands.
It’s not just about growing your headcount — it’s about building a workforce that’s flexible, scalable, and efficient.
Companies are asking:
Many are addressing this by working with offshore teams, allowing them to expand operations without ballooning costs.
The evolution of success measurement didn’t happen overnight. Several key factors have accelerated the change:
As a result, businesses are recognizing that financial performance is a lagging indicator. Today, they need real-time insights that guide smarter decisions.
Redefining growth requires more than changing what you track — it demands a mindset shift across the entire organization.
This involves:
It’s no longer enough to grow fast. Companies must grow smart — sustainably, ethically, and collaboratively. Leaders who adopt this mindset are the ones building future-proof organizations.
At KDCI Outsourcing, we understand that modern businesses need more than just staffing — they need growth-enabling partners.
That’s why we offer offshore solutions that are:
Our teams support key metrics like customer satisfaction, service-level efficiency, and team scalability — enabling US companies to build future-ready operations without overextending internal resources.
Whether you're in e-commerce, SaaS, design, or support — our approach goes far beyond the bottom line.
Success today is no longer measured solely by financial performance. It’s reflected in employee well-being, customer loyalty, operational agility, and innovation speed.
US companies that embrace new growth metrics are better positioned to adapt, scale, and lead — even in volatile markets.
Ready to build a future-proof growth strategy?
Partner with KDCI Outsourcing to scale your operations and align your team with modern performance metrics.
Contact our team today to get started!
In today’s competitive business landscape, hiring decisions aren’t just about filling roles — they’re about shaping the future of a company. Many fast-growing organizations find themselves at a crossroads: continue relying on traditional local hiring, or explore the potential of global talent to build a flexible and scalable workforce. The right balance can unlock growth, reduce overhead, and increase operational agility.
Hiring the right talent is essential to a company’s long-term success. But in today’s globalized economy, US companies are facing a critical decision: should they continue investing in expensive local hires, or tap into global talent pools that offer cost-effective hiring solutions and specialized skills?
As more businesses prioritize workforce optimization, the way they build their teams is evolving — and full-time equivalents (FTEs) are at the center of this shift. From hybrid workforce models to global hiring strategies, companies are reshaping how they scale.
For years, local hiring has been the go-to method for filling roles. However, this traditional model comes with significant overhead — from recruitment costs and benefits to limited scalability and rigid team structures.
According to the Society for Human Resource Management, the average cost of hiring a new employee in the US can exceed $4,000, not including training time and lost productivity. These figures are pushing many businesses to rethink how they manage their full-time equivalents (FTEs).
That’s where global talent enters the picture.
Hiring global talent isn’t just a trend — it’s becoming a core part of the modern talent acquisition strategy. Whether through outsourcing or direct remote staffing, companies are leveraging offshore talent to optimize FTEs while boosting productivity.
In a Deloitte survey, 42% of executives cited better talent access as the main reason for outsourcing, followed by cost savings and improved performance.
Here’s why global hiring strategies are gaining traction:
Hiring offshore talent in regions like the Philippines or India significantly reduces overall hiring costs.
Easily scale your team up or down based on demand.
Fill technical and support roles with experienced global professionals.
Despite the appeal of global talent, local hiring continues to play a vital role — especially for leadership, creative, or client-facing positions.
Advantages of local hiring include:
For most companies, the solution isn’t “either/or” — it’s a hybrid workforce model. Strategic use of both global and local hiring allows companies to play to each approach’s strengths while optimizing FTEs for efficiency.
Today’s fast-scaling businesses are redefining their FTE optimization strategies. By leveraging remote staffing solutions and maintaining a core local team, they are building agile, flexible, and highly productive organizations.
According to Harvard Business Review, hybrid teams are the future. They allow businesses to expand their capabilities, serve global markets, and reduce overhead without sacrificing team cohesion.
It is an inspiration in a business to know that you have a great workforce. So before transitioning to a global hiring model, here are essential steps to optimize your workforce:
Identify which roles must stay in-house and which can be outsourced through offshore outsourcing or remote staffing.
Effective onboarding and clear communication processes are key to managing offshore team members across time zones.
Partnering with a trusted BPO provider like KDCI Outsourcing ensures that your offshore team is aligned with your goals and company culture.
Let’s say your US-based customer service team is overextended. Hiring more local staff might not be financially viable. But with offshore outsourcing, you can:
This global talent solution empowers your local team to focus on strategic tasks while your offshore team handles daily inquiries — improving both efficiency and employee well-being.
In the debate of global talent vs local hiring, the most successful companies understand that it’s not a matter of choosing one over the other. It’s about FTE optimization — building a team that’s flexible, cost-efficient, and built for growth.
By blending local hires for high-impact leadership with offshore outsourcing for scalable operations, businesses can position themselves for long-term success.
At KDCI, we help companies unlock the full potential of global talent. Whether you’re building an offshore team or looking for remote staffing solutions, we’ll help you create a workforce that’s built to scale.
Contact our outsourcing experts today and start optimizing your FTEs with KDCI Outsourcing.
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Expanding and scaling a business is as risky as they are rewarding. MIT Sloan Management Review finds that the scaling of business endeavor ideation and incubation was only a success among a small percentage of companies (16%). Meanwhile, Igor Buinevici and the Economic Times reported a different finding in which only 8% of organizations were successful in scaling (versus 92% of organizations that failed).
Don’t let these figures stop you from scaling. With ample preparation, a concrete business plan, and organizational alignment, you can scale your business to new heights.
Scaling a business is a calculated risk. As a business owner, it’s important to weigh the pros and cons of scalability before committing to this initiative. While scaling a business improves customer satisfaction and boosts revenue, scaling without sufficient preparation can cost your business.
In a journal article by Saerom (Ronnie) Lee and J. Daniel Kim, the chance of failure rises by 20% to 40% for early-scaling US startup businesses. Scaling within a year (or even six months) of establishing a business is a double-edged sword; it can curb imitation, but it can also lead to market mismatch, poorer brand reputation, and less time for experimentation.
In this case, scaling slower is much more beneficial, but not too slow to the point that you miss out on new market opportunities. How do you know if it’s the right time to scale? Take a look at these five signs.
Increased customer demand for your products and services is a good sign of success. After all, your team has done the hard work of tapping into the needs of your target audience and differentiating your offerings from competitors. However, increased demand comes with the inevitable burden of heavier workloads.
According to the American Psychological Association, half of employees (50%) in the US cited heavy workload as one of the causes of stress in the workplace. If your team is spending the work week rendering overtime or crunching tasks to meet deadlines or targets, it’s a clear sign you need to scale your business through hiring to keep up with the increase in workload.
Employees (63%) leave because there’s no room for career growth. By quitting their jobs, they can negotiate for a higher salary, move out of their comfort zones, and blossom into their careers. If your company’s turnover rates are higher than usual, scaling your business can help retain high-performing talent and promote sustainable growth.
Success doesn’t stop at achieving goals and metrics. If you want to drive operational excellence and business growth, employing a mindset of continuous improvement is a must. This could mean scaling your business to ensure exponential growth and enhanced customer satisfaction. In business, one must not settle for complacency.
You may have the right people and systems to achieve scalability, but having a realistic business plan makes the difference between unexpected costs and a successful scaling endeavor. It helps you stay grounded and accountable for your decisions. So when crafting a business plan, make sure to include concrete ways of scaling your business.
Much like a business plan, a business model is a foundational staple of any company. Business models typically feature your target market, value proposition, metrics, and cost structure.
If your business model has not gained traction yet — or lacks focus and clarity — it’s best to hold off on scaling efforts to avoid risks. But if you have a successful, flexible, and profitable business model, it’s a sign that you can scale your business.
Growth is mesmerizing, but it also blinds business owners. Those who don’t have foresight find themselves in a situation where they are unprepared and ill-equipped to handle the rigors of scaling a business. If scalability is on your radar, take a look at the potential obstacles to business growth you can potentially encounter.
Timing is everything. As discussed earlier, scaling your business too soon sets you up for an increased chance of failure. This is when timing works against you. Before scaling, ask yourself:
Your answers can help you find the right timing to scale your business with minimal financial risks.
Growth and scalability require overcoming a learning curve. Unfortunately, with the talent shortage and high cost of hiring in the US, finding the right people with the specialized knowledge and skills is like finding a needle in a haystack. However, this can be addressed by outsourcing.
Increasing your headcount makes the workload more manageable. But don’t fall into the trap of solely hiring for quantity. Employees are your biggest assets, and one wrong hire can hinder your business’s scalability.
Smart business owners know that scaling initiatives require the right people for the job. While there’s merit in hiring more in-house or outsourced employees, assessing their qualifications, work experience, and skills primes your scaling initiatives for success.
Outdated technology can create inefficiencies in workflow, lower productivity, and put your business at risk of cyberattacks. Investing in new technologies not only helps maintain optimal productivity, it also protects your infrastructure and customers’ data from online threats.
Change can throw teams off guard. It’s recommended to align team members and communicate how each individual’s role and skills contribute to the success of your scaling efforts. Most of all, give your team members a grace period to adjust to the changes and challenges brought by scaling.
Customer needs change as well. In the case of Slack, the company leveraged feedback from app users so it could refine its workplace communication platform with customers’ ever-changing needs in mind. This example shows how adapting to changes can lead to growth and scalability.
Scaling a business can be daunting, overwhelming even. That’s why we put in the work and listed seven scaling business essentials you need to prepare for the next chapter of your organization’s growth.
Failing to plan is recklessness in its purest form. Even if you own a startup, planning ahead helps you anticipate opportunities and threats your business can face as it grows. Make sure your scalability plan includes the following components:
Keep things realistic (but challenging), so everyone can meet the goals and targets outlined in the plan.
Set your sights on your goals and targets. Focus on what your business does best and avoid releasing new products or services without doing deep market research. Failing to conduct market research can result in a poor product market fit that doesn’t target your audience’s needs or attract a new customer base.
When scaling a business, avoid wasting resources on “investments” that don’t serve your customers or contribute to the fruition of your growth strategy.
Business owners need guidance, too. A mentor or consultant can provide sharp, objective insights and opinions without imposing them on you. However, make sure they are the right fit for your company. This means the mentor or consultant has to have the industry knowledge and experience, so they can better help you scale your business.
There’s power in networking. In a global study involving 10,500 startup companies, Startup Genome found that founders with over 41 local connections to other founders have a scaleup rate of 6.9%. The scaleup rate decreases if the founder has fewer connections, as exemplified below:
Networking and developing high-quality relationships with fellow founders (or a professional in your industry) give you access to new insights and resources or provide you with opportunities that can make a huge difference in your scaling initiatives. These connections can be potential mentors, too! Hence, always take the “it’s who you know” adage to heart.
While scaling initiatives involve change, it doesn’t mean letting go of core values. Core values are not just for show; they’re your organization’s facade and north star. They keep everyone grounded and create a strong company culture of unity between leaders and employees. Core values also aid in promoting employee retention.
To align employees with company values, start by leading by example so everyone can put these values into practice. Rewarding aligned behaviors also encourages employees to embody your organization’s values for the long haul. Most importantly, integrate core values with scalability efforts and outcomes, enabling employees to gain a sense of purpose and satisfaction when meeting targets.
As you expand your team, hiring the right people becomes a strategic game. Skills and credentials are important, but their shared values and mindset can make a huge difference in hiring decisions. In Qualtrics’ research involving US and UK employees, organizations that don’t demonstrate the respondents’ (46%) personal values can prompt the latter to quit.
Before going on a hiring spree, take the time to understand what your organization is looking for in a candidate to minimize turnover. Think long-term because you’ll want new employees who align with the present and future of your scalability initiatives. Your HR department can filter candidates by asking a mix of standard, behavioral, and situational questions.
Here are some examples:
Scaling your business can make cash flow management trickier than ever before. The solution? Take it by the reins. Start tracking assets, expenses, income, and liabilities using automated cash flow tools. These tools provide a forecast of your cash flow, analyze payment behavior, and predict financial uncertainties, helping you manage your cash flow and prepare appropriate contingency plans, like building a cash reserve.
Balance sheets and other documents also illuminate your business’s financial health. Review them frequently so you can identify risks and areas of growth as early as possible. Just as it is important to expand to new markets and diversify revenue streams, it is likewise important to control expenses through outsourcing and technology.
Not every job function needs to be done in-house. For business leaders, outsourcing is a great way to expedite non-critical work. In a study by Deloitte involving over a hundred executives around the world, the respondents’ rationale for outsourcing was:
This data shows the many advantages of outsourcing. Outsourced teams, in general, are cheaper, so you can expand or downsize your team according to demand and scale without ballooning costs. With service providers handling employee hiring and training, they can source the best candidates, train them in your processes, and prepare them for onboarding in your team.
From cloud-based software to AI and automation, BPO companies boast cutting-edge technologies for whatever need. This speeds up tech innovation and adaptation in your organization while optimizing costs.
The best part about outsourcing is the ability to build a hybrid outsourcing team, allowing you to get the best of both worlds of your in-house and outsourced teams — that is, local knowledge for the former and specialized skills and new perspectives for the latter. This fosters better collaboration between both teams.
It’s important to note that outsourcing can be done within your home country (onshore), a neighboring country (nearshore), or a faraway country (offshore). In terms of cost effectiveness, nearshoring and offshoring are your best bets.
If you decide to offshore outsource, though, you’ll be working with BPO companies in countries with a big time zone difference. That means if you partner with a Philippine-based BPO company, your service provider’s time zone will be 12 to 13 hours ahead of yours. However, time zone differences should not be a hindrance to your partnership.
Scaling a business is a strategic move that, when executed properly, propels your business to exponential growth. If you’re ready to take the next step, start outsourcing your job functions to an outsourcing company.
At KDCI Outsourcing, we offer scalable offshore outsourcing solutions to meet your organization’s growing needs. Carefully vetted by our hiring team, our offshore staff have the expertise to provide world-class outsourcing services that support your organization’s scaling goals and long-term growth. From graphic design to e-commerce, our services cater to various industries.
Build your offshore Filipino team today by getting in touch with KDCI’s outsourcing experts!
Chief operating officer, or COO, is not just a title for bragging rights. It is a role befitting someone who’s a great leader, communicator, and team builder. According to LinkedIn, a COO is an organization’s second in command; they work with the chief executive officer (CEO) to steer the company to success. If CEOs are the planners and goal setters, COOs are the executors of these plans and goals, implementing them throughout the organization.
For COOs and business leaders, operational excellence is a philosophy as it is a mindset and strategy. Whether you’re an aspiring COO or an employee, this article covers everything about operational excellence, from core principles to the engines behind achieving it.
A COO is a C-suite executive in charge of overseeing a company’s operations and achieving business goals through well-formulated strategies. They also report to the chief financial officer (CFO) and CEO.
Though job responsibilities may vary between industries and companies, below are the usual day-to-day tasks of a COO.
From human resources to marketing, COOs manage various departments to ensure each one maintains operational excellence.
COOs boast strong leadership and interpersonal relationship skills. These skills allow them to collaborate, lead, and guide department leads in fostering camaraderie between teams. COOs also form strategic relationships with stakeholders and directors to ensure success.
COOs analyze data and key performance indicators (KPI) to improve the company’s operational excellence with well-informed, data-driven decisions.
If the CEO is a leader of vision, then the COO is a leader of action. The COO breaks a company’s plans and strategies into concrete steps to achieve short- and long-term business goals.
Operational excellence and operational efficiency may sound synonymous, but every business leader — especially the COO — knows the difference between the two. Operational excellence is a strategy that aims to gain a competitive advantage and foster continuous growth, improvement, and customer value.
However, don’t confuse operational excellence with operational efficiency. Operational efficiency aims to improve productivity and optimize costs and resources without compromising the quality of services.
Unlike operational excellence, which focuses on continuous improvement and competitive advantage, operational efficiency centers on balancing quality with cost-effectiveness.
The Shingo Model by Dr. Shigeo Shingo lays the groundwork for achieving operational excellence. This operational framework contains five components: “Guiding Principles,” “Systems,” “Tools,” “Results,” and “Culture.”
In this article, we will only tackle the Shingo Model’s 10 guiding principles, which are categorized into four dimensions: “Cultural Enablers,” “Continuous Process Improvement,” “Enterprise Alignment,” and “Results.”
Business leaders are expected to exhibit humility. They are open to change and new learnings, ask for feedback, and listen to other people’s thoughts, creating a culture of respect and trust between leaders and employees.
While earning and giving respect are important, the Shingo Model asserts that respect must also be felt by each individual in the company. A workplace built on mutual respect helps create a safe, empathic, and communicative work environment where every employee feels valued.
This principle shifts the cause of problems from the employees to the process itself, allowing people to use mistakes as a catalyst for growth and improvement.
Leaders need to think like scientists. Embracing scientific thinking entails continuous observation, hypothesis, experimentation, analysis, and learning to improve processes.
This principle doesn’t subscribe to the overproduction of goods. Business leaders must ensure that the production of goods is equal to the demand.
Businesses must detect and reject defective products right away. The organization’s operational process must be continuously refined to avoid defects in the future.
Improvement is everywhere, a never-ending journey that businesses undertake. This builds a mindset of continuous improvement.
While change is inevitable, a business must have guiding principles and direction to ensure organizational alignment.
Business leaders analyze the organization as a whole, including the interconnectedness of relationships, to guide improvements and decision making.
Businesses must deliver customer value across the board, from meeting customers’ needs to creating high-quality goods and services.
It’s easy to be blinded by the title of “COO.” More than a prestigious title, it is a role that demands knowledge, action, accountability, compassion, and humility. That being said, here are ways to promote operational excellence in your organization.
Leadership is often associated with power and prestige. It is not about ruling with an iron fist and making people obey you without question. Good leaders understand that leadership takes hard work and humility. But here’s the million-dollar question: How does a COO lead with humility while commanding respect?
First and foremost, COOs must be role models. They are expected to exhibit behaviors that mirror the organization’s values. Second, COOs must remain respectful to employees. This sets the tone for a positive work environment for everyone. Finally, COOs must be receptive to feedback, so they know what needs to be worked on.
While employees want that sweet paycheck, there’s more to work and career than money. In an interview with McKinsey & Company’s “McKinsey Talks Operations” podcast, Joris Wijpkema, McKinsey Chicago’s partner, asserted they “are looking for purpose.”
Cultivating this sense of purpose goes beyond reiterating the organization’s mission, vision, and core values; it’s about understanding the “whys” and establishing a sense of connection between employees and the organization.
COOs know that actions speak louder than words. When they lead by example, employees can get on board with the company’s values, mission, and vision and understand the rationale for demonstrating them in the workplace. This promotes employee empowerment and builds a purpose-driven culture, which helps retain individuals or attract new ones.
There’s a reason why the quote “there’s always room for improvement” holds true not just in daily life, but in business as well. Building a culture of continuous improvement helps foster a growth mindset and love for lifelong learning. This means acknowledging and learning from mistakes to improve.
Just as employees can learn from COOs, the latter can also learn from their employees. Beyond asking for feedback, COOs can encourage employees to speak up and share their thoughts, so both parties can gain new insights, promote growth, and strive for operational improvement in the organization.
Employees want to feel valued and empowered, and the best way to do this is to practice active listening and ensure their thoughts don’t fall on deaf ears. By actively listening, you can build trust and establish a deeper connection with your employees, which helps establish a safe, inclusive environment where open dialogue between both parties is encouraged.
In addition, investing in professional development training empowers employees to grow and succeed in their roles. Likewise, celebrating milestones and achievements makes staff members feel valued for their performance and contributions to organizational improvement.
COOs want a high-performing team with competent members. High-performing teams are talented and goal-oriented, able to accept constructive criticism and set high standards for themselves and their work.
To build an effective, high-performing team, COOs must ensure that all members understand their role to develop accountability and ownership. Knowing the strengths and weaknesses of each individual also helps enhance teamwork and detect and close skill gaps, thus optimizing performance and workflow. Most importantly, team dynamics must be grounded in mutual trust and respect, which can be achieved through dialogue in a psychologically safe environment.
As workload increases, scaling teams without ballooning costs becomes a paramount strategy for achieving operational excellence. COOs can bring in more team members (but make sure they’re qualified) while equally redistributing the workload and minimizing inefficiencies on the production floor.
Because scaling is an ongoing process, COOs must continuously aim for process optimization and excellence.
Data is a staple of the modern business world and the key to working smarter. COOs who leverage data analytics set their organizations up for a competitive advantage in the market. With the power of data analytics at their fingertips, COOs can glean insights from any information, from employee performance metrics to customer feedback and behavior.
Such insights allow COOs to detect inefficiencies, identify high and poor performers, and assess customer satisfaction, helping them make data-driven decisions that drive operational excellence. Remember, to embrace data analytics is to embrace continuous improvement.
No matter the industry, risk management is a vital aspect of running a company. When combined with analytics, COOs can approach historical data analysis objectively rather than subjectively, allowing them to detect patterns and take appropriate action to cushion the impacts of potential risks without delay.
By integrating data analysis in risk management, COOs can predict future risks and implement risk management strategies — whether that’s formulating contingency plans or using best practices — to maintain operational excellence and business continuity.
Resource allocation refers to the delegation of assets, whether manpower or equipment, to complete a project. For COOs, smart resource allocation equals success. To effectively expedite resources, COOs must thoroughly assess the project’s complexity, scope, prioritization, and goals. Likewise, qualifications and skills must be factored in, so only the best-fit employees can work on the initiative.
Through smart resource allocation, COOs can optimize workflow, maintain quality, and avoid delays in deliverables. Not only that, employees will be more engaged and satisfied, too!
Businesses are hopping onto the outsourcing hype train not because it’s a trend, but because it is a strategic avenue for achieving competitive advantage and process excellence. To start, outsourcing is a practice of collaborating with a service provider, often based overseas, to expedite work and optimize labor costs.
While cost-effectiveness is one of the selling points of outsourcing, its appeal lies in its ability to achieve operational excellence through scalable outsourced teams, improved service quality, and streamlined operations. The best business process outsourcing (BPO) companies take the guesswork out of hiring and employ cutting-edge technologies that your organization may or may not have used before.
Not only does outsourcing create room for learning new technologies and processes, it also enhances employee and customer satisfaction. If your employees are stressed and overwhelmed with their workload, quality of service and customer satisfaction will deteriorate. Outsourcing, especially hybrid outsourcing, divides the labor in a way that it plays on the strengths of in-house and outsourced teams.
Tasks or job functions involving local knowledge and expertise are best left to in-house employees, while outsourced staff can take on non-critical tasks. This optimizes workflow and prevents inefficiencies from arising, which in turn, leads to enhanced customer satisfaction and higher quality of service.
Operational excellence is something that every organization must strive for. Defining operational excellence involves taking its core principles to heart and demonstrating them for everyone to see. It unites people under common organizational values, creating alignment for future goals and outcomes. Most importantly, it elevates their mindsets from static to perpetual growth, which is as empowering as it is a driver for improvement opportunities.
However, driving operational excellence in an organization is not possible without COOs. They create improvement opportunities for everyone to achieve operational excellence goals. Although COOs are second in command, they don’t see themselves as above everyone else because they are humble and have high respect for others.
Want to drive operational excellence and provide the best customer experience? Choose KDCI as your outsourcing partner. We offer world-class outsourcing services that not only innovate your processes, but also support your business endeavors and encourage continuous improvement efforts across the board. From outsourced data entry to web design, KDCI Outsourcing’s high-performing offshore team can accomplish any task with little supervision.
Ready to outsource your job functions and build your offshore team with KDCI Outsourcing? Get in touch with us for a price quote, and let’s turn your operational excellence goals into a reality!
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Outsourcing is not a short-lived trend, but a norm in this highly competitive world. Data shows that around 300,000 jobs are expedited yearly by American businesses, with at least one business department being outsourced by more than half (66%) of companies.
We rounded up the most commonly outsourced departments by US business owners, plus their estimated ROI for your future reference.
US companies are future-proofing their operations with outsourcing. Beyond future-proofing, they also want to reduce costs, fill job vacancies, expedite manual and non-critical job functions, and ensure return on investment (ROI) when making big business decisions. Let’s explore them below.
Building an in-house team is an investment, and an expensive one at that. The average cost of hiring in the US is a staggering $4,683 USD per new hire. On top of recruitment expenses incurred from sponsored job ads and comprehensive background checks, companies also shoulder the cost of benefits ($12.19 USD an hour for private sector employees), training ($1,207 USD to $1,512 USD per employee), and turnover ($1,500 USD per hourly employee).
For an in-house team to be fully operational, it needs a dedicated office space, which costs an average of $30 USD to $60 USD per square foot for Class A office spaces, $20 USD to $35 USD for Class B, and $10 to $20 USD for Class C. With office equipment and utilities to top it all off, an in-house team can set companies back thousands of dollars a year.
Outsourcing shifts most of the financial burden from the business owner to the service provider. Business process outsourcing (BPO) companies handle everything, from hiring to training employees for your offshore team.
While employee expertise influences the cost of outsourcing, average salaries for offshore staff in a developing country like the Philippines are lower than local hires. Because of that, companies can grow their team and hire more specialized staff without sacrificing costs.
Despite the decline in unemployment, the US suffers from labor shortages. Whether it’s the increasing rates of early retirement or the promise of a higher income through entrepreneurship, these factors contribute to the unfulfilled 3.1 million job positions in America. Alarmingly, this issue affects all industries, painting a dismal picture of the country’s labor landscape.
As a response to the shortage of labor, US businesses turn to outsourcing. This business practice enables companies to access a global talent pool of professionals who are as skilled and specialized as those from the US. By outsourcing, employers can maintain business continuity, fill job openings, bridge talent gaps, and scale their teams as needed without worrying about inflated hiring costs.
Non-core tasks include customer service, content creation, and human resources, which can all take up the bulk of your time. But as the saying goes, “time is money.”
By outsourcing non-core and manual jobs, your team’s efficiency and productivity go sky high as they can pool their time and resources on high-value tasks that demand their attention and skills. This prevents delays, quality issues, and employee stress due to an overwhelming workload.
4. Companies Want Sustained Return on Investment (ROI)
Outsourcing is a calculated business risk. As a business owner, you’ll want your calculated risk to be worth your time and money. The ROI of outsourcing is more than calculating your potential cost savings, it is also whether your company is getting other beneficial results from the partnership, including customer retention, operational efficiency, and business agility.
When you outsource to the best BPO companies, you’ll get a sustained ROI in all aspects of your outsourcing journey, from productivity and innovation to revenue and customer satisfaction. Because clients benefit from ROI, they develop long-term partnerships with their service providers and continue availing their services.
Here’s a curated list of departments that US businesses commonly outsource to an outsourcing company. We also included the benefits of outsourcing business functions for each department.
COPC Inc., citing the US Customer Experience Index by Forrester, found that only a small percentage (14%) of companies in the country have provided an excellent customer experience. This is not only rooted in extended wait times due to labor shortage, but also in the growing frustration with low-quality customer support and disconnected customer experiences caused by poor technology integration.
Customer support outsourcing provides US companies with the manpower to handle surges in customer inquiries during peak seasons. With outsourcing partners operating 24/7, American companies can enjoy uninterrupted round-the-clock support, boosting efficiency amid demand changes.
Outsourcing partners, especially those in the Philippines, have English-proficient employees with neutral accents, making the country an attractive destination for outsourcing voice customer support.
Service providers also understand the human element of customer support. While outsourcing companies provide AI and customer care tools to automate ticketing and streamline customer support on digital channels, outsourced human agents add a layer of personalization and nuance to the customer experience. This means they tailor interactions according to customers’ needs and expectations, which helps address the disconnect between customers and brands.
The US is a global leader in the financial services sector. Despite being a driver of economic recovery during the COVID-19 pandemic and a source of employment for nine million US professionals, the country’s financial services industry grapples with regulatory changes, customer retention, and the unprecedented rise of advanced technologies and cybersecurity threats.
There’s also a shortage of 340,000 accountants due to retirement among most (75%) Certified Public Accountants (CPA), leading to delays and compliance issues. This is where outsourcing becomes a viable and sustainable business strategy.
By having an outsourced accounting department, American companies can work with talented finance professionals and CPAs who can produce financial reports, perform bookkeeping, prepare taxes on deadline, and comply with regulations. Because these professionals are trained in the latest fintech, they can automate manual tasks and deliver data-driven analyses.
While cybersecurity is a concern when assessing the pros and cons of outsourcing accounting and financial services, a reliable outsourcing service provider employs strict data privacy measures to prevent unauthorized access and data leakage.
From Google to Microsoft, the US is one huge tech hub. No wonder America’s IT industry is a huge contributor to economic growth. Unfortunately, with cybercrime causing financial losses exceeding $639 billion USD, keeping up with the latest cybersecurity solutions is a challenge considering the shortage of competent IT professionals. Despite the demand for talent, IT positions remain unfulfilled.
As IT is a fast-paced industry with ever-evolving technologies, American companies are eyeing outsourced IT services to acquire qualified talent and fill open jobs. Whether business owners are offshore outsourcing IT to India, Poland, or the Philippines, these countries have readily available experts who can deliver cost-effective IT solutions, ranging from software development to security analysis.
Because IT needs become complex and sophisticated, the diversity of IT professionals overseas minimizes investment in certifications and training, which add up over time when done in-house. Service providers also employ robust IT infrastructures, helping companies maintain optimal IT operations while cutting overhead costs.
The Society for Human Resources Management (SHRM) found that most (89%) US staff members in human resources expressed pride in their jobs. However, beyond that pride and satisfaction, HR professionals are overwhelmed with workload, forcing them to quit and look for better jobs. According to over half of professionals (56%), staff shortage is the culprit of increased workload.
Although HR departments are deploying AI in talent acquisition (42% of HR staff members) and professional training and development (36%), only very few HR staff (12%) believe this technology is being integrated well by their companies.
Outsourcing HR functions can resolve these issues. By working with an outsourcing company, you can hire HR professionals to alleviate workload and reduce in-house turnover. This gives local staff more room for high-value decision-making and recruitment efforts.
With your offshore HR team’s expertise and knowledge of US HR processes, they can streamline day-to-day workflow and accelerate AI integration without hefty time and financial investment
According to Remote, payroll errors occur more often to employees in the US (26%) than to UK employees. As a result of these mistakes, including late payments, the HR solutions firm found that heightened feelings of stress are experienced by a little over half of American professionals (56%). Remote cited two causes of payroll mistakes: A complicated tax system and a bi-weekly payroll cycle.
In this case, outsourcing payroll to a third party is a great idea. An outsourcing provider employs payroll specialists with keen attention to detail, an excellent grasp of payroll calculation, and intensive know-how of the US tax system.
External providers also integrate sophisticated payroll software to automate attendance tracking and other manual payroll processes, minimizing errors, boosting efficiency, and ensuring compliance with US regulations.
Though thriving, the digital marketing industry of the US is continuously evolving with emerging trends, customer needs, and technologies. Digital marketing teams are not composed of a single role but multiple roles that work hand-in-hand to execute effective marketing campaigns. Unfortunately, the shortage of in-house experts with competent digital skills is one big hurdle for companies.
Without qualified digital marketing professionals, businesses can’t reap the fruits of their marketing efforts, hindering growth and brand visibility. The solution? An outsourced marketing department. Outsourced digital marketers offer fresh perspectives on marketing and content creation, transforming your campaigns from stale to engaging.
With their superb digital skills, outsourced marketers can provide data-driven insights and optimize workflow and content across channels.
Digital advertising investment cost the United States $316.9 billion USD. This investment, combined with increased social media usage and adoption, makes graphic design an attractive profession. However, the higher salary potential in freelancing steers designers from working in corporations, and the cost-effectiveness of hiring outsourced graphic designers drives companies to seek creative expertise in other countries.
Graphic design outsourcing delivers results that go beyond cost savings and reduced in-house workload. You can tap into the creative minds of outsourced design teams, opening yourself to innovative perspectives on visual design — which results in elevated, on-brand designs that captivate, engage, and retain customers.
Service providers also support other design services, such as motion graphics, web design, 3D design, and many more. Whether it’s a new logo or visually cohesive graphics, you can meet any creative need with outsourcing
The Nashville Health Care Council says Americans hold a negative perception of the US healthcare system. There’s a deeper reason for this, though. In addition to ballooning healthcare costs, healthcare organizations are experiencing workflow and revenue management cycle inefficiencies, cybersecurity threats, medical bill errors, and staff shortages. To improve service quality and efficiency, organizations resort to outsourcing healthcare operations.
Healthcare BPO companies can handle most healthcare services, such as medical billing, data entry, revenue cycle management, appointment setting, claims processing, and customer service. All these translate to improved operational efficiency, higher quality patient care, and fewer billing errors.
Amid pandemic-induced disruptions, real estate remains a resilient, volatile industry as regulatory changes, political instability, housing shortages, high vacancies, and technological innovations shift market dynamics.
Unfortunately, the challenges don’t end there. Errors in financial reports, lackluster lease management processes, and America’s complicated taxation system hinder workflow optimization and long-term success.
Outsourcing real estate to a competent service provider does wonders for real estate companies. Hiring real estate VAs can speed up the creation of property listings and entry of client information in databases, whereas mortgage loan processors can streamline loan processing by organizing financial documents and reviewing credit reports of loan applicants.
Thanks to outsourcing, your real estate firm can ensure regulatory compliance, reduce errors, close more leads and deals, and gain a competitive advantage in the industry.
Online shopping is the cornerstone of everyone’s lives, with 274.70 million Americans purchasing products online. While retail and e-commerce have made shopping more convenient, the industry is barraged with challenges, ranging from maintaining profit to navigating complex market shifts brought by AI and evolving buyer preferences.
To keep up, brands outsource retail and e-commerce functions, such as lead generation and product writing, to an outsourcing provider. Outsourced retail and e-commerce professionals can enhance your loyalty programs, craft product descriptions, process orders, and many more.
As a result, brands can increase their revenue, improve their social media presence, and grow and retain their customer base.
Companies want ROI on their outsourcing efforts, and it all comes down to the cost of your investment versus the value it provides to your business. Here, “value” pertains to not just cost savings, but also other measurable and intangible benefits such as customer satisfaction and retention.
However, the cost of outsourced employees, quantity and seniority level of staff, service fees, location, revenue, and other factors add a layer of complexity in calculating ROI. Hence, it’s important to assess your goals, establish a clear project scope, and plan your workforce, so you can manage your expectations and make an informed decision before outsourcing job functions.
Let’s say our US-based client spends $6,000 USD a year on overhead costs. They want to hire more staff, but with the high labor costs in America, they decided to cut costs and outsource their department to a BPO company in the Philippines with a service fee amounting $12,000 USD a year. Below is the estimated ROI (in terms of cost savings) for each outsourced department.
Outsourcing changes the way modern workforces operate. Whether you want an outsourced IT department or a creative team, KDCI Outsourcing can give your business its much-deserved ROI, from cost savings to increased brand engagement.
Ready to enjoy long-term success? Start building your offshore team today! Contact us for an inquiry or a price quote.
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Middle market companies are the engines of economic development and job creation. Despite that, owners of mid sized businesses find themselves financially constrained and outclassed by bigger competitors with high brand recognition. But there’s still hope. With plenty of ways to grow and thrive in 2025, mid sized companies can take on the reins, step up their business game, and compete with the likes of larger corporations.
The National Center for the Middle Market (NCMS) said the United States has approximately 200,000 mid sized companies, with almost 50 million employees working in these businesses and comprising one-third of the gross domestic product (GDP) of the private sector. Mid market companies also earn around $10 million USD to $1 billion USD.
Interestingly, during the Great Recession, mid size companies stepped up and provided more than two million new job opportunities to professionals. This pales in comparison with the slashing of 3.7 million jobs in bigger companies. While mid size businesses are found in various industries, including retail and construction, they are mostly prevalent in health, education, and other service industries.
However, mid market companies are niche and not known by most customers, who are likely familiar with smaller businesses or popular big-name brands. Despite standing the test of time and driving employment and economic growth, mid market companies deserve more recognition from the general public.
A business is an investment as it is a risk. Mid size companies have a 31-year average lifespan, making them resilient and well-established businesses.
Unfortunately, companies may close down due to unforeseen circumstances, but in some cases, bankruptcy is caused by mistakes business owners themselves make. Here are four reasons why mid sized companies close up shop.
Starting a business is a leap of faith. But without a business plan, entrepreneurs risk shooting themselves in the foot. According to WinSavvy, most businesses (78%) with no or poor business plans ended in bankruptcy.
Developing a sound business plan gives owners of midsize companies a blueprint for success. It highlights goals, discusses products and services, and includes a market analysis and realistic strategies on attracting and retaining customers.
Business plans are not static, though. They evolve as market needs and trends change, so keeping business plans updated is key to staying ahead of your competitors and maintaining relevance.
In business, knowledge is power. Needless to say, the lack of financial and market knowledge is a recipe for disaster. Hence, an owner of a mid sized business must thoroughly research their industry and customer base and make informed decisions to have their shot at success, especially if they’re breaking into a highly competitive market.
Hiring a family member or friend is not always a good idea, and there’s nothing personal with that. Mid sized companies deserve highly qualified employees with the experience, credentials, and skills that propel your business to success.
Owning a mid sized business doesn’t mean taking care of everything alone. As you grow and scale your business, delegation becomes a necessity. By delegating tasks to your in-house, or even better, outsourced employees, you can free up your workload and focus on critical business functions.
From agility to outsourcing, this section explores how mid-sized companies are competing with big companies.
Business agility is how mid-sized companies are competing with larger competitors. Agility is defined as a company’s ability to adapt and remain flexible and resilient amid the ever-evolving complexities in the market. Being agile also means innovating and thinking outside the box.
In the case of Crumbl Cookies, established by Sawyer Hemsley and Jason McGowan in Utah, the company owes its agility to its weekly rotating cookie menu. With the menu catching the eyes and taste buds of social media users, the cookie brand has become a widely recognized and successful company, with franchises in Canada and across the United States.
The success story of Crumbl Cookies shows that agility and innovative business approaches contribute to success and brand recognition.
When middle market companies engage in strategic agility, they can identify emerging trends and detect changes in customer needs, allowing them to quickly innovate their processes or products and shift their business strategies to reflect the new market reality. Not only does agility aid in growth, it also evens out the competition between a mid size company and its larger competitors.
Data is everywhere. With advanced technologies simplifying data gathering and analysis, middle market companies approach business growth with data-drivenness in mind. Sweetgreen, Inc. — an American company with a 2024 revenue of $676.8 million USD — boosted customer engagement through a personalized loyalty program as well as cut down on food wastage by anticipating ingredient demand with the help of data and data analytics.
Thanks to data, any mid size organization like Sweegreen, Inc. can make smarter business decisions, minimize financial risks, and anticipate demand. What’s great about fostering a data-driven company culture is that it aids in agility and personalization, enabling middle market businesses to respond faster to trends and enhance the customer experience and loyalty.
The best part? All the improvements and efficiency that come with data contribute to boosted revenue and better returns on investment (ROI).
Integrating advanced technologies like AI is also how mid-sized companies are competing with large enterprises. Visionary Vogues, citing Deloitte, found that AI integration is employed in more than one functional business area of nearly half (47%) of American middle market businesses.
AI technologies are not just marketing buzzwords; they are the present and future of business environments. While middle market businesses typically have fewer resources, this should not be a roadblock to achieving growth. Because the truth is, AI can do wonders for your business, especially in terms of analysis and efficiency.
Aside from automating manual and tedious tasks, AI can analyze large volumes of customer and sales data. From that pool of data, it identifies trends, uncovers customer preferences, anticipates market shifts, and provides data-driven, actionable insights.
These insights guide mid size businesses in tailoring their future campaigns, expanding their customer base and market reach, and personalizing the customer experience. Fortunately, with the growing accessibility of AI-as-a-service tools like Google Vertex AI, mid sized businesses can augment their AI endeavors without pooling their resources on employing local AI experts and data science professionals.
Middle market companies benefit from a growth mindset. Because stagnancy is a no-no in the business world, change could mean tapping into another business model to accommodate changes in market and customer needs, creating new products or services, or trying out-of-the-box ways to market your offerings, as in the case of Crumbl Cookies.
Likewise, business leaders and workplace culture need to evolve with the times. For example, when integrating AI, executives and employees must embrace the technology with open arms, which entails experimentation, talent upskilling, or outsourcing for effective data consolidation and ethical AI use.
While mid size companies have the advantage of leveraging new trends faster than large companies, entrepreneurs must practice effective strategic thinking when making a new business move.
You might think outsourcing is only reserved for larger corporations like Google. But on the contrary, even a mid size organization can take advantage of outsourcing. Like any growing business, middle market companies grapple with budget constraints and operational inefficiency. Couple that with the rise of entrepreneurship and soaring labor costs in the US, and it’s clear why companies struggle with hiring qualified talent.
Outsourcing can take care of these woes, providing a mid size company with a talented workforce and world-class services that don’t break the bank. However, business owners must remember that this practice is more than incurring cost savings; it is a strategic investment that, when executed well, can be a significant driver of growth and innovation.
Outsourcing opens doors for new opportunities. It helps companies, especially smaller businesses, stay flexible and resilient as they navigate shifting business environments.
Outsourcing providers cater to larger companies and SMEs, but the best BPO companies tailor their solutions according to business size. Below are the perks of outsourcing in helping mid sized companies compete with enterprises.
From finance to the data science industry, the hiring landscape is competitive. Not to mention the cost of hiring in the US averages $4,683 USD, with the cost-per-hire for executives skyrocketing to a staggering $28,329 USD. For middle market companies with limited finances, the combination of stiff competition and high labor costs is a double whammy.
This is where outsourcing becomes a vital strategy. By outsourcing jobs and departments, owners of mid sized companies can explore a richer talent pool and hire experts at a fraction of local labor costs. Because outsourcing providers have readily available specialists, businesses can cut down on the cost and time of training new hires.
This doesn’t mean letting go of your in-house team. With the norm of hybrid teams, your local staff does whatever they do best, while your outsourced staff handles specialized or less time-intensive job functions. Outsourcing is all about collaboration, utilizing the best practices of outsourced teams while covering each other’s weaknesses.
Scalability is growth. It's how mid-sized companies are competing with big brand businesses despite the former’s lack of resources. BPO companies offer cost-effective, scalable solutions for your needs. For example, if your company faces a swamp of customer inquiries after a product launch, you can ramp up your local customer support team by outsourcing customer service.
This way, your in-house agents have an extra pair of hands, speeding up the closing of tickets without sacrificing customer relationships and experiences. Conversely, you can downsize your outsourced team in case of fluctuating demand. Thanks to outsourcing, mid market companies no longer endure high turnover costs and long hiring cycles.
Nowadays, innovation manifests in the form of advanced technologies. Despite the accessibility of new tech like AI-as-a-service, business owners who want to innovate and gain a competitive edge faster can seek the assistance of an outsourcing provider to augment their tech efforts.
Not only do BPOs have the tools of the trade — including AI, automation, and analytics software — they also have employees who are already proficient in the technology you use (or about to use). This leads to a faster adoption of new technologies, further enhancing operational efficiency and minimizing time and resources on in-house training programs.
Outsourcing doesn’t equate to cheap labor and low-quality services. BPOs put quality and customer satisfaction at the forefront. BPO companies also employ high-performing candidates and assign a project manager to ensure all deliverables meet their clients’ quality standards.
While outsourced teams are more cost-effective, they provide enterprise-level capabilities that rival in-house teams. Business owners seeking world-class outsourcing services must work with a reliable service provider to avoid backlogs, production delays, and poor ROI.
Like most businesses, middle market companies refuse to stagnate and get left behind in the dust. After all, they have more options on their plate, ranging from AI integration to data analytics. If financial constraints and the exorbitant cost of labor are hindering your company’s growth, we recommend partnering with KDCI Outsourcing.
KDCI Outsourcing is a premier Filipino BPO company established in 2011. Since our inception, we have helped plenty of large enterprises and SMEs achieve growth, innovation, operational efficiency, and cost-effectiveness through tailored offshoring solutions. Furthermore, our rigorous hiring practices and meticulous vetting of candidates ensure you get to work with top talent.
Whether you need outsourced web design, finance and accounting, or admin support services, KDCI Outsourcing has got your business needs covered. Build your offshore team with KDCI Outsourcing today. Contact us now for a price quote or proposal!
Although the country has a culturally diverse workforce, the hefty cost of hiring in the US is no laughing matter. It’s not just the high labor cost that’s making companies have second thoughts in hiring locally, but also the stiff competition caused by the war for qualified talent, along with the post-pandemic trend of early retirement and the rise of entrepreneurship among employees and the youth.
That’s why businesses in the United States are integrating outsourcing into their business model. With outsourcing, companies can optimize their workflow without driving up the total cost of hiring employees. Having said that, weighing the cost of hiring in the US versus outsourcing remains an important step in building or growing your workforce.
This is a million-dollar question for business owners. While in-house employees are valuable, they’re actually one of your most expensive investments! According to the Society for Human Resource Management (SHRM), a new hire costs $4,683 USD. However, this is only a benchmark figure, a point of reference. In reality, recruitment costs vary from company to company, and can be higher depending on internal and external factors.
When calculating the cost of a new employee, salaries, benefits, and bonuses are just one part of the hiring equation. If you sprinkle recruitment efforts, employee training and retention, office infrastructure, and IT software, you can expect a surge in cost per hire and overall recruiting costs.
Let’s not forget an employee’s experience level. Entry-level hires are cheaper, typically averaging $39,525 USD a year. But if you’re hiring candidates for senior positions, they’ll set you back around $122,377 USD to $174,508 USD per year.
Industry demand, America’s aging population, Federal Insurance Contributions Act (FICA) and federal and state unemployment and taxes, and the cost of living per state can likewise influence the total cost of hiring in the US.
Business owners shoulder the cost of office infrastructure, utilities, and recruitment. The above section briefly mentions factors influencing the overall cost of hiring in the US. This section, however, will only cover the four main drivers of hiring costs.
Recruitment efforts are costly. Creating a job posting on different job search platforms may be a minuscule investment, but these can accrue additional costs on your recruiting budget. On Indeed, for example, you can create Sponsored Jobs (i.e. paid job postings) to improve your posting’s visibility and reach more candidates, resulting in faster time-to-hire.
When combined with paying HR staff, background checks, and HR management tools, your recruitment expenses can soar over time. Expect the cost per hire to be as low as $4,683 USD or as high as $28,329 USD — that is, if you’re hiring executives.
Onboarding means acquainting a new hire with your company’s culture, organizational structures, and internal policies. Part of the onboarding process is providing them with a dedicated office space, computer, and software — all of which cost money.
New employees undergo training, as well. This, again, costs money as businesses invest in training manuals and resources. Outside of that, training employees causes a temporary loss in productivity and efficiency since newbies need time to catch up and get used to the workflow.
According to Training Magazine and HR Daily Advisor, training costs are around $1,207 USD to USD$1,512 USD per employee.
Health insurance, social security, and PTOs — these benefits are a win for employees. For employers, it’s a different playing field, mainly because the cost of employee benefits depends on various factors, including the type of benefits offered, company size, demographics, and industry.
The average cost of benefits for employees in the private sector is $12.19 USD per hour, slightly less than those who work in the civil sector ($13.58 USD per hour). State and local sector employees have the highest cost of benefits, averaging $22.81 USD an hour. While costs add up, employers use benefits to balance return on investment and employee satisfaction and retention.
When a company can make employees stay, that’s retention. For any employer, retaining top talent is as essential as ensuring positive growth and outcomes. Of course, it’s not always possible to retain employees. They part ways with your company for higher salaries or better career growth, or sometimes, employees relocate or want a company that values them more. When this happens, it’s called employee turnover.
Like recruiting new hires, employee turnover is also costly. The cost of a turnover can vary, though. On average, each hourly worker who quits can set you back $1,500 USD. If a C-suite employee leaves your company, turnover will cost you around 213% of their yearly salary. For technical roles, the percentage ranges between 100% to 150%.
Beyond the financial aftermath of employee turnover, this can also lead to institutional knowledge loss as well as reduced morale and productivity.
In-house employees have their perks. They know the US market well and are easily available on-site. However, maintaining an in-house team is expensive due to high overhead and labor costs. That’s why it makes sense to outsource jobs.
Outsourcing means delegating tasks or a whole department to a third-party service provider, usually based in a nearby or faraway country. Hybrid teams are also the norm, combining in-house and offshore teams for increased flexibility and cost savings.
It’s never too late to venture into outsourcing. Because we live in a hyper-connected world, leveraging outsourcing and other business strategies is the only way to go up. Here’s what makes outsourcing a worthwhile business endeavor.
Cost-effectiveness is what draws companies to outsourcing. Brazil, India, Mexico, and the Philippines make the best outsourcing destinations because of their low cost of labor, which increases your savings while maintaining high-quality work.
The average cost of a Filipino BPO employee is around $7,890.47 USD to $9,635.4 USD, which can vary according to role and seniority level. From these figures alone, there’s no denying the significant cost savings that outsourcing brings to recruiting new employees.
Outsourcing opens your talent pool to a wider scale. That means you’re not only limited to candidates in San Francisco, Los Angeles, or any US city or state. Outsourced employees are as knowledgeable and skilled as local hires, providing a delicate balance of credentials, experience, and cost-effectiveness.
Because outsourced staff are cheaper, you can easily source talent that is otherwise not available or financially feasible in your local area. This makes filling open job positions and closing talent gaps easier, helping you grow your team at a lower cost.
Overall, international hiring gives you a competitive edge in the market, rewarding your efforts with customer growth and success.
BPO companies in the Philippines (and other parts of the world) take care of the recruitment process from start to finish. Clients provide the project specifications and employee qualifications, and the outsourcing company will source, vet, and hire potential candidates based on those requirements.
This reduces the likelihood of employing a bad hire who can cost your company thousands of dollars. Not only does outsourcing reduce your recruitment expenses and streamline hiring processes, your in-house team also has more time for job functions that require their attention and expertise.
Outsourcing and low-quality work don’t go hand-in-hand. Outsourcing companies have a designated project manager or team leader who handles the account, trains team members, and ensures quality assurance. The right service provider will not only promise a significant reduction in hiring costs, they will also meet your performance standards.
Outsourcing means embracing diverse perspectives from a diverse group of people. It also comes with overcoming cultural and linguistic barriers. In the Philippines, outsourced employees are fluent in English and culturally compatible with Western values. This leaves little room for misunderstandings arising from language and cultural differences.
Time zone differences are not necessarily a liability. By outsourcing, your business can operate 24/7 without interruption. Whether it’s outsourced data entry, customer service, or graphic design, your offshore team can cover your post-business hours and provide round-the-clock support while your onshore team sleeps.
Then, on the following working day, all deliverables will be processed by your in-house employees. This minimizes delays and improves operational efficiency. BPO companies have employees working different shifts, so you can definitely find offshore team members who can align their schedules with US time zones.
Evaluating the cost of outsourcing is key to any successful business venture. Below are factors that influence outsourcing costs.
Outsourced employees receive benefits from their BPO employers. In the Philippines, for example, these benefits include night differential pay, social security, Home Development Mutual Fund (HDMF) or Pag-IBIG, PhilHealth, and the like.
Since BPOs are private employees, night differential pay is 10% of the individual’s salary per hour of work starting from 10:00 pm to 6:00 am. The contribution rate for social security is 15%, 2% for Pag-IBIG, and 5% for PhilHealth. Though dependent on the employee’s salary, the total cost of benefits can start at least $120 USD a month.
An employee’s expertise and seniority level play a role in influencing outsourcing costs. For example, an entry-level Filipino graphic designer costs around $430 USD a month, whereas a senior graphic designer costs $924 USD. Junior employees have less professional knowledge and experience than their senior peers, so the difference in rates is understandable.
The number of entry-level or senior outsourced employees also affects outsourcing costs. A realistic budget and a clear vision of your project help you and the outsourcing partner plan your workforce headcount and balance expertise with cost.
Complex projects require specialized talent and are therefore costlier than tasks that don’t involve specialized expertise. Larger and urgent projects also command higher price points, as BPOs need to reallocate their workforce or hire more staff to complete your project. Be transparent about expected turnaround times so the BPO company can provide an accurate price quote.
There are different types of outsourcing pricing models. The fixed price (FP) model is a common pricing structure among BPOs. As the name implies, you pay an agreed fixed price for the outsourcing provider’s services. The hourly pricing structure is another popular model, which charges you according to the number of hours rendered by your outsourced staff.
With the savings-based pricing model, the overall cost of outsourcing is based on how much you can save from a BPO company’s services. Finally, the outsourcing cost under the full-time equivalent (FTE) model is determined by several factors, including employee expertise, headcount, project complexity, and output quality.
These models add a complex layer to budgeting and determining total outsourcing costs. Do your research so you can identify which model fits your project.
Outsourcing companies are businesses, too. Service fees cover overhead costs, including infrastructure, technology, equipment, and office lease or rent. Unlike in-house hiring, the service provider covers the training cost of employees.
The cost of hiring in the US remains high and will continue to soar in the following years. For businesses, outsourcing is a blessing. It expands your hiring pool, keeps hiring costs down, and maintains efficiency. Like any business venture, outsourcing requires financial investment. Being strategic with your outsourcing endeavors is key to getting the return on investment (ROI) your company deserves.
If you’re looking for a reputable BPO company to partner with, consider KDCI Outsourcing. Since 2011, we have worked with brands from different parts of the globe, providing them with tailored, high-performance offshoring solutions that promise innovation and growth.
Request a price quote, send a proposal, or inquire with our outsourcing expert. The sooner you contact us, the faster we can build your Filipino offshore team.
If two words describe the modern business landscape, it’s competitive and fast-paced. With businesses embracing trends and executing strategies to stay relevant, it can be tough to keep up, especially since costs, efficiency, and quality of work can make or break your goals. Outsourcing, of course, can ease the load off your shoulders.
While we have the traditional nearshore, onshore, and offshore outsourcing models, there’s another model to keep an eye on — hybrid outsourcing. Hybrid outsourcing is not just a buzzword, it’s a new outsourcing norm taking companies by storm. This article explores the ins and outs of hybrid outsourcing teams, including how companies leverage the hybrid model for their needs and goals.
Companies have continuously relied on traditional outsourcing methods. While onshore outsourcing promises tighter quality control and deeper local knowledge, companies invest more resources in overhead and hiring. This makes onshoring a costly investment in the long run.
The edge of nearshore outsourcing is proximity, allowing companies to work with BPOs in countries closer to their local time zone. However, economic or political issues in your partner country can disrupt business continuity and affect your daily operations. Offshoring may give you the cost savings you need, but language, cultural, and time zone differences can hinder forming an effective partnership with an outsourcing company.
So, how can companies balance out the pros and cons of these outsourcing models? The answer lies in hybrid outsourcing teams. In this context, hybrid teams don’t necessarily refer to hybrid employees working remotely and in the office, but to an outsourcing team that combines onshore and offshore employees.
Hybrid outsourcing is a product of the dynamic, fast-paced changes in the business world. As customer needs evolve and industries become competitive, businesses step out from the comforts of traditional outsourcing models and need the right blend of cost-effectiveness, risk management, qualified talent, and operational efficiency — all of which are offered by a hybrid approach to outsourcing.
More than the competitive nature of industries, local talent shortages are also a driver of forming hybrid outsourcing teams. Employees leave their jobs for higher salaries or a healthier work-life balance. Additionally, high labor costs — while beneficial for employees — can hurt a company’s profits.
In the United States, attracting and retaining talent is a losing battle as businesses grapple with prevailing social issues such as poor childcare access and an aging population. These companies also compete with the rise of digital commerce and entrepreneurship, which promise a higher salary ceiling than employment.
With hybrid outsourcing teams, companies need not scrimp on talent, as they can retain their in-house employees and hire offshore employees to supplement existing skill sets and manpower. Offshore resources are also cheaper, so business owners can still utilize the specialized talent that outsourced teams bring without significant financial investment.
Not only do hybrid outsourcing teams prime your business for success and evolving market trends, they also help foster diversity and innovation.
Hybrid outsourcing is the sweet spot of onshore and offshore outsourcing, synergizing the inherent strengths of both models to optimize efficiency and cost without sacrificing the quality of work. If your company is planning or transitioning to a hybrid team, take a look at the following advantages of this model.
Not all tasks have to be outsourced. Onshore teams often handle complex and critical job functions. Let’s say your business wants to launch a new product or service. This involves creating buyer personas, identifying the target audience, and knowing potential competitors.
As a business owner, you’ll want to delegate these functions to your in-house staff since they already possess an in-depth knowledge of the local market and provide deeper insights into your target demographic’s psyche. This helps position your business for competition and success.
Likewise, non-critical or time-sensitive job functions such as content creation and social media management can be delegated to offshore staff to free up your onshore team’s workload. When work is evenly distributed, onshore and offshore teams can leverage their strengths to produce high-quality outputs and improve efficiency.
Hybrid teams are inherently collaborative. With the help of messaging and video-conferencing software, it’s now easier than ever to schedule weekly meetings and feedback sessions. Through these sessions, business owners can monitor performance, meet project requirements, and ensure the timely submission of deliverables.
Virtual meetings are also a great avenue for embracing diverse yet innovative solutions from your offshore staff. This facilitates better camaraderie and mutual respect between your in-house staff and offshore remote employees.
Hybrid outsourcing paves the way for a global workforce. It does not limit hiring to a single city or country. This means exploring a wider talent pool of specialized and highly skilled individuals from different countries. This way, you can quickly close talent gaps and provide the skills your onshore team needs at the moment.
Additionally, hybrid outsourcing teams help reduce expenses due to cheaper labor costs in some countries — especially in developing countries such as India and the Philippines. By employing offshore staff, you get the best of both worlds of cost-effectiveness and specialized, in-demand talent.
Opting for a hybrid workforce means diversifying your teams. In a perfect world, every day is business as usual. Unfortunately, the world is unpredictable. Whether it’s natural disasters, political instability, or a local health crisis, business owners need to be armed with contingency plans.
The best contingency plan is, of course, building hybrid teams across different locations. A hybrid workforce is your backup plan for when things go awry in your area, allowing your hybrid employees to pick up the pace and continue business operations as normal.
Time zone differences may appear as a hurdle, but they are a huge advantage in your business. That’s why a hybrid model of outsourcing works so well here. Let’s say you’re a US business building an offshore outsourcing team in the Philippines. The time zone differences between the two countries are around 12 hours.
Hence, when it’s night in the US, it’s morning in the Philippines (and vice versa). Because of the significant time differences, you can outsource customer service or other non-critical tasks to the best Philippine BPO companies for post-US hours support.
While your in-house employees are asleep, your offshore team handles the day’s tasks in their local time zone and submits their deliverables on the dot, ready to be processed and evaluated by your in-house team.
Believe it or not, but some businesses in the US already have hybrid outsourcing teams — and our round-up is proof of that. Check out how these companies integrate hybrid outsourcing into their operations.
1. Slack Technologies
Slack Technologies is the developer behind Slack, a workplace communication software. This company owes its success to hybrid outsourcing. Slack Technologies has an in-house team composed of talented staff members as well as nearshore and offshore teams in Canada and India.
The collaboration between the American company’s hybrid outsourcing teams was seen during the development of Slack’s Enterprise Grid. The in-house team handled complex job functions, which included security compliance, whereas the outsourced teams dealt with less complex tasks such as addressing bugs and product testing.
The synergy between Slack’s hybrid teams drove more revenue to the company, catching the likes of Oracle, IBM, and other enterprises. Thanks to their efficiency, Slack Technologies streamlined operations while optimizing costs and ensuring faster project completion, which led to a 30% reduction in development time.
Slack’s success with hybrid outsourcing shows how utilizing the strengths and specialization of in-house and offshore teams contributes to increased efficiency and seamless collaboration between diverse teams.
2. WhatsApp
WhatsApp is a messaging app and company founded by Brian Acton and Jan Koum in 2009. Before WhatsApp became a well-loved name today, the success of its development was all thanks to hybrid outsourcing. Back then, the company only had five part-timers and 30 full-time in-house employees.
WhatsApp outsourced the application’s development to a Russian developer, Igor Solomennikov, helping the then-start-up save on labor costs. At the same time, offshore outsourcing allowed the US-based company to focus on what they do best: business and user base growth. This way, the founders and their in-house staff don’t have to hire costly onshore staff or learn mobile app development from scratch.
As Solomennikov developed WhatsApp’s features, Acton and Koum served as testers and quality control staff, making sure the app was high-quality and easy to use. Because of the company’s hybrid outsourcing model, the app became a huge success, with a global user base of over 2.9 billion as of this writing.
3. Microsoft
Microsoft is a key player in the IT industry. As one of the biggest IT companies, it has relied on outsourcing for manpower and resources from Eastern Europe, India, and the Philippines. Commonly outsourced job functions include customer care, internal support, software development, and IT services.
The American company has an in-house team of engineers responsible for software architecture and innovation. These require specialized knowledge, so Microsoft has decided to outsource customer service, software development, and testing to offshore teams. This creates a harmonious balance of strengths between hybrid teams, eliminating the need for resource allocation.
Because of the company’s hybrid outsourcing model, operational and cost efficiency are guaranteed. Software and product updates are rolled out faster, too. Best of all, users of Microsoft’s products also enjoy round-the-clock support, making troubleshooting accessible to those outside US time zones.
4. Cisco
Cisco Systems, or Cisco, is an American tech company known for its security solutions, routers, and network systems. Despite the economic turmoil of the 2008 recession, Cisco relied on outsourcing to get by during this period, demonstrating its resourcefulness and resiliency. Beyond surviving economic instability, the company has elevated its hybrid outsourcing efforts for scalability and effective partnership.
Cisco’s outsourced software development services involve partnering with outsourcing firms in Eastern Europe, a region with a robust IT industry. The company does have in-house IT staff and software engineers, but building hybrid outsourcing teams enables Cisco to access talent with readily available skills in network automation or the Internet of Things (IoT). This encourages scalability and reduces the need to redistribute in-house resources.
Interestingly, Cisco even went as far as to utilize the Entity Support Model (ESM) for global integration of processes. With this model, the company’s finance and accounting functions are split between the Accounting Services and the Global Operations team, with the former handling local compliance and support and the latter handling operational delivery.
Cisco worked with Ernst & Young, PriceWaterhouseCoopers, and even Accenture for tax filings, external audits, back office support, and many more. These partner companies work with each other, too. For example, Accenture can consolidate data for filing by Ernst & Young employees. Cisco’s role, though, revolves around calculating adjustments as well as reviewing and approving tax filings and audit adjustments.
Cisco’s case is a clear testament to the hybrid approach to outsourcing. With the company leveraging the innate strengths of its global partners, it can pool its resources on key job functions without delay. Its ESM model integrates complex functions into one seamless global network, driving operational efficiency and cost savings while minimizing risks.
Hybrid outsourcing is like working in a group, where each member brings their strengths and skills to the table to complete a project. Or in this case, boost efficiency, adapt to ever-changing business needs, and reduce overhead expenses. If you’re still stuck in traditional outsourcing methods, think again. Project needs are becoming increasingly complex, and competition is stiff. But with the right outsourcing provider, they can take your business operations to the next level.
KDCI Outsourcing is a trusted Philippine BPO company with a solid track record of providing offshore outsourcing solutions to SMEs. Since its founding, KDCI Outsourcing has worked with clients from a broad range of industries, solidifying its experience in tailoring outsourcing solutions to a business’s unique needs and complexities.
Building offshore hybrid outsourcing teams is easy with KDCI Outsourcing. Our recruitment team vets candidates based on their skills, qualifications, work experience, mindsets, and portfolios. As a reputable outsourcing partner, we understand the repercussions of a bad hire, so we make sure our shortlisted candidates are trained in your software and can work seamlessly with your internal team.
Ready to slash operational costs and leverage the skills of Filipino talent? Contact us now, and our outsourcing expert will clue you in on forming your ideal offshore external team.
The workplace as we know it has changed — and there’s no going back.
From hybrid setups to outsourced teams, 2025 is shaping up to be a year of transformation in how companies build, manage, and scale their teams. The traditional 9-to-5 in-office model is no longer the gold standard. Instead, businesses are now opting for flexible structures that balance productivity, collaboration, and cost-efficiency.
But what exactly do these changes look like in practice? And what does the data say about the future of team structures?
In this article, we explore the latest workforce trends for 2025, break down the shift toward hybrid, remote, in-house, and outsourced teams, and reveal how medium to large companies are scaling smarter than ever.
A lot has happened since the start of the pandemic. Remote work became the norm, hybrid models emerged as a long-term solution, and the global talent pool opened wide. Now, in 2025, the workforce is more agile, distributed, and data-driven than ever.
Hybrid work is no longer just a post-pandemic experiment. It’s a long-term strategy embraced by companies that want to offer flexibility while maintaining a strong team culture. Employees split their time between home and the office, with collaboration tools and digital workflows making it seamless.
While flexibility is the trend, certain industries — such as healthcare, manufacturing, and logistics — still require fully in-house teams due to regulatory or operational needs. These businesses are focusing on optimizing workplace tech, improving employee wellness, and increasing retention rates.
Many tech, creative, and consulting firms have gone all-in on remote work. The appeal? Access to top talent regardless of location, reduced overhead costs, and happier employees. These companies are investing heavily in asynchronous communication, digital collaboration, and cybersecurity.
The age of “one-size-fits-all” hiring is over. In 2025, workforce flexibility is a key driver of business growth and resilience. Companies want to scale quickly, plug talent gaps, and stay lean — without sacrificing performance.
Outsourcing is no longer just about cutting costs. It's now a smart strategy used by medium to large businesses to access specialized talent, scale operations fast, and improve ROI.
According to a Gartner report, more companies are leveraging outsourcing to remain agile and competitive — especially in content creation, customer support, IT, and digital marketing.
Freelancers and gig workers are becoming a core part of the workforce. They allow businesses to expand teams temporarily, test new projects, or access niche skills without long-term commitments.
More companies are assembling temporary teams based on project needs. This model is popular in industries like creative services, software development, and e-commerce — where expertise and execution speed are more valuable than headcount.
Understanding how companies are structuring their teams in 2025 reveals key workforce trends across industries. The infographic below highlights how five sectors — Tech, Marketing, Healthcare, Finance, and Retail — are blending hybrid, remote, in-house, and outsourced models.
Businesses are building blended teams that offer flexibility and scale. Outsourcing is more common than ever — especially for medium to large companies looking to grow efficiently in 2025.
With the global talent crunch and rising operational costs, outsourcing is becoming the go-to solution for scaling efficiently.
Rather than hire full-time employees for every role, companies are turning to outsourced teams to fill skill gaps quickly — whether it’s graphic design, SEO, or customer service.
By outsourcing to offshore partners, businesses get access to top-tier talent without the overhead of hiring, training, and maintaining a large in-house team. This allows for faster time-to-market and significant cost savings.
As noted in McKinsey & Company insights, agile businesses are those that combine in-house excellence with external partnerships.
Outsourcing allows teams to scale up or down as needed — without long-term financial commitments. For companies preparing for rapid growth or seasonal spikes, this flexibility is crucial.
2025 is not just about where we work — it’s about how we work.
As teams become more project-based, companies are focusing more on specific skills and less on traditional roles. The future belongs to multi-skilled professionals who can adapt quickly.
Expect to see businesses continuously assembling, disbanding, and reassembling teams — depending on goals, clients, and market trends.
The most successful remote and hybrid teams in 2025 are those with strong internal communication, clear values, and a shared sense of purpose.
As team structures evolve, businesses that adapt early will thrive. Whether you're building a hybrid team or looking to outsource creative and marketing talent, working with the right partner makes all the difference.
At KDCI, we help businesses like yours scale smartly by providing access to skilled content creators, designers, and digital marketing professionals — all tailored to your needs and brand voice.
🔗 Ready to future-proof your workforce? Get in touch with KDCI Outsourcing and let’s build your high-performing team today.
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