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Search Results for "Outsourcing"

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The Pros and Cons of Outsourcing to Developing Countries
Outsourcing Guide
The Pros and Cons of Outsourcing to Developing Countries
November 6, 2025
Outsourcing to developing countries offers cost-effective opportunities for businesses to access skilled labor and expand their operations, but it also comes with challenges like language barriers and infrastructure issues.

Offshore outsourcing is a pretty well-known solution today. Well-known is probably an understatement since we’re talking about an $850-billion global industry utilized by over half of Fortune 500 companies (and over a third of small businesses) across the globe here. So, if your business is in a developed country — particularly in the US — and you’ve ever considered implementing such a solution, you probably came across a list of countries where the outsourcing service costs less, but the talent pool is just as skilled.

As you’ll see, outsourcing to developing countries can provide a wide range of opportunities for companies. But it also comes with its own set of challenges, which companies need to be aware of before making high-risk decisions.

In this blog article, we’ll take a closer look at these opportunities and challenges and provide you with the information you need to make the best decision for your business. We’ll also share tips and best practices for companies that are considering outsourcing jobs to developing countries, including how to find and vet reliable partners, how to manage and communicate with remote teams, and how to handle legal and compliance issues.

So, if you’re interested in learning more about outsourcing to developing countries and how it could benefit your business, then read on.

What are the benefits of outsourcing to developing countries?

Outsourcing has become a popular business strategy for American companies (as well as those located in Europe and Australia) looking to achieve more business goals while minimizing their overhead costs. Let’s explore the benefits of outsourcing to developing countries in depth, and examine how companies can take advantage of this opportunity.

  • Lower labor costs

Outsourcing to developing countries (also sometimes referred to as Low-Cost-Countries or LCCs) through a trusted outsourcing company can significantly reduce labor costs, as wages and benefits tend to be lower in these countries than in developed countries. Relatively cheap labor costs translate to lower wages and this remains to be the main reason why developed economies outsource jobs and can be a major advantage for companies looking to cut costs and increase profitability.

  • Access to a larger pool of skilled workers

Developing countries often have a large and growing pool of skilled workers, especially in fields such as IT and engineering. Outsourcing to these countries can give companies access to a larger and more diverse talent pool. With outsourcing, businesses get to connect with skilled professionals from a global market who wouldn’t be available otherwise.

  • Increased efficiency

Outsourcing certain tasks to developing countries can lead to increased efficiency and labor productivity, as companies can take advantage of time zone differences and have work done around the clock. As such, outsourcing tasks is not just a cost saving tactic, it’s also a great way to boost overall operational efficiency for growing businesses.

  • Improved focus on core competencies

By outsourcing non-core business functions, companies can focus on their core competencies and improve their overall competitiveness. For example, a business can outsource software development to a foreign country (pro-tip: the Philippines and India are ideal destinations for this), and focus on other key business functions like strategy development.

  • Access to new markets

Outsourcing to developing countries can also give companies access to new markets and customers, as well as a better understanding of local market dynamics. Truth is, there are a number of skilled professionals that are available worldwide and the best way to find the next best employee is by tapping into the whole global market and expanding your options.

  • Government incentives

Some developing countries offer tax breaks and other incentives to companies that outsource to their country, further reducing costs and increasing profitability. The Philippines, in particular, has a strong, government-backed BPO infrastructure that encourages foreign investment and global trade.

  • Cultural diversity and global perspective

Outsourcing to developing countries can also expose companies to new cultures, perspectives and ways of thinking, which can lead to new ideas and innovative solutions. By hiring through an outsourcing firm in Asia, Eastern Europe, or the Latin America, businesses can tap into diverse perspectives that can contribute to the business’ growth as a whole.

Of course, while outsourcing to developing countries offers tons of benefits, the cons are still inevitable. There are, however, ways to address these challenges and ensure that outsourcing still works in your business’ favor.

What are the challenges of outsourcing to developing countries?

Before choosing an outsourcing vendor, it's important to understand the challenges that come with outsourcing to developing countries. From language barriers and cultural differences to poor infrastructure and lack of legal protections, outsourcing to developing countries can present a unique set of obstacles that companies must navigate. Let’s tackle these challenges and discuss how companies can overcome them to make the most of their outsourcing efforts.

  • Language barriers

Communication can be a major challenge when outsourcing to developing countries, as language barriers can lead to misunderstandings and delays. Businesses can overcome this challenge by hiring bilingual employees or by partnering with countries known to have superior English proficiency in their labor market such as the Philippines and Singapore.

  • Cultural differences

Outsourcing to developing countries can also present cultural challenges, as businesses may have to navigate different customs, values, and business practices. To overcome this, businesses can provide cultural training for employees or choose a country with a strong affinity for Western culture.

  • Time zone differences

The time zone difference can also create problems in terms of communication and coordination. Businesses can address this by setting up a clear communication schedule and using tools such as video conferencing to facilitate real-time communication.

  • Poor infrastructure

Developing countries often have poor infrastructure, which can lead to problems with transportation, communication, and power supply. That said, it’s crucial for a business to work with outsourcing countries that have the necessary resources and infrastructure to support their operations.

  • Lack of legal protections

Developing countries may have weaker legal protections than developed countries, which can create risks for businesses. Businesses can protect themselves by researching the legal and regulatory environment in the country they plan to outsource to and by working with local legal counsel to navigate any potential risks.

  • Quality control

Ensuring the quality of the outsourced work can be a challenge, especially when working with unfamiliar partners. Businesses can mitigate this risk by setting clear quality standards, regularly monitoring and evaluating the work of the outsourced team, and building a relationship of trust with their partners.

Top 5 Most In-demand Developing Countries for Outsourcing

More and more companies are looking to outsource non-core business tasks to developing countries. However, with so many options to choose from, it can be difficult to know where to start. Let's take a closer look at the top 5 most in-demand developing countries for outsourcing and what they're known for:

1. Philippines

The Philippines is a popular outsourcing destination, particularly for business process outsourcing (BPO) services. It has a large English-speaking population and a strong tradition of customer service, which makes it well-suited for tasks such as customer support and telemarketing, as well as other outsourced functions like admin support, marketing, HR, and more. In fact, the country has been dubbed as the world’s call center capital since 2010.

2. India

India is known for its large pool of skilled workers, especially in the fields of IT and engineering. India also has a large English-speaking population and a strong legal system, which makes it an attractive destination for businesses. It’s among the best countries to outsource software development.

3. China

China is known among multinational corporations for its manufacturing capabilities and is a top outsourcing destination for businesses in the manufacturing and electronics sectors. It has a large and skilled workforce and a rapidly developing economy, which makes it an attractive destination for businesses looking to take advantage of low labor costs.

4. Vietnam

Vietnam is becoming an increasingly promising outsourcing destination, particularly for manufacturing and IT services. It has a large and growing pool of skilled labor , as well as a rapidly developing economy and a favorable business environment.

5. Mexico

Mexico is another destination for businesses looking to outsource manufacturing and other labor-intensive tasks. It has a large and growing pool of skilled workers and a well-developed transportation and logistics infrastructure, which makes it an attractive destination for businesses in the automotive and other manufacturing sectors.

What are some successful examples of companies that have outsourced to developing countries?

Developing countries such as India, China, the Philippines, and many others in Southeast Asia, have emerged as popular outsourcing destinations due to their large pool of skilled and educated workers, as well as their relatively lower labor costs. Here are some well-known examples of companies that have outsourced successfully  to developing countries:

Logo of Infosys

Infosys

Infosys is an Indian multinational corporation that provides business consulting, information technology, software engineering, and outsourcing services. The company has a global presence and has been successful in outsourcing services to clients in developed countries.

Logo of Telstra

Telstra

Telstra is a telecommunications and technology company based in Australia, providing a wide range of services including mobile, fixed line, internet, and pay television services. The company has been outsourcing some of its business processes to developing countries, specifically in the Philippines. One of the key areas that Telstra has been outsourcing is customer service. The company has set up a large shared service center in the Philippines, which is staffed by customer service representatives who handle calls and inquiries from Telstra's customers in Australia.

Logo of Huawei

Huawei

Huawei is a Chinese multinational technology company that provides a wide range of products and services, including telecommunications equipment, consumer electronics, and smartphones. The company has been successful in outsourcing manufacturing and assembly to developing countries, particularly in Southeast Asia.

Logo of Foxconn

Foxconn

Foxconn is a Taiwanese multinational electronics contract manufacturing company. It is known for its manufacturing and assembly of electronic devices for other companies, particularly Apple. Foxconn has been successful in outsourcing manufacturing and assembly to developing countries, particularly in China.

Logo of IBM

IBM

IBM is a multinational technology company that provides a wide range of products and services. The company has had a presence in the Philippines for over 30 years and currently employs over 12,000 people in the country. They have established a number of shared service centers in the Philippines, which provide services such as finance and accounting, and human resources, procurement outsourcing, and supply chain management.

What are the best practices for outsourcing to developing countries?

Outsourcing to developing countries requires a thoughtful approach and a commitment to doing things the right way. After all, this is a move that will affect the global economy and push forward job creation for developing nations. Below, we revealed the best practices for outsourcing to developing countries:

  • Conduct thorough research and due diligence on potential partners before entering into any agreements with them. This can include reviewing their financial stability, reputation within the industry, and track record of delivering on their commitments.
  • Establish clear and detailed contracts such as service level agreements and outline the expectations and responsibilities of both parties. This can include provisions for contingencies, such as what will happen if the outsourcing partner experiences financial difficulties or is unable to meet their obligations.
  • Implement regular monitoring and communication with outsourcing partners to ensure that everything is running smoothly. This can include regular performance evaluations, as well as regular check-ins to discuss any potential issues or concerns.
  • Be mindful of the political and economic environment in the country where the outsourcing partner is located. Being aware of any potential risks such as political instability, currency fluctuations, or trade tariffs can help companies better prepare for any potential challenges .
  • Invest in building a long-term relationship with outsourcing partners, rather than constantly switching between different partners. This helps to create a deeper understanding of the outsourcing partner and their capabilities.
  • Establish a strong governance structure for the outsourcing relationship, including a dedicated team that is responsible for managing the relationship with the outsourcing partner..
  • Provide training and support to the outsourcing partner's employees to ensure they have the necessary skills and knowledge to perform the work required.
  • Consider to implementing a clear and transparent communication channels to keep open lines of communication between the company and the outsourcing partner.
  • Establish clear metrics to measure the performance of the outsourcing partner, including quality, cost, and delivery targets.

How to find reliable outsourcing partners in developing countries

Finding reliable outsourcing partners in developing countries can be challenging, but here are some tips from industry experts to help you get started:

  1. Conduct extensive research: Perform extensive research and due diligence on any potential outsourcing partners before entering into any agreements. This may entail analyzing their financial standing, standing in the marketplace, and their previous projects with their clients.
  2. Seek referrals and recommendations: Ask for referrals and recommendations from other companies that have experience outsourcing to developing countries. This can provide valuable insight into the reliability and quality of potential partners.
  3. Look for partners with a proven track record: Prioritize partners who have a proven track record of delivering high-quality services and meeting the needs of their clients. This can be demonstrated through client testimonials and case studies.
  4. Consider the political and economic environment: Be mindful of the political and economic environment in the country where the potential outsourcing partner is located. Being aware of any potential risks such as political instability, currency fluctuations, or trade tariffs can help you better prepare for and navigate any potential challenges when working with outsourcing companies from developing nations.
  5. Communicate and negotiate clearly: Once you have identified a potential partner, communicate your needs and expectations clearly, and negotiate the terms of the agreement. This will help ensure that both parties are on the same page and that the partnership is set up for success.
  6. Establish a trial period: Establish a trial period before committing to a long-term partnership. This will give you the opportunity to test the waters and see how well the partnership is working before making a long-term commitment.

Partner with KDCI and Start Outsourcing to the Philippines

The Philippines has carved its name in the global outsourcing market as the world’s top outsourcing destination. Companies that have outsourced to the Philippines were able to save up to 70% on labor costs. Thanks to the country’s low cost of living and competitive wage rates. If you want to start outsourcing successfully to the Philippines, KDCI is here to help you!

Our company has been in the industry for over ten years. With our industry experience in helping businesses of all sizes scale their operations, we can help you establish your offshore team in the Philippines. We offer scalable staffing solutions from creative design & marketing to ecommerce, customer support, and accounting services.

Are you interested to learn more about outsourcing to the Philippines? Fill out the form to your right or contact us to get started!

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Offshore Staffing
Philippines Customer Service Outsourcing: Pricing, Benefits, and Setup Guide
Explore Philippines customer service outsourcing in this 2026 guide. Learn about customer service outsourcing pricing, benefits, and setup process.

Customer expectations are rising faster than most organizations — no matter the size, and across the world — can keep up with. 

This means that whether you’re supporting customers across voice, chat, email, or social channels, the pressure to deliver excellent customer service quality is higher than ever. And for many companies in the US, hiring and retaining high-performing customer service teams locally has become both costly and unpredictable.

That’s why a lot of businesses opt for Philippines customer service outsourcing.

Outsourcing customer support to the Philippines continues to be a powerful strategy, especially for medium to large businesses looking to scale efficiently without compromising service quality. The Philippine BPO industry has spent more than two decades building the world’s most robust customer service outsourcing talent ecosystem, hence the “call center capital of the world” title. And today, thousands of global brands rely on Filipino agents and customer service teams to handle everything from eCommerce customer service to technical support.

So, in this guide, we’ll walk through what makes the Philippines such a competitive outsourcing destination, how much outsourcing really costs, what benefits you can expect, and how to set up operations smoothly. Whether you're outsourcing for the first time or optimizing your current support model, this guide will help you evaluate your next steps strategically.

Why the Philippines Is a Global Leader in Customer Service Outsourcing

The Philippines is consistently ranked among the top locations for outsourced customer service, and not by accident. The country has developed a deep service culture in Business Process Outsourcing (BPO), strong English fluency, and a support industry infrastructure that continues to mature year after year.

Here are just some of the reasons why the Philippines is a leading destination for customer service outsourcing:

1. Mature Outsourcing Market with Proven Success

The $38-billion outsourcing industry in the Philippines has been thriving for over 20 years. Today, it employs more than 1.7 million professionals across major city hubs like Metro Manila, Cebu, Clark, and Davao. Many of the world’s most customer-centric brands — from tech startups to Fortune 500 companies — run their global customer support operations from the Philippines.

This maturity means your outsourcing partner likely already has:

  • established recruiting pipelines for every customer service representative;
  • training frameworks for brand voice and customer empathy;
  • quality assurance and performance management systems; and
  • operational leadership experienced in scaling support teams.

2. Cultural Alignment and Customer Empathy

Filipino agents are known for their warm, polite, and personable communication style. This natural empathy translates extremely well into addressing customer inquiries and facilitating customer interactions, especially with Western customers who value conversational and relationship-oriented support.

Other cultural strengths that businesses can tap into when utilizing Philippines call center services include:

  • skilled workforce with strong English fluency and neutral accent
  • high comfort engaging customers in emotional contexts 
  • familiarity with American social cues, humor, and expectations

Compared to many global outsourcing destinations, rapport-building is simply easier with a Philippine call center outsourcing partner.

3. Government and Infrastructure Support

Over the years, the Philippine government has heavily supported BPO industry development by investing in major IT business parks and special economic zones (with the support of the Philippine Economic Zone Authority. The Philippine government also boosted the Philippine customer service outsourcing space by expanding fiber connectivity and cloud infrastructure, as well as rolling out workforce upskilling programs

As a result, customer service operations, be that outbound call center services or inbound call center services, can run securely and efficiently — whether the BPO services provider is using on-site or hybrid and remote setups.

Cost & Pricing Models for Outsourcing Customer Service to the Philippines

One of the main reasons businesses consider call center outsourcing to the Philippines is the ability to significantly reduce operating costs — often by 50–70% compared to hiring in the United States. But how pricing is structured for outsourced customer support services depends on several variables.

In order to fully contextualize customer service outsourcing pricing in the Philippines, it’s important to note that when working with a customer service outsourcing company (also known as a BPO company), the prices are typically all-inclusive, which means that the estimated rate already includes:

  • salary,
  • benefits,
  • workstation & IT setup,
  • HR & payroll services,
  • operations support,
  • management and QA oversight,
  • and other similar admin costs associated with hiring staff.

Meanwhile, when hiring customer support staff in the US, employers also shoulder benefits averaging $13.58/hour or around $28,246.40/year for a 40-hour week. Other than that, there’s also health insurance, payroll tax, equipment, workspace, retention, and training costs.

Now, let’s have a closer look at the numbers and see how much customer support outsourcing typically costs, as opposed to hiring locally for key roles in customer service and technical support for medium to large businesses.

US vs. Philippines Salary Comparison for Customer Service Roles

Customer Service Agent

U.S. Annual Salary Range - $20,500 – $129,167 

Philippines Annual Salary Range - $3,090.84 – $6,181.68

Estimated Cost Savings - 70%–90%

Technical Support Agent

U.S. Annual Salary Range - $27,000 – $91,500

Philippines Annual Salary Range - $3,296.88 – $13,101.63

Estimated Cost Savings - 60%–85%

eCommerce Customer Support Agent

U.S. Annual Salary Range - $20,500 – $56,000

Philippines Annual Salary Range - $6,125.12 – $10,515.08

Estimated Cost Savings - 60%–80%

Customer Service Manager

U.S. Annual Salary Range - $77,325 – $122,780

Philippines Annual Salary Range - $7,211.90 – $24,704.91

Estimated Cost Savings - 70%–90%

Of course, this is a general pricing guide and the actual, final costs of outsourcing may still depend on other factors, such as:

  • Support channels: Voice generally costs more than chat due to complexity.
  • Support tier complexity: Higher-level troubleshooting commands higher rates.
  • Schedule: 24/7 and weekend coverage may require blended staffing models.
  • Volume stability: Predictable call and chat volumes reduce staffing inefficiencies.
  • Industry specialization: Healthcare, fintech, and SaaS typically require more technical or compliance-intensive teams.

Other “hidden” or “extra” costs that you need to watch out for are: software licenses (Zendesk, Salesforce, Intercom), seasonal surge staffing, and hardware refresh cycles. So, here’s a pro-tip from us: always ask the provider whether these costs are included in their packages or pricing models to avoid confusion and misaligned expectations down the road.

Philippines Customer Service Outsourcing Pricing Models

Other than the actual costs, it’s also important to know about how you pay for the support and customer care services provided by the outsourced agents. Outsourcing companies in the Philippines typically use one of these structures:

  • Per-Agent or Dedicated FTE Model

FTE Model is the most common setup for brands that want full-time agents who truly feel like part of their internal team. You pay a flat monthly or annual fee per agent — covering their salary, benefits, training, management support, and overhead. Because the same agents support your customers every day, they build product familiarity, brand alignment, and stronger rapport with repeat callers. 

If you value consistency, quality control, and strong customer experience, this is usually the best fit.

  • Per-Hour Model

If your support volume fluctuates, maybe your business has seasonal peaks, product launches, or marketing surges, then the per-hour model offers flexibility. You pay only for the number of hours staffed, which helps control costs when volume drops. It’s commonly used in hybrid setups where a core team is full-time, and additional part-time agents are brought in to handle overflow or peak traffic.

  • Per-Ticket or Per-Resolution Model

This model works particularly well for asynchronous support channels like email, live chat, in-app messaging, and help desk systems. Instead of paying based on staffing time, you’re paying for outcomes. 

For companies with unpredictable or batch-style support needs, it ensures efficiency: you only pay when work is completed. It’s also a great way to measure support vendor performance, because efficiency directly affects cost.

Other than cost savings, there are far more benefits that your business can take advantage of when you hire a customer service team with an outsourcing partner from the Philippines. Let’s go through some of them here.

Benefits of Outsourcing Customer Service to the Philippines

1. Significant Cost Savings Without Compromising Service Quality

One of the biggest drivers for outsourcing to the Philippines is cost efficiency. Salaries, office space, equipment, training, and management all cost significantly less compared to the US. However, the lower cost doesn’t translate to lower quality. The country has spent over two decades building world-class outsourcing infrastructure. You’re not just saving money here, you’re gaining access to trained customer service professionals who know how to deliver empathetic, clear, and efficient support.

2. Access to a Trained, Scalable Talent Pool

Customer service is a well-established profession in the Philippines. Many Filipinos deliberately train for careers in customer service, tech support, and communication-based roles. This means your outsourcing partner can recruit agents who already have years of call center or omnichannel support experience. The result? Faster ramp-up times, smoother onboarding, and fewer repeat errors.

3. Faster Training and Deployment Time

Because the talent pool is deep and industry-ready, teams can typically be assembled within weeks. Providers already have training playbooks, QA frameworks, HR pipelines, and operational tooling in place. So instead of spending months building a support function from scratch, you can simply plug into an established system and commence the customer service operation in a shorter span of time.

4. 24/7 Coverage That Feels Natural

Filipino teams are accustomed to working US hours (including overnight and weekend schedules) without it affecting service quality. Since English is widely spoken and cultural alignment with Western communication styles is strong, support interactions feel natural and engaging. This makes it much easier to expand beyond typical 9 to 5 coverage without worrying about tone consistency.

5. Higher Customer Satisfaction (CSAT)

Filipino support agents consistently rank high in empathy, clarity, and patience which directly affect customer satisfaction. It’s not just language proficiency, there is a cultural emphasis on hospitality and respectful communication. Many US companies see not just reduced operational and overhead costs, but also better customer sentiment scores after transitioning customer support to the Philippines.

Now that the benefits are clear, we move on to the final part of this guide: how can you effectively outsource your customer service function? What are the steps that you need to take to make sure that your offshore customer service team is set up right?

Let’s discuss this.

Step-by-Step Guide to Setting Up Your Outsourced Customer Service Team

Outsourcing customer service doesn’t need to feel complicated or risky — especially when done with the right structure and partner. The setup usually follows a clear, collaborative process that ensures your brand voice, workflow, and service expectations are carried over seamlessly.

Step 1: Define your support requirements.

The most successful outsourcing initiatives begin with clarity. Before recruitment starts, outline the essentials of your support environment: the channels you need covered (such as phone, chat, email, or social media), your customer volume patterns, expected service levels, and any required tools or integrations. This step gives your outsourcing partner a clear picture of how to build the team — from headcount to skill level to shift schedule. A strong kickoff helps avoid misalignment later on.

Step 2: Select the right outsourcing partner.

Not all BPOs are the same, so choosing a partner is about more than just pricing. Look for a provider with experience in your industry, proven talent recruitment processes, strong training infrastructure, and documented security and compliance standards. Also consider how flexible they are in scaling the team up or down. Cultural fit and communication style matter because this partner is ultimately representing your brand.

Step 3: Facilitate the onboarding & knowledge transfer.

Once the partnership is confirmed, the next stage is onboarding. Your outsourcing partner will guide you through sharing product knowledge, brand tone guidelines, workflow documentation, escalation paths, and platform access. This phase may also involve recorded demos, training decks, shadow sessions, and mock support practice. A good outsourcing provider already has a structured knowledge transfer framework, so you don’t have to build training materials from scratch.

Step 4: Initiate a performance calibration pilot phase.

Instead of launching at full volume immediately, most organizations begin with a pilot phase. This allows your internal team and your outsourcing partner to observe real customer interactions, refine messaging accuracy, and identify areas requiring coaching. Once the pilot stabilizes and performance consistently meets expectations, the team is gradually scaled to full capacity. This ensures quality is strong and customer experience remains smooth throughout the transition.

Step 5: Continuously optimize the operations.

World-class support operations are never static — they evolve with your customers’ needs. Your outsourcing partner should provide regular reports and insights on key performance indicators like First Contact Resolution rate, Average Handle Time, QA scoring, and CSAT trends. Continuous improvement planning, refresher training, coaching sessions, process adjustments, and technology enhancements help maintain service performance over time.

When outsourcing is done right, your customer support team becomes a true extension of your business. You then gain scalability, consistent service quality, and the confidence that every customer interaction reflects your brand’s standards.

If you’re ready to explore what outsourced customer service could look like for your organization, we can help you get started.

Scale smarter with KDCI Philippines customer service outsourcing solutions this 2026.

At KDCI Outsourcing, we empower global brands with customer service teams that deliver exceptional experiences at every touchpoint. From voice and chat support to omnichannel CX solutions, we tailor strategies that help you strengthen customer loyalty, boost satisfaction scores, and reduce operational costs.

With decades of experience building high-performing customer service teams in the Philippines, KDCI is a reliable partner that combines human expertise, culture, and technology to help your business grow faster and serve customers better.

If you’re ready to elevate your customer experience and scale your support operations with confidence, contact KDCI Outsourcing today.

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Why Do Developed Economies Want to Outsource Jobs?
Outsourcing Guide
Why Do Developed Economies Want to Outsource Jobs?
October 30, 2025
Developed economies outsource jobs to countries with lower labor costs. Learn about the benefits of outsourcing jobs to developing countries like the Philippines.

The practice of outsourcing labor has gained popularity among businesses as a result of the rapidly changing global economy. With a long-standing history that dates back to the Industrial Revolution in the 1700s, global outsourcing services have effectively evolved from a cost-cutting solution to a fast-growing industry of its own, with a market size of a staggering $3.8 trillion USD as of 2024. 

Developed nations, in particular, frequently outsource jobs to countries with lower labor costs, favorable tax policies, and more relaxed regulations. Over the years, as more and more top global and American companies outsource their key functions, offshoring as a solution became more of a strategic move towards hiring specialized talent and improving operational efficiency on a more global level.  

Outsourcing now spans more industries, too. Businesses from countries with developed economies now outsource several business functions, from customer support to IT to admin & HR functions.

But, alongside this growth is still a very important question: what benefits do these developed economies actually receive from outsourcing to less developed countries? How does outsourcing impact individual business development, as well as the country’s economic growth as a whole? 

This article will explore why developed economies outsource jobs and tackle the positive and negative aspects of outsourcing for developed economies.

8 Reasons Why Developed Economies Outsource Jobs to Other Countries

Does outsourcing benefit developing economies? Well, outsourcing to third-world countries is a common practice among developed economies. This practice is driven by various reasons, such as cost savings, access to global talent, increased efficiency, focus on core competencies, flexibility, and improved competitiveness. 

In this section, we will explore why developed economies outsource jobs.

1. Cost Savings

On average, the US cost of hiring is $4,683 USD each hire. Of course, this figure doesn’t factor in location, taxes, cost of benefits, training, and the employee’s experience level. 

Outsourcing jobs to countries with lower labor costs can significantly lower the operating costs for companies. For instance, if a company outsources its manufacturing operations to a country where labor is cheaper, it can produce the same products at a lower cost, which can help it to remain competitive in the market and increase profits. 

In the same way, outsourcing jobs across other functions like customer service, information technology, and human resources, among others, allows companies to hire experienced professionals who have significantly lower salaries as opposed to local hires. 

2. Access to Talent

Outsourcing can give companies access to a larger pool of talented workers in countries where there is a strong technical or educational infrastructure. For example, outsourcing IT services to countries such as India or the Philippines — which have a large pool of skilled IT professionals — can help companies access high-quality technical expertise at a lower cost. 

For developing economies with a strong business process outsourcing (BPO) industry, meeting the staffing needs of American companies (or businesses from other developed countries) is faster and easier. In essence, outsourcing gives developed countries the opportunity to tap into a larger and equally qualified job market.

3. Increased Efficiency

Companies may outsource certain processes to specialized companies in low-cost countries that have more experience and expertise in those areas. This can lead to improved operational efficiency, as these companies have the resources, processes, and technology to perform the tasks more efficiently. In turn, this can help companies produce higher-quality products or services in less time and at a lower cost. 

For example, outsourcing software development to countries with strong tech infrastructures and backgrounds is a great way to leverage this solution. However, when evaluating the advantages and disadvantages of outsourcing to low-cost countries, businesses must carefully assess which functions can truly benefit from external expertise without compromising control, quality, or security.

4. Focus On Core Competencies

By outsourcing non-core activities, companies can concentrate their resources and efforts on their core competencies and allocate resources more efficiently. This can help companies to stay competitive by allowing them to focus on what they do best and avoid distractions from non-core activities. 

The formula is simple: once you’ve delegated the right job to the right outsourced workers, you now have more time to focus on the things that matter the most.

5. Flexibility

Outsourcing allows companies to scale operations and adjust their workforce size and skill mix quickly in response to changing market conditions or business needs. This can be especially valuable for companies that operate in fast-paced industries where rapid adaptation to change is essential.

6. Competitive Advantage

Outsourcing can help companies to stay competitive in global markets by reducing costs, improving efficiency, and allowing them to focus on their core competencies. By outsourcing non-core activities, companies can remain nimble and responsive to changes in the market, which can be critical in maintaining a competitive edge. 

7. Larger Market Share

When companies outsource job functions to a country, they also get the privilege of exploring new markets and demographics where they don’t have a strong presence yet. 

For example, they can hire outsourced marketers who possess deep knowledge of the local market. With their knowledge, they can enhance your business’s product-market fit and craft effective collateral to engage your target market. 

Likewise, you can also hire bilingual customer care agents who can deliver on-brand, high-quality customer service in the country’s local language, allowing your business to reach more customers and provide increased coverage hours. All these can help gain the trust and loyalty of your customers, thus driving your brand’s market share in the industry. 

8. New Perspectives

Even the most experienced in-house employees can still have blind spots and knowledge gaps. Perhaps some of them even cling to outdated beliefs, perspectives, and practices. Outsourcing brings not just new faces to your internal team, but also fresh perspectives and innovative best practices. 

By having a diverse team of outsourced workers by your side, you can incorporate future-ready best practices, overhaul outdated strategies, and give your brand a competitive edge in the market. 

How Does Outsourcing Affect the Economy of Developed Countries?

Outsourcing can have serious effects on the local economy of developed countries. One of the major effects of outsourcing is job loss. When companies decide to outsource jobs to countries with lower labor costs, it can result in job losses for workers in the developed country.

1. Job Loss and Decreased Wages

For example, if a company that is based in the United States outsources jobs to India or other countries where labor costs are lower, it can result in labor shortages for American workers and job seekers. 

Another impact of outsourcing is decreased wages. The competition for jobs between workers in developed countries and those in countries with lower labor costs can result in decreased wages for workers in the former. 

This is because companies can pay lower wages to workers in countries with lower labor costs, which can put downward pressure on wages for workers in developed countries.

2. Shifts In Industry Competition

Outsourcing can also result in a shift in competitiveness. As companies outsource certain jobs, the developed country may lose its competitive advantage in specific industries, leading to a decline in economic competitiveness. 

For instance, if a company that specializes in manufacturing products outsources jobs to a country with lower labor costs, it can result in the developed country losing its competitive advantage in that industry.

3. Increased Trade Deficit

Another impact of outsourcing is an increased trade deficit. As the developed country imports goods and services from countries with lower labor costs, it can result in an increased trade deficit, which can further impact the job market and the economy as a whole. This is because the developed country is importing more goods and services than it is exporting, which can result in a decrease in economic growth.

Despite these negative impacts, however, the exponential growth of the BPO industry tells us that businesses have seemed to collectively decide that the pros of outsourcing jobs outweigh its cons for the job markets and economies of developed countries.

Which brings us back to the initial question raised earlier: what’s in it for developed economies?

Why Is Outsourcing An Attractive Option for Developed Economies?

The answer is quite simple, actually. It’s not about complex labor statistics or any other complicated reason. Outsourcing is a popular option for developed countries because it allows them to save money and improve efficiency in their businesses. Companies in developed countries can hire workers from other countries to do certain tasks for less money, which can reduce their overall costs and increase profits.

In addition, outsourcing can also provide access to specialized skills and knowledge that may not be available locally. By outsourcing, companies can focus on their core competencies and leave non-essential tasks to outside experts, allowing them to be more productive and successful.

Also, outsourcing has been a cost-cutting strategy for developed countries to prepare them for the looming threat of global recession. Many industries are affected during a recession, and companies are under pressure to cut costs and increase efficiency to stay afloat. Outsourcing jobs to countries where labor is cheaper is one way for companies to reduce their expenses and remain competitive.

It’s pretty straightforward: a developed country has staffing needs, a developing country has job seekers — experienced professionals just waiting for job opportunities — who can fill these roles at significantly lower costs, without compromising on quality.

Yes, the costs. Let’s now talk about how much businesses save by outsourcing jobs.

How Much Do Developed Countries Save On Outsourcing Business Processes?

Outsourcing business processes to developing countries like the Philippines can result in significant cost savings for companies in developed countries. By outsourcing certain tasks to outsourcing companies in countries with a lower cost of living, companies can take advantage of lower labor costs and save on expenses such as salaries, benefits, and overhead costs. 

In the case of outsourcing to the Philippines, it is estimated that companies can save up to 85% compared to hiring in-house staff in developed nations. For a clearer view, the global average for cost reduction through outsourcing was recently recorded at around $87,012 annually.

However, it’s important to note that the actual amount of cost savings will depend on various factors such as the type of business process being outsourced, the size of the company, the cost of living in the target country, and the specific terms of the outsourcing agreement. 

For example, outsourcing complex processes or larger projects may result in higher costs, whereas outsourcing simpler or smaller tasks may result in lower costs. Additionally, the cost of living in the target country can also impact cost savings, as some countries may have higher or lower costs compared to others.

List of Top Outsourcing Destinations for Developed Countries

The globalization of the business world has opened up a variety of options for outsourcing work to different countries. The following is a list of top outsourcing destinations for developed countries based on factors such as cost, quality, and cultural compatibility:

1. Philippines

The Philippines is a top outsourcing destination for its highly educated and English-speaking workforce, low labor costs, and cultural similarities with Western countries. 

The country is a leading provider of customer support services and earned the title of “the call center capital of the world.” Beyond call center services, however, the Philippine BPO industry is now known for other offshore outsourcing services such as IT, HR, financial services, real estate, and more.

2. India

India is among the leading outsourcing destinations for its large pool of English-speaking, skilled labor, and favorable government policies. The country has a strong IT industry, and a large number of software development, customer support, and data entry services are outsourced to India.

3. China

China has a large pool of highly skilled workers, making it a popular outsourcing destination for manufacturing jobs and production-related services. The country is among the top outsourcing destinations in Asia, and a preferred outsourcing destination for businesses seeking to lower production costs.

4. Mexico

Mexico has been gaining enough attention in the global BPO market for its proximity to the United States, favorable trade policies, and lower labor costs. The country is a leading provider of manufacturing, IT, and business services.

4. Eastern Europe

Eastern European countries such as Poland, Czech Republic, Hungary, and others are popular outsourcing destinations for their highly skilled and well-educated workforce, favorable business environment, and relatively lower labor costs. These countries are popular for IT and software development, financial and business services, and customer support services.

5. Vietnam

Vietnam is a fast-growing outsourcing destination for its favorable business environment, lower labor costs, and large pool of skilled workers. The country is a leading provider of manufacturing, IT, and customer support services.

6. Brazil

Brazil has a large and highly educated workforce, making it a popular outsourcing destination for IT and business services. The country is also a major provider of customer support services and has a rapidly growing IT industry.

7. South Africa

South Africa has a well-developed infrastructure, a favorable business environment, and a large pool of English-speaking, skilled workers. The country is a popular outsourcing destination for IT and business services, as well as call center and customer support services.

8. Indonesia

Indonesia is a growing outsourcing destination for its lower labor costs and large pool of skilled workers. The country is a leading provider of manufacturing, IT, and customer support services.

9. Thailand

Thailand is an emerging outsourcing destination for its lower labor costs and well-developed infrastructure. The country is a leading provider of manufacturing, IT, and automotive services, and has a rapidly growing IT industry.

With so many attractive outsourcing destinations across the globe, businesses in developed economies must weigh their options carefully. After all, this is a business investment that should empower your business today and long into the future.

How to Choose an Outsourcing Destination

Of course, not all countries are equally suited for every industry or function, so considering the right factors can help ensure a successful outsourcing strategy. 

Here are the five most important things to evaluate when choosing a country to outsource jobs to:

  1. Check for cost-effectiveness. Labor savings remain the biggest driver, of course, but companies should balance affordability with quality of output. See which companies (and from which countries) will give you the best ROI for outsourcing.

  2. Choose according to talent pool and expertise. The availability of skilled professionals in industries like IT, customer service, financial services, or creative functions is critical.

  3. Review the country’s infrastructure and technology. Do they have the systems in place to support your business? Reliable internet, modern facilities, and strong digital adoption are essential for seamless operations.

  4. Cultural and language alignment matters, too. Countries with strong cultural compatibility and high English proficiency are often easier to integrate with global teams, both in terms of technical expertise and culture. There’s less language barriers and communication gaps, too.

  5. The fifth one is a bonus benefit of offshoring: learn about the time zone advantage. Overlapping working hours or round-the-clock support from time zone differences can speed up turnaround times.

By weighing these considerations, developed economies can make informed decisions about where to build long-term outsourcing partnerships.

Build A High-Performing Offshore Team in the Philippines

Building an offshore team in the Philippines can be a game-changer for your business as you increase your operational efficiency at a fraction of the cost. The Philippines is a top destination for outsourcing, and for good reason. With its strong English proficiency, highly educated workforce, and culturally aligned work ethic, the Philippines is the perfect place to build your offshore team. 

At KDCI, we have years of experience helping businesses like yours build the best offshore teams in the Philippines. We provide a broad range of outsourcing services from creative design to marketing, e-commerce, customer support, and finance

Our proven approach to sourcing, selecting, and managing top talent ensures that your team will be made up of the best people for the job. With our 100% quality assurance and effective oversight management, you'll have peace of mind knowing that your offshore team is working effectively, efficiently, and aligned with your business goals.

Invest in the future of your business today and build the best offshore team in the Philippines! Contact us to learn more.

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Top 10 Successful US Companies That Outsource Customer Service (and Why It Works)
Discover 10 top US companies that outsource customer service and why it boosts efficiency, saves costs, and improves customer satisfaction. Learn more!

Outsourcing customer service has evolved from a cost-saving tactic into a core business strategy that fuels growth, agility, and customer satisfaction. Today, some of the world’s most successful companies, from tech giants to retail leaders, outsource customer service operations to trusted offshore partners, ensuring 24/7 availability, multilingual support, and world-class customer experiences.

In fact, the global customer service outsourcing market was valued at over USD 100 billion in 2024, and it continues to grow as more businesses recognize the efficiency and scalability it offers. Whether it’s handling high-volume inquiries, delivering real time assistance, or ensuring smooth omnichannel interactions, outsourcing allows brands to stay responsive and competitive in an increasingly demanding market.

In this article, we’ll take a closer look at 10 successful US companies that outsource customer service and explore why it works. You’ll also discover how the right outsourcing partner, like KDCI Outsourcing, can help your business deliver exceptional customer experiences while reducing costs and driving long-term growth.

Why Top US Companies Outsource Customer Service

Outsourcing customer service has transformed from a cost-cutting tactic into a key strategic lever for growth, responsiveness, and global scalability. Leading U.S. companies that outsource customer support do so not simply to save money, but to deliver better experiences, reach more customers, and build operational flexibility. Below are three core reasons why successful corporations outsource and why your business can benefit too.

The Strategic Shift from Cost-Cutting to Value Creation

In the early days of outsourcing, companies viewed offshore customer service primarily as a way to reduce labor costs. Today, however, outsourcing has evolved into a value driven strategy enabling scalability, multilingual support, 24/7 operations, and global customer experience optimization. According to Gartner, 77% of customer service leaders say they outsource in order to achieve greater scale, rather than purely cost savings. By shifting the focus toward delivering exceptional service and aligning with corporate growth goals, top firms treat outsourcing as an integral extension of their brand, rather than an expense bucket.

The Global Talent Advantage

Access to skilled, multilingual customer service professionals in offshore locations is a major driver behind outsourcing strategies for U.S. companies. Countries such as the Philippines, India, and Mexico have built deep talent pools with high levels of English proficiency, customer centric culture, and experience supporting global brands. These offshore teams help enterprises extend customer coverage, support multiple time zones and languages, and improve both customer satisfaction (CSAT) and retention. As one study notes, outsourcing customer service roles can lead to roughly a 10% increase in customer satisfaction scores and reduce employee turnover by up to 7%. For businesses with global or multilingual customer bases, tapping offshore talent becomes not just an operational decision, it’s a shareholder-value enhancer.

Data Snapshot

The market data clearly signals why outsourcing customer service has become a strategic imperative. According to Grand View Research, the global outsourced customer care services market was valued at USD 77.12 billion in 2024 and is projected to reach USD 113.18 billion by 2030, representing a compound annual growth rate (CAGR) of 6.6%. Meanwhile, the global call and contact center outsourcing market alone was estimated at USD 97.31 billion in 2024, with expectations to hit around USD 163.86 billion by 2030 at a 9.8% CAGR. These metrics affirm that U.S. companies are increasingly relying on customer service outsourcing as a long-term engine of efficiency, capacity, and customer experience leadership.

Top 10 Successful US Companies That Outsource Customer Service (and Why It Works)

Many of the world’s most recognizable brands rely on outsourcing to deliver exceptional customer service across time zones and languages. These U.S. companies prove that smart outsourcing isn’t just about cost savings, it’s about scalability, consistency, and customer experience excellence. Here’s how ten major players do it successfully.

1. Amazon – Scaling Global Customer Experience

Amazon, one of the largest e-commerce platforms in the world, outsources portions of its customer support to India, the Philippines, and Costa Rica. These regions handle high-volume inquiries, especially during peak shopping seasons like Prime Day and the holidays. Outsourcing enables Amazon to deliver multilingual, 24/7 customer assistance, a critical factor in maintaining its reputation for customer obsession while efficiently managing global demand spikes.

2. Microsoft – Focused on Multichannel CX

Microsoft leverages outsourced partners for its help desk and technical support services, supporting both enterprise and consumer users. Through outsourcing, the company has been able to enhance response times and service consistency across phone, chat, and email channels, improving its customer satisfaction scores. This model allows Microsoft to focus on innovation while maintaining a dependable customer service infrastructure.

3. Google – 24/7 Support and Tech Assistance

Google maintains a network of outsourced support centers across the Philippines, India, and other Asia-Pacific countries to manage user inquiries for products like Gmail, Google Ads, and YouTube. This setup ensures round-the-clock, multilingual technical assistance and faster problem resolution. By decentralizing its customer service operations, Google ensures business continuity even during regional disruptions.

4. American Express – Premium Customer Relations

American Express (AmEx), known for its high touch client service, partners with outsourcing firms in India and the Philippines to handle cardholder inquiries, payment assistance, and financial transactions. This structure enables AmEx to maintain efficiency and high-quality customer interactions while balancing workloads across global time zones. Its offshore CX teams support the brand’s premium image by providing consistent, courteous service.

5. AT&T – Telecommunications Giant with Global Support Teams

As one of the world’s largest telecom companies, AT&T outsources a significant portion of its customer service operations to the Philippines and Latin America. These teams provide technical support, billing inquiries, and live assistance to millions of users daily. The outsourcing model allows AT&T to achieve operational savings and uninterrupted, 24/7 customer support for its global user base.

6. Apple – Seamless Omnichannel Support

Apple’s reputation for premium customer care extends to its outsourced partners, who manage technical troubleshooting, chat support, and user assistance. These teams are trained extensively on Apple’s brand tone and product ecosystem, ensuring a seamless omnichannel experience. By outsourcing parts of its support function, Apple maintains flexibility to scale resources up or down as new devices or software updates launch.

7. Zoom – Scaling Fast During Pandemic Growth

When the COVID-19 pandemic skyrocketed demand for virtual communication, Zoom turned to outsourcing partners to handle customer onboarding, billing support, and tech troubleshooting. Outsourcing enabled the company to scale operations at unprecedented speed, serving millions of new users while maintaining response quality. The model proved essential to Zoom’s ability to meet global demand under pressure.

8. Netflix – Delivering Customer Delight Worldwide

To serve its 270 million plus global subscriber base, Netflix outsources multilingual customer support and account management to trusted partners in the Philippines and Latin America. These teams provide assistance in various languages, helping Netflix deliver personalized, localized support to viewers around the world. The approach enhances customer satisfaction and strengthens brand loyalty in diverse markets.

9. Walmart – Streamlining Retail Support Operations

Walmart, the retail powerhouse, outsources back-office, IT, and customer service functions to outsourcing hubs in India and the Philippines. Offshore support teams handle product inquiries, online order issues, and internal business operations, helping Walmart achieve cost efficiency and faster service delivery. Outsourcing also frees the company’s internal staff to focus on logistics, strategy, and customer experience innovation.

10. Uber – Real-Time, Global Customer Support

Uber’s success as a ride sharing platform depends on immediate support for drivers and riders alike. The company partners with outsourcing firms in the Philippines and India to provide real time, multilingual assistance through phone and in-app chat. This model ensures 24/7 reliability, enabling Uber to operate seamlessly across continents and time zones while maintaining customer trust and satisfaction.

What These Companies Teach Us About Successful Outsourcing

Partnership Over Transaction

One key takeaway from the outsourcing strategies of leading U.S. companies is that success stems from strong, long-term partnerships not transactional relationships. Businesses like Amazon and American Express invest in trusted BPO providers that understand their brand culture and customer priorities. This partnership model fosters collaboration, accountability, and innovation, ensuring that external teams feel just as invested in customer satisfaction as internal ones.

Data-Driven Decision Making

Successful outsourcing doesn’t rely on guesswork. Companies such as Microsoft and Google use advanced analytics and performance metrics to continuously assess call resolution times, customer feedback, and satisfaction scores. This data-driven approach enables them to make informed decisions, identify improvement areas, and refine workflows for better customer experiences, all while maintaining operational efficiency.

Continuous Training and Quality Assurance

Top performing global brands know that outsourced teams require the same level of training and brand alignment as in house employees. Apple and Netflix, for instance, prioritize ongoing training programs, knowledge-sharing sessions, and real-time feedback loops to keep their service representatives up to date on company values, new products, and policies. This commitment to continuous learning and quality assurance ensures consistent, high-quality support no matter where the customer is located.

How Outsourcing to the Philippines Delivers the Same Competitive Edge

For businesses looking to outsource customer service and beyond, the Philippines remains one of the most compelling destinations worldwide. With high English proficiency, cultural alignment with Western markets and a mature outsourcing ecosystem, the country offers the cost-efficiencies of a low-cost country (LCC) combined with service standards typically expected in developed markets. Below, we explore the two key reasons global companies continue to choose the Philippines, and the statistics that back it up.

The Global CX Hub

Global brands consistently choose the Philippines for their customer service operations thanks to the combination of English fluency, Western communication culture, and empathy-driven service mindset. Filipino agents are adept at understanding U.S. consumer idioms, providing friendly and culturally intuitive support, which enhances customer satisfaction and loyalty.

Quick Stats

  • The Philippines customer-experience outsourcing (CX/BPO) market generated US$3,751.8 million in revenue in 2024, and is projected to grow to USD 13,854.6 million by 2033, a compound annual growth rate (CAGR) of about 15.8% from 2025 to 2033.
  • The Philippine outsourcing industry as a whole recorded revenue of approximately US$38.7 billion in 2024, with forecasts pointing to a continuing upward trajectory.
  • The sector employed around 1.8 million professionals in 2024, with projections targeting 2.5 million by 2028.

These figures underscore that companies outsourcing to the Philippines not only secure cost advantages, they tap into a growing, globally competitive workforce oriented toward service excellence and Western market alignment.

A Proven Model for Cost Efficiency and Scalability

When businesses outsource customer support functions, especially during growth or seasonal surges they need a partner that can scale rapidly and cost-effectively. The Philippines delivers on both.

Cost Efficiency: Labour and operational costs in the Philippines remain significantly lower than U.S. or Western European equivalents, enabling organizations to allocate resources toward strategic initiatives rather than simply service overhead. 

Scalability: The country’s large talent pool and maturing outsourcing ecosystem mean companies can ramp up operations across voice, non-voice, multilingual, and digital CX channels without lengthy recruitment ramp-up.

For example:

  • A report by Expert Market Research shows the Philippine BPO market reached a size of USD 37.38 billion in 2024, and is projected to grow at a CAGR of about 10.6% from 2025 to 2034, reaching USD 102.37 billion.
  • The IT & Business Process Association of the Philippines (IBPAP) expects revenues in the sector to hit US$59 billion by 2028, with headcount reaching about 2.5 million.

Multiplying cost savings with operational speed and quality outcomes, the Philippines provides an outsourcing model that supports both startups and enterprise level operations, enabling fast deployment, flexible team sizing, and global coverage without sacrificing service quality.

How KDCI Outsourcing Helps You Build Your Own World-Class CX Team

KDCI Outsourcing empowers businesses to scale seamlessly by building high performing offshore customer experience (CX) teams in the Philippines. With a focus on quality, transparency, and long-term partnership, we help you outsource customer service and sales functions without compromising on brand voice or service excellence. Whether you’re a startup looking to enhance customer engagement or an enterprise aiming to expand global operations, KDCI provides the expertise and infrastructure to help you deliver exceptional experiences at every touchpoint.

Outsource Customer Service and Sales with KDCI

At KDCI, we make it simple for businesses to outsource customer service and sales functions while maintaining full control over quality and brand tone. Our process begins with understanding your goals, customer pain points, and key performance indicators (KPIs) to design a support structure that mirrors your in-house standards — ensuring every customer service and sales representative we deploy aligns perfectly with your brand’s voice and expectations.

We help you build offshore CX teams equipped to handle multichannel communication, from voice and live chat to email and social media, ensuring customers receive consistent, positive experiences every time. By leveraging our deep expertise in customer experience outsourcing in the Philippines, you gain access to a talented workforce known for empathy, adaptability, and service excellence. Whether it’s customer onboarding, lead nurturing, or after sales care, our teams deliver measurable results that elevate both satisfaction and retention rates.

Our Difference: Quality, Compliance, and Scalability

What sets KDCI apart is our commitment to building partnerships that grow with your business. We provide tailor fit CX teams designed to align with your brand culture, supported by continuous training and data-driven performance management to maintain high service standards.

Our operations are built on transparent processes, giving you real-time visibility into performance metrics, customer feedback, and productivity reports. With robust compliance frameworks and best-in-class infrastructure, we ensure your data and customers are always protected.

As your business scales, so do we. Our flexible solutions allow for quick team expansion, technology upgrades, and process optimization to meet evolving customer demands. With KDCI Outsourcing, you don’t just outsource customer service, you gain a world-class CX extension of your brand.

Don’t Just Think Outside the Box, Outsource It!

Outsourcing customer service has evolved from a cost saving tactic to a powerful growth strategy embraced by the world’s biggest brands. From Amazon’s global scalability to Apple’s seamless omnichannel support, these companies show that success comes from aligning with the right partners who share their commitment to quality and customer satisfaction. By leveraging multilingual expertise, 24/7 availability, and advanced analytics, they’ve transformed the customer service team into a competitive advantage, one that drives loyalty, efficiency, and long-term business growth.

If your company is ready to follow in their footsteps, it’s time to think beyond cost-cutting and focus on collaboration. Partner with KDCI Outsourcing, a trusted outsourcing provider that can scale with your needs, elevate your customer experience, and deliver measurable results. Contact us today and let’s start building your global customer service success story today because great CX knows no borders.

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Top 15 Customer Support Outsourcing Services for US Businesses in 2026
Meet the top 15 customer support outsourcing services for US businesses in 2026. Explore the benefits of outsourcing customer service to the Philippines.

As customer demands change and the hiring market becomes more and more competitive, the customer support department of businesses becomes more challenging to staff efficiently, too. As a result, outsourcing continues to be the competitive advantage that all smart, growing businesses need to adopt in 2026. 

This year, the brands that win are those that consistently deliver fast, empathetic, and reliable support across every available channel (be that voice, chat, email, SMS, social media, or in-app chats). Still, building and managing that level of support requires significant operational investment, or alternatively, the right outsourcing partner.

That’s why a lot of US businesses turn to customer support outsourcing.

Customer support outsourcing services are no longer new. You’ve probably heard of this before — maybe from other businesses in your space or from your competitors in your niche. Either way, it’s a solution that’s here to stay.

The bigger question now is: how can you make the most out of customer support outsourcing?

So, to address this, we’ve prepared this guide for you. Here, you’ll find everything you need to know about choosing an outsourcing partner in 2026, chosen strategically based on:

  • service quality and customer support maturity;
  • scalability for business growth;
  • customer service tech stack and omnichannel capabilities;
  • industry specialization; and
  • client feedback and cultural alignment.

Whether you’re running a fast-growing SaaS company, a scaling eCommerce brand, or a mature retail business, there’s a right customer support partner that can support your customer success goals and overall business success.

Get to know them here. Keep reading.

Why outsource customer support services in 2026

In reality, reasons for outsourcing customer support (or any other business process outsourcing move, for that matter) all boils down to one thing: it’s for businesses that need an efficient customer service department, at lower operational costs. Essentially, it used to be about doing more with less.

Beyond this, however, having an outsourced customer service team is the best way to address the evolving landscape of businesses. This 2026, customer expectations are higher than ever — not that the bar was ever low to begin with. Today, customers want real-time responses, personalized interactions, and seamless support across every touchpoint of the customer journey. At the same time, businesses are dealing with rising labor costs, global talent shortages, and the advent of new customer support technologies.

So, far from cost-cutting and mere operational efficiency, businesses are outsourcing customer service to find the right partner that will strengthen their overall brands with meaningful interactions. Here are just some of the reasons why outsourcing customer support this year makes sense:

  • Outsourced support agents have specialized skills.

Fully-trained customer support agents have extensive product knowledge combined with communication skills, as well as empathy and emotional intelligence. Outsourcing partners already have customer service training, strong Quality Assurance (QA) systems, and performance management in place — giving you direct access to a customer service team that can represent your brand with confidence.

  • With an outsourced team, 24/7 omnichannel support is easier.

Your customers expect support on their schedule, not yours. This makes always-on customer service functions a non-negotiable for thriving businesses across all industries. By utilizing call center outsourcing from locations with different time zones like the Philippines, you get 24/7 live agent coverage, weekend support, and availability across all user channels. This enables your business to deliver consistent customer experience thus increasing customer satisfaction rates, without adding too much strain on your internal operations.

  • Outsourcing customer support strengthens brand experience.

Branding can make or break businesses, and excellent customer service is a must if your business wants to make it. Modern outsourcing partners act as a brand extension, with proactive problem resolution delivered using your brand’s tone and messaging. This way of addressing customer inquiries directly impacts customer retention and supports the business’ long-term growth.

In the customer-driven market of 2026, customer service is all about experiences, scaling smarter, and maintaining operational agility. Of course, the success of all these still depends on the customer service outsourcing company you choose.

What to look for in a customer support service provider

Before choosing a BPO partner, it’s important to define what “good customer support” truly means for your business. To guarantee customer care at the level that you need, you need a partner that aligns with your brand tone, customer expectations, and operational objectives when you outsource customer service.

Here are some key criteria to evaluate when looking for outsourced customer support:

1. Industry Specialization

Different industries require different support and engagement models. For example,

  • eCommerce and retail businesses need agents for order management, product returns, and other related customer query;
  • SaaS and tech companies need tiered technical support for troubleshooting and in-app support agents; while
  • financial services companies need privacy, compliance, and regulated workflows.

Given the unique customer needs across every sector, it’s important to find an outsourcing partner with direct industry experience. They can onboard agents faster and provide exceptional customer service that you can depend on.

2. Omnichannel Service Capabilities

Another shift in the customer service space is the rise of multiple communication channels. Your customers are now expecting seamless interactions across:

  • phone calls,
  • live chats,
  • email support or helpdesk ticketing,
  • social media messaging,
  • SMS and in-app tech support.

For a small business (or even the larger ones), all these can be quite overwhelming, and understandably so. As such, it’s important to provide customer support agents who can address all channels and integrate tools like Zendesk and Salesforce to optimize the whole customer engagement process.

3. Data Security & Compliance

Dealing with customers also means handling sensitive customer data. When your outsourcing provider operates halfway across the country, data security and compliance can be one of the biggest challenges that you have to address.

Fortunately, since the BPO infrastructure in the Philippines is well-established, the top customer service outsourcing companies in the country all have secure systems and tech stack in place that are designed to protect sensitive client data and ensure compliance for your customer service function.

4. Cultural & Linguistic Alignment

Another key aspect of outsourcing your customer service operation is cultural and linguistic alignment.

Customers in the US value empathy, clarity, and the use of a friendly, conversational tone across every customer interaction. This means that you need to look for an outsourcing provider whose support team is fully trained to understand US business etiquette and communications style.

5. Transparent Pricing & SLAs

While we’ve already established that outsourcing is no longer just about cost-cutting, transparent pricing should still be non-negotiable when choosing a customer support partner. A reliable provider offers:

  • clear service level agreements (SLAs);
  • volume-based or flexible pricing and engagement models; and
  • most importantly, no surprise, extra charges during the engagement.

Top 15 Customer Support Outsourcing Companies for US Businesses in 2026

With the above-listed criteria in mind, we have prepared a list of the top customer support outsourcing companies, as well as how they can support your business with your customer service goals.

1. KDCI Outsourcing

KDCI Outsourcing is known for providing tailored customer support solutions for growing US businesses across retail, SaaS, fintech, and professional services. With flexible engagement models and a passion for empowering teams with the best people, KDCI builds dedicated customer support teams that operate as an extension of the client’s brand — ensuring voice consistency, empathy, and service reliability across every single customer interaction.

KDCI’s core customer support services include:

  • omnichannel support (voice, chat, email),
  • technical support and troubleshooting, and
  • back-office support, among others.

If you’re a growing brand that needs quality-first, flexible customer support with a collaborative outsourcing partner, then KDCI is ideal for your business.

2. Concentrix

An established BPO company with over 10,000 employees worldwide, Concentrix offers customer service solutions for businesses across the US, Europe, and the Asia-Pacific region. Their customer support offering is recognized for excellent feedback management and continuous service innovation.

Concentrix has automation and optimization technologies that are tailored to match the customer service needs in communications, health care, and financial services. They offer a wide range of services that improve customer experience, so, if you are looking for enterprise-grade CX solutions, then Concentrix may be the right partner for you.

3. Foundever

Foundever is one of the leading customer service outsourcing providers in the world, offering sales, technical support, and other customer service solutions for large companies and enterprises.

Known for their cutting-edge technology, flexible pricing models, and AI-driven capabilities, Foundever operates in 45 countries, with teams in the US, Mexico, Germany, and the Philippines. Foundever is best for large businesses looking for a trusted brand in customer service that offers AI-powered solutions.

4. Telus Digital

Another global provider known for their outsourced call center services, Telus Digital offers an extensive range of multi-channel and multilingual customer support services for industries like tech, gaming, eCommerce, fintech, healthcare, hospitality, and more.

Telus Digital offers customer service solutions and digital customer experiences across the US, Europe, Asia, and Africa. They also have AI-powered chatbots that are trained in multiple data annotation languages that allow them to offer innovative customer solutions. This BPO partner is best for brands that are looking for a customized, innovative approach to customer support.

5. Teleperformance

Teleperformance is yet another key player in the customer service space, whose main service locations include the US, Canada, Europe, and Latin America. They provide support in multiple languages and multiple channels, including voice, chat, email, and social media.

Best known for their average client relationship tenure of over 14 years and consistent high ranking in the World’s Best Workplace™, Teleperformance is an ideal partner for businesses in tech, financial service, insurance, telecommunications, and media who are looking for dependable, long-term partnerships.

6. Accenture

Accenture is a leading provider of customer service solutions, with operations across Asia, Europe, the Middle East, and the US. As a trusted partner of thousands of global clients, Accenture aims to stay ahead in customer service outsourcing by integrating AI-powered tools into their customer service operations.

With a strong reputation in creating efficient customer experiences and personalized support across industries like healthcare, financial services, and tech, Accenture seamlessly blends AI with people solutions to create positive customer impressions. If you’re looking for a forward-thinking partner with a strong AI-powered approach, Accenture is an ideal for you.

7. VXI Global Solutions

With a strong network of trained customer support agents and a reputation for dependable omnichannel solutions across industries like telecommunications, retail, and healthcare, VXI Global Solutions has been delivering top-notch customer care solutions to over 30 countries worldwide.

VXI offers customized customer support, tech support, sales, and customer engagement solutions that are designed to boost brand loyalty and advocacy. VXI is an ideal partner for growing businesses looking to improve customer satisfaction rates at lower operational costs.

8. PartnerHero

PartnerHero is a dedicated BPO company that offers customer support outsourcing, AI bots, software QA, and content moderation for businesses across the US, Latin America, Europe, Africa, and Asia.

Popular for their efforts in prioritizing employee well-being and benefits, PartnerHero is an ideal partner for brands that are looking for cultural alignment with their outsourced teams, alongside exceptional customer service delivered by passionate support agents.

9. Alorica

Alorica prides itself in transforming customer experiences by combining the expertise of their fully-trained agents with advanced technology. This provider is committed to providing services that improve overall customer engagement while reducing costs and increasing business revenue.

With over 100 locations worldwide and an innovative tech stack, Alorica is an ideal customer support partner for forward-thinking businesses that are looking for customer support, technical support, back-office, sales, and collections services.

10. TTEC

With decades of experience in the call center industry and a long-standing reputation in providing support for big brands worldwide, TTEC offers innovative customer service solutions like digital customer engagement, content moderation, data annotation, and fraud prevention.

TTEC specializes in working with tech and healthcare companies and offers a range of digital CX solutions that can be tailored to unique business needs. If you’re looking for a company that combines both reputation and innovation, TTEC is the ideal customer support outsourcing company for you.

11. Enshored

Enshored is another trusted customer service outsourcing company that offers a range of services including customer support, content moderation, sales, and marketing among others. With a strong focus on tailored solutions, Enshored is popular among scaling businesses across retail, eCommerce, financial services, tech, SaaS, and more.

If you’re in a dynamic space and are looking for crucial support as you scale your business (and customer service operation), then Enshored might just be the partner you can rely on to empower your ongoing growth.

12. Digital Minds BPO

Digital Minds BPO offers full-service customer outsourcing solutions with over 10 years of industry experience and strong commitment to quality customer experiences. With engagement models that allow their support agents to serve as an extension of the internal teams of their clients, Digital Minds is trusted by clients across various business sizes and industries.

Some of the core services of Digital Minds include phone support, live chat support, eCommerce support, in-app chats, and video chat support. As a leading provider of 24/7 customer support services, Digital Minds is an ideal partner for businesses that need an always-on, omnichannel customer service approach.

13. AnswerForce

AnswerForce has been providing 24/7 phone answering services for over 25 years, operating globally and supporting both small businesses and Fortune 500 companies. With flexible plans and personalized customer experiences, AnswerForce empowers businesses to focus on their core functions, without having to worry about the volume of customer calls.

If you need after-hours support and your main customer support channel is via phone calls, AnswerForce is an ideal partner to provide more professional and cost-efficient customer interactions.

14. Helpware

Helpware is a relatively new customer experience outsourcing company that offers concierge-level solutions with their innovative tech stack and people-first approach to customer service. Helpware prides itself in building customized teams for customer support and back-office solutions.

With services across digital customer experiences, AI customer service, and back-office support, Helpware is ideal for businesses that are testing the waters and scaling with customized outsourcing solutions in customer support.

15. Near (Hire With Near)

Hire With Near is a full-service staffing agency that specializes in hiring bilingual customer support professionals for businesses across finance, AI, accounting, marketing, software engineering, and more.

With end-to-end recruitment and team solutions, Near is ideal for businesses that need to build a support team of customer support agents, technical support representatives, and other customer experience experts that best fit the company’s culture and values.

If you’re running a US business that’s looking to grow and scale this 2026, these outsourcing companies can be the strategic partners you need.

At the end of the day, the success of your customer support outsourcing largely depends on the partnership you build with the provider — and with so many good options out there, we understand how challenging it can be to make a choice.

So, if you’re still not quite sure where to start, feel free to take the first step by chatting with us!

Scale smarter with KDCI’s customer support services this 2026.

Supporting your customers is always easier with the right partner.

At KDCI Outsourcing, we empower global brands with customer service teams that deliver exceptional experiences at every touchpoint. From voice and chat support to omnichannel CX solutions, we tailor strategies that help you strengthen customer loyalty, boost satisfaction scores, and reduce operational costs.

With decades of experience building high-performing customer service teams in the Philippines, KDCI is a reliable partner that combines human expertise, culture, and technology to help your business grow faster and serve customers better.

If you’re ready to elevate your customer experience and scale your support operations with confidence, contact KDCI Outsourcing today.

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Why Is BPO Seat Leasing a Strategic Option for Businesses?
Outsourcing Guide
Why Is BPO Seat Leasing a Strategic Option for Businesses?
October 28, 2025
Whether you're a small business expanding or a large enterprise outsourcing non-core activities, BPO seat leasing offers cost savings, scalability, access to expertise and technology, improved data security, and the ability to focus on core business functions.

Are you ready to take your business to the next level?

Picture this: a fully equipped workspace for your team that you don’t have to build on your own. Even better, this can be in a location halfway across the world, where the labor costs are lower and the top talent are just waiting to be hired. Imagine the difference this can do for your business operations — that’s what BPO seat leasing is for.

With ongoing changes in the global workforce and the rise of remote work options, BPO seat leasing is the key to unlocking your business potential by providing a cost-efficient and flexible solution for establishing a remote team — the perfect extension of your in-house team.

Whether you are a small business looking to expand or a large enterprise seeking to outsource non-core activities, BPO seat leasing has something to offer. 

Read on to learn more about the definition, types, and benefits of BPO seat leasing and how it can help your business grow this 2026.

What is seat leasing in the BPO industry?

Seat leasing is a cost-effective way for companies to establish a remote office in another country without having to invest in the physical infrastructure required for it. It involves a service provider, usually a business process outsourcing (BPO) company, whether onshore or offshore options defending on the needs of the company, leasing office space and equipment to the client, and managing the facilities. The client, in turn, is responsible for recruiting, training, and managing their own employees who will be working in the leased office space. 

This approach allows the clients to benefit from the BPO company’s existing investment in the physical infrastructure, such as office space, equipment, and facilities management. It also allows them to establish offshore operations without incurring high costs associated with setting up a new office, such as rent, utilities, and equipment expenses. Additionally, the client has more control over their employees, as they handle recruitment, training, and management themselves. This means they can ensure that their employees are a good fit for the company culture and have the necessary skills to perform their job functions.

Overall, seat leasing is a flexible and cost-effective way for companies to establish a remote office with fully equipped workstations, allowing them to expand their operations to another country while minimizing the costs associated with setting up a new office.

What is an example of BPO seat leasing?

Call center seat leasing is one great example, since customer service is one of the most commonly outsourced functions, too. For example, a company that specializes in selling insurance products may not have the resources or expertise to manage its own call center.

Instead, they may start leasing call center operations from a provider that specializes in call center management. The provider would then provide the necessary equipment, technology, and personnel to handle the insurance company’s incoming calls. The insurance company would then still be responsible for recruiting and training their own customer support agents, and managing the overall operation of the call center.

Very much like the systems in short and long term leases, working with an outsourcing company for a seat leasing service gives companies the ability to utilize top notch facilities, minus the overwhelming upfront investment.

What are the different types of BPO seat leasing?

There are three different types of BPO seat leasing that every business should know: 

  • Warm Seat Leasing, 
  • Cold Seat Leasing, and 
  • Co-Working Seat Lease. 

We will explain the key features of each type and help you determine which one is best suited to your business needs as you look for a BPO seat leasing provider.

1. Warm Seat Leasing

In this type of seat leasing, the BPO company provides fully-equipped workstations with all the necessary equipment, such as computers, phones, and internet access, for the client's employees to use. The workstations are also staffed with support personnel, such as IT technicians and administrative staff, to assist the employees with any technical or administrative issues they may encounter.

2. Cold Seat Leasing

This type of seat leasing is similar to warm seat leasing, but the workstations are not staffed with support personnel. The client's employees are expected to be self-sufficient and handle any technical or administrative issues they may encounter on their own. The BPO company still provides all the necessary equipment and facilities, but the client's employees are responsible for setting up and maintaining their own workstations.

3. Co-Working Seat Lease

Co-working seat lease, as the name suggests, is a type of leasing arrangement where employees from different companies share a common workspace. This type of setup is well-suited for companies with small teams and those that wish to hire employees outside their region. For a small business, the main advantage of this type of leasing is that it provides access to all office amenities such as the reception area, pantry, and conference room, without the need to invest in them. 

To sum up, the type of BPO seat leasing that is best for a company depends on their specific needs and budget. Warm seat leasing is ideal for companies that need a fully-equipped workstation with support personnel. Cold seat leasing is ideal for companies that are self-sufficient and prefer to handle their own technical and administrative issues. And lastly, co-working seat leasing is ideal for companies that need a flexible and cost-effective way to establish a remote office.

What are the benefits of BPO seat leasing for your business?

BPO seat leasing offers a lot of benefits most businesses are not aware of. For businesses running offshore operations, this is one of the best ways to save on costs, without losing full control of the hiring and management of staff.

Let us help you explore the many benefits of BPO seat leasing, so you can determine if this solution is right for your business.

  • Save on overhead costs.

BPO seat leasing is a cost-efficient solution for small and medium enterprises (SMEs) and start-ups. The cost of renting office space, especially in urban areas, can be quite high due to the high demand for commercial spaces. Established companies are willing to pay premium prices to occupy these spaces, which drives up rental costs. This can be a major challenge for SMEs and start-ups, which often have limited budgets. Leasing a seat solves this problem by providing a more affordable alternative to traditional office space. Instead of renting a whole office, companies can lease individual seats or desks in a shared office space. This can be significantly cheaper than renting a traditional office space, as the costs are shared among multiple companies. 

For example, a start-up that needs 10 seats for its employees can lease them in a shared office space for a fraction of the cost of renting a whole office. This allows the start-up to focus its resources on its core operations, rather than on infrastructure and office management, without, of course, sacrificing the comfort and security of the staff when it comes to the office space and amenities available to them.

  • Scale up faster.

Seat leasing is a flexible and customizable solution for companies of all sizes. The contracts for seat leasing are usually straightforward, and can be modified and adjusted depending on the company's changing needs. This allows businesses to scale up or down their office space as needed, without having to worry about long-term leases or expensive cancellations. 

BPO seat leasing also operates 24/7, even during weekends and holidays, which makes it an ideal solution for companies with shifting schedules. This allows businesses to maximize efficiency, by ensuring that there is always someone available to answer phone calls, answer emails, or perform back-office tasks, even outside of regular office hours.

  • Access expertise and latest technology.

BPO seat leasing providers typically have a lot of experience in managing office spaces and providing support services. This allows businesses to take advantage of their expertise and resources, without having to invest in them. 

For example, an outsourcing service provider typically has a team of IT professionals who can help businesses with their IT needs, such as setting up and maintaining computer systems, troubleshooting technical issues, and providing software and hardware support. This can help businesses to save costs, as they do not have to invest in hiring and training their own IT staff.

  • Improve data security.

To secure sensitive data, BPO seat leasing companies frequently have strong security measures in place. Businesses can benefit from this by feeling secure in the knowledge that their data is safe and being protected from data breaches. 

For instance, many BPO companies have strict security protocols in place to protect against unauthorized access to their facilities. This may include measures such as keycard access, security cameras, and security guards. They also ensure that their computer systems and networks are protected by firewalls, anti-virus software, and other security measures to prevent hacking and data breaches.

  • Better Focus on core business functions

BPO seat leasing allows businesses to outsource non-core activities, such as product information management, and focus on their core business activities. By outsourcing non-core activities, businesses can concentrate on their revenue generating tasks and increase their bottom line. 

For example, businesses can outsource Ecommerce tasks such as product catalog management and data entry to a service provider. This allows businesses to focus on their core activities, such as product development, marketing, and sales, without having to worry about managing their office space.

Build the Best Offshore in the Philippines — Partner with KDCI

Top global companies that offshore their operations to the Philippines can take advantage of 70% cost reduction on operational expenses. With the Philippines’ low cost of living and competitive wage rates, you can increase your operational efficiency while keeping a positive cash flow. 

If you’re a small company with a growing demand for additional staff, building an offshore team in the world’s top outsourcing destination is a smart move. Offshore staffing companies like KDCI can help you set up the perfect extension of your in-house team in the Philippines. Our multi-layered quality assurance, effective oversight management, top-notch data infrastructure, and 100% backup power can guarantee fast ROI from your offshoring initiatives.

Are you ready to get started? Then, click the button below and get a FREE consultation with one of our experts today! 

Contact Us

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corporate professional next to text "Outsourcing Customer Service and Support: A Complete Buyer’s Guide for 2026" with KDCI logo
Offshore Staffing
Outsourcing Customer Service and Support: A Complete Buyer’s Guide for 2026
Considering outsourcing customer service and support this 2026? Check out this complete guide to outsourced customer service for businesses by KDCI.

Customer expectations have evolved (and will most probably continue to evolve) faster than ever. A good brand must combine excellent customer service with fast issue resolution and meaningful interactions to effectively turn every customer into loyal brand advocates.

This is why more businesses are turning to outsourcing customer service and support to deliver personalized experiences that leave a lasting impact.

However, as popular as outsourcing is, it still isn’t a simple plug-and-play decision. It’s a strategic investment that can transform how your brand connects with its customers, if and when done right.

So, to help your business succeed this 2026, this complete guide covers the essentials of outsourcing customer service and support in 2026: 

  • what it really means, 
  • why companies are doing it, 
  • what challenges to anticipate, and 
  • how to choose the right partner to scale your operations globally.

Here’s everything you need to know about outsourcing your customer service this 2026.

The State of Customer Service Outsourcing in 2026

Customer service outsourcing has entered a new era. 

According to recent market projections, the global customer service outsourcing industry is expected to exceed $100 billion by 2030, with the Philippines, India, and Eastern Europe leading the charge as preferred outsourcing destinations.

This only means that more and more businesses will continue to adopt outsourced customer service solutions, your competitors included. The question now is: is your business keeping up? Gone are the days when call center outsourcing was simply a remedy used to cut costs. 

This 2026, businesses are outsourcing to:

  • enhance customer service maturity, 
  • integrate AI-assisted workflows (81% of consumers believe AI is essential in customer service while 88% of CX experts believe personalization is the key to make the most out of AI use); and 
  • ensure 24/7 omnichannel coverage, among other reasons.

From Ecommerce to fintech, healthcare, and SaaS — industries are realizing that outsourcing doesn’t dilute brand quality but rather elevates it. With specialized providers offering multilingual, AI-augmented, and data-driven solutions, the outsourcing landscape is now defined by strategy that hinges on specialization and scalability.

Types of Customer Service Businesses Often Outsource

Customer service outsourcing isn’t one-size-fits-all. So, depending on your business needs and unique business goals, you may choose to outsource one or multiple functions.

1. Frontline Customer Support

These are your first points of contact: the agents handling calls, live chat, social media DMs, and emails. To make sure that every interaction with your customers matters, providers ensure fast resolution and consistent brand tone across every channel.

2. Technical Support

From SaaS companies to consumer electronics brands, tech support outsourcing allows businesses to provide tiered assistance from basic troubleshooting to advanced software guidance. Having a dedicated tech support team is essential for managing post-purchase inquiries and encouraging repeat purchases.

3. Ecommerce Support

Outsourcing Ecommerce support typically includes order management, returns processing, shipment tracking, and product inquiries. This is crucial for online stores during sales spikes or holiday seasons, or even during regular business periods in order to maintain smooth customer service operations.

4. Back Office and Admin Support

Data entry, ticket management, and case escalation are some of the back-end functions that are easily streamlined through offshore support teams. By having a dedicated team for back office services through a customer service company, businesses can easily improve turnaround times. These tedious tasks often become bottlenecks and are best completed through offshore outsourcing solutions.

5. Omnichannel CX Management

Since omnichannel support is among the key drivers of customer service this 2026, the most advanced outsourcing setups are those that combine all customer touchpoints into a unified experience, supported by AI-powered analytics dashboards, sentiment tracking, and performance reporting.

Why Businesses Outsource Customer Service and Support

For a lot of medium to large businesses worldwide, outsourcing is considered as a core component of business strategy. Let’s break down the main reasons why companies are making the shift and adopting customer service outsourcing.

  • Access to Expertise and Scalability

As your business grows, so do customer inquiries. Outsourcing providers bring ready-to-deploy teams trained in tools like Zendesk, Freshdesk, and Salesforce Service Cloud. They can scale quickly without the extra time and cost of in-house hiring, making the solution ideal for both startups and growing businesses.

  • 24/7 Global Coverage

Customers expect instant responses across time zones in every available communication channel. This is true for all types of businesses across industries. Offshore and nearshore providers allow brands to maintain “always-on” customer care, covering holidays and peak hours with ease without the additional strain on your existing staff.

  • Cost Efficiency Without Sacrificing Quality

Outsourcing reduces overhead costs including, but not limited to, salaries, benefits, training, and infrastructure. But cost-efficiency doesn’t (and should never) mean compromise. The best providers deliver enterprise-grade or tailored support (whichever you may need) at a fraction of the costs.

  • Enhanced Customer Experience Through Technology

With the integration of AI being among the best practices in customer service, leading providers combine human empathy with AI-driven insights, chatbots, and CRM automation to provide seamless, omnichannel experiences across voice, chat, email, and social platforms.

  • Business Focus and Agility

Delegating non-core functions like support allows your internal teams to focus on growth, innovation, and customer retention strategies while your outsourcing partner takes care of the day-to-day customer interactions. This way, you can meet the demand for excellent customer service, while still giving your business the opportunity to keep growing.

Signs It’s Time to Outsource Customer Service

If you’re not sure whether outsourcing is the right move for your company, here are telltale signs your business is ready:

  • You’re struggling to keep up with customer volumes during peak seasons.
  • Your internal team spends more time fixing issues than improving the product or service.
  • You’re receiving mixed customer satisfaction ratings or low response times.
  • You need 24/7 coverage but can’t sustain multiple shifts locally.
  • You want to expand globally without setting up new offices.
  • You want to combine Artificial Intelligence with human empathy in customer service.
  • You want to take advantage of the business benefits we’ve enumerated above.

If any of these apply to your business, it’s time to consider outsourcing customer service strategically as a proactive move toward sustainable growth. Of course, to make the most out of this solution,  it’s important to find the right customer service outsourcing provider that matches your business’ culture and values.

Now, let’s talk about finding the right partner when building your outsourced customer service team.

How to Choose the Right Customer Service Outsourcing Partner

Choosing the right partner means looking beyond price and focusing on expertise, alignment, and partnership value. Here are some of the industry best practices that businesses adopt to ensure success in outsourcing customer service and support.

1. Define your objectives clearly.

Start by clarifying what you need. Are you outsourcing for cost savings, scalability, or better customer outcomes? What KPIs do you need to measure to assess if the customer service solution is working for the business? Remember: the clearer your goals, the easier it is to measure success later.

2. Evaluate experience in your industry.

When choosing a third party provider, it’s important to ask about their clients and identify the niche where they excel. Look for a provider with sector-specific experience and specialized expertise. Ecommerce brands, for instance, need specialists who understand shopping cart systems, return policies, and payment workflows.

3. Review technology capabilities.

Ask potential providers what tools they use for CRM, analytics, QA, and workforce management. Modern contact center providers integrate AI, automation, and real-time dashboards into their daily operations.

4. Assess culture and communication fit.

Cultural compatibility is crucial, especially for voice support. Outsourcing providers in the Philippines, for example, are known for neutral accents, empathy, and strong English proficiency, making them ideal for Western markets.

5. Check data security and compliance

Your outsourcing partner should comply with all relevant and applicable compliance requirements. Data breaches are costly — both financially and reputationally. As such, it’s important to find a reputable outsourcing partner that has documented policies, transparent audit trails, and a dedicated data security team responsible for regular risk assessments.

While outsourcing is a well-established space and there are industry best practices like the ones listed here that will empower you to take advantage of the full benefits, it still comes with inevitable risks.

Common Challenges in Customer Service Outsourcing and How to Avoid Them

Even the best outsourcing partnerships have cons and challenges. However, knowing them early helps you mitigate risks. Here are three of the common challenges of customer service outsourcing as well as the ways to address them.

  • Misaligned Expectations

One of the most common pitfalls in outsourcing is when both parties have different interpretations of success. If expectations aren’t aligned from the start, even the most capable service provider will struggle to meet your standards.

Solution: Set clear SLAs (Service Level Agreements) and define success metrics — such as response time, resolution rate, and CSAT scores — from day one.

  •  Communication Barriers

Communication challenges often arise when teams work across time zones, locations, and cultural contexts. These gaps can slow down decision-making and impact service quality.

This can be addressed by using shared communication tools like Slack or Teams, conducting regular syncs, and assigning a dedicated account manager for seamless coordination.

  • Quality Consistency

Customer service quality shouldn’t vary from agent to agent. Without proper oversight, tone, resolution accuracy, and service delivery can become inconsistent.

How, then, can you address this? Implement continuous QA monitoring and training loops where feedback from your internal team helps refine scripts and tone of voice. Keep in mind that quality control is not a one-time setup, but a dynamic repeatable process shaped through feedback and refinement.

Why KDCI Outsourcing Is the Partner of Choice in 2026

What sets KDCI apart is our strategic, brand-aligned approach. We build teams that embody your brand values, tone, and standards. Whether you need full omnichannel coverage, seasonal ramp-up, or technical support team, KDCI delivers the expertise to meet your customer needs and business goals.

Outsourcing customer service and support in 2026 is about achieving customer experience excellence at scale. With the right partner, your brand can deliver consistent, human, and high-quality interactions that foster loyalty and long-term growth.

If you’re ready to transform your customer experience and unlock growth, it’s time to make your next strategic move.

Outsource your customer service and support with KDCI.

Scaling your operations for your online store is easier when your customers feel valued every time and across every channel.

At KDCI Outsourcing, we help global brands build customer service teams that deliver consistent, empathetic, and results-driven customer experiences. From chat and email support to omnichannel strategies, we tailor every customer service outsourcing solution to strengthen loyalty and elevate your brand reputation.

Contact KDCI today to learn how you can take advantage of customer service and support outsourcing this 2026.

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employee holding a box with various items
Offshore Staffing
How to Handle Staffing Shortage: 7 Proven Best Practices
October 23, 2025
A staffing shortage can significantly impact business operations and productivity. To address this challenge, companies can streamline their hiring processes, offer incentives, and explore alternative staffing solutions to efficiently manage workforce needs.

In some businesses and geographical areas, staffing shortages can be a serious problem. For instance, a survey by the Manpower Group discovered that 40% of American employers had trouble filling available positions, with skilled crafts, sales reps, and drivers being the hardest occupations to fill. Another survey from the US Chamber of Commerce on the nation's workforce crisis, 94% of state and local chambers reported that businesses in their area were finding it “difficult” or “very difficult” to hire workers.

This challenge is not isolated to the United States. With the rise of remote work options and changing workforce demands across industries, the number of unfilled positions continue to increase and the hiring market becomes more and more competitive.

Businesses may suffer from a lack of qualified personnel due to some common reasons: it could be due to the high demand for talent in the industry or overall lack of employee retention strategies that could push away current employees due to burnout. That’s why it’s critical for businesses to take a proactive approach to staffing shortages.

In this blog article, we explain what a staffing shortage is, why it happens, and how your organization can handle it before it affects your company’s bottom line.

What is a staffing shortage and how does it impact businesses?

A staffing shortage is a situation in which there are not enough people available to do the work that needs to be done within a company or organization. This can happen for a variety of reasons that will be explained later on. A staffing shortage can negatively impact a company or organization by decreasing productivity and efficiency, increasing workload for existing employees, and potentially leading to financial losses.

Let’s give this financial loss a clearer context:

The Society for Human Resource Management (SHRM) estimates that the average cost to replace an employee can equal six to nine months of that employee’s salary. The Work Institute, on the other hand, estimates that the total cost of turnover is between 33% to 200% of the employee’s annual salary. For a company losing just a handful of employees annually, these hidden costs can easily become one of the largest unplanned expenses that could have a long term impact on the business as a whole.

In reality, staff shortage is more than just an empty desk. It is a profound weakness in operations that increases employee stress, spikes replacement costs, alienates customers, and ultimately holds the entire organization back from its potential.

A Filipino business owner in his late forties is seen grappling with the challenge of a lack of staff.

What causes a staffing shortage?

Potential reasons why a staffing shortage might occur vary across industries and organizations. However, here are some common causes:

Increased demand

If a company or organization experiences an increase in demand for its products or services, it may need to hire more employees to meet this demand. However, if there are not enough qualified candidates available, a staffing shortage could result.

This is particularly true in industries that are seasonal, experiencing a sudden growth spurt, or dealing with unexpected large projects or contracts. If the hiring process is slow or there are simply not enough qualified candidates available locally or nationally to staff the new roles quickly, a staffing shortage could result. This often puts immense strain on the existing staff, potentially leading to burnout and further turnover.

Lack of qualified candidates

Even if there are open positions available, a company or organization may struggle to fill them if there is a shortage of qualified candidates in the job market. This can be due to a lack of skilled workers in a particular industry or geographic region, or a mismatch between the skills and qualifications required for a job and the skills and qualifications of available candidates.

One way to address this is to expand the search by utilizing offshore outsourcing solutions. This way, a company is not only limited to hiring available local talent — maximizing the chances of finding the right people for different roles and minimizing the time spent looking for qualified talent.

High employee turnover

A high rate of employee turnover, or the rate at which employees leave an organization and are replaced, can also contribute to a staffing shortage. If a company or organization is losing employees faster than it can replace them, it may struggle to maintain an adequate workforce.

In this scenario, the challenge lies not with hiring, but in retaining existing staff. High turnover is often a symptom of underlying organizational problems, such as:

  • poor company culture or toxic work environments,
  • uncompetitive compensation and benefits,
  • lack of growth opportunities or professional development,
  • ineffective or inefficient management, and
  • burnout due to excessive workload caused by an existing staffing shortage.

Other factors

Other factors that can contribute to a staffing shortage include changes in economic conditions, competition for skilled workers, and changes in government policies or regulations.

How to effectively address the staffing shortage of your organization

When your company has a staffing shortage, it can be difficult to meet customer demand and maintain high levels of quality. Here are some of the best industry secrets to effectively address a staffing shortage:

1. Review your hiring process

Consider if your hiring process is efficient and if there are any bottlenecks that are causing delays. You may want to streamline the process or consider alternative hiring methods, such as partnering with an outsourcing company or hiring temporary or contract workers. Utilizing specialized recruitment agencies for hard-to-fill roles can also provide immediate access to pre-vetted candidates who are not actively applying through traditional channels.

2. Offer incentives

Consider offering incentives to attract and retain employees. This could include things like bonuses, flexible schedules, or additional training opportunities. To effectively compete, your company must ensure that its overall compensation package, including salary and benefits, is at or above the market average for your industry and region. Beyond money, offering enhanced incentives like comprehensive health insurance, as well as clearly defined hybrid or fully remote work options can be powerful differentiators.

3. Promote from within

Encourage your current employees to take on additional responsibilities or offer them the opportunity to advance within the company. This can help you fill positions without having to go through the hiring process. This requires a dedicated focus on succession planning, where high-potential employees are identified early and given targeted mentorship and training to prepare them for leadership or specialized roles before the position becomes vacant.

4. Utilize outsourced staff

If you have a short-term staffing need, consider outsourcing some of your job roles to an offshore staffing solutions company. This can be a good option if you don't want to commit to a long-term hire. Outsourcing is most effective for non-core business functions such as IT help desk support, payroll processing, data entry, and customer service. By leveraging the large, specialized talent pools available through Business Process Outsourcing (BPO) firms, your internal team is freed up to focus exclusively on strategic, high-value tasks that require specialized knowledge.

5. Consider remote work

If you have the option, consider allowing your employees to work remotely. This can help you access a larger pool of candidates and may make it easier to find the right fit for your team. Alternatively, you can explore remote staffing solutions as well. EEmbracing a remote working policy or flexible work hours that eliminates geographical constraints, allowing you to recruit top talent from across the country or globally, effectively mitigating local labor shortages. For jobs that require some physical presence, a hybrid model — where employees split time between home and the office — is a major retention tool that signals flexibility and trust, making your company more attractive to highly skilled candidates seeking better work life balance.

6. Train and develop your current staff

Investing in the training and development of your current staff can help you retain employees and increase their skills and productivity. This can also help fill gaps in your staffing needs. Beyond basic training, offering employees personalized upskilling programs in high-demand areas (like new software or data analytics) is a powerful, proactive strategy to future-proof your workforce.

7. Collaborate with other organizations

Consider partnering with other organizations or businesses in your area to share resources and personnel. This can help alleviate staffing shortages and reduce costs. Formalizing partnerships with local universities, community colleges, and trade schools is essential for establishing a reliable talent pipeline through internships, apprenticeships, and other similar programs.

Having explored all the options organizations can explore — from optimizing internal hiring and incentivizing staff to strategic cross-training and building academic partnerships — what remains true is that time is often the most critical factor when addressing staff shortage.

Unfortunately, many internal fixes, while necessary for long-term health, take months to yield results. So, when faced with an immediate and urgent talent gap, the fastest and most scalable solution is to look outside your walls. This is where outsourcing shifts from being a mere option to the most effective solution for handling critical staffing shortages right now.

Outsourcing: The Best Solution to Handling Staffing Shortages

Companies might use outsourcing to get access to specialized talents or expertise that might not be present within their own organization. It enables them to hire outside expertise on a temporary or permanent basis, which can be a perfect solution to deal with staffing shortages. Even in the face of staffing issues, this can help the organization achieve its goals and keep running efficiently. 

Consider KDCI, an offshore staffing solutions provider with a long-decade of leadership and experience in Ecommerce outsourcing. We offer outsourced and offshore staffing services at an affordable rate in customer support, product information management, web development, digital marketing, and accounting

Let us help you improve your staffing levels and improve your overall work environment. Click the button below to get your FREE consultation with one of our outsourcing experts today! 

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Offshore Staffing
Ecommerce Customer Service Outsourcing Packages: What’s Included & How to Choose
Discover what's in ecommerce customer service outsourcing packages and how to pick the right solution to enhance customer satisfaction and support.

In today’s digital-first marketplace, ecommerce customer service outsourcing has evolved from a convenient option into a powerful growth strategy. As the world of commerce becomes increasingly competitive, online businesses—from fast-growing startups to global retailers—now view outsourced customer support not just as a cost-saving measure, but as a way to scale operations, improve response times, and enhance the customer experience through meaningful, high-quality customer interactions.

As ecommerce competition intensifies and customer expectations rise, brands are under pressure to deliver quick, reliable, and personalized support—across multiple channels, time zones, and platforms. The solution? Partnering with a specialized outsourcing provider that offers tailored customer service packages designed to meet your brand’s unique business needs while supporting everything from live chat support and email to multilingual phone assistance and technical support.

This guide breaks down what’s typically included in ecommerce customer service outsourcing packages, how they create measurable ROI, and what to look for when choosing the right provider for your business.

What’s Driving Ecommerce Businesses Toward Outsourced Customer Service?

While early outsourcing decisions were driven by cost efficiency, today’s ecommerce leaders prioritize enhanced customer interactions, scalability, and global support coverage. Outsourcing partners have evolved into strategic extensions of the brand—offering skilled agents, advanced tools, and 24/7 availability to meet modern shopper expectations.

Key Motivations for Outsourcing Ecommerce Support:

  • 24/7 availability across multiple time zones
  • Access to multilingual and multichannel agents
  •  Scalable support for seasonal demand spikes
  •  Lower overhead and staffing costs
  •  Improved response to urgent customer inquiries
  •  Faster resolutions with expert technical support
  •  Focus on core business growth areas

In essence, outsourcing gives ecommerce brands the flexibility to grow faster without overloading internal teams. It transforms customer service from a reactive function into a proactive driver of brand loyalty and sales retention, supported by an agile and performance-driven outsourced team.

What’s Included in Ecommerce Customer Service Outsourcing Packages?

Ecommerce customer service outsourcing packages may vary by provider, service scope, and business size. However, most reputable providers offer a combination of core services, advanced add-ons, and technology integrations designed to align with current and future business needs.

1. Multichannel Customer Support

Customers don’t stick to one communication channel—and neither should your support system. Outsourced agents are trained to manage customer interactions across:

  • Live chat support for real-time engagement directly on your website
  • Email and ticket resolution for complex inquiries
  • Social media monitoring and responses for public and private concerns
  • Phone support for personalized assistance
  • Full integration with major ecommerce platforms like Shopify, WooCommerce, and Magento

2. Order and Delivery Management

Agents help manage order tracking, shipment updates, lost packages, and delivery concerns, reducing the workload of internal teams and enhancing the post-purchase customer experience.

3. Refunds, Returns, and Disputes

Outsourced specialists trained in refund policies and payment dispute resolution ensure customer trust is maintained while minimizing unnecessary losses.

4. Product Inquiry Handling

Agents equipped with product knowledge assist customers by answering detailed customer inquiries, recommending alternatives, and even upselling related products—boosting conversion rates and average order values.

5. Complaint Resolution

Empathy-driven complaint handling helps retain customers. The outsourced team follows brand-aligned scripts, escalation procedures, and feedback loops to ensure proper resolution and consistent tone.

6. Customer Feedback and Review Management

Many outsourcing packages include proactive monitoring of online reviews, feedback collection, and sentiment responses to maintain the brand’s credibility and improve overall customer experience.

7. Reporting and Analytics

Comprehensive reports typically highlight:

  • Average response time
  • Resolution time
  • CSAT (Customer Satisfaction) scores
  • First contact resolution rate
  • Sentiment trends from customer feedback

These insights enable ecommerce companies to continuously fine-tune support strategies and performance.

The ROI of Ecommerce Customer Service Outsourcing

The value of outsourcing extends far beyond cost reduction, influencing everything from scalability and operational efficiency to long-term loyalty.

1. Direct Cost Savings

Brands can cut operational expenses by 30–50% by eliminating the costs associated with hiring, training, staffing, office spaces, and technology licensing.

2. Improved Efficiency

With pre-trained agents experienced in managing high volumes of customer inquiries, turnaround times are reduced, especially during peak shopping events or seasonal surges.

3. Enhanced Customer Experience

Having a dedicated outsourcing provider that ensures responsive 24/7 support, multilingual coverage, and quick technical support contributes to stronger loyalty and repeat purchases.

4. Scalable Operations

During flash sales or seasonal marketing campaigns, businesses can instantly scale support resources through an outsourced team instead of going through lengthy hiring processes.

5. More Focus for Internal Teams

By delegating customer service tasks, internal teams can focus on product innovation, marketing strategies, and long-term business development rather than tracking tickets or managing live chat support queues.

Real-World Success Stories: Outsourcing in Action

A D2C Apparel Brand Scales for Holiday Demand

 A rising fashion retailer struggled to manage holiday-related customer inquiries, returns, and shipment delays.
Solution: Partnered with a Philippines-based outsourcing company to build a 24/7 chat and email support team.
Results:

  • Cleared support ticket backlog in 10 days
  • Boosted customer satisfaction by 40%
  • Saved $300,000 annually in staffing costs

A Global Beauty Brand Expands Multilingual Support

A European beauty retailer expanding into North America and Asia needed multilingual support agents.
Solution: Outsourced support in English, Spanish, and Mandarin.
Results:

  • Reduced response times from 24 hours to under 3
  • Increased customer retention by 22%
  • Successfully penetrated 4 new markets

A Tech Gadget Store Minimizes Return Disputes

This electronics store faced increasing refund disputes due to inconsistent responses.
Solution: Outsourced dispute resolution and returns management to an experienced BPO partner.
Results:

  • Reduced refund processing time by 50%
  • Boosted online ratings by 1.5 stars
  • Reclaimed over $200K in potential losses

What Ecommerce Businesses Have Learned

Outsourcing Is a Brand Investment

When implemented correctly, outsourced customer service enhances reputation, consistency in tone, and emotional engagement during customer interactions.

Choosing the Right Partner Is Crucial

A high-quality outsourcing provider doesn’t just follow scripts—they immerse themselves in your brand identity.

Cultural Alignment Matters

 Regions like the Philippines, India, and Latin America offer strong English proficiency, cultural compatibility, and customer empathy.

Customization Drives Success

Custom workflows, escalation ladders, and communication guides ensure brand alignment and better support outcomes.

Choosing the Right Ecommerce Customer Service Outsourcing Partner

Before selecting a provider, evaluate the following:

  • Proven ecommerce experience
  • CRM/helpdesk tool integration
  •  Flexible pricing models
  • Access to multilingual teams
  • Positive case studies and testimonials
  •  Strong onboarding and training processes
  • 24/7 availability and proactive technical support

How to Maximize the Value of Outsourced Customer Service

To optimize performance and ROI:

  • Define key performance metrics (response time, CSAT, FCR)
  • Provide deep brand immersion training
  •  Maintain regular feedback sessions
  • Encourage smooth collaboration between internal and outsourced teams
  • Continuously refine workflows based on analytics

Outsourcing is not a one-time transaction—it’s a long-term partnership that evolves alongside your ecommerce growth.

Build Scalable Ecommerce Support with KDCI

Whether you’re a startup aiming to provide round-the-clock service or a large retailer seeking to optimize global operations, KDCI delivers fully customizable ecommerce customer service outsourcing solutions aligned with your business needs. We also provide a comprehensive guide to help you better understand and select the most suitable Ecommerce Customer Service Outsourcing solution for your business.

Our expert outsourced team manages everything from live chat support, ticket handling, and order management to returns, technical support, dispute resolution, and multilingual customer care.

  •  Omnichannel solutions
  • 24/7 support coverage
  •  Trained ecommerce specialists
  •  Data-driven performance
  • Proven success with global brands

Ready to scale your customer service with confidence?

Get in touch with KDCI today and discover how our ecommerce outsourcing solutions can elevate your brand through exceptional customer experience and performance-driven support.

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