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Outsourcing vs offshoring has always been the talk of the town as businesses strive to achieve significant cost savings, innovate their systems, and expand their market share— all while maintaining productivity, efficiency, and high service quality.
However, outsourcing and offshoring are often confused with one another. As a result, many businesses adopt the wrong strategy because they don’t heed the critical differences between these two practices.
That said, we will distill the overwhelming (and confusing) differences between outsourcing and offshoring. At the end of this blog article, you will gain an in-depth understanding of these two business practices. At the same time, you will determine which one is suited for your business needs.
Outsourcing vs offshoring operate differently and thus should not be treated as interchangeable concepts. Let’s learn about them below:
Outsourcing is when a company subcontracts a third party to carry out operational tasks outside the organization. There are many reasons why companies choose to outsource. One of which is to hire specialized talents that are not present in their organization. Some outsource to increase efficiency for time-consuming functions such as customer service and back-office functions.
Companies that have outsourced include Alibaba, founded by Jack Ma in 1999. When there was a scarcity of web developers in China, Jack Ma and his team started outsourcing their web development needs to the US. As a result, they successfully built a sustainable eCommerce infrastructure and became a popular online marketplace.
While outsourcing involves entrusting business processes to an outside party, offshoring, on the other hand, refers to transferring jobs to another country with lower labor costs. In offshoring, companies hire a dedicated remote workforce from another country.
Imagine you have an extension of your company’s locally based staff in an offshore location. If a service provider manages all activities in outsourcing, offshoring allows you to integrate the remote staff into your company entirely.
Therefore, your team will perform specific tasks based on your command. WhatsApp, for example, is among the many companies that have sought the benefits of offshore staffing. As a result, the company offshored its software development to Russia shortly before its inception in 2009.
To sum up, WhatsApp used offshore expertise to provide design solutions and handle core app development, while its in-house engineers focused on client-facing activities like customer support. Consequently, the chat app quickly rose to the top of the App Store and Google Play.
Outsourcing and offshoring are interrelated practices. However, both strategies vary in the way they carry out tasks for external organizations. Outsourcing can be done locally and globally, whereas offshoring can only be done abroad. Hence, when you outsource internationally, it can be referred to as an act of offshoring.
One of the advantages of outsourcing and offshoring is cost savings. Let’s take a look at how these practices result in less overhead for your business:
Outsourcing to another country yields higher cost savings. Outsourcing companies from a developing country provide state-of-the-art services without breaking the bank.
On the other hand, outsourcing domestically entails more expenses — especially labor and overhead. While cost savings are limited with domestic outsourcing, it offers tighter collaboration with your service provider.
If you want long-term cost savings, offshoring is the right strategy for your business. Building a local team means spending around $4,683 USD per hire. With an offshore team, you can cut the cost of hiring by a fraction, as your employees are located in a country with low labor costs and living expenses.
When it comes to work assignments, you want to get things done at a speedy turnaround time. Between outsourcing vs offshoring, which one is the best?
If you prefer a fast and flexible approach to work, outsourcing might be a good choice. In outsourcing, the delegation of tasks is through your service provider. Therefore, you can leave menial functions and focus on your core business operations.
If you choose to outsource tasks and projects that need your attention, you must lean towards offshoring. It may take time to accomplish tasks since it requires communication between you and your remote staff. But the good thing is you have all the control to ensure the work gets done.
Communication and interactions are essential in building long-lasting relationships. Do you prefer little to no interaction, or do you want to integrate your remote staff into your company fully? Either way, check out how outsourcing vs offshoring differ in their approach to communication.
Outsourcing is perfect for business owners who are often busy. Indeed, when juggling many responsibilities, you have no time to supervise and train your staff. That is to say, you want to get things done by handing over these business activities to your third-party provider.
Meanwhile, offshoring is ideal if you want to be fully involved in talent acquisition and integration of your offshore staff. With offshoring, you can explain your company’s culture, objectives, and processes to your team. By doing so, they can perform better and are more likely to stay with your organization.
Quality of work guarantees better profits. In short, which between outsourcing vs offshoring can render the highest quality standards? There’s no doubt that both can promise high-quality standards. However, just like with work assignments, outsourcing and offshoring take a different approach in setting quality standards and expectations.
The quality of work may be unstable in outsourcing because your outsourced workers are not devoted to your organization. In addition, employees handle multiple clients with time-sensitive campaigns in outsourcing companies. Thus, your tasks may often get put aside.
With offshoring, you have the authority to impose work quality requirements on your staff. Your team is expected to focus solely on the job you assign them because they are devoted to working on your company’s duties — not for other clients. This will ensure that they will consistently deliver high-quality work.
Sometimes, your business may not be ready for the peak season.
This fact begs the question, “Which can help me scale up my business with an already-trained staff that can handle the increased volume of my business?”
When the job flow during a seasonal peak is unclear, outsourcing could be of great help. For instance, a contact center can provide you with customer support agents equipped to take incoming calls and acquire the information needed from customers. When the busiest season ends, it’s just as easy to scale back to a smaller set of agents.
While outsourcing scales up your resources during peak seasons, offshoring can help you expand based on your needs. Offshoring allows you to begin with a small or a big team. Then, as your company grows, you may extend the team by adding more jobs as needed. Since you take charge of the hiring process, it is considered a longer-term strategy.
Yes! Onshore outsourcing is a model in which tasks are delegated to a domestic service provider. Smooth collaboration, cultural compatibility, and time zone alignment are the advantages of onshoring. But because onshore outsourcing is concentrated domestically, labor expenses are going to be higher.
Mitratech found that third-party-induced data breaches are the most concerning issue for the majority of surveyed companies (74%).
Not to worry, though, because the best service providers take data security seriously. These companies have advanced IT infrastructure and cybersecurity capabilities that can protect your data from online threats, including data breaches.
There’s no strategy that’s better than the other. Choosing between outsourcing vs offshoring should be based on your business needs.
Want a dedicated overseas offshore team that you can build a long-term professional relationship with? Choose offshoring. Want to offload non-core business activities? Choose outsourcing.
Weigh the pros and cons of both practices, so you can make an informed decision and reap the benefits of your chosen strategy.
Building a high-performing team with specialized skills requires a lot of work. Hence, you may need offshore staffing to take the load off your shoulders. Offshore staffing can help you tap into global talent while keeping overhead expenses at bay.
Here at KDCI Outsourcing, we have offshoring specialists who can support your existing in-house team. From finance and accounting to digital marketing, we can build dedicated teams for any business function.
With our custom offshoring solutions, we can free up your internal resources, boost your operational efficiency, streamline your business operations, and increase your profits.
Need help with overcoming workflow inefficiencies and business challenges? Let KDCI Outsourcing do the heavy lifting. Contact us today!
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It’s not just the workload that’s killing your human resources (HR) department, but also inefficiencies brought by manual processes and poor technology integration. According to Deloitte’s Modernizing HR: Design Thinking and New Technologies to Help Enhance Employee Experience, cited by Deel, administrative tasks consume 57% of HR employees’ time.
As a business owner and employer, this is deeply concerning. The time spent on mundane administrative tasks (like benefits administration, payroll, and performance evaluation) can be used for high-value HR initiatives and business needs. Fortunately, many of these administrative tasks can be automated. But to do so, you need the best human resource outsourcing solutions.
Human resource outsourcing solutions are every HR professional’s best friend. These technologies transform your HR department into an efficient powerhouse that enhances the HR and employee experience.
This article walks you through the definition of HR outsourcing solutions, followed by a round-up of the best human resource outsourcing solutions. We also included a guide on choosing an HR outsourcing software solution for your business. Without further ado, let’s begin.
Human resource outsourcing solutions are software and platforms that optimize HR services for speed, efficiency, and compliance. These programs enable smoother HR and employee management through cloud technology, automation and AI-powered tools, data analytics, and app integration, allowing in-house HR professionals to focus on core HR needs.
Human resources outsourcing companies provide these software solutions to help clients gain access to cutting-edge HR platforms without the upfront cost of new technologies and software upgrades.
The best human resource outsourcing solutions promise long-term competitive advantage. Check out our round-up of the best HR software solutions below:
Developed in the Philippines, Sprout HR is one of the top human resource outsourcing solutions designed to streamline HR services for all workers.
Boasting end-to-end HR solutions, this award-winning HR software promises comprehensive, AI-powered support for every HR need — whether it’s candidate sourcing or professional development. Sprout HR is ideal for companies looking to modernize their HR services with an all-around platform.
With its Pulse tool and Wellness program, HR professionals can gather employee feedback and help employees prioritize their physical and mental health, respectively.
ADP Workforce is an industry-standard platform used by KDCI Outsourcing to support a wide variety of HR needs, including HR reporting, payroll, talent acquisition, and workforce management.
Designed for companies of different sizes, including medium- and large-sized businesses, this technology provides owners of medium- and large-sized companies the efficiency and flexibility they need to manage and improve workforce performance across all departments.
Pros:
BambooHR is a highly praised HR software solution that seamlessly integrates all HR services into one user-friendly platform, promising a 65% efficiency boost and saving HR professionals 18 hours on HR tasks weekly.
Ideal for differently sized companies, this software solution scales and meets your HR needs as your business grows.
Pros:
Greenhouse is an innovative hiring platform that delivers high returns on your recruitment and hiring efforts, averaging a 589% ROI within three years. With features that minimize hiring biases, this platform is ideal for companies wanting to spearhead or enhance their DEI (Diversity, Equity, and Inclusivity) efforts.
Having consistently won awards such as the “Best Software for Enterprise,” Greenhouse stands as a highly expertised leader in the recruitment field.
Pros:
Workday is a cutting-edge HR software solution that harnesses AI to future-proof your HR department against industry changes.
Trusted by thousands of Fortune 50 and 500 companies, Workday stands as a reliable platform for driving enterprise-level innovation, boosting operational efficiency, and elevating your workforce.
Cons:
SAP SuccessFactors is a software solution aimed at companies with a global workforce. Packed with cutting-edge features, it elevates the mundanity of HR services into a more cohesive, technology-driven experience for all employees.
Based in the Cloud, Zoho People is an HR platform designed for businesses that use Zoho and non-Zoho applications. Delivering agility, efficiency, and innovation, this award-winning software offers a comprehensive suite of features and tools that streamline your HR department’s daily workflow.
Your choice of human resource outsourcing solution can either supercharge your HR department or result in a costly mistake. Here are three tips for choosing the right one for your business.
According to human resource employees, professionals, and leaders (43%), HR technology is effective. However, the best human resource outsourcing solutions won’t benefit you if you don’t know your HR needs. To identify those HR challenges and needs, start by gathering feedback from your HR staff.
HR professionals have first-hand experience with workflow inefficiencies and challenges. Hence, they can provide detailed insights into which functions require the most attention. From there, you can establish goals that meet both your HR and organizational needs.
There are plenty of HR technologies available on the market today. Don’t settle on the first HR software you see. Do thorough research on each software’s features, scalability, AI capabilities, user-friendliness, complexity, data security, and cost.
Check detailed user reviews, or even better, request a demo or take advantage of free trials to get a feel of the software. Most HR solutions entail overcoming a learning curve, so maximize your time with it before making a decision.
An HR outsourcing provider is equipped with the best human resource outsourcing solutions. Despite that, look for BPO companies that have software expertise in your preferred HR solution. For example, if you prefer BambooHR, you can outsource HR services to KDCI Outsourcing as the company has employees who are trained and proficient with said platform.
Though cheaper, always remember that the cost of outsourcing in the Philippines (or elsewhere) may include start-up fees and software upgrade expenses.
The best human resource outsourcing solutions address your specific needs. If you hate the idea of investing in the wrong HR technology, it’s time to partner with outsourcing companies that understand your technology and HR challenges.
At KDCI Outsourcing, we have the best human resource outsourcing solutions that deliver not just speed and efficiency, but also enhanced workforce performance, employee engagement, and competitive advantage. From ADP Workforce Now to Greenhouse, we have HR professionals who excel in your software solution.
As your HR outsourcing service partner, we will do everything in our power to level up your HR department with high-performing offshore HR talent and advanced software.
Experience our AI-powered HR outsourcing services today. Contact us for proposals, inquiries, or price quotes!
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So, you’re considering outsourcing HR services? Good choice! It’s a choice nearly half of businesses worldwide have made as 42% of companies have already outsourced at least one HR function, and for good reason.
With a reported ROI of 191% and a number of other significant business advantages, it’s no wonder more and more businesses are now opting for an outsourced HR department (or at least parts of it through outsourced payroll processing, talent management, and employee engagement among others).
As in every business decision, it’s understandable if the whole idea may seem overwhelming at first. That’s just how it is when a business owner or manager is looking at things that will largely impact the company they’ve put a lot of time and effort into. Since there are a lot of things to consider when working with an HR outsourcing provider, it’s natural to feel like you’re not sure how to start.
But you’re here. You’re in the right place. You’ve already gotten the business to a point where the need to scale is imminent because your team is growing — now it’s time to support that growth with the right HR team (and cost-effectively at that).
In this blog, we’ll walk you through the process of outsourcing HR services to the Philippines, breaking it down into a clear, actionable 5-step guide that you can follow as you build an offshore team to empower your team with dependable human resource management.
Read on to learn more.
Human Resources (HR) services pertain to any type of support in human resource management provided by a third party. The objective is to help organizations enhance their human resource management, such as by enhancing operational efficiency, improving compliance with regulations, boosting employee satisfaction and retention, and more.
Since there are a lot of functions that HR teams have to handle including, but not limited to payroll processing, benefits administration, monitoring of staff productivity, minimizing employee turnover rates, and maintaining overall company culture, having a good human resource management is key to the success of any organization. It ensures that companies have great talent, that employees are engaged and performing, and that the company is a great place to work overall.
However, not all organizations have the resources to staff their own in-house human resources team, hence more companies are choosing to outsource HR services.
<br>The growing popularity of HR outsourcing services or human resource outsourcing (HRO) is reflected in the size of the global human resource outsourcing market, which was sized at $18.65 billion in 2023, estimated to be $19.97 billion in 2024. And with a 7.59% annual growth, the market size is expected to reach $31.14 billion in 2030. In short, it’s a fast-growing multi-billion dollar industry geared towards empowering businesses as employment trends shift and HR responsibilities evolve alongside them.
Not only is human resource outsourcing a great option for those looking to optimize resources, it’s also a great way to unburden one’s inhouse team. Running human resource operations effectively requires expertise in several areas such as compliance and risk management, compensation and benefits, health and safety, and more. Sourcing these expertise and delegating various HR administrative tasks can be challenging. And with the added burden of needing to scale operations, companies choose to outsource their human resource functions rather than operate it in-house.
With so many HR outsourcing companies globally, the Philippines is emerging as one of the leading destinations mainly for its lower labor costs, excellent English, cultural compatibility, and excellent track record in the business process outsourcing (BPO) industry.
When people think of the Philippines, the first thing that comes to mind is cost savings. This is because the Philippines is a developing country with a lower cost of living, hence lower labor costs. To illustrate, the average hourly wage of an HR specialist in the United States in 2024 is $36, meanwhile, it costs ₱144 (approx. $2.46) per hour in the Philippines. Such cost-effective rates make outsourcing HR services ideal for businesses of all sizes: be that a small business looking for payroll processing support or a multinational organization that needs to hire global HR staff.
With such a huge difference, even with the additional costs that come with management, resources, and benefits, the overall cost to outsource HR services to the Philippines is still around 70% lower than hiring a full-time staff onshore in the United States. This appeals to many global companies attracting them to outsource to HR outsourcing companies in the Philippines.
When it comes to outsourcing, smooth collaboration is key to success and even more so in HR outsourcing where you’ll have an offshore team handling HR tasks that mostly involve communicating with staff. And Filipinos are known for their excellent English communication skills, what with the country ranking 2nd in English proficiency across all of Asia and English being used as the primary language in Philippine education. These result in the majority of Filipinos speaking excellent English, making the Philippines particularly attractive as an outsourcing destination to native English speaking countries, like the United States, UK, and Australia, contributing to the high demand for HR outsourcing in the Philippines.
Besides communicating well in English, Filipinos are also culturally similar to developed nations, particularly, the United States. This is because they were a United States colony for 48 years, and because they consume so much American pop culture. For this reason, Filipinos have an easier time understanding nuances in North American culture (as well as technical requirements such as regulatory compliance and employment law), aiding communication and resulting in better collaboration. Such compatibility is especially helpful in HR responsibilities since people-related tasks, as well as the overall company culture, are on the line.
The history of Philippine business process outsourcing (BPO) industry dates as far back as the 1990s. This puts the Philippines ahead of many other nations in the outsourcing market. With decades of head start, the Philippines has built a strong reputation as a reliable outsourcing market with reliable tech infrastructure, government incentives, and over 800 BPO companies. This gives many global companies the confidence to work with Philippine BPO agencies, trusting their expertise and experience for high quality HR services. This also means that you’ll be entrusting your HR tasks to a fully-trained team backed by well-developed outsourcing infrastructure and strong government support.
With all these benefits considered, there really is no doubt that choosing an HR outsourcing service provider from the Philippines is the best move for businesses looking to scale with more efficient task delegation and cost-effective HR solutions.
If you’ve never outsourced before, you may be unsure as to how you can start outsourcing human resource services to the Philippines. We’ve broken down the steps to outsource HR services to the Philippines in 5 easy steps below! We also created a separate guide on the best practices for outsourcing human resources.
Before starting any business venture, such as outsourcing, first evaluate your current operations and determine your HR needs. Are you finding it difficult to find staff for your HR positions? Does the volume of HR work not justify hiring staff full time? Do you expect fluctuations in your HR operations that would require you to scale quickly? The key here is strategic planning tailored to your business’ actual needs — this will benefit your outsourcing partnership in the long run.
After clarifying your needs, consider the benefits of outsourcing your HR functions to the Philippines. With the geographic distance, collaboration will be done virtually. Will you be able to operate without HR staff on-site? How about cultural and language compatibility? While Filipinos have built a reputation for working well with Western brands, there are still brands that require a local HR manager and other HR staff. Will this be an issue for you?
Finalize and keep all these in mind as it will be crucial throughout the journey of finding an HR outsourcing provider.
Once you’re certain that outsourcing to the Philippines is the right business strategy for your HR operations, the next step is to identify which HR roles you need to outsource. The most commonly outsourced ones include general HR, compensation and benefits, payroll, training and development, and recruitment. There are also businesses that opt to outsource their entire HR department from the Philippines to address all of their HR needs.
Then, Determine how many of each HR role you need, and of which seniority. Are there particular skills you require for these employees and specialists? Will they need to know how to use proprietary tools like Workday, Bamboo HR, and Zenefits? Or do you need an end-to-end, holistic HR outsourcing service with a team that can handle all HR tasks mentioned above? Be clear on these as you’ll use these this information when shortlisting the BPO companies you want to work with.
With clear roles to outsource and skills required, it’s time to choose a BPO company that specializes in HR services in the Philippines. The easiest way is to start with the top HR companies in the Philippines, then select based on your unique needs.
Assess the outsourcing companies based on their expertise, track record, contract type, timeline, and costs. And while it’s not a technical requirement, checking the company culture of the provider is also important in finding the right match when it comes to outsourcing.
It’s best to work with an HR outsourcing company that has provided outsourced HR services to companies similar to yours in terms of size, industry, and geographic location. This reduces the learning curve, easing transition and minimizing operational disruptions.
You also want to consider the contract type when choosing a company to work with. You may need full-time offshore staff for long-term or you may need them to fullfill one off projects only. Depending on the outsourcing arrangement you need, the length of contract or terms, and the costs will determine the best company to work with.
A quick way to assess these is to meet with these companies and discuss how they may meet your requirements, and on what costs and terms. If you need assistance or guidance with this assessment, you may set up a quick consult here.
Once you’ve decided to work with an outsourcing partner, it’s time to discuss the terms and conditions of the human resources outsourcing services they provide. Though these should have already been brought up during initial discussions when choosing your outsourcing partner, you should discuss these more thoroughly within the context of a working partnership with your chosen BPO company.
Some of the things you want to pay close attention to include scope of service, service level agreements (SLAs), key performance indicators (KPIs), confidentiality and data protection, compliance with local and international laws, contract duration and renewal terms, termination clauses, dispute resolution mechanism, responsibilities and liabilities, quality assurance (QA) measures, communication protocols, HR technology & software, and change management process.
Once you’ve signed the contract, your partner BPO company will be recruiting, hiring, vetting, and training your offshore HR team to ensure they meet your requirements. Once this is done, they’ll be onboarded, equipped with tools to fulfill your tasks, as well as taught your process and given access to your systems to help them integrate into your operations.
With your offshore HR team onboarded, it’s time to work with them, with your outsourcing partner managing your offshore team on your behalf to ensure quality of work, and that their efforts align with your business objectives. From there, it will be an ongoing process of continuously growing with an offshore team that effectively serves as an extension of your existing in-house one. Your HR outsourcing partner will provide the assistance you need throughout the process.
We’ve covered the complete journey of outsourcing HR services to the Philippines, a five-step, proven strategy adopted by major global businesses.
By following these five steps, you can empower your team with an HR team that can truly support your business with where you are right now (and towards the direction you’re headed in the future).
It’s time to take the first step and transform your HR function into a strategic asset for business growth — are you ready?
Outsourcing HR services to the Philippines for the best results shouldn’t be difficult.
With clear goals, the right outsourcing partner, and great collaboration and communication, you can expect great results!
At KDCI Outsourcing, we’ve supported several brands, from SMEs and startups to multinationals, with their human resource functions. With over a decade in the industry, we’ve built a strong reputation for building the best offshore teams in the Philippines. We don’t just find people with the experience and skills you need, we look for people who mesh well with your team, making it so that your outsourced team feels inhouse, helping you achieve your business goals.
Learn more about HR outsourcing in the Philippines. Contact us today!
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Every business needs human resources (HR) — from recruitment to payroll to employee engagement, that’s a long-established business fact. HR services often come at a significant cost, yet another business fact.
But should that always be the case?
Yes, as companies grow, HR responsibilities scale quickly, and with that comes rising costs. For medium to large businesses in the US, maintaining a full in-house HR team can easily become one of the biggest overhead expenses.
That’s why more organizations are turning to HR outsourcing (HRO) to the Philippines as a smarter, more cost-efficient solution.
Truth is, the answer is quite nuanced. HR outsourcing costs vary depending on the provider, scope of services, company size, and even the country where the outsourced team is based. Still, by looking at industry benchmarks, we can provide realistic estimates that business leaders can use to guide strategic decisions.
In this blog, we’ll break down:
By the end, you’ll have a clear picture of the investment required as well as why HR outsourcing could be one of the smartest financial and strategic moves that you can make for your growing company today.
Ready? Let’s get started.
While the default used to be having a full in-house HR department, more and more businesses are now opting to work with an external provider, typically those located in the Philippines. For medium to large businesses that are looking to scale their operations, this is a far more sustainable option — a strategic HR initiative that empowers the team with experienced HR, sans the excessive overhead costs.
Before we delve into the actual cost of outsourcing HR, it helps to understand why several US companies opt to work with HR outsourcing providers in the Philippines. Here are just some of the key reasons:
As most businesses already know, the costs of outsourcing to the Philippines are significantly lower compared to hiring inshore. The same thing applies to outsourcing HR services. Here’s how that looks: while hiring a skilled HR specialist in the US might cost around $3,900 per month, a comparable, highly capable professional outsourced to the Philippines could run approximately $1,500 per month (inclusive of office space, utilities, and equipment). That translates to around 70% in cost-savings for your business.
English is an official language in the Philippines (adopted from Americans), and it is widely used in education and business, ensuring that communication barriers are minimal. This high level of fluency minimizes friction and reduces the chances of miscommunication on complex HR matters like benefits administration, policy explanation, or internal coordination. Furthermore, the strong historical and cultural ties between the two nations mean that Filipino professionals are generally familiar with US business norms.
The Philippines maturity in the BPO industry as a whole translates to a ready supply of specialized HR service providers — from large global BPO firms to smaller, niche specialists — who operate with established, international-standard processes. This environment is supported by mature payroll platforms, rigorous compliance firms, and reliable technology infrastructure, giving US companies confidence that their sensitive HR data are handled professionally.
When working with an HR outsourcing company from the Philippines, a business can rapidly scale its HR team up to handle peak seasons and then scale down just as quickly during slower periods. This ability to adjust capacity efficiently is crucial for operational health. By using outsourced HR services, companies avoid the significant financial and administrative burden associated with hiring and firing costs, including the complex process of recruitment, onboarding, and potential legal issues related to workforce reduction.
While the time difference between the US and the Philippines is substantial (often 12 to 15 hours), this gap can be strategically leveraged. The Philippine team can work in the US evening and night shifts, handling HR administrative tasks, processing payroll, updating employee records, or managing support requests while the main office is closed. This effectively extends a company’s coverage to nearly 24 hours a day.
With all these benefits and advantages considered, working with an HR outsourcing service provider from the Philippines is a clear strategic move for agile and growing US companies looking for both reduced costs and increased operational efficiency.
There are several distinct engagement models of HR outsourcing that define the scope of services, the degree of shared responsibility, and the legal relationship between the client and the HR outsourcing service provider.
Choosing the correct framework is the first critical step in a successful outsourcing partnership, as the model determines whether a company offloads all administrative tasks, shares co-employment responsibilities, or simply outsources one highly specialized function. If you’re looking to outsource your HR, there is generally four options to choose from:
Full-service HRO is a comprehensive model where a company outsources most HR functions — payroll processing and payroll taxes, compliance, recruitment, etc. It’s best for companies that need to offload administrative burden while retaining full control over their dedicated offshore HR team, making it a frequent choice for establishing a team in the Philippines.
The PEO model uses co-employment, where the PEO shares legal employer responsibilities, handling taxes and group benefits. It is primarily used by smaller companies that want access to enterprise-level benefits and specialized compliance expertise they couldn’t otherwise afford on their own.
RPO is focused exclusively on talent acquisition (recruitment). This model is ideal for companies that need to scale quickly or face high-volume hiring needs, leveraging the specialized RPO provider’s dedicated recruiting infrastructure to rapidly fill roles.
This offers the most flexibility, allowing a company to outsource only specific functions like payroll, training, or compliance, or even HR consultancy services. This model is mostly used by small businesses or medium-sized companies to gain specialized expertise or administrative relief in targeted areas while customizing the monthly or annual fee and retaining control over other functions.
Ultimately, the choice of an outsourcing engagement model — whether comprehensive like HRO, co-shared like PEO, or highly targeted like RPO or Specialized Outsourcing — depends entirely on a company’s strategic goals, current HR pain points, and desire for control. With the model selected, the next step is to drill down into the specifics of the partnership.
Now that the engagement models are clear, let’s briefly discuss the specific services that you can get through an outsourcing provider. While outsourcing the entire HR department is a popular choice, outsourcing specific HR services or functions (depending on your business’ needs) is also an option.
To guide you, here are some of the most commonly outsourced HR roles and functions:
As you can see, your business has the flexibility to choose an engagement model and the specific services that perfectly aligns with your operational needs; whether you need a full-service partnership or a specialized, task-based support.
Back to the main point: the ultimate purpose of this strategic delegation of HR administrative tasks is to achieve dramatic financial efficiency. Therefore, the next logical step in any outsourcing decision is to move beyond function and focus squarely on the bottom line. Let's analyze the expected cost reductions by exploring the actual costs of outsourcing HR staff.
As we go through the numbers, keep in mind that these are general estimates from the available data on HR outsourcing. If you want to get a bespoke quote that matches your exact HR needs, feel free to talk to our team at KDCI Outsourcing about your HR needs.
In the meantime, let’s do a focused, ballpark HR cost comparison to establish the true financial advantage of offshore HR staffing. To contextualize how much a company can save through outsourcing services, we’ll first outline how much it typically costs to hire an HR expert locally, in the US.
To accurately frame the savings, we first benchmark the full cost of comparable domestic talent: a mid-level HR Specialist or Generalist in the US typically commands an annual base salary in the range of $70,000 to $100,000+.
When including the additional costs — mandatory employee benefits, health insurance, paid leaves, and retirement contributions — the employer’s (your business) total cost is significantly higher. For private industry workers, total benefit costs average approximately 42% of the base wage, giving you a total of around $98,000 to $150,000 annually per HR staff.
Now, consider the investment required to staff the same HR functions through a Philippine-based HR outsourcing provider:
The full cost per HR staff member in the Philippines (including salary, government-mandated benefits, and the provider’s operational & management margin) generally falls in the range of $1,200 to $5,000 per person per month — depending on the outsourcing provider, the skill level of the staff, and the level of engagement among other factors (which we’ll also discuss later).
Even if you get HR services at the higher end of the range, the HR outsourcing cost total would only be around $60,000 annually per HR staff. As such, by moving the equivalent of these HR functions offshore, your company has the potential to reduce its operational spend on a per-person basis, resulting in a cost reduction of up to 80% compared to having an in-house HR staff.
Again, this is merely a generalized starting point. The final, actual cost will be defined by the specific HR services you prioritize, the complexity of your requirements, and the pricing structure of your chosen outsourcing partner.
Having established the significant financial advantage of leveraging offshore HR talent and detailed the cost benchmarks for specific outsourced functions, the critical next step is to understand how those costs are actually structured and billed.
Here are the factors that will push costs up or down:
The cost is driven by the number and complexity of functions outsourced. Generally speaking, a single, transactional service (say, payroll services only) is the lowest in terms of cost. The price escalates significantly for a full-scope model, which bundles strategic functions like recruitment, advanced compliance, and technology. The more services you bundle, the higher the fixed flat fee or per-employee fee.
Higher legal and operational complexity directly increases the price. Costs rise when the outsourced team must support intricate financial and legal scenarios, such as managing multi-state US payrolls, processing complex variable compensation plans, or ensuring compliance with specialized labor laws. This complexity requires the HR outsourcing providers to dedicate higher-skilled, more expensive resources.
Pro-tip: outsourcing providers typically reward volume. Small engagements (1 to 4 staff) often incur a higher per-employee-per-month (PEPM) rate due to fixed overhead costs. However, once a company scales to 5 or more dedicated HR staff, it starts qualifying for tiered pricing, volume discounts, and bundled administrative rates, which effectively drive the per-person cost downward.
The market standing of the HR outsourcing company and technological infrastructure directly influence their fee structure. Top-tier, global HR outsourcing companies command a premium for their minimized risk profile, robust technology, and comprehensive global compliance. Smaller, boutique providers offer lower pricing but typically present tradeoffs in technology, service redundancy, or global compliance breadth.
The inclusion of advanced technological capabilities introduces recurring supplementary costs. The fees for the utilization, licensing, and management of advanced systems — such as comprehensive HRIS, ATS, reporting dashboards, and workforce automation — are typically passed on to the client using the HR outsourcing services as an additional subscription or technology fee, layered over the base labor cost.
When offshoring to the Philippines, the total operational cost must legally and financially account for fixed local employment requirements. The fully loaded cost includes mandatory employer contributions to the state-run social insurance (SSS), national health insurance (PhilHealth), housing fund (Pag-IBIG), and the government-mandated 13th-month pay. These government-set employee benefits must be calculated and included by the provider in the total monthly investment figure.
These factors, then, would constitute the total costs you have to pay for when outsourcing HR staff. Remember: a good outsourcing provider will discuss all these costs with you upfront so you’re not surprised by hidden fees when the invoices come along.
While we’re on the subject of invoices, let’s talk about how businesses actually pay for outsourced HR services when working with an external provider.
When you partner with an HR outsourcing provider, the costs are delivered through one of several structural pricing models designed to align the provider’s fee with your risk appetite, management style, and scale.
This is the most common pricing model, especially for Employer of Record (EOR) services. The client pays a fixed, recurring service charge for each employee. EOR provider fees typically range from $190 to $900 per employee per month. It offers clear, predictable budgeting for rapidly scaling teams.
In this option, the client pays a single, set monthly retainer or flat fee for a defined scope of service, regardless of minor headcount changes. This is preferred for budget stability, with full-service retainers often ranging from $1,000 to $5,000 per month.
This model is less common for full-scope EOR services in the Philippines but is sometimes used by PEOs and BPO firms for administrative functions. Under the Percentage of Payroll structure, the provider charges a fee that is a defined percentage (typically 2% to 8%) of the total gross payroll they manage for the client.
For non-recurring tasks that fall outside the standard scope, providers will switch to a Project or Hourly Rate basis. This model is used for one-off advisory services such as a legal compliance audit, custom policy design, or specialized consulting. The client pays for the actual time spent and materials used, with hourly rates for general HR support.
Most large engagements use a hybrid pricing model, combining a core PEPM base rate with variable add-ons for specialized services. Crucially, volume discounts are applied as the client scales their headcount, making it the most common and cost-effective structure for a growing offshore team
The pricing model will be decided based on the services you need and the engagement model you prefer. At the end of the day, it’s still about finding the exact HR solution that matches your business’ specific goals — and the framework that will help you achieve them.
Now, we answer the most important question:
The short answer is yes. After all, that’s what the numbers are suggesting.
The biggest, most obvious win, of course, is the cost advantage. We’ve established that labor and operational costs for HR talent in the Philippines are significantly lower than in the U.S., translating to savings of up to 80% per HR staff. This allows you to scale up your support team without completely blowing your budget. That’s an ROI that one can see almost immediately.
However, the longer-term value of HR outsourcing is about empowering your internal team. Think about all the time your current high-cost managers spend on transactional, time-consuming HR administrative tasks like processing payroll, administering benefits, and handling routine compliance paperwork. By delegating this tedious work to a specialized, cost-effective team overseas, your HR leaders are freed up to focus on the things that actually drive your business such as talent retention, cultural development, and strategic planning.
At the end of the day, outsourcing makes the difference between HR being a costly administrative necessity and a strategic tool for growth. And the way we see it is this: any investment towards business growth is always worth it.
You now know the numbers: you can save up to 80% by outsourcing your HR function.
If your business is ready for growth and you need to scale your HR support quickly and cost-efficiently while maintaining total compliance assurance, the question isn’t if you should outsource — it’s who you should partner with.
At KDCI Outsourcing, we specialize in building dedicated HR teams tailored to your business’ needs. From payroll and compliance to recruitment, training, and employee engagement, we deliver solutions that let you focus on strategy while we handle the complexities of workforce management. Whether you need support for specific HR functions or a broader outsourcing partnership, we have flexible engagement models that help you scale with confidence.
Let’s talk about how we can support your HR needs. Contact KDCI today.
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Over the years, remote work has seen a steady rise around the world. From giving employees the flexibility to work beyond the four corners of the office to enjoying a healthier work-life balance, the perks of remote work outweigh the cons (and even the pros of on-site work).
With the demand for remote jobs across industries, companies must recalibrate their hiring strategies and processes to suit this work arrangement. Employers must assess not only a candidate’s credentials and qualifications, but also their intercultural skills, ability to work with minimal supervision, and even their computer’s technical specifications.
While employing new hires for remote work comes with unique challenges, we created this guide to assist you with the remote employee process.
Before anything else, let's look at some stats.
Since the pandemic, this setup has been seeing an upward trend. Globally, only 20% of professionals were in a remote work arrangement in 2020. However, by 2023 and 2025, this percentage rose to 28% and 48%, respectively.
And based on Upwork's Future Workforce Report, this trend shows no signs of stopping. By 2028, 73% of all teams will have remote workers. Predictions made by the World Economic Forum also revealed that there will be an estimated 92 million global remote digital jobs by 2030.
Buffer's survey also shows that remote work is becoming the new normal. 98% of respondents said they prefer a remote work setup throughout their careers, even from time to time. These figures show that remote work is here to stay. You'll have little to no regrets in choosing a working setup that won't die out anytime soon. Most of all, it will benefit you, your business, and your future team.
Every business owner knows it's critical to hire the right people. Your team will be crucial in helping you grow your medium- or large-sized business. However, screening candidates for a remote team comes with challenges:
Don't worry, though. We'll share a simple screening process below as well as an alternative solution in the next few sections.
The goal of screening applicants is to find the best candidates suited to work in a remote environment. Aside from embodying the right experiences, skills, and qualities, they must also be comfortable in your work setup.
To help you get started, here are five steps you can follow to hire the right team members for any remote job role.
Diving right into a global talent pool without a comprehensive job description is asking for tons of work. Before posting anything online about the job role, make sure you know everything you need to find in a job applicant. Here's a checklist of some essential information to include in a job description for a remote role:
Aside from these items, you also need to cover the general information in job descriptions. It includes:
Check out this example of company benefits found in all our job listings:
With these items, when a job seeker sees your job description, they can do a self-evaluation first before sending their application.
Pro Tip: Ask for a cover letter!
It would show you how an individual communicates in written form, which you'll soon see is a crucial skill in a remote setting.
After going through the applications you received, conducting initial interviews is the next step. It's where you assess your job applicants if they are culturally compatible in your company. Plus, here's your chance to ask them about the information they stated in their resume.
On top of the typical interview questions like "Tell me about yourself" and "What are your strengths and weaknesses," you can also ask them about their capabilities to work in a remote environment, such as:
An initial interview for a remote role is usually done via email or audio call. With email, you can see if your applicants can write coherently and respond in a timely way. On the other hand, an audio call would allow you to assess their verbal ability and listen if they can coherently speak out their ideas.
Either way, an initial interview is usually short. But with the right questions, you can further filter your job candidates and take them to the third step.
Job seekers tend to falsify or exaggerate the contents of their resume. According to the Job Search Trends Report by FlexJobs, 33% of participants in the United States revealed that they were dishonest in their cover letter or resume.
To avoid falling victim to exaggerations or false claims, you can assess your job candidates' skills with online tests and test projects. You can instruct your potential employees to take online tests that assess their soft skills, such as self-motivation, self-confidence, and communication — which are the competencies necessary to thrive in a remote work setup.
MindTools has a free index of self-tests that you can use. Another way to assess soft skills is by reviewing a job candidate's cover letter. You can see how a job candidate writes, which can be a reliable indicator of their communication skills. Plus, a cover letter can also show you how well they know your business and the role they want to fill.
For hard skills, you can give your applicants a test project. Since it's close to the real-world scenario of a remote setup, it can indicate how they would perform as part of your remote team. When you do this, make sure they have a deadline relevant to the job role's day-to-day tasks.
And since you're looking for an independent employee, you'd want to give them space unless they ask you questions. Remember, for both hard and soft skills tests, you'll need to have a benchmark to determine easily which among the candidates have met your standards.
When you're hiring remotely, the closest thing you can have to a personal interaction is a video interview. It helps you build a fuller picture of a candidate. Even with your screens getting in the way, a video interview allows you to check their body language. Whenever an applicant answers your question, you can see from their facial expressions if they're honest and genuine.
Plus, you can see how they work under pressure, considering the stress that applicants usually experience in this part of the screening process. Moreover, it's your opportunity to ask them questions more relevant to the position.
Compared to the initial interview, a video interview lets you dive into the job role's nitty-gritty. Aside from that, here's another chance to ask more questions relevant to the remote work setup:
At first, doing a background check sounds like cyber-stalking. However, we live in the digital era, where most people regularly update their feeds and timelines. With that said, you can't just ignore your potential employee's social presence. Their activities on their social media accounts are a hint of their behavior outside work.
Their LinkedIn account has more valuable information about work; it usually contains their past work experiences. But aside from that, you can also see their references, to whom you can reach out should you need to confirm details on their resume.
On top of that, you can also read recommendations about them. This section on LinkedIn allows you to see what their colleagues think of them, which can give you further insights into your candidate.
On the other hand, Twitter, Facebook, and Instagram can become your sources of more candid activities. In these sites, individuals usually hold no filter and post whatever they want. These can pave the way for you to assess their behavior and personality and determine how they would fit your work culture. After this step, you're a job offer away from hiring your first remote employees.
The nature of the test project depends on the role. If it’s for a content writing or copywriting role, then a grammar and article writing test would be good. Likewise, a graphic design role could benefit from test tasks that involve creating a logo or visual social media content.
Test tasks, however, should closely mimic your company’s usual real-world tasks, so the new hires have a sneak peek of the type of work they’ll perform on the job.
To assess culture fit, ask behavioral questions. These questions are designed to probe deep into a candidate’s communication style and their ability to adapt to new systems, approach disagreement, respond to constructive criticism, and maintain productivity.
Detailed, authentic answers that align with your company values and expectations indicate that a candidate may be a good culture fit for your organization.
Here are tell-tale signs of a scammer or fraudster:
To protect yourself from scammers, conduct intensive background checks, require video interviews, and make the candidate complete a test project.
Yes! BPO companies have access to a large pool of talent. These companies also have expert recruiters who thoroughly vet new hires, making sure that all onboarded employees can perform their job responsibilities with integrity.
Some BPO firms even allow their clients to participate in the remote employee screening process, so they can work with the best team members.
As an owner of a medium- or large-sized company, it can be hard to keep track of everything, from human resources to operations.
Now, here's the alternative solution: offshore outsourcing.
Working with the best offshore outsourcing companies, such as KDCI Outsourcing, can help you build the right offshore team. With our customized offshore strategy and streamlined hiring process, you can count on us to match you with top Filipino remote workers for any of the following departments:
Thus, we can guarantee that you'll only get the best team suited to your remote work setup. Partner with us today!
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A well-functioning human resources (HR) department is vital for improving productivity, enhancing employee engagement, and reaching organizational goals. Sadly, this is far from reality. HR departments are overwhelmed with pressure to meet employee expectations and stay ahead of evolving regulations and technological advancements.
Although your HR department is your organization’s pillar of support, it can crumble when challenges and issues become too unbearable. As such, there is a growing demand for human resource outsourcing. As of 2024, the market value of HR outsourcing was $42,455.08 million USD. By 2032, its value could amount $68,978.07 million USD.
If you’re looking to jump on the HR outsourcing train, now’s the time to do so. This article tackles the 10 advantages of human resource outsourcing, written in detail to help you envision these benefits.
HR outsourcing can be an intimidating and exciting venture for any business. Before reaping the advantages of human resource outsourcing, let’s take a look at whether this strategy is right for your business:
From access to high-caliber talent to streamlined HR management, HR outsourcing offers plenty of benefits to businesses. Below, let’s explore the top 10 advantages of human resource outsourcing:
Onshore outsourcing HR severely limits your talent pool to your geographic location. If you need specialized expertise, expect higher labor costs that reflect the vast knowledge and experience of high-caliber human resources professionals. On the bright side, what’s great about offshore outsourcing HR is the choice of talent available at your fingertips.
Need an HR compliance officer or a C-level recruitment specialist? The best HR outsourcing companies can provide you with cost-effective, top-performing HR talent who are screened and vetted by expert recruitment teams.
These professionals not only meet your desired qualifications in terms of skills, experience, and knowledge, but they’re also culturally compatible with your organization.
Maintaining an internal HR department gives you better oversight of your team. Though true, labor and overhead costs can soar quickly. The Society for Human Resource Management (SHRM) found that the average cost of hiring an employee is $4,683 USD and $28,329 USD for executives.
This makes ramping up headcount less viable during peak seasons for recruitment, performance evaluation, and compliance. However, outsourcing HR functions to an HR outsourcing provider can slash your labor and overhead expenses by a fraction. Outsourced HR employees are cheaper, which makes workforce scaling a more attainable goal from a financial standpoint.
Outsourcing companies also provide employees with the equipment, tools, and technology to deliver outsourced HR services. Unlike running an internal human resources department, there’s no need to pay for additional rent or utility bills.
Here’s the truth: There’s no “right” time for a technology upgrade. However, leaving upgrades to the backseat for far too long can cost your HR department dearly. Productivity loss, delays, errors, and security threats — all these can undermine HR operations, deteriorate efficiency, and increase your company’s risk of non-compliance.
While an IT professional may provide a band-aid solution, continuously using legacy software can increase costs by 20% to 25% each year. If you’re looking to balance technology upgrades with cost savings, HR outsourcing is your best bet.
Equipped with state-of-the-art HR outsourcing solutions and AI tools, HR service providers can support your department’s HR responsibilities with less financial investment from your end. Plus, it gives your internal HR department peace of mind knowing that they can rely on the provider to secure sensitive employee data.
Efficiency is your HR department’s best friend. Efficiency translates to a smooth workflow and organizational success. Obviously, you won’t achieve these if your HR staff is powering through endless tasks and experiencing burnout.
One of the benefits of outsourcing human resources is boosting operational efficiency. With the help of automation tools, outsourcing companies can streamline repetitive and time-consuming administrative tasks, such as interview scheduling, application tracking, and payroll administration.
In effect, your internal team won’t be slowed down by low-value tasks and can dedicate more time to core business activities.
Organizations mostly rely on HR professionals for compliance. Thus, they shoulder the responsibility for knowing all relevant federal, state, and local employment laws, workplace health and safety standards, and data privacy regulations. Amendments or changes? HR staff need to update themselves — or risk paying a higher price for non-compliance.
According to Globalscape, non-compliance can cost companies an average of a whopping $14.82 million USD (versus the cost of compliance at $5.47 million USD). Unfortunately, internal HR professionals are already overwhelmed with cumbersome administrative tasks. This makes meeting compliance standards more challenging, thus increasing your company’s risk of fines, penalties, and lawsuits.
Working with an HR compliance officer from an external HR provider can help your business avoid compliance issues. Using their knowledge of employment laws, workplace standards, and data privacy regulations, an HR compliance officer can ensure that every business function adheres to legal requirements in your home country.
Because an HR compliance officer has experience with international compliance, they can promise that your organization’s employment practices comply with global labor standards and the country’s local laws.
Nowadays, employees have higher standards and expectations. In addition to fair compensation and attractive benefits, they also want purpose, work-life balance, and a non-toxic workplace.
That’s why attracting the right talent is a challenge in its own right. You need to identify your Employer Value Proposition (EVP), enhance employer branding, improve hiring processes, and prioritize diversity, inclusion, and equity (DEI). One bad hire can cost your business $17,000 USD, so you wouldn’t want to scrimp on recruitment and talent acquisition.
An external HR provider can support your talent attraction initiatives with fresh perspectives and insights into your hiring pipeline. To attract skilled and culture-fit candidates, your provider will employ AI technologies and analytics, refine job descriptions, and improve your employer branding. This reduces the financial repercussions of onboarding ill-fit employees or bad hires.
A company invests in its employees because they are its greatest asset. Competitive salaries, appraisals, attractive benefits, supportive leaders, and an inclusive workplace culture can make employees stay in your organization. But there’s another thing that makes them stay — career growth.
Naturally, employees want to grow their careers and unlock their true potential. This is possible with self-learning and the help of your HR department. But if your in-house HR is swimming in administrative tasks, outsourcing HR is your solution.
Working with an offshore training and development specialist opens your mind to new perspectives and best practices on career development.
Utilizing their knowledge of instructional design and adult learning strategies, your outsourced training and development specialist can design professional development programs that support self-learning, maximize your employees’ potential, and meet organizational goals. As a result, your workforce will perform better and become more productive.
Companies offer a wide range of employee benefits, including medical insurance, paid time off (PTOs), scholarships, and remote work arrangements. Since job seekers look at an organization’s benefits, your own benefits can either attract or repel potential employees. Of course, the more competitive your benefits are, the more likely your existing employees will be happy, productive, and loyal.
Unfortunately, low employee engagement, lack of awareness, and poor employee-HR coordination are detrimental to effective benefits administration. This is where outsourced HR and benefits administration takes the spotlight.
An HR outsourcing provider can integrate a third-party benefits administration software into your system, streamlining benefits enrollment and verification and centralizing employee benefits into an accessible self-service platform. This minimizes errors and gives HR employees more time for core business activities.
Furthermore, outsourced benefits administrators can offer suggestions for designing attractive benefits that appeal to your employees. They can also leverage AI and data analytics to identify trends and tailor benefits according to a staff member’s unique needs.
Payroll processing is a meticulous HR function. While payroll is associated with numbers and calculations, it is more than meets the eye. It’s about compliance, credibility, reputation, and trust. In fact, every payroll error you address sets your company back an average of $291 USD — which can add up if left uncontrolled.
Consequently, payroll mistakes can lead to poor employee satisfaction, inefficiencies, and financial loss. If your company has missed payroll deadlines or faced compliance issues, it may be time to outsource payroll to an HR outsourcing company.
Outsourced payroll specialists can handle the bulk of your payroll, leveraging advanced payroll software to streamline the calculation of benefits, minimize data and calculation errors, and ensure that all payslips are delivered to the correct employee.
These payroll specialists can also help your internal team prepare payroll and annual tax reports on time, so your company avoids fines and lawsuits from non-compliance.
HR management is tough. Companies entrust HR managers with tasks involving compliance, recruitment, talent management, workplace discipline, and performance evaluation. Alarmingly, human resources is a department that’s rife with burnout. Whether it’s excessive workload or empathy fatigue, HR staff and managers also crave support for their struggles.
This is where outsourcing HR management comes into play. With their out-of-the-box perspectives and knowledge of HR best practices, offshore HR managers can assist your in-house managers with developing training programs, enforcing company policies, managing your workforce, and maintaining legal compliance.
Because outsourced HR managers leverage AI, workflow and processes are streamlined to reduce your internal HR management team’s workload. This enables them to focus on high-value internal HR initiatives.
You can reap the advantages of human resource outsourcing by applying these two HR outsourcing best practices:
Choosing a provider is one of the most important steps to take when outsourcing HR. The right vendor has the following:
In some cases, the red flags show up when your offshore HR team is working on a trial project. But don’t let this stop you from finding the right vendor. Know what you want, set your expectations, and keep vetting outsourcing partners.
Outsourced HR services are only as good as the offshore staff behind them. To leverage the advantages of human resource outsourcing, set realistic performance standards and conduct regular feedback sessions.
This way, you can identify areas for improvement, assess your team’s ability to maintain compliance, and help your HR staff reach key performance indicators (KPI). The better your team performs, the more likely you’ll achieve organizational goals.
At KDCI Outsourcing, we can help you achieve the benefits of human resource outsourcing with our world-class offshore outsourcing solutions — carefully tailored to meet your organizational and staffing needs.
We source, vet, and onboard HR professionals who meet your requirements and exhibit values, ethics, and mindsets that mesh well with your organizational culture. With our expertise in automation and AI technologies, we can optimize all HR functions for efficiency and scalability.
Build a dedicated HR team and let’s elevate your HR with KDCI. Contact us for a quotation or proposal today!
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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.
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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.
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.
