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As businesses grow, so do their needs when it comes to human resources. The more people you bring into the team to empower your customers, the more tedious the task of managing them becomes. It’s inevitable. It’s just a natural consequence of growing.
For most organizations, this could pose a challenge. After all, HR comes with a huge administrative burden: from recruiting to employee training to ongoing employee relations. While business growth is of course a good thing, having systems in place to control, maintain, or escalate this — whichever your goal may be — is important to protect both your business and your people through efficient and effective HR operations.
There are a number of good reasons behind this. It’s not a coincidence that most businesses (around 42% of them) today have outsourced at least one HR function. And if you’re reading this, there’s a huge chance that joining these businesses who have utilized HR outsourcing has crossed your mind.
If that’s the case, you’re in the right place. In this article, we’ll quickly cover the things you need to know about HRO, the factors you need to consider when outsourcing HR functions, the top companies you can choose from AND how you can choose the right HR outsourcing company in the Philippines to work with.
Ready? Let’s start with the basics.
Let’s start by breaking down the two elements of the concept: HR (human resources) and outsourcing.
Human resources — that’s something you’re already familiar with. Since you’re managing a business, we could say that it’s somehow part of your daily routine and be right. It’s that business function where, as an employer, you manage your people. Outsourcing — you’ve probably heard of as well, maybe more than once — from colleagues, competitors, all over the internet through articles like this one. It’s the process of partnering with an external service provider to delegate some of your core business functions.
The combination of these two is a fast-rising industry valued at $39 billion: HR Outsourcing.
HR outsourcing (HRO) is a business strategy that involves enlisting the services of a third party agency or individual to manage some or all functions of one’s human resources. Most companies that outsource HR functions do so to access specialized talent, improve operational efficiency, as well as reduce costs. In essence, you'll be hiring an HR professional (or a team of HR specialists) through a third-party provider to handle your business' unique HR needs.
The most commonly outsourced HR functions are recruitment and talent acquisition, compensation and benefits, payroll administration, employee training and development, and HR compliance. It really depends on the specific needs of the business; you might just need assistance with payroll, some guidance with talent management, maybe an HR platform to help you get valuable insights from employee data, or an entire department of HR experts — it’s totally up to you.
Like many other business processes, HR is being outsourced more and more due to financial constraints and talent shortage experienced by global companies. This makes outsourcing HR to offshore destinations like the Philippines a more compelling prospect for growing businesses, especially given the country’s reputation for high quality service and large talent pool, with a much lower cost.
Now that we have clarified what HR outsourcing is, let’s talk about the key things that you need to consider in order to make informed decisions when choosing an HR outsourcing company (we’ll drop the list in a bit) in the Philippines.
Not all HR outsourcing companies are created equal — because if they are, then there is no discussion to be had, you can just pick any HR outsourcing company. However, this being a business investment, the right partner can transform your HR operations, while the wrong one may cause delays, inefficiencies, and compliance risks.
Here are the key factors to evaluate before making your decision:
Check whether the provider offers the HR functions you actually need — be it payroll administration, recruitment, training, or talent management. Note that some companies specialize in one area, while others provide end-to-end HR solutions.
Every industry has unique HR requirements. For example, retail companies may need seasonal hiring support, while healthcare organizations must comply with strict labor regulations. Choose a provider that is familiar with your sector and has previously worked with other businesses in your space.
Modern HR outsourcing goes beyond manual processing. Ask about the HR software, automation (whether they’re adopting AI to streamline processes), and reporting tools they use to manage employee data while ensuring efficiency and transparency.
Your HR needs today might look very different in a year or two. That’s just how it works for growing businesses. So, consider your long-term goals and pick an outsourcing company that can grow with you, offering flexible contracts and the ability to scale HR services up or down as needed.
HR always involves sensitive employee data. As such, it’s important to ensure that your outsourcing partner has strong data protection measures in place and complies with relevant laws and policies such as GDPR, HIPAA, or local labor codes.
Smooth collaboration depends on more than technical skills. When hiring an HR professional, it also matters how they are going to connect with your existing team. So, when choosing a provider, consider whether the team understands your company culture and whether communication styles align with your in-house staff.
Remember: the cheapest option isn’t always the best. You want value for money and maximum ROI for outsourcing, not just mere cost savings. Compare pricing structures, but also weigh the value they bring in terms of quality, reliability, and long-term partnership potential.
Now, with these in mind, we have compiled a list of top HR outsourcing companies that excel in most, if not all, of these factors.
Let’s go ahead and get to know the leaders in the HR outsourcing space in the Philippines.
For those considering outsourcing human resource functions to the Philippines, below are 10 of the top HR outsourcing companies or agencies, listed in no particular order, selected based on their online reviews and reputation on Google.
A global outsourcing company that offers tailored HR outsourcing solutions, encompassing processes such as recruitment, payroll, training and development, etc. They specialize in building offshore HR teams that can seamlessly integrate with in-house teams in the US, Australia, and UK, highlighting seamless collaboration and smooth communication.
Given their wide array of human resources outsourcing services and that majority of their clients are medium sized companies, we recommend them for SMEs who prioritize a good fit when it comes to their offshore HR staff, and those who plan to expand their outsourced human resources to other areas like graphic design, Ecommerce, and customer service in the future.
A BPO company that offers comprehensive HR outsourcing services with focus on innovation and adaptability. Their tailored HR solutions aim to enhance business operations and productivity with over 200 full-time passionate employees and working with various industries such as retail, energy, fashion, real estate, and food.
Their expertise in handling end-to-end HR functions, coupled with their consulting and technology services, makes them an ideal choice for businesses seeking to not only manage their HR operations but also to innovate their business practices with consulting and technology.
A BPO company providing various HR services, such as compensation & benefits, employee experience, and HR management. Their high-quality, cost-effective services help businesses scale their operations efficiently, while their team of experts work closely with clients to understand their specific needs and provide customized HR solutions that enhance productivity and operational efficiency.
With a strong track record in supporting various business functions, iSupport Worldwide is for SMEs looking to streamline their HR processes, especially those that require customized solutions to enhance productivity and operational efficiency.
A premier recruitment firm specializing in executive search and HR outsourcing services, offering tailored solutions to meet the unique needs of their clients. They source high-caliber talent for executive, technical, and specialist positions, and have a dedicated team of consultants working closely with clients to understand their specific requirements and deliver candidates that fit their organizational culture and business goals.
Their expertise in headhunting and strategic HR support makes them a valuable partner for businesses seeking to drive growth and competitiveness through effective talent acquisition and management. We recommend Manila Recruitment for companies looking for expert recruitment services and strategic HR support
An outsourcing company that provides a wide array of HR outsourcing services, including recruitment, payroll, and employee management. They focus on delivering personalized solutions that cater to the specific needs of their clients. With a commitment to excellence and a client-centric approach, MCVO Talent Outsourcing ensures seamless integration of their services with clients' existing operations.
As they customize HR solutions, they can make great partners for SMEs looking to optimize their HR processes, improve efficiency, and achieve significant cost savings, particularly, for those seeking reliable and efficient HR services that support their growth and operational goals.
An outsourcing firm offering comprehensive HR outsourcing services, specializing in recruitment, payroll, and employee benefits administration. They provide scalable solutions designed to integrate smoothly with clients' in-house teams, ensuring efficient HR operations. ConnectOS is known for its ability to deliver high-quality HR services that enhance productivity and reduce operational costs.
They build dedicated offshore teams, making them an ideal choice for businesses looking to enhance their HR functions while focusing on core activities. We recommend ConnectOS for companies seeking flexible and efficient HR solutions that support their long-term growth and success
Circa Logica Group is a renowned provider of HR outsourcing, corporate training, and payroll processing solutions. Their HR services focus on recruitment, outsourcing, and consulting, helping businesses streamline their HR functions and improve operational efficiency.
With a strong reputation for service excellence and a client-centric approach, they are recommended for clients seeking to optimize their HR processes and achieve significant cost savings while maintaining high standards of service and support
An outsourcing company that offers a wide range of HR outsourcing services, including recruitment, payroll, and employee benefits administration. Their dedicated team works closely with clients to understand their specific needs and deliver tailored HR services that enhance productivity and support business growth.
With their client-centric approach and extensive industry experience, they are a good choice for companies looking for reliable and effective HR outsourcing solutions that align with their strategic goals.
Staff Outsourcing Solutions specializes in HR outsourcing, particularly on bookkeeping, accounting, and back office services. They focus on providing high-quality, efficient solutions that cater to various industries.
With a commitment to customer advocacy and operational efficiency, Staff Outsourcing Solutions helps businesses optimize their HR functions and improve overall productivity, making them ideal for businesses seeking reliable and cost-effective HR services that support their long-term growth and success.
An HR outsourcing company that offers services such as payroll and tax processing, benefits management, and time and attendance HR software. Their service emphasizes automation and its role in enhancing their services.
As they’ve worked with brands in multiple geographies such as Latin America, North America, and Pacific Rim, and have partnered with small and large companies, they are a great choice for businesses who are interested in automation and have a global presence.
Now that you already have a list of options, the next step in outsourcing your HR function is to see which one perfectly matches your specific HR needs.
If you’re wondering where to start or still have more questions about how HR outsourcing works or how it can benefit your business, that’s where we can help. Simply reach out and we’d be happy to discuss any concerns you might have about human resources outsourcing.
There’s a reason why more and more companies outsource HR services to the Philippines. With its lower labor costs, high English proficiency, and large talent pool, brands across the globe are enjoying cost reductions, operational efficiencies, and high-quality HR services.
But with plenty of companies to choose from, which HR outsourcing company should you work with?
At KDCI Outsourcing, we’ve had over a decade of experience supporting brands, not merely as service providers, but as business partners who help our clients identify their objectives, strategize, and achieve their goals. Through our tailored outsourcing solutions, we can build you a winning offshore HR team in the Philippines that will not only meet your expectations, but seamlessly integrate with your inhouse team environment and culture, ensuring the best fit and smooth collaboration.
Interested in outsourcing HR services to the Philippines? Contact us today!
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People are the core of every business. This is true in every industry, at all stages of growth, even and especially when AI takes the spotlight in business operations. It’s the employees that drive innovation, execute strategies, and ultimately determine whether a company succeeds or fails.
As such, the process of managing people — your business’ human resource (HR) function — becomes increasingly complex as the organization scales. HR processes tend to expand in scope as the business evolves, from functions like payroll and compliance to recruitment and overall employee performance management. So, what once worked for a smaller team often becomes unsustainable as the business grows and onboards more team members.
The global demand for human resource outsourcing is accelerating exponentially, with a $39-billion current market size that is expected to hit over $57 billion by 2033. It’s because businesses, especially medium to large organizations, are recognizing that outsourcing HR can be an ideal solution for businesses looking to both cut costs and maximize strategic value.
From payroll and compliance management to recruitment and training, HRO provides flexibility and expertise that allow leaders to focus on core business growth. In a highly competitive market, that could be the difference between thriving and being left behind as other businesses in your niche move ahead.
This guide explores everything decision-makers need to know about human resource outsourcing:
By the end, you’ll have a clear framework to make a strategic choice for your organization’s HR future. Let’s get started.
Human Resource Outsourcing (also popularly known as HR Outsourcing or HRO) is when a business delegates some or all of its HR functions to an external provider. These providers are equipped with specialized systems, processes, and expertise that many companies would otherwise need to build internally.
Instead of building large internal HR departments, companies can leverage outsourcing HR functions to cut costs, ensure compliance, and scale operations without compromising employee engagement and experience. Data shows that around 42% of large businesses are currently outsourcing at least one HR function. Because of its nature, this solution is best for medium to large businesses who are currently in a growth phase and in need of an efficient HR department, minus the overwhelming overhead costs.
As you explore outsourcing options, you have probably encountered a number of confusing acronyms — HRO, PEO, RPO. Now, these can sound similar (and they do have some intersections and overlaps), but they function differently. Understanding the distinctions is essential because choosing the wrong model can lead to inefficiencies, compliance complications, or misalignment with the organization’s long-term goals.
Let’s go through them one by one:
As already discussed above, this refers to the delegation of specific HR functions to external HR outsourcing companies while employees remain under the company’s direct employment. The outsourcing partner delivers services such as payroll, benefits administration, compliance management, training, or performance monitoring.
For medium to large enterprises, human resources outsourcing services are attractive because it reduces the administrative burden while still allowing business leaders to retain full strategic oversight of the workforce. The relationship is straightforward: the company maintains complete employer control, while the HRO provider acts purely as a service partner.
A Professional Employer Organization, on the other hand, operates on a co-employment model. In this arrangement, the PEO shares legal employer responsibilities with the business. Employees are technically employed by both the company and the PEO, with the latter managing payroll, benefits, and compliance under its own employer identification number.
This structure is particularly useful for small to mid-sized businesses that want to provide enterprise-level benefits and maintain regulatory compliance without investing heavily in building HR infrastructure internally. However, for larger organizations, the co-employment aspect can sometimes feel restrictive, as it requires sharing responsibilities that many enterprises prefer to keep in-house.
Lastly, there’s Recruitment Process Outsourcing which is more specialized. In this model, an external RPO partner manages all or part of a company’s recruitment and hiring activities. This HR staffing solution can include job advertising, candidate sourcing, interviews, background checks, and onboarding. Unlike a PEO, the RPO provider does not assume co-employment responsibilities; instead, they act as an extension of the company’s internal talent acquisition team.
For organizations experiencing rapid growth, high-volume hiring, or expansion into new markets, recruitment process outsourcing provides speed, efficiency, and access to a deeper talent pool, all while ensuring that new hires remain directly employed by the company itself.
Since we’re only focusing on fully answering the question “What is human resource outsourcing?” in this article, we’ll now proceed with discussing the other aspects that make HRO what it is and how it can benefit your business today and long into the future.
One of the biggest advantages of human resource outsourcing is its flexibility. Organizations can outsource just a few HR functions or their entire HR department, depending on business needs. That said, its scope can range from transactional services like payroll to strategic functions such as performance management and workforce planning.
Below are the core HR services that are commonly outsourced by businesses across the US and why they matter to you:
Payroll is one of the most complex, sensitive, and time-consuming HR tasks. Errors in payroll can greatly affect employee satisfaction. In addition to that, they can also lead to compliance penalties and reputational damage. Outsourcing payroll to an HR outsourcing firm ensures accuracy in payroll processing, timeliness of distribution of salaries, and compliance with every relevant employment law and government requirement.
For businesses, outsourcing payroll means predictable costs and reduced legal exposure, while freeing internal teams for higher-value work.
Hiring (and retaining) the right people is a competitive advantage, but recruitment is time-intensive and resource-heavy. It’s one of the human resources functions that cost the most to invest in, and also among the most costly if not done right. Outsourcing recruitment to a third-party provider can cover:
An HR outsourcing provider often has larger talent networks, recruitment HR technology (AI screening tools), and deep market insights. This gives your business the benefit of faster hiring cycles, lower hiring costs, and a higher quality of talent entering the organization.
Designing and managing employee benefits is critical to attracting top talent and their subsequent retention, but it’s also heavy in terms of administration. Its challenging nature is the reason why it’s also among the most outsourced human resource functions. Outsourced HR services for benefits administration empower your company to:
As a strategic retention tool, outsourcing benefits administration allows you to offer a more competitive and comprehensive compensation package without the added workload to your internal team.
Once employees are on board, the next step is to make sure that they stay with benefits that go beyond compensation. They expect continuous growth opportunities throughout their stay in the company, but building employee training programs internally requires significant resources. So, most businesses typically outsource training and development functions for:
HRO providers usually have ready-made learning platforms, industry-specific programs, and expert facilitators, helping companies upskill employees at scale. This empowers your business with improved workforce performance and reduced turnover without the cost of building an in-house L&D team.
Managing employee performance requires consistent monitoring, data collection, and alignment with company strategy. While it can be tedious, access to this data allows business leaders to make informed decisions for the company. Outsourced HR providers can help you:
Instead of HR managers struggling with spreadsheets, executives gain access to data-driven insights that support better workforce planning and strategic decision-making with the help of a reliable outsourcing provider.
By delegating the HR responsibilities we have listed here, growing businesses significantly reduce HR workloads and get cost savings at the same time. Doing so enables you to focus on things that matter the most, such as healthier employee relations and a culture that supports the overall business growth.
Human Resource Outsourcing has become a cross-industry practice, but its adoption is particularly strong in sectors where compliance, scalability, or workforce management are especially challenging.
While any business can benefit from outsourcing HR, certain industries have leaned into outsourcing more, specifically HR outsourcing services, because of their structural demands and growth patterns. The following are the top 3 industries are outsourcing HR functions:
The technology industry is one of the heaviest users of HRO. Tech companies scale rapidly, often expanding across multiple countries in short periods of time. This creates immediate complexity in payroll, benefits, and compliance. At the same time, the competition for top talent is fierce.
By outsourcing HR, technology firms gain faster access to global recruitment networks, streamlined onboarding processes, and automated payroll systems that support distributed teams.
In healthcare, the motivations for using outsourced HR functions are very different. This industry is heavily regulated, with strict requirements for licensing, training, and compliance with labor laws and safety standards.
The stakes are high since mistakes in HR compliance can result not only in financial penalties but also in risks to patient care and institutional credibility. Healthcare organizations use HRO providers to manage credential verification, ongoing training programs, and employee scheduling across diverse roles. By outsourcing, healthcare executives ensure regulatory compliance while freeing internal leaders to focus on patient outcomes and clinical innovation.
The finance sector also relies heavily on HRO, but here the emphasis is on confidentiality, risk management, and strict adherence to global compliance standards. Banks, insurance companies, and investment firms must navigate complex labor laws, data privacy regulations, and internal audit requirements.
Outsourcing HR to trusted providers allows financial institutions to maintain airtight compliance while still providing competitive employee benefits that attract top-tier talent. For executives, the decision to outsource is less about operational convenience and more about safeguarding reputation and maintaining investor confidence.
While these three are the top industries when it comes to HR outsourcing, it cannot be denied that HR outsourcing can benefit every industry — in fact, we have no doubt that this list will soon change as more and more businesses utilize outsourced HR functions.
As mentioned above, when outsourcing HR functions you can choose to outsource only specific functions or hand over your entire HR operation. This makes HRO adaptable to different business stages, whether you’re a company scaling rapidly, expanding into new markets, or simply looking to streamline day-to-day HR tasks.
Typically, businesses outsource these HR roles and functions:
From recruitment and payroll administration to benefits management and compliance, nearly every HR task can be outsourced depending on the organization’s needs. The goal is to relieve internal teams of routine or highly specialized responsibilities so that your team can focus on strategy, while still ensuring employees receive consistent, high-quality support.
Business leaders turn to human resource outsourcing not only for convenience, but because it delivers real strategic value. Beyond delegating a task, it’s a move that businesses make to streamline operations, reduce costs, and ensure that leadership is focused on driving growth rather than managing administrative tasks.
Here are the core benefits of HRO for medium to large enterprises:
With HR tasks handled externally, executives and managers can concentrate on strategy, customer growth, and innovation instead of getting tied up in payroll disputes or compliance paperwork. This sharper focus helps streamline business operations and strengthens the overall competitiveness of the business.
Running a full in-house HR department is expensive since salaries, training, software, and compliance costs all add up. HR outsourcing transforms these into scalable, predictable expenses that grow with business needs, giving organizations a leaner cost structure.
HRO providers bring specialists in employment law, compliance, benefits administration, and employee engagement. Instead of struggling with limited internal expertise, companies gain immediate access to best practices and extensive industry knowledge.
HR demands rise and fall with hiring surges, restructuring, or expansion into new markets. Outsourcing ensures HR capacity adjusts quickly, without the delays and expenses of building an internal team from scratch.
An ideal HR outsourcing provider is one that invests in HRIS platforms, payroll automation, and advanced analytics. When you work with one, the business benefits from these tools without the upfront costs, while executives gain real-time insights for better decision-making.
To access these benefits, it’s important to identify the exact needs of your business and work with an external provider that has expertise in your specific needs. It’s also important to acknowledge that while the benefits of HR outsourcing are many, it still comes with risks and challenges.
Understanding the potential downsides is essential to making an informed decision and ensuring the partnership works smoothly. Here are some of the common challenges encountered by businesses when outsourcing their HR:
By outsourcing, leaders place key HR functions in the hands of an external partner. While this saves time, it can sometimes make executives feel less connected to employee relations. While this is a natural feeling, there is a solution: maintain oversight through clear reporting and regular reviews.
HR is closely tied to company culture, and an external provider may not fully capture an organization’s values or ways of working right away. Without careful onboarding of the provider, employees may feel a disconnect. Strong communication helps align your culture with your outsourced HR provider.
Sensitive employee and company information are crucial HR responsibilities, and outsourcing introduces an element of risk to this. Reputable HRO providers invest heavily in data security and protection, but business leaders should still evaluate security protocols to ensure compliance and confidentiality.
While these challenges are inevitable, they are not really dealbreakers. With the right provider, as well as following HR outsourcing industry best practices, most risks can be significantly reduced or eliminated altogether.
Careful partner selection, clear service level agreements, and consistent communication create accountability and alignment. Ultimately, the organizations that have been using HRO (there are a lot of them!) have found that the benefits still outweigh the risks.
By now, it’s clear that HR outsourcing is a strategic investment for businesses looking to scale their operations. But it’s equally important to recognize that outsourcing is never a one-size-fits-all solution. The real question for businesses is whether their organization is at a stage where HRO creates meaningful impact.
A good way to find out is by asking (and answering) the right question:
If your business is expanding rapidly, struggling with compliance, or carrying high HR overhead costs, outsourcing may be the logical next step. Similarly, if HR bottlenecks are starting to hurt employee experience and retention, it may be time to explore an HRO partnership that can relieve internal pressure while raising service quality.
If you answered “yes” to one (or more) of the questions above, it may be the right time to explore HRO as a strategic partnership.
If you’ve been asking yourself whether outsourcing is the right move for your business, you’re not alone. Many growing companies reach a point where HR tasks become too complex, too costly, or too time-consuming to manage in-house.
That’s where the right partner can make all the difference.
At KDCI Outsourcing, we specialize in building dedicated HR teams tailored to your business. From payroll and compliance to recruitment, training, and employee engagement, we offer flexible engagement models that let you focus on strategy while we handle the complexities of workforce management. Whether you need support for specific HR functions or an entirely outsourced HR team, we’re here to help you scale with confidence.
Let’s talk about how we can support your HR needs. Contact KDCI today.
With the emergence of online channels and the volatility of market trends, creative services have become more important than ever. While you're managing your medium- or large-sized business, it might become challenging for your in-house creatives to keep up with all the projects and deadlines without burning out.
That’s why creative services outsourcing is the solution. It can aid you when producing digital marketing collaterals, from web design and video editing to logo creation and stall design. The best offshore outsourcing companies have a wide range of services that can fulfill your needs. They usually house talented creative experts who can deliver quality output for both your business and your target market.
If you’re looking to streamline creative production at scale, now's the best time to get outside the box and consider outsourcing creative services.
The decision to outsource creative projects boils down to objectively assessing your workforce and business needs. Here are three signs to look out for:
Burnout knows no profession. In fact, creatives of all skill levels can experience burnout. Frankly speaking, the rigors of constant creativity can drain one’s brain power, leaving creatives exhausted and less motivated.
The Mentally-Healthy 2024 report involved 2,000 individuals who have worked in the media, creative, and marketing industries in the following countries: the US, Australia, the UK, and New Zealand. According to the report’s findings, burnout was experienced by the majority (70%) of participants in the said sectors within the last year.
Burnout among creative professionals occurs due to:
When left unaddressed, everything will go downhill. Not only will your creative professionals fail to deliver projects on time, but their productivity, efficiency, and mental health will also suffer. As a business owner, you’d want to maintain a healthy turnover rate. Thankfully, better employee well-being and higher retention are achievable when you outsource creative tasks.
Completing creative projects at scale in-house is not feasible, especially with the higher labor cost of local creatives. Beyond cost, having your existing team ramp up production is a recipe for burnout and turnover. If you need scalable content production as well as access to advanced tools and streamlined design workflows, creative services outsourcing is for you.
In business, consistency is everything — and this also applies to how your company represents itself to customers. From the palette to the typeface, your business’s visual identity must be uniform on every platform, including your website. Otherwise, you wouldn’t earn the trust of your customers or expect loyalty from them.
If you need a recognizable and professional visual identity, creative services outsourcing can help you achieve brand awareness and consistency.
We're here to show you the benefits of creative services outsourcing that can get you ahead of your projects and competitors faster than building your own team.
When your business is growing and creative projects are piling up fast, outsourcing your creative design gets the support your company needs.
Say, you need to overhaul your brick-and-mortar store’s website. Creative agencies and business process outsourcing (BPO) companies can provide outsourced web design services to optimize your site into a user experience that attracts customers and ranks high on search engines.
Meanwhile — if you need eye-catching visuals for an upcoming social campaign — hiring graphic designers can help your internal creatives produce digital marketing collaterals to enhance engagement and brand presence on any social media platform.
Full-service design agencies are not limited to digital outputs. They can also help you create a brand design for your employee uniforms and brick-and-mortar store’s shopping stalls. While your dedicated outsourced team creates designs for your business, you can focus on your core expertise as it grows.
Trends in the digital world are ever-changing. To support your business's growth, you'll need creative experts who can keep up with every industry trend. Gone are the days when you had to cram skills like graphic design, copywriting, and web development into one job description for a marketing assistant.
Creative services outsourcing allows you to gain access to experts with specialized skills for each creative field. Outsourcing companies understand the challenge of hiring and training an in-house creatives team, so they have done that for you instead. Once your partnership with them is all settled, your outsourced team can immediately start working, fully skilled and trained for the service you need.
On top of that, most outsourcing companies are full-service creative agencies. They work as a one-stop shop for all your creative and content creation projects, so they have a dedicated team of designers at your disposal.
There's no better way to think outside the box than to get out of the box. Consumers' attention span keeps getting shorter, averaging 8.25 seconds. Hence, you'll need thumb-stopping creativity to stop your audience from scrolling for a second and capture their attention. Creative services outsourcing gives you a shot at developing this creativity.
An external creatives team can provide a fresh perspective from outside your business. They're more likely to relate to your target market and therefore help you determine which collaterals your audience enjoys. Moreover, you'll avoid getting stuck with an internal team whose ideas might eventually become outdated or irrelevant.
Outsourced designers can give you various points of view and insights, especially if they have previously worked in relevant industries. For example — if you and your team can't figure out why your video is not getting any engagement on Facebook — an outsourced multimedia designer can help you determine what went wrong, how to improve your content, and how to create a more attention-grabbing video.
Outsourced designers can provide an objective view of your brand and show you what you have been missing. This perspective can help you better understand your audience's views, especially when you want to expand your business.
In this age of instant gratification, speed has become a necessity. The faster you are than your competitors, the quicker your business can grow. And the more your business grows, the bigger the need to sustain your speed.
Creative services outsourcing helps you scale your market share and avoid falling behind in the latest industry trends. Usually, as part of the deal, outsourcing companies guarantee fast turnaround time and high-quality deliverables, as their designers understand the value of deadlines and time-sensitive goals.
Whether it's for site development to accommodate orders for an upcoming sale or a series of engaging content to ride the waves of a trending topic, an outsourced team of creative professionals can keep you up to speed. These designers are used to high-volume production and short turnaround time, so you can get the triple guarantee of speed, volume, and quality when you outsource.
Creative services outsourcing is a way to cut costs. It keeps your business from spending on recruitment, labor, training, equipment, and overhead costs. It's less expensive than having full-time employees on your team. After all, the cost of hiring a US employee is $4,375 USD. Plus, you also have their benefits, office space, taxes, and equipment to consider.
With businesses in the US outsourcing around 300,000 roles per year, what's stopping you from doing the same? You'll only need to consult with an outsourcing company, tell them what you're looking for, and agree on the fees before you can start your partnership
Even better, with the savings you have from creative services outsourcing, you can allocate more of your budget to research and development to grow your business further.
Before outsourcing creative projects, be sure to read the following FAQs:
Do you need a graphic designer or an art director? Salaries can vary between creative professions and experience levels. Here’s a monthly salary range for each creative occupation in the Philippines:
Yes, they can! With clear brand guidelines and design briefs, offshore creatives can understand your design needs and execute your vision while staying true to your brand. As a client, provide proper feedback to ensure that all creative projects align with your guidelines and meet quality standards.
Yes! Your account’s project manager will oversee the creative process and workflow as well as monitor your team’s performance and deliverables. They will also liaise with you, so your offshore creative team can meet your design needs and business goals.
Yes, they do. At KDCI Outsourcing, for example, our creative experts employ generative AI and other AI tools to ideate and hasten production. Through the use of ethical AI, our creative professionals can deliver all required content on time without sacrificing quality or branding.
Is creative services outsourcing right for you? Full-service creative agencies and BPO partners like KDCI Outsourcing can help fulfill your design needs.
From graphic to web design, we customize our offshore staffing solutions and build you a full creative production team that functions as an extension of your in-house creative department.
Let our design team show you the valuable benefits of outsourcing creative production. Contact us to know more.
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A business’s greatest asset is no other than its employees. Companies invest in talent not only to keep operations running and achieve organizational goals, but also to serve as representatives to customers, clients, and would-be employees. While employees are mostly responsible for their own learning, human resources (HR) management also plays a vital role in their development.
HR management is more than managing employees; it’s tapping into their skills, knowledge, experience, and potential to drive success in the workplace and in their individual careers. However, technological advancement in HR, evolving regulations, and turnover are troubling HR managers more than ever.
The good news? Outsourcing HR management gets HR managers back on track and elevates their HR game in ways that make organizational and employee success more attainable — that is, without straining your current workforce.
If the idea of outsourcing sounds good to you, this comprehensive article will teach you everything about outsourcing in human resource management.
From the name alone, HR management is a function that involves managing HR staff and other employees in the company. This includes recruitment, performance management, and employee engagement. It is also integral to workplace safety, compliance with employment laws, and fulfillment of organizational and individual employee goals.
HR managers are the leaders of the HR department. From recruitment to compliance, they wear multiple hats to keep the department and the organization running smoothly. Let’s tackle each of their responsibilities below:
Human resources managers are responsible for writing and posting job descriptions as well as sourcing, screening, interviewing, and onboarding employees into the company. They also orient employees on workplace policies and provide support to new hires.
These professionals liaise with team leaders, supervisors, or project managers to conduct performance reviews for potential salary increases and promotions within the department.
HR managers monitor employees’ training needs and create appropriate professional development programs.
Human resources managers create and oversee compensation and benefits packages for employees. These HR professionals factor in workplace needs in designing these packages to ensure that employees are well-compensated and healthy, thereby improving retention.
HR managers enforce company rules and regulations and impose sanctions — such as a suspension or a written warning — on employees to correct behavior, improve performance and productivity, and promote workplace safety. Depending on the severity of the violation, HR managers can terminate employees.
Leveraging their interpersonal, creative, and analytical thinking skills, they mediate and resolve conflicts between employees to promote well-being and avoid resentment.
Human resources managers keep abreast of changes in workplace safety standards and employment laws to ensure the organization maintains regulatory compliance and meets industry standards.
This section explores some of the benefits of outsourcing in human resource management.
Whether your employees work in the finance, HR, or marketing department, professional development is key to making themselves relevant, competitive, and future-ready in the workforce of tomorrow. When companies prioritize professional development, retention is greatly enhanced.
Gallup and Workhuman surveyed full-time and part-time 4,439 US adult employees. When asked if their company pushed them to upskill, the participants — who were 18 years old and above — answered “strongly agree.” Due to this encouragement, the report found that these employees have a 47% lower chance of seeking new job opportunities.
However, professional development involves resources. From developing training programs to finding an appropriate mentor or training venue, this initiative can leave HR departments stretched too thin, thus deprioritizing core business activities. Additionally, training programs should be tailored and engaging for all employees; otherwise, they won’t fully invest in their development.
An HR outsourcing provider can augment your team with HR managers and other HR experts who can develop training programs that are tailored to address skill gaps, encourage leadership, and meet workforce needs.
With the help of advanced employee training software, staff members have a clearer picture of their career trajectory, so the skills they learn suit their current position or prepare them for a future role in the organization. This encourages self-learning while also providing HR managers with data on the effectiveness and engagement of the training courses.
If there’s something that HR departments should never neglect, it’s compliance. Compliance makes the difference between a lawful organization and costly lawsuits. As the primary drivers of compliance, HR staff familiarize themselves with employment laws, workplace standards, and data privacy regulations, so the company fulfills its legal duties and avoids penalties.
With the amount of workload that HR managers face, there’s a tendency for compliance to be relegated to the back seat. Workplace bias, discrimination, and harassment are just a few of the compliance challenges HR managers face. Let’s also not forget that compliance issues can originate from payroll processing errors and a lack of qualified legal guidance.
HR outsourcing companies employ HR managers who are knowledgeable of employment laws and workplace standards at all levels of government. They help your business navigate the complexities of legal frameworks, ensuring your business remains fully compliant with local (overseas) laws and standards.
Outsourced HR managers can also review workplace policies and conduct compliance training, so your workplace becomes a positive environment for all employees — regardless of their gender, age, or race.
Local labor is more expensive, with the average cost of hiring sitting at $4,683 USD per hire. Obviously, recruiting and hiring costs differ between roles, companies, and industries. According to the US Bureau of Labor Statistics, HR managers earn an annual median salary of $140,030 USD.
As labor costs rise due to inflation, businesses turn to cost-effective options, such as contract workers and offshore outsourcing services, to offset costs while still benefiting from the specialized expertise of these contract and outsourced professionals.
Outsourcing to the Philippines drastically slashes your labor and overhead expenses, thanks to its lower wages and cost of living. In fact, on average, Filipino HR managers earn $10,482.54 USD to $12,579.05 USD a year.
By collaborating with an HR outsourcing provider, you can work with cost-effective HR managers who possess the same or higher caliber as local HR managers. Because outsourcing HR tasks puts less strain on your budget, you can better plan for future HR and business investments.
While outsourced HR services carry plenty of advantages to your business, be prepared to encounter these challenges when outsourcing in human resource management:
HR outsourcing may be cost-effective, but it’s easy to fall prey to overspending and compromising your company’s financial health if you don’t track your expenses. HR outsourcing costs encompass everything from labor to compliance fees. Hidden fees, such as currency exchange rates and technology upgrades, can likewise affect your budget.
No outsourcing company is perfect. However, an HR outsourcing company that doesn’t understand the nuances and peculiarities of your workplace culture can lead to unmet needs and expectations. Hence, you might end up being dissatisfied with the provider’s quality of HR services.
Data security and privacy are critical to HR outsourcing. Outsourcing does carry a degree of risk, as you’ll be allowing the HR outsourcing provider to process and store your data. If the outsourcing company’s security infrastructure is weak and employee data gets leaked, you’ll be in for a lot of trouble with your internal resources and, of course, the law.
In HR outsourcing, interactions take place virtually. Unfortunately, time zone differences can mean delayed responses and lost productivity. Because time is of the essence when outsourcing in human resource management, your HR outsourcing firm can adjust to your business hours for real-time HR support.
This section resolves the challenges discussed in the previous section. Follow these best practices to reap the benefits of HR management outsourcing:
It’s all about creating a budget and being aware of the costs of human resources outsourcing. Do extensive research on the Philippines’ cost of living and average salaries for HR managers. Consider also the project complexity, headcount, software, and your preferred experience level of HR managers. All these factors can influence your monthly total bill.
Additionally, don’t forget to ask for the breakdown of costs. The right HR outsourcing provider is transparent and will be happy to dissect the expenses of their outsourcing services.
While outsourcing expenses vary from provider to provider, anticipating all the possible costs can better financially prepare your business for expected and unexpected expenses. This way, you can enjoy the fruits of your provider’s service offerings and achieve a high outsourcing ROI.
The provider you’ll work with can make or break your company’s HR management operations. Well-experienced HR outsourcing companies possess deep knowledge of your industry.
Thanks to this knowledge, they can understand industry nuances and requirements. Because these HR and payroll service providers have worked with different clients, they can tailor their outsourced HR management services to your business needs.
In line with this, choose an outsourcing company experienced in outsourced HR management. Likewise, it would be better if the external provider has ample experience in providing HR management outsourcing services to clients operating in your industry. This minimizes the risk of unmet expectations and dissatisfaction with the outsourcing company.
Never, ever skip cybersecurity. This starts with vetting your HR outsourcing partner’s cybersecurity capabilities.
Probe into the provider’s IT infrastructure, data security practices, remote work policies, fraud detection measures, and risk management strategies. Ask about their background-checking processes and how they hire HR managers with integrity. Most importantly, check if the company is certified by the International Organization for Standardization (ISO).
When outsourcing in HR management, you’ll want to err on the safe side since your employees’ data is at stake. One data breach or insider threat can expose your data to hackers and cyber criminals.
If you’ve already started working with an HR outsourcing company, don’t make the mistake of being too complacent with your data security. Here are three tips:
When outsourcing in human resource management, the company has already prepared offshore HR managers who have agreed to work on your schedule. Building trust and forming a strong relationship with your offshore HR management team boils down to communication. Without proper communication, the partnership crumbles — and that’s something you wouldn’t want to happen.
Here are five tips for effective communication:
At KDCI Outsourcing, we understand the vital role of HR management in driving organizational success. Our offshore HR managers are equipped with all the right skills — from technical to soft skills — to handle your HR department and liaise with your internal team.
By integrating AI, automation, and modern HR technologies into your workflow, we can enhance your HR operations, improve operational efficiency, reduce errors, usher in innovation, and free your internal resources from boring administrative tasks.
Let KDCI Outsourcing oversee your HR department. Hire an HR manager or build a full HR team with us. Let’s get talking today!
Your people are your greatest assets. Every leader in a growing business knows this. It’s the reason why there is an HR department in every organization, no matter the size. Even Forbes reports cite that the current average ratio is at 2.57 HR staff per 100 employees (a little over the recommended average of 1.4 HR staff per 100 employees).
So, this is not for us to convince you just how important HR is. Our point here: there is a better, smarter way to build your HR team.
Managing human resources, ensuring they’re paid, keeping them engaged, while complying with labor laws and regulations can be a bit much even for established companies, especially those who are currently in a growth phase. In fact, the same report we have cited above noted that the HR-to-staff ratio is below average for medium and large organizations. This is why more and more are outsourcing HR, especially to developing countries like the Philippines.
In this article, we’ll explore the pros and cons (as well as how to address them) of HR outsourcing to help you assess it as a viable option as you scale your business. Find out more about Human Resources Outsourcing and discover why you should or shouldn’t outsource human resources to the Philippines!
HR Outsourcing, Human Resource Outsourcing, or HRO, is the process of contracting an agency or individual to manage a function or the whole process or department of human resources or HR. This typically involves outsourcing HR services to dedicated HR outsourcing companies that specialize in core functions such as recruitment, payroll, and training and development. When businesses outsource their HR functions, it’s usually to help reduce costs, increase operational efficiency and productivity, and improve scalability and flexibility.
Some of the most commonly outsourced HR roles are HR generalist, compensation and benefits analyst, payroll specialist, training and development specialist, and HR compliance officer. Depending on the specific needs and business goals, a business may opt to hire one HR professional offshore or build an entire team through an external HR outsourcing company. It may look different for every business, but the end goal of this solution is to get high quality service for managing the people aspect of the business, at a significantly lower cost.
Human Resources Outsourcing (HRO) is a continuously growing industry, with the Philippines as one of the fastest-growing markets. The Philippine BPO industry is now home to a number of outsourced HR professionals — one of which might just be your next team member!
If you’re thinking of where to outsource HR and you’re considering the Philippines, below is a list of benefits that may help you decide!
One of the main reasons why the Philippines is an increasingly popular destination for HR outsourcing is because of its lower labor costs. While it costs $3900/month to hire an HR specialist in the US, outsourcing an HR specialist to the Philippines costs about $1500/month.
Not only is the rate much lower, but the outsourcing cost already covers operational costs, resources like laptops, internet, and power stations, as well as benefits, on top of the basic salary. This allows companies to save up to 70% in labor and operational costs, savings that could then be redirected and invested back into the business.
The Philippines puts a strong emphasis on education, having a 97% literacy rate. It also produces a large number of graduates yearly and has an active workforce of 49.48 million people in 2024. Not to mention, Filipinos have made a name for themselves in the outsourcing industry with the Philippines as the world’s call center capital.
These highlight the caliber of Filipino HR professionals, making it easier to find the right person with the set of HR skills and experience you’re looking for. This way, there are more options for you as you find the HR experts that will fit your business’ unique needs.
When it comes to human resources, soft skills matter a lot. You need people skills, dedication, and professionalism among others. That’s why outsourcing human resources functions is a more delicate matter than outsourcing other functions that require less cultural compatibility.
However, thanks to the Philippines’ Westernized culture, Western business practices and corporate culture are no longer new, and any learning curve when working with Western organizations, especially those in the United States, is short, making collaboration much smoother.
Not to mention, Filipinos are culturally very hospitable and optimistic. In fact, the Philippines was voted as one of the friendliest countries in the world. Such traits manifest well in the HR profession, a testament to the service orientation and adaptability of Filipino HR professionals that make them effective in handling employee relations and customer service functions.
When it comes to the number of specialized HR outsourcing services, including payroll processing, recruitment, employee training and development, benefits administration, and compliance with local labor laws, the Philippines is never going to come up short.
There are plenty of HR service centers in the Philippines with extensive experience serving various industries, including IT, healthcare, finance, and customer service, providing tailored solutions to meet specific business needs.
Many Filipino HR professionals also obtain globally recognized certifications, such as those from the Society for Human Resource Management (SHRM) and the HR Certification Institute (HRCI), which help maintain high standards and keep them updated with global HR practices. With a dedicated team from the Philippines, you get the right support that your business needs.
: One of the beauties of using human resources outsourcing services is it provides scalability and flexibility to companies. This is even more so in the Philippines because its outsourcing companies have a large pool of ready-to-work HR professionals and the country’s BPO industry is so large, that hiring, training, and getting them on board is a quick process that boosts scalability and flexibility even more.
This means Philippine HR outsourcing companies can act fast, allowing companies to more quickly adapt to changing business needs, without the delays and costs associated with hiring and training new staff internally.
Additionally, HR outsourcing in the Philippines comes in multiple engagement models, and agreements with clients often come with flexible terms, enabling companies to choose HR outsourcing services that best fit their requirements and adjust them as needed.
Filipino HR outsourcing service providers leverage the latest human resources software and technologies, offering companies access to advanced tools for payroll management, performance tracking, and employee engagement.
Moreover, the outsourcing industry in the Philippines is known for its focus on continuous improvement and innovation, ensuring that HR processes remain efficient and up-to-date with global standards, even and especially as AI adoption comes into the picture and largely impacts the HR industry.
HR involves quite a number of laws and regulations that vary depending on your geography. To ensure your compliance, there are plenty of Philippine HR outsourcing companies that have worked with other companies in your location – this makes it easy for them to navigate HR requirements in your area, ensuring compliance and reducing the risk of legal issues for foreign companies.
It also helps that Philippine HR outsourcing agencies have protocols in place to keep them updated with changes in legislation and best practices, providing you with peace of mind regarding their HR compliance.
While outsourcing your HR comes with several benefits, it also naturally comes with risks and challenges. To help you make an informed decision, we’ll now be discussing the cons of outsourcing human resource services to the Philippines.
Even if the Philippines is a popular destination for HR outsourcing, there are disadvantages that you should consider. Below are some of the most common pitfalls of outsourcing human resources to the Philippines, along with some tips on how to mitigate them.
A common challenge that companies may encounter when outsourcing to an offshore location like the Philippines is time zone and cultural differences. The Philippines is in a different time zone from many Western countries, which can lead to challenges in real-time communication and coordination. This may affect the responsiveness and timeliness of HR functions.
And though Filipinos speak very good English, there are cultural nuances in the English language that may still lead to occasional misunderstandings, impacting the clarity of communication.
While there’s little one can do about inherent cultural differences, practicing clear and open communication always helps. Since your dedicated team in the Philippines serves as an extension of your inshore team, connecting with them like so can make all the difference. Meanwhile, time zone differences can easily be bridged by setting your offshore team’s work shift to match your hours to ensure smooth collaboration.
Outsourcing involves sharing of data, which opens up companies to privacy and security threats especially if the outsourcing partner doesn’t observe proper safeguards and protocols. While the Philippines has data protection laws (such as the Data Privacy Act of 2012), they may not be as stringent as those in the US or EU. Ensuring compliance with international data privacy standards can be challenging.
To ensure utmost security and privacy, finding a reliable outsourcing company that meets data protection standards such as General Data Protection Regulation (GDPR) is a must. Better yet, you should prepare a risk management and recovery plan to cover all your bases. You can discuss all these with the HR outsourcing company in order to avoid issues with data security and privacy down the road.
Outsourcing HR functions can lead to loss of control over key HR processes, which may make it challenging to maintain the same level of management and influence as with in-house human resource departments. This can mean misalignment in terms of company policies, culture and values, or lack of quality control, both of which can impact HR service delivery in the form of inconsistent HR practices and employee experiences.
It can also mean challenges in the integration of the outsourced HR provider’s systems with the company’s existing HR and IT infrastructure can be complex and require significant effort and resources.
When it comes to these challenges, assigning an in-house liaison and setting clear expectations and preparing for a smooth transition are key.
An in-house HR expert who can focus on the outsourcing partner’s management helps ensure alignment. Meanwhile, having set KPIs and a QA process or even having your outsourcing partner assign a dedicated QA specialist helps ensure consistency in HR services quality.
As for integrating outsourced and in-house HR systems, you can develop a phased integration plan with thorough assessments, robust data migration protocols, continuous monitoring, and regular communication between internal IT and the outsourced provider to ensure smooth and efficient system integration.
While the cost of outsourcing HR is typically agreed upon during contract signing, there are instances where additional costs are incurred due to unexpected integration challenges, the need for specialized software, compliance with new regulations, or unforeseen increases in service requirements.
Not only that, some Philippine outsourcing agencies require long-term contracts which can lock companies into agreements that may become less favorable over time. Renegotiating or exiting these contracts can also incur additional costs.
To avoid these, it’s best to carefully weigh the costs and benefits of offshore outsourcing before signing any contract. Find out potential additional costs as soon as possible even if they are not yet relevant to you. And if you think there’s a possibility of terminating contracts early, opt for Philippine outsourcing companies that offer shorter contracts.
When outsourcing HR functions, in-house staff may feel threatened or undervalued, impacting the organization’s morale and lowering engagement. Effective communication and change management are crucial to mitigate these effects.
Meanwhile, the physical distance between the outsourced HR team and the company’s employees can lead to a lack of personal connection, potentially affecting employee satisfaction and engagement as well.
However, with the rise of remote work options worldwide, there are now far more options to bridge these gaps and build a strong, hybrid team — even if half of it is across the other side of the globe. With HR experts who are dedicated and trained to manage people and the right technology in place, higher employee engagement can still be accomplished remotely.
Companies become dependent on the reliability and performance of the HR outsourcing provider. Any issues with the agency, such as financial instability or service disruptions, can directly impact the company’s HR functions.
Not to mention, over-reliance on outsourced HR services can lead to a decline in in-house HR expertise, making it difficult for the company to bring HR functions back in-house if needed.
To mitigate dependency on HR outsourcing providers and maintain in-house expertise, companies should diversify their outsourcing sources, retain critical HR functions internally, and invest in continuous training for their HR staff. Additionally, establishing clear service level agreements (SLAs) and having contingency plans for potential service disruptions or provider instability are essential.
As a continuously developing industry that serves a number of businesses, HR outsourcing is designed to grow alongside the businesses that it serves and empower business growth in the process. With these pros & cons in mind, it’s now up to you to check your options and see whether HR outsourcing is the best solution for your business (and your team).
If you still have questions about HRO, its benefits, and the challenges that come with it, do not hesitate to ask. Our team at KDCI Outsourcing have provided several clients with HR outsourcing solutions and we’d love to answer your questions based on actual experiences.
Considering outsourcing HR to the Philippines? With the country’s robust HR staffing services, there are many human resources outsourcing companies and even more HR professionals available, making it overwhelming to choose the right people for your offshore HR team.
At KDCI Outsourcing, we specialize in finding the best people who not only fit your needs but also mesh well with your in-house organization to ensure you’re building your offshore HR team for success!
Learn more about HR outsourcing in the Philippines, contact us today!
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Outsourcing has become a powerful strategy for businesses that want to scale efficiently, reduce costs, and stay competitive in a fast-changing market. Among the world’s top outsourcing destinations, the Philippines continues to stand out in 2026, thanks to its skilled workforce, strong cultural alignment with Western businesses, and government-backed infrastructure.
In this article, we’ll explore the top outsourcing companies in the Philippines and highlight what makes them leaders in the industry. Whether you’re a startup looking to build your first offshore team or an established enterprise aiming to expand operations, this comparison will help you identify the right partner to match your business goals.
If you’re looking to scale your operations and considering working with an outsourcing company from the Philippines to delegate some of your business’ functions, then this article is written for you.
With a rich history of being the world’s “call center capital” — known for offshore customer service operations that support various global and multinational companies, the business process outsourcing (BPO) industry in the Philippines has successfully evolved.
Today, it is an intricate, fully-developed system that now supports a wide range of outsourcing services and offshore business processes, including but not limited to:
From customer support, IT, accounting, and finance, to creative design, HR, logistics, and procurement, outsourcing companies in the Philippines now empower businesses with functions that used to only be available inshore, at significantly more cost-effective rates.
With its skilled, English-speaking workforce, strong cultural compatibility with American, Australian, and European businesses, as well as a government-backed outsourcing infrastructure, the country has become the go-to destination for companies looking to outsource business functions. It’s the reason why a lot of offshore outsourcing companies have risen to fame over the past couple of years.
That’s exactly why we created this guide. Below, you’ll find a detailed breakdown of the Top 10 Outsourcing Companies in the Philippines (2026 Edition) — who they are, what they do best, and why you might want to consider them for your business.
Whether you’re a medium-sized business looking for a small but dedicated team offshore or a larger organization preparing to scale with outsourced staff, this list will give you a clear picture of the landscape and help you make a confident decision.
Let’s get started.
If you’ve been looking for the best countries for outsourcing solutions, we’re also almost positive that most, if not all, of the lists included the Philippines as a top destination for offshoring and outsourcing, as has been the case for decades now.
But, why exactly? What’s in it for you when you outsource to the Philippines?
So, before diving into the list of top outsourcing companies in the Philippines, let’s quickly cover the five key reasons why this country remains to be a global leader and the most ideal outsourcing destination in 2026:
The Philippines offers significant cost savings, allowing organizations to save up to 70% on staffing and operational costs compared to hiring domestically. This is primarily due to the lower cost of living and more competitive wages in the Philippines.
Beyond just salaries, however, outsourcing to the Philippines also lets businesses save on overhead expenses like office space, equipment, and utilities since these are already incorporated into the fees. This allows for a reallocation of capital to other critical business functions like research and development or marketing, driving revenue growth and productivity, without compromising quality (in essence, value for money).
The country boasts a large and diverse pool of professionals with extensive industry experience. Each year, hundreds of thousands of college graduates enter the workforce with degrees in fields like IT, business administration, finance, and human resources.
This talent pool is not only highly educated but also known for strong work ethic and dedication. The workforce is skilled in a wide range of services, from customer service and data entry to more complex tasks such as software development, financial analysis, and property management.
A key advantage is the high level of English proficiency among Filipinos since English is an official language and is primarily used in business and education. This fluency, coupled with a neutral accent, ensures seamless communication with clients and customers from Europe, Australia, and the US.
Additionally, the Philippines has a strong cultural affinity with Western cultures, particularly the United States, which facilitates smooth collaboration, reduces cultural misunderstandings, and fosters a productive work environment. The Filipino culture’s emphasis on hospitality and customer service is a natural fit for client-facing roles, so you can rest assured that your offshore team can meet the specific needs of your growing business.
The Philippine government has played a crucial role in nurturing the country’s BPO sector. It has implemented various programs and policies to encourage foreign investment that will support the industry’s growth and innovation.
As such, every BPO company in the Philippines is empowered by: (1) tax incentives and duty exemptions for registered BPO companies; (2) investments in infrastructure to support the industry’s technological needs; and (3) training programs aimed at upskilling the workforce in areas like IT, data analytics, and English proficiency.
When you choose to outsource to the Philippines, you are taking advantage of a well-developed industry with a continuously developing tech and structure, backed by strong government support that is geared to empower your business, too.
The Philippines’ large labor pool and established outsourcing ecosystem make it easy for businesses to scale operations up or down as needed. Whether a company needs to start with a small team of a few agents or expand to a large-scale operation, the infrastructure and talent are readily available through BPO services from the Philippines.
This flexibility is a significant advantage, allowing businesses to adapt to market fluctuations and manage their growth without substantial financial risk. The BPO industry is also highly adaptable to different work models, including remote and hybrid arrangements, further enhancing its appeal. Whatever phase your company is in, you can utilize outsourcing to match your client needs and drive forward your business’ ongoing success.
Of course, to maximize all the advantages that we have covered above, it is important to find a BPO company that will truly match your business’ specific needs.
Choosing the right outsourcing partner is a critical business decision and you need to do it with all the information you can get. After all, it’s not just about finding a company with a good reputation, it’s about finding one that’s a perfect fit for your specific needs — both in terms of technical skills and overall culture.
So, as you evaluate potential outsourcing partners in the Philippines, here are the key factors you should be checking:
With the above criteria in mind, we have compiled a list of the best outsourcing companies in the Philippines — so you don’t have to! These are the companies preferred by most businesses across the US and Australia, offering services across customer support, IT and software development, human resources, and even creative work typically handled by creative services outsourcing companies in the Philippines.
Let’s get to know them.
Company & Service Overview:
KDCI Outsourcing is a Pasig City-based outsourcing company with years of experience and is committed to helping businesses succeed. KDCI focuses on building high-performing teams of skilled professionals in the Philippines, enabling companies worldwide to achieve their goals. KDCI empowers experts in fields like accounting and financial services, customer support, back office services, IT and web development, among others.
KDCI’s Strengths:
With flexible engagement models and a personalized approach to recruitment, KDCI hires and trains your offshore staff based on your brand’s culture. They also help ensure continuous team improvement by making sure that your offshore team seamlessly integrates with your organization and provides your inhouse teams the support they need.
KDCI is best for companies that want a hands-on outsourcing partner to build teams that feel like an extension of their in-house staff.
Company & Service Overview:
As a global BPO leader with a significant presence in the Philippines, Concentrix provides a full spectrum of customer experience management services, integrating advanced analytics and technology to deliver end-to-end solutions.
Concentrix’ Strengths:
Concentrix offers a full suite of omnichannel support, including voice, chat, social media, and email. They are also highly focused on optimizing the entire customer journey and leveraging their robust infrastructure to manage large-scale operations.
Concentrix is best for businesses looking for data-driven customer experience solutions with the ability to scale globally.
Company & Service Overview:
One of the most recognized names in the outsourcing industry, Teleperformance has a massive footprint in the Philippines, providing a wide range of services from customer care and technical support to finance and back-office operations.
Teleperformance’s Strengths:
With years of experience in the outsourcing industry, Teleperformance specializes in providing multilingual support and have made significant investments in technology and AI-driven solutions integrated with human expertise to enhance service delivery.
Teleperformance is best for companies that need enterprise-grade outsourcing solutions with guaranteed reliability from a trusted global leader.
Company & Service Overview:
Foundever specializes in customer experience management and digital solutions. The company is particularly known for its focus on employee training and engagement, which it believes directly improves service quality. Foundever offers services across customer support, technical support, sales and retention, back-office support, and more.
Foundever’s Strengths:
This outsourcing company is recognized for its high employee satisfaction, which leads to better service delivery. It offers a range of omnichannel solutions supported by innovative tools and has extensive experience across various industries including healthcare, tech, and hospitality among others.
Foundever is best for businesses that prioritize consistent, empathetic, and people-centric customer experiences.
Company & Service Overview:
Alorica delivers customer experience and back-office solutions across numerous industries such as banking, healthcare, and retail. The company differentiates itself through its use of digital-first and data-driven insights to personalize customer interactions and streamline operations.
Alorica’s Strengths:
Alorica leverages advanced digital transformation tools, including chatbots and analytics. It offers a wide range of scalable customer experience and back-office services and has a strong global reputation.
Alorica is best for companies that want tech-enabled outsourcing to enhance customer engagement and optimize their operations.
Company & Service Overview:
Cloudstaff specializes in providing skilled, remote staff and teams to businesses worldwide. They hire and train virtual assistants, accountants, marketing specialists, and other professionals for various industries. With a strong focus on technology and an employee-first culture, they offer future-forward and enterprise-grade solutions for companies looking to build their offshore workforce.
Cloudstaff’s Strengths:
They have a strong emphasis on providing a positive work environment, which helps in staff retention. Their model is highly flexible and transparent, allowing clients to have more direct control.
Cloudstaff is best for businesses of all sizes that want to build a dedicated, remote team that feels like an extension of their in-house staff.
Company & Service Overview:
TaskUs is a multinational outsourcing company with a strong presence in the Philippines. It specializes in digital-first support and content moderation. It has a strong presence in tech-enabled industries like SaaS, fintech, and gaming, and emphasizes flexible scaling to meet the demands of rapid growth.
TaskUs’ Strengths:
TaskUs has established itself by providing scalable outsourcing solutions to fast-growing tech companies and startups. The company focuses on agile solutions that bring trained team members and advanced tech together.
TaskUs is best for high-growth businesses or startups that need a scalable and tech-savvy outsourcing partner.
Company & Service Overview:
IBM brings its enterprise-level, AI-powered outsourcing capabilities to the Philippines, offering expertise in a wide range of services including IT, finance, HR, and customer service. With cutting-edge AI assets and trained agents, IBM takes pride in empowering end-to-end business transformation.
IBM’s Strengths:
IBM provides global IT expertise and digital transformation solutions. The company is highly focused on AI adoption, data security and compliance, making it an ideal choice for businesses looking for multi-function outsourcing from a trusted provider.
IBM is best for medium to large businesses that need a reliable partner for IT and back-office services.
Company & Service Overview:
MicroSourcing specializes in offshore staffing and managed services, providing a unique model that allows businesses to build dedicated offshore teams that feel like an extension of their in-house staff. They can hire and build teams for marketing, finance, real estate, e-Commerce and other industries.
MicroSourcing’s Strengths:
MicroSourcing offers flexible staffing options, from hiring a single role to building full, integrated teams. They are particularly strong in creative, IT, and back-office roles and provide clients with a high degree of transparency and control.
MicroSourcing is best for organizations that want direct control over their outsourced teams while still leveraging a BPO’s expertise and infrastructure.
Company & Service Overview:
More popularly known as TTEC, Teletech is another global leader in customer experience with strong operations in the Philippines. They provide a comprehensive suite of services, including customer support, digital solutions, and back-office services.
TeleTech’s Strengths:
TTEC has made significant investments in digital customer engagement tools and offers 24/7 global coverage. The company has deep expertise in customer retention and satisfaction, ensuring a high-quality service experience.
TeleTech is best for companies that want global customer experience solutions with a strong and reliable Philippine delivery center.
The Philippines continues to lead the global outsourcing industry, and in 2026, businesses of all sizes are taking advantage of its talent pool, infrastructure, and cost benefits.
Whether you’re just getting started with outsourcing to scale your ongoing business operations or looking for a new partner to explore more offshore staffing solutions, the companies on this list represent some of the best options available for building a reliable, skilled, and scalable offshore team.
Today, outsourcing is about strategically scaling your business while focusing on what you do best — provided that you’re working with the right partner.
Still not quite sure who to choose? Start by asking us.
At KDCI Outsourcing, we specialize in helping medium to large businesses build dedicated offshore teams that deliver world-class support without the overhead costs of hiring in-house.
From customer service to IT to human resources, we help you build a dedicated team that matches your brand and business goals. With a client-focused approach and a proven track record of helping businesses scale sustainably, we make it easier for you to focus on growth with an experienced, outsourced team.
So, let’s talk about how we can support your outsourcing needs in 2026. Contact KDCI today.
A big part of your business success depends on the people you’re working with. However, an efficient and reliable team can be hard to come by without investing too much time or money. This is why a lot of companies turn to building their own offshore teams in the Philippines.
By working with a Philippine offshore team, companies like Amazon and Target can streamline their business processes for lower costs without sacrificing quality.
In this guide, we’ll walk you through the step-by-step process on how to build an offshore team, so you can meet your business objectives, achieve operational efficiency, maximize competitive advantage, and unlock new growth opportunities.
Building dedicated teams in the Philippines can greatly benefit your business. Here’s why:
Unlike in the US, where the average annual salary is $66,621.80 USD, the Philippines has a much lower average salary at $3,870.12 USD per year — that’s $322.51 USD or ₱18,423 PHP per month. In the Philippine BPO industry, salaries range from $3,236.60 USD to $9,512.95 USD a year.
From this data, it’s clear why many companies from developed countries prefer hiring a full team of offshore Filipino employees. Without the high operational costs of maintaining an internal staff, you can save on labor and overhead by at least 70%.
Offshoring means an expanded global talent pool. Building an offshore team entails fewer budget constraints on labor, allowing you to hire specialized Filipino professionals at a lower cost than local talent.
Because the Philippines is ahead of the US by 12 hours (or more depending on your company’s location in the US), your offshore Filipino employees can cover business and after-hours support to keep your operations running 24/7 and ensure fast turnaround times.
When building an offshore team, consider your capabilities when it comes to budget, available time and resources, as well as your current business condition. Here are the three main ways you can do this:
The most effective method in building a dedicated offshore team in the Philippines involves partnering with a specialized outsourcing company that manages all aspects of recruitment, training, and management, aligning the team with your business needs.
Setting up your own offshore office in the Philippines offers direct control over your team and operations but requires significant investment in time, finances, and resources to manage all operational aspects.
Using freelance platforms for building a remote team in the Philippines provides flexibility and cost-effectiveness, especially for small projects or budgets, but requires more hands-on management for coordination and quality control.
Unfortunately, not all freelancers are reliable. Some freelancers underdeliver on their promises, while others may refuse high-priority tasks because they have conflicting deliverables with other clients. Between freelancers and offshore teams, companies will opt for the latter as they are more reliable and consistent.
There are many ways you can build an offshore team in the Philippines, but the most efficient method involves finding a reliable outsourcing provider. Let’s go through how you can do this.
As a business owner, the first step in building an offshore team is identifying your needs and business and project goals. You can do this by closely examining your current operations. Look at what's working well and areas that need improvement, such as customer service, technology, or market expansion.
You should also pinpoint the specific challenges your business is facing. For instance, if rapid growth is overwhelming your current staff, you might consider whether adding offshore team members to perform certain functions could alleviate pressure. Conversely, if innovation is your goal, pinpoint the skills and expertise needed to drive this, and assess if these are present within your existing team.
This phase is about aligning your operational needs with your strategic goals. Are you looking to cut costs, improve efficiency, or expand your offerings? Each goal will require different resources and approaches, and recognizing this early on is key to successful offshore team management.
Choosing the right offshoring partner in the Philippines is a critical decision that can significantly impact the success of your offshoring venture. Begin by conducting thorough research to create a list of potential offshore outsourcing companies in the Philippines.
This can be achieved through online searches, ChatGPT, recommendations from business networks, and reviews and case studies.
Pay close attention to each candidate’s track record, particularly in your industry or for the specific services you need. It's important to evaluate a potential outsourcing partner not just based on cost but also on their proven ability to deliver quality work and their experience in handling similar offshoring operations.
Once you've shortlisted potential partners that can help you build an offshore team in the Philippines, assess their compatibility with your business by evaluating their communication skills and their company culture to ensure a good match with your own. An ideal partner should not only be capable of fulfilling your business needs but should also be flexible and adaptable to your working style and values.
Once you've selected a reliable outsourcing provider, it's time to leverage their expertise in building an effective offshore team tailored to your specific business needs and objectives. Here are the things that your partner will do for you.
Your outsourcing partner begins the process of building your offshore team by assessing your business and project requirements to determine the ideal team size and the specific roles needed. They consider factors such as task complexity, necessary skill sets, and the level of support your onshore team requires.
They also plan the role specifications and task distribution, deciding whether your team needs generalists for various tasks or specialists for certain areas, based on the nature of the work and your long-term goals. This ensures a balanced team dynamic with members whose skills complement each other.
Once there’s a concrete plan for the team structure, they will start finding the right people through their recruitment team, who are responsible for making job posts, sourcing talent, as well as vetting, screening, and interviewing candidates.
Your outsourcing partner will also handle and manage the training and onboarding process of your team.
For the training process, they will prepare and hold specialized on-brand training that involves equipping the new talents with complete knowledge about your brand. By training them for your brand, you can ensure that you’ll get an offshore team that can work using your brand’s voice, values, and management styles.
To further guarantee a high-performing team, the best business process outsourcing (BPO) companies like KDCI Outsourcing certify talents through assessments, exams, live situational demos, and more.
Your outsourcing partner will also handle the onboarding process, which involves providing the talents with the systems and project management tools that your business uses for its operations. They’ll also take care of the necessary infrastructure and equipment.
Another key responsibility of your outsourcing partner involves managing your offshore team. They will monitor and oversee the operations and ensure that your staff maintains high levels of productivity and service quality.
To achieve this, the outsourcing provider monitors key performance indicators (KPIs) and ensures that the service level agreements are met. If not, then the partner will determine the areas for improvement and the possible resolutions to take.
Your partner will also prepare a report containing data-driven insights based on customer feedback and interactions, giving your business a better overview of the team’s efficiency. They will also provide regular updates and meetings to keep all parties aligned on project goals, timelines, and changes.
We created this short FAQ to help you better prepare for effective offshore team management and building.
Outsourcing companies usually take four to six weeks to build a full offshore team. However, timelines may vary between providers, so we recommend asking the company’s outsourcing expert for the average timeline.
You should use your company’s preferred communication tool. If your company uses Microsoft Teams, your offshore employees must have their own Microsoft Teams account for seamless communication and collaboration during working hours.
We recommend Asana, ClickUp, or Trello. Your choice of project management tool depends on your preferences as well as the tool’s features, reliability, and security capabilities.
When it comes to offshore team management, communication is always the key! Regularly discuss your project goals and expectations to avoid misunderstandings and keep everyone aligned on important matters.
Yes! Virtual team building activities let you connect and bond with your offshore team members beyond chats and video conferencing meetings. Your team’s project manager can also choose to hold virtual team building activities — especially if most (or all) offshore team members are working remotely.
However, these activities don’t take too much of your employees’ time, so they can still work on their deliverables and maintain momentum.
Building an offshore team in the Philippines is not an easy task. You need to allot ample time and resources to ensure that each step goes well, but this may not be possible for businesses with limited capabilities.
That said, make sure to work with a trusted offshore partner who will take care of everything for you, from finding the best people for your team to managing them and ensuring high-quality service.
At KDCI Outsourcing, we build a Philippine offshore team based on your needs, goals, and project requirements. Whether you’re outsourcing software development, accounting and finance, content creation, or customer service, we’ll find the right talent, train and certify them for your brand, and oversee your offshore business operations, giving you more time to focus on your core business processes.
Ready to progress on your goals and achieve business success with your own offshore team? Contact us to learn more!
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Human resources is the key that holds your business together. While HR departments play a significant role, managing them comes with its own set of challenges, such as labor shortages, burnout, skill gaps in AI, budget constraints, and operational inefficiencies. To address these challenges, businesses resort to human resources outsourcing.
HR outsourcing offers significant advantages that in-house HR teams can’t. If this strategy is on your radar right now, this guide will teach you how to outsource human resources the right way.
This tutorial helps you understand the process and best practices for outsourcing human resources. Put the following procedures into action, and you can reap the many benefits of outsourced HR.
If outsourcing is a new venture for your company, you have to understand what outsourced HR is as well as its benefits and drawbacks.
To start, HR outsourcing is a process of delegating HR functions to a third-party vendor in a foreign country, providing HR support in outsourced human resource management, background checking, benefits administration, payroll, HR management, and recruitment.
Some of the benefits of outsourced HR include:
On the other hand, HR outsourcing has its drawbacks, such as:
By researching HR outsourcing, you’ll know what to expect and make smart decisions for your business.
HR outsourcing is not an overnight decision; it’s a commitment and an investment for long-term success. Before you outsource human resources, it’s important to have a good, hard look at your company’s HR functions — some even use HR consultancy services to find clear answers. For starters, here are four signs you need to outsource human resources:
Remember, employees are looking for more than just a good paycheck. They also want to work for companies with ample professional development opportunities, competitive benefits, and a non-toxic work environment.
HR outsourcing providers can enhance your talent acquisition and retention strategies, refine your training programs, and improve your workplace culture, so you can attract and retain high-performing employees.
This data exemplifies the demand for automation and efficiency while addressing evolving workforce needs. However, when done in-house, technology upgrades can be expensive.
But when you outsource human resources, the service provider can integrate advanced HR technologies and tools into your day-to-day workflow to automate tedious processes and simplify the HR experience for internal staff.
Outsourced HR compliance officers can take care of your compliance needs, leveraging their expertise to ensure your company is free from workplace hazards and discriminatory employment practices.
Just by looking at the signs above, you already have a rationale for outsourcing as well as a clear idea of which HR services to outsource. Don’t solely rely on observation, though. Interviews, surveys, and data analytics can shed light on blind spots and provide data-driven insights on the current state of your HR department and workplace.
HR outsourcing may be a more cost-effective venture, but it doesn’t mean coming in unprepared for all the possible costs you might incur. When you outsource human resources, expect the following expenses:
Scope of work, project complexity, experience level of outsourced employees, headcount, pricing model, and location can also affect your total outsourcing fee.
While it’s hard to determine the exact amount of money you’ll need for outsourcing HR, understanding outsourcing costs can help you prepare a realistic monthly budget, minimize overspending, and measure your outsourcing ROI.
Don’t forget to account for long-term business goals. At some point in the partnership, your business will grow, and you’ll want a budget that will scale to your current business needs.
It’s so easy to be overwhelmed by the ubiquity of human resources outsourcing companies online. Even Googling “HR outsourcing companies” yields a lot of results.
If you’ve grown tired of the classic Google method, consider chatting with ChatGPT for prospects. Here’s a fun fact: Our lead asked ChatGPT for the best Philippine AI companies, and one of the recommendations included KDCI Outsourcing.
By using ChatGPT, you can find and shortlist potential outsourcing providers much faster than a traditional Google search. These recommendations are not random, though. In fact, they are based on multiple factors, such as the company’s reputation and expertise as well as the SEO rankings and quality of published content. These data make it easier for ChatGPT to curate HR outsourcing companies.
Another method — albeit a more human one — is by asking your network (virtual or otherwise) for suggestions. All it takes is the right people to help you find the right provider.
Whether you’ve found 10 or 20 potential outsourcing companies, the next step is to vet your prospects. When evaluating potential outsourcing partners, take note of the following:
At this point, you’ve probably removed a few potential partners from your list. Let’s move on to the next step.
The vetting doesn’t stop at the initial screening. Booking a meeting with an outsourcing partner is a huge opportunity to dive deep into their capabilities as a provider. Here are questions you can ask during the meeting:
Transparent and trusted outsourcing providers are more than eager to answer all your questions. They understand that you’re risking your data and investing money into their services, so they want nothing but the best for you.
Most importantly, use this meeting to set your expectations and performance metrics with the vendor.
It’s normal to feel reluctant when making big decisions. Most of the time, marketing claims are just claims until they’re proven right in front of your eyes. Those answers from your interview questions? Maybe they’re not enough to make you fully commit to the partnership. Thankfully, HR outsourcing companies offer trial periods.
Think of trial periods (or trial projects) as a “demo” or “preview” of the provider’s expertise and service quality. What’s great about accepting a trial project is that it exposes most of the green and red flags of your offshore HR team and the HR outsourcing company itself.
Here are the green flags to look out for:
Conversely, here are the red flags:
If the trial period did not work out as expected, it’s okay to move on to other prospects. It’s better to go through the whole vetting process than waste time and money on the wrong HR outsourcing partner.
What if my offshore HR employees passed the trial period? Congratulations! You can now officially outsource human resources. To build a long-lasting outsourcing relationship, follow these tips:
Outsourcing partnerships take time to build. So long as the relationship is grounded in trust, accountability, and shared responsibility, there’s a huge chance that it will last for years.
At KDCI Outsourcing, we help medium to large-sized businesses scale their in-house HR department with a dedicated offshore HR team from the Philippines. Our staffing solutions are designed to augment your existing team with outsourced roles in payroll, HR data analysis, recruitment, talent acquisition, and many more.
With our strict hiring process and commitment to innovation, we ensure that our AI- and human-driven HR services exceed your expectations and meet your business needs.
If you’re looking to outsource human resources and build your own team, contact us now for assistance!
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About 68% of US companies engage in offshore outsourcing today.
And when we say companies, we’re also talking about multinational, successful businesses. The brands that we know and love. Top brands like Adidas, Google, Telstra, and Amazon outsource their operations to companies like KDCI because of benefits such as cost efficiency, access to a wider, global talent pool, and staffing flexibility.
That’s how much offshore outsourcing impacts the business world. With the right outsourcing partner, you can tap into this impact and empower your business to scale smarter with an outsourced team, too.
So, let’s talk about it! In this blog, we’ll answer the questions “what is offshore outsourcing?” and “how does it actually work?” We’ll also cover the key benefits of having an offshore team as well as the best practices in finding a reliable offshore outsourcing partner.
Here’s everything you need to know.
Offshore outsourcing is a business strategy wherein companies hire external firms or a third party service provider in other countries to handle tasks like customer service, IT support, software development, and manufacturing. It could mean having a handful of staff working for you from across the globe, or a dedicated team for the function you are outsourcing, say an entire HR department operating from offshore destinations like the Philippines, serving as an extension of your in-house team.
This allows businesses to save costs and access specialized skills that are more readily available or more cost effective abroad. As opposed to onshore outsourcing, an offshore outsourcing service allows businesses to leverage lower labor costs from outsourcing providers, giving them both reliable workers and substantial cost savings. That’s a win-win!
The tasks outsourced depend on the company’s unique operational and business needs, such as a tech firm hiring foreign developers for their expertise or a manufacturer seeking lower labor costs or an eCommerce company needing more customer service agents. Since the global BPO market has grown and evolved over the years, almost every service can now be outsourced. The test? If a task can be done remotely, then you can delegate it to an offshore team.
Offshore outsourcing services can be broadly classified into five types, each catering to different operational needs and strategic objectives of businesses.
More popularly known as ITO or IT Outsourcing, this type of offshore outsourcing involves contracting external organizations located in other countries to handle various technical support and IT-related tasks, such as software development, application maintenance, network management, and IT support. It’s one of the most common forms of offshore outsourcing, driven by the need for technical expertise and cost savings.
Curious about IT Outsourcing? Check out ITO Meaning: Benefits and Use Cases of IT Outsourcing.
Business Process Outsourcing (BPO) entails outsourcing non-primary business activities and functions such as customer support, administrative tasks, human resources, finance and accounting, and data entry to specialized service providers overseas. The aim is to improve operational efficiency and allow companies to concentrate on their core competencies.
Knowledge Process Outsourcing extends beyond traditional BPO by outsourcing more complex, knowledge-intensive tasks that require specialized skills (that, of course, still come at a lower cost). This includes research and development, financial analysis, advanced engineering services, legal processes, and consultancy services.
Learn more about the difference between BPO vs. KPO here: BPO vs KPO Explained: Essential Insights You Should Know.
Legal Process Outsourcing focuses on outsourcing legal services to external firms located in jurisdictions with lower labor costs. Services commonly outsourced include document review and management, legal research, contract management, and compliance services.
This type of offshore outsourcing service is typically used by legal forms or large corporations with their own legal departments who need to fill some roles while reducing the overhead costs of recruiting and training legal staff.
If you want to know more about LPO, read: LPO: A Comprehensive Guide.
This offshore outsourcing type involves contracting manufacturing processes or production tasks to foreign companies. Manufacturing outsourcing is adopted by companies looking to benefit from lower labor and as well as production and operational costs, access to advanced manufacturing technologies, and the ability to scale production based on demand without significant capital investment.
Offshore outsourcing follows a structured process that allows companies to delegate certain tasks or business functions to third-party service providers located in countries other than where the company is.
While there is no one-size-fits-all approach and the journey may vary depending on your outsourcing needs as well as the nature of your chosen provider, the process typically involves the following key steps:
Companies first need to identify the tasks they want to outsource. These can range from IT services, customer support, and manufacturing, to specialized tasks or short-term projects like legal processing or knowledge-based work, depending on every specific business need.
The next step involves researching and selecting the best offshore outsourcing companies with the expertise, resources, and capacity to meet the company's needs. This selection is based on various factors, including cost, reputation, quality of work, tech innovation, and the provider's ability to communicate effectively across cultural and linguistic barriers.
Usually, companies from developed nations and economies outsource to developing countries like the Philippines to maximize cost savings. This strategy leverages lower labor costs and access to a skilled workforce, allowing businesses to reduce expenses and improve efficiency with a trusted BPO company.
Companies conduct due diligence to assess the capabilities, financial stability, and track record of the chosen offshore outsourcing company. Following due diligence, the company negotiates terms, including scope of work, engagement models or service level agreements (SLAs), pricing, confidentiality agreements, and timelines with the outsourcing provider.
This phase involves transferring the identified business processes to the offshore outsourcing provider. It may include training the provider’s team, setting up communication and project management tools, and integrating systems and processes to ensure smooth operation and oversight across the entire outsourcing journey.
Effective communication and management are crucial for the success of offshore outsourcing. Regular meetings, progress reports, and performance reviews help manage the relationship, address any issues, and ensure that the outsourcing objectives are being met.
Establishing quality control measures and feedback loops is also essential to maintain the quality of the offshore outsourcing services availed. This can involve periodic audits, performance metrics analysis, and implementing changes based on feedback to continually improve the process and outcomes.
Ensuring compliance with legal and regulatory requirements in both the company's home country and the provider's country is critical. This includes data protection laws, intellectual property rights, labor laws, and tax implications.
Aside from the nature and process of outsourcing, among the most frequently asked questions about working with a BPO company are about its benefits. Let’s talk about what’s in it for you when you outsource specific business functions.
Offshore outsourcing comes with a number of advantages. Listed below are some of the most common benefits:
Offshore outsourcing greatly lowers costs by using cheaper labor from other countries, saving money on salaries, office space, and equipment.
It enables access to a vast pool of skilled professionals worldwide, providing expertise that may be scarce or costlier domestically.
Businesses can concentrate their resources on core activities that drive growth and revenue, enhancing their competitiveness.
Offshore outsourcing offers the ability to scale operations quickly in response to market demands without large capital investments or long-term commitments.
Partnering with specialized offshore companies leads to improved workflows, productivity, and turnaround times, thanks to optimized processes and best practices.
While offshore outsourcing offers significant advantages, it also requires careful planning, effective communication, and diligent management to address challenges such as cultural differences, time zone discrepancies, and ensuring quality standards are met.
Want to learn more about the benefits of offshore outsourcing? Read: Offshore Outsourcing Guide: Benefits & Best Practices.
While outsourcing can now benefit almost every industry, there are still services that are preferred over others. For organizations all over the world, the five most commonly outsourced business operations are:
software development services, web development, IT support, network management, and cybersecurity
Such as call centers, help desks, and customer interaction management
payroll processing, benefits administration, recruitment, and training
Such as bookkeeping, tax preparation, financial analysis, and auditing
outsourcing the physical manufacturing process of goods, especially to countries with lower labor costs
These offshore services are commonly outsourced due to their universal demand across industries, coupled with the availability of specialized global providers who offer cost-effective and scalable solutions.
Didn’t find the exact service you need on the list above? Check out In-Demand Offshore Outsourcing Services for US Businesses.
Where should you find a trusted offshore outsourcing service provider? The top offshore outsourcing destinations are renowned for their skilled labor pools, cost-effective services, and business-friendly environments. As of 2025, the best countries for outsourcing include:
With a strong emphasis on customer service and English language proficiency, the Philippines excels in providing offshore employees for call center services, customer support, and creative outsourcing.
Known for its vast pool of IT talent, India is a premier destination for software development, IT support, and business process outsourcing (BPO).
A global leader in manufacturing outsourcing, China offers a broad manufacturing base and access to a large, skilled workforce.
Recognized for its IT and software development expertise, Poland has become a preferred choice for companies seeking advanced technical skills in Europe.
With a growing reputation for its IT and software development talent, Ukraine offers highly skilled professionals in these fields at competitive rates.
By leveraging the strengths of these leading outsourcing destinations, companies can enhance their competitive edge, improve operational efficiency, and drive growth in the global marketplace.
Choosing the right outsourcing company is crucial for enhancing your business operations and achieving strategic goals. Here are the top five tips you can follow when choosing a service provider:
Clearly outline your objectives and the specific services you need to outsource to ensure alignment with potential partners.
Conduct in-depth research to identify outsourcing firms with a strong track record and relevant industry experience.
Choose a partner with excellent communication capabilities to ensure smooth interactions and project management.
Verify the outsourcing firm’s technical capabilities and infrastructure to handle your projects efficiently and securely.
Review the pricing structure and contract terms carefully to ensure transparency and flexibility to meet your business needs.
By following these tips and approaching the selection process systematically, you can find an offshore outsourcing partner that not only meets your current needs but is also well-positioned to grow and evolve with your business over time.;
Ready to choose an offshore outsourcing provider to work with? Check out 10 Best Offshore Outsourcing Companies in the Philippines.
Or better yet, take the first step by discussing your offshore outsourcing needs with an offshore outsourcing provider that you can trust. Just reach out — we’d be happy to answer any other questions you might have about offshore outsourcing.
It’s difficult to navigate offshore outsourcing with little knowledge, especially if you have specific business requirements to fulfill. With several things you need to consider, how do you get started?
This is where KDCI Outsourcing comes in. We take the time to understand your needs and requirements, company culture, and pain points to build you the perfect offshore team. With over 20 years of industry expertise, we’ll do everything for you, from finding, vetting, training, and certifying the right talents for your brand, up to managing your operations, saving you time and money — so you can focus on growing your business..
Learn more about our offshore staffing services and how it can empower your business to scale smarter. Contact KDCI to get started.
What started out as a few agents, has grown into an invaluable partnership with KDCI. With more than 40 team members, we are lucky enough to count as part of our Cedar Family. Thank you so much KDCI for making our Company better!
We have found KDCI to be a consistently reliable partner, always willing to ‘go the extra mile’ to ensure our valued customers receive the best possible service.
KDCI plays a very important role in our catalog and content operations. They are responsive, kind, and always willing to help us as much as possible. We have been working together for more than 4 years, and we hope our partnership will be even more fruitful in the future.
Having collaborated with KDCI.co for our creative needs, I can confidently attest to their unparalleled expertise and dedication. Their team consistently delivered innovative solutions that not only met, but often exceeded our expectations. Their professionalism and attention to detail are commendable.
KDCI were able to grow with us with any future requirements. We have a lot to do when it comes to our business, and everytime we come back, they're right there with us and able to deliver.
KDCI's team has been instrumental in helping us not only modernize our platforms but also increase the experiences for the customer, and to deliver on the tsunami of content that came their way.
We had a lot of difficulty finding qualified talent in the United States. Honestly, I don't think we had thought about outsourcing at all as a potential option, but we were very open to it once we heard about it. We love our KDCI team. They're just like a regular part of our team, it's just that they're thousands of miles away.
It's been five years since we started working with KDCI, and it just keeps getting better and better. We've grown together and achieved a lot of shared success. Overall, they're incredibly professional yet fun to work with. We are incredibly happy to have found them.
We're so glad we partnered with KDCI to develop a unique platform that delivers personalized customer experiences without compromising functionality or security. It was an amazing experience, I won't hesitate to start another project with them again.
