Despite being a common practice in the industry, many businesses still shy away from outsourcing. They have this preconceived notion that outsourcing only works for big companies with better financial safety nets to cushion themselves from the risks of outsourcing. But this is just among outsourcing myths that experts have proven wrong long ago. There are dozens of outsourcing myths out there that blur the line between what is outsourcing and what isn’t. In this blog article, we help you debunk the most common outsourcing myths that stop any business from seeing the benefits of outsourcing.
This widespread misconception discourages companies from outsourcing their non-core functions. Companies worry that working with a service provider may result in less control over their business processes. This is not actually true, though. Outsourcing service providers fully engage their clients with everything that concerns their business operations. Clients get real-time updates from their dedicated account manager about their project status, team performance, and KPI reports. It’s important to note that a Service Level Agreement (SLA) is established between businesses and outsourcing service providers. This written document outlines the metrics used to gauge service quality as well as penalties that may be imposed if predetermined service levels are not attained. This information is recorded in a system, and businesses can access it whenever necessary. In addition, service providers create dashboards to give businesses transparency into their team performance. Hence, clients can maintain control and oversight while focusing on their high-ROI activities.
The idea that only big companies benefit from outsourcing is among common outsourcing myths. Regardless of their size, companies can benefit from outsourcing their non-core functions to low-cost countries like the Philippines. Outsourcing is ideal for high-growth companies that require greater resource flexibility to meet customer demands during peak seasons. In addition, outsourcing is perfect for start-up companies that want to save on operational costs by having their service provider handle their recruitment, training, facilities, and equipment.
Most businesses assume they would encounter communication problems with their offshore team because of differences in culture and language. The truth is your outsourcing venture is as good as your outsourcing partner. That means outsourcing to a country that’s proficient with your language and has a strong affinity with your culture can help you succeed in outsourcing. The Philippines, for example, has been the top outsourcing destination of US companies for voice-related services. Because of the country’s superior English proficiency and affinity with Western culture, US companies are confident that their offshore agents can handle their customer phone calls with care and hospitality.
Businesses believe outsourcing only offers short-term solutions because their competitors only outsource their non-value-added tasks. The fact is that outsourcing provides small and medium companies with a long-term business solution, particularly for those that are just starting and want to scale. Consider Canva, a graphic design company that started with only six offshore employees in the Philippines. In 2014, Canva decided to move its back-office work, graphic design, and customer service to the Philippines. Melanie Perkins, the CEO, said they invested in Philippine outsourcing because of its family atmosphere that inspires creativity. By 2018, the company had increased its manpower to around 250 staff and was valued at $40 billion last 2021.Canva is living proof that outsourcing to the Philippines provides long-term solutions and helps a company tap specialized skills at a lesser labor cost.
Most companies presume that outsourcing to a service provider in a country with a significant time difference can cause collaboration issues. For instance, they think their offshore staff might not read a message they send on Monday afternoon until Tuesday morning. However, this is not true with Filipino employees who work on flexible work hours .No matter where the client is situated, Filipino employees are happy to work on different shifts, including night shifts, weekends, or holidays. Your offshore team will be working hard, even outside business hours, to meet the deadlines. In fact, taking advantage of time zone differences is possible. For instance, when your in-house staff in the US finish their shifts, those in the Philippines start. This allows for increased operating hours, particularly in areas like customer service, and results in faster completion of projects.
For most businesses, one of the key barriers to outsourcing is the potential data and security breach. Some companies worry that leaking their highly-confidential business information could result in reputational, financial, and legal consequences. However, this outsourcing misconception doesn’t hold any truth unless you outsource to a vendor with a history of fraudulent activities. It’s important to note that most outsourcing service providers have advanced security controls to safeguard the data and privacy of their clients. Some reputable service providers even adhere to industry regulations like HIPAA (Health Insurance Portability and Accountability Act) for keeping a patient’s information safe and General Data Protection Regulation (GDPR) for handling data belonging to European citizens.
Since outsourcing involves entrusting business operations to an external service provider, some businesses conclude that they may get low-quality services. But the truth is you’re more likely to receive subpar services if you did not evaluate your outsourcing partner thoroughly. That means signing a contract without understanding the service provider’s culture, internal processes, and infrastructure. Trustworthy outsourcing companies have a highly-skilled workforce that undergoes extensive training to meet all your business objectives. They have established quality assurance (QA) processes to improve your service quality as well as increase your operational efficiency. And most importantly, they maintain industry-leading technology to ensure your operations are aligned with global standards.
Outsourcing has been a standard procedure for big companies seeking to reduce their labor costs to improve their bottom line. Yes, it’s the primary reason why companies outsource, but there are more reasons that go beyond cost reduction. Most companies offshore their business operations for the following reasons:
Among outsourcing myths surrounding the BPO industry is that building an in-house team requires less time than outsourcing. But the reality is that it’s the other way around. When you build an in-house team, you go through a series of posting job ads online, screening resumes, and interviewing applicants. Sometimes, it takes you weeks, even months, before you finally onboard the perfect candidate for your organization. Conversely, outsourcing service providers make it easier for you to build your offshore team. All you need to provide is a job description with clearly defined responsibilities and qualifications. In addition, they have excellent training programs to fully integrate your team into your internal processes.
Outsourcing doesn’t mean leaving all your mundane tasks to a service provider and expecting great results after a few months. Although some of your non-core functions are easy to do, it doesn’t mean your service provider won’t need any of your guidance. Outsourcing is a two-way street. If you are not constantly communicating with your outsourcing partner, it will take so long before you finally see positive ROI from your outsourced services. That said, it’s crucial to establish the frequency of communication with your service provider, such as how often your account manager will hold meetings, issue reports, and make calls. By doing so, you avoid poor communication that leads to misalignment of results and expectations.
Are you looking to scale your Ecommerce operations and improve your resource flexibility? Then, hire the best Ecommerce experts in the Philippines! Reduce your operational costs by up to 70% as we handle your training, recruitment, equipment, and facilities so you can focus on growing your bottom line. Consider KDCI, a premier Ecommerce outsourcing company in the Philippines. Our company offers scalable staffing solutions in the field of Ecommerce, finance, creative design, customer support, digital marketing, and web development. We can optimize your Ecommerce sites for higher conversion rates and help you become a successful seller on major marketplaces. Click the button below to get a FREE consultation with our outsourcing experts! Contact Us
With the global recession looming, a vast majority of small businesses are not in a good position to hire more employees. As a result, business owners are compelled to perform various business functions, including bookkeeping tasks.Although this may work in the early stages of their business, it's not a good long-term solution. In the latter years, their financial errors will resurface and wreak havoc on their cash flow.A skilled bookkeeper has a specialized skill in accounting that an average business owner can’t learn quickly. Their duties usually involve recording financial data into general ledgers and keeping track of a company’s sales and expenses.If you plan to hire a professional bookkeeper but worry about the labor costs that come with it, then you should start outsourcing bookkeeping services to a reliable service provider.
You’ll discover that as your small business expands, you spend less time focusing on your core business functions and more time managing your finances. Outsourcing bookkeeping services allows you to concentrate your time, effort, and resources on other important aspects of your business. You can focus on high-ROI activities like sales and marketing, networking, and customer relationship building.
Companies with inexperienced bookkeepers are prone to bookkeeping errors. Mistakes like inaccurate income reporting may cause an overstatement of income and mislead a company’s operating profit margin calculations. If you have no accounting background and cannot manage or train a bookkeeper, then it’s best to hire a service provider
A reliable outsourcing company with bookkeeping services has a team of bookkeepers that have been vetted and are under the supervision of even more experienced bookkeepers. In addition, they have established QA processes and tools to carry out bookkeeping activities effectively and accurately.
The cost of hiring a full-time bookkeeper is higher than the cost of outsourcing accounting services like bookkeeping and payroll processing. When you outsource, you can tailor the work hours and the number of projects to your needs while avoiding usual labor costs like benefits, insurance, payroll taxes, and paid leaves. You are also not required to provide a workspace, office supplies, computers, or software, as your outsourcing partner already covers these requirements.
Most bookkeeping outsourcing services come with the latest bookkeeping software. If you wish to use automation tools like Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, and SAP without paying additional fees, you better partner with a bookkeeping outsourcing company.Moreover, you get access to their robust cloud-based bookkeeping system. You can view your data from any location anytime because the entire process is managed on a cloud-based platform. You can also add your expenses and revenue and analyze your finances easily.
It’s crucial to keep in mind that an in-house bookkeeper only performs bookkeeping functions. When you outsource to a service provider, you work with a full-service company similar to big accounting firms.
Compared to a single bookkeeper, outsourcing service providers offer a wide range of services. From accounts payable, financial statement preparation, revenue accounting, and more, you have a partner that oversees your financial activities. You can also request additional services to help you manage your business growth sustainably.
Many business owners scramble to organize their accounts and ensure that their financial information is accurate during the tax season. If your business doesn’t have skilled bookkeepers, you’re more likely to commit underpayment of taxes and poor record keeping.By outsourcing your bookkeeping functions, you can ensure your procedures are consistent with tax laws. Your service provider can also promise to do your bookkeeping before tax season. With their assistance, you can protect your business from penalties and keep it up to date with the current tax trends.
As your business expands, so will the amount of bookkeeping activities your in-house team will do. For instance, you might find yourself hiring more staff if your bookkeeping chores are too overwhelming to be handled by a single staff. Before you start hiring a full-time bookkeeper, consider partnering with an outsourcing service provider.Outsourcing companies make it easier for small businesses to integrate additional resources into their business operations. They handle the recruitment and training of your offshore team so you don’t have to worry about their performance.In addition, they offer hourly rates for their offshore staffing solutions. It can save you more money because you can schedule only the number of hours and employees you need.
Business owners may not always have the data they need when making critical decisions on the company’s finances. What happens when your in-house bookkeeper is on leave, and you need data for your financial reports? You don’t have to wait too long to access your financial reports when you partner with a trusted service provider.
Having real-time financial insights is among the top reasons why you should start outsourcing bookkeeping services for your small business. Your service provider can create dashboards to provide visibility into your financial reports, enabling you to make better decisions. You can also review your profits & losses, balance sheet, and cash flow history whenever necessary.
Nowadays, many small businesses turn to cloud accounting so their employees can use bookkeeping software from different devices and locations. They even permit their staff to carry and use their personal gadgets wherever they go. However, it’s possible that these devices lack security protections and are at risk of being breached.If you want to add an extra layer of security to your bookkeeping, you should partner with a trusted service provider. They have advanced security controls to safeguard your confidential data, including your customer’s information. Also, they can keep all devices on your network protected and up-to-date with the latest antivirus and firewall software.
Inaccuracies in your company’s bookkeeping happen when your team is not properly trained to keep books up to date. Too often, it results in late payments, missed income, and penalty fees. If you want to improve the accuracy of your company’s bookkeeping, consider working with a reliable service provider.A professional bookkeeping service provider has extensive experience analyzing unique recordkeeping requirements for a wide-range of industries. They are powered with industry-leading tools to maintain accurate records of all your transactions. In addition, their automation procedures can streamline some of your repetitive processes that result in inaccurate book reports.
Outsourcing bookkeeping services to the Philippines allows you to save up to 70% on your labor costs. This is due to the country’s low cost of living and competitive wages that attract multinational companies like Microsoft and Google. Apart from cost-savings, you’ll also work with Filipinos known for their hospitality and superior English and literacy skills.KDCI, an Ecommerce outsourcing company based in the Philippines, offers offshore staffing solutions for small businesses ready to scale. We have a team of certified public accountants who can optimize your finance and accounting processes for accuracy and efficiency. We can help you better manage your financial records so you can generate better insights to grow your business.Are you ready to outsource your bookkeeping function? Click the button below to get started.Contact Us
Outsourcing can be a great way for companies to access specialized skills and expertise, reduce costs, and improve efficiency. However, choosing the right outsourcing pricing model is an important decision that can have a significant impact on the success of the project.
In this article, we will explore the different outsourcing pricing model types to help you determine which one is the best fit for your business needs. We will consider the pros and cons of each model and provide tips on how to choose the model that will deliver the most value for your organization.
Conducting research about a specific outsourcing pricing model before signing a contract with a BPO service provider is important because it helps you make informed decisions that align with the needs and goals of your business. This will also ensure that you are getting a fair and competitive price for the services you are outsourcing.
Below are the most commonly used outsourcing pricing model types you can take into account when outsourcing some of your business processes:
Time and materials pricing is a type of outsourcing pricing model in which the vendor charges the client based on the number of hours worked and the cost of materials used. This model is often used when the scope of work is not well defined or if the project is likely to change over time.
Flexibility: T&M pricing provides flexibility to the client and the vendor to change the scope of work as needed. This can be particularly useful if the project is complex or if there are unforeseen challenges that arise.
Transparency: T&M pricing is transparent, as the client knows exactly how much they are paying for each hour of work and the cost of materials. This can help to build trust between the client and the vendor.
Accurate billing: T&M pricing allows the vendor to accurately bill the client for the actual time and materials used, which can help to reduce the risk of overcharging.
Uncertainty: T&M pricing can be less predictable than other outsourcing pricing models, as the final cost of the project is dependent on the number of hours worked and the cost of materials. This can make it difficult for the client to budget for the project.
Incentive to extend: T&M pricing may create an incentive for the vendor to extend the project in order to increase their profits. This can lead to cost overruns for the client.
Risk of disputes: T&M pricing can increase the risk of disputes between the client and the vendor, as there may be disagreements over the number of hours worked or the cost of materials used.
In this BPO pricing model, the vendor provides a fixed price for the entire project. This model is often used when the scope of work is well-defined and the project is not likely to change.
Predictability: The fixed price model provides predictability for the client, as the final cost of the project is known upfront. This can make it easier for the client to budget for the project.
Incentive for efficiency: The fixed price model creates an incentive for the vendor to complete the project efficiently, as their profits are not dependent on the number of hours worked or the cost of materials used.
Simplicity: The fixed price model is simple and easy to understand, as the client knows exactly what they are paying for.
Lack of flexibility: The fixed price model can be inflexible, as changes to the scope of work may result in additional charges.
Risk of cost overruns: The fixed price model carries the risk of cost overruns for the vendor, as they are responsible for any additional costs that may arise.
Limited transparency: The fixed price model may be less transparent than other pricing models, as the client does not have visibility into the actual cost of labor and materials.
The cost-plus pricing model is a good choice for clients who want a clear understanding of what they are paying for. This pricing model offers clients insight into the resources hired by the service provider and a detailed breakdown of how their investment is being used by the outsourcing provider on a monthly or yearly basis.
Flexibility: Cost-plus pricing provides flexibility to the client and the vendor to change the scope of work as needed. This can be particularly useful if the project is complex or if there are unforeseen challenges that arise.
Transparency: Cost-plus pricing is transparent, as the client knows exactly how much they are paying for each hour of work and the cost of materials. This can help to build trust between the client and the vendor.
Accurate billing: Cost-plus pricing allows the vendor to accurately bill the client for the actual time and materials used, which can help to reduce the risk of overcharging.
Uncertainty: Cost-plus pricing can be less predictable than other pricing models, as the final cost of the project is dependent on the number of hours worked and the cost of materials. This can make it difficult for the client to budget for the project.
Incentive to extend: Cost-plus pricing may create an incentive for the vendor to extend the project in order to increase their profits. This can lead to cost overruns for the client.
Risk of disputes: Cost-plus pricing can increase the risk of disputes between the client and the vendor, as there may be disagreements over the number of hours worked or the cost of materials used.
In this outsourcing pricing strategy, the vendor offers a team of remote staff to work on the project for a set amount of time. This model is frequently utilized when the client needs to temporarily add more skilled personnel to their existing staff.
Flexibility: The staffing model provides flexibility to the client, as the team of employees can be hired on a temporary basis to meet specific needs.
Customized solutions: The staffing model allows the client to customize the team of employees to meet their specific skills and expertise requirements.
Scalability: The staffing model allows the client to scale their workforce up or down as needed, which can be helpful in times of high demand or when working on a project with a variable workload.
Higher costs: The staffing model may be more expensive than other outsourcing pricing models, as the client is responsible for the costs of hiring and training the employees.
Lack of control: The staffing model may result in a lack of control for the client, as the vendor is responsible for managing the employees.
Risk of turnover: The staffing model carries the risk of employee turnover, as the employees are not directly employed by the client and may leave at any time.
Using an incentive-based pricing model, the vendor gets compensated according to how well the project performs. This approach is frequently employed when the success of the project is dependent upon a set of objectives or benchmarks, and the vendor is motivated to produce high-quality work in order to obtain the highest possible compensation.
Alignment of interests: Incentive-based pricing aligns the interests of the client and the vendor, as the vendor is motivated to deliver high-quality work in order to receive the maximum payment.
Increased efficiency: Incentive-based pricing can increase efficiency, as the vendor has an incentive to complete the project as quickly and efficiently as possible.
Flexibility: Incentive-based pricing can be flexible, as the terms of the contract can be customized to fit the specific needs and goals of the project.
Complexity: Incentive-based pricing can be complex, as it requires the development of specific benchmarks or outcomes that the vendor must meet in order to receive payment.
Risk of disputes: Incentive-based pricing can increase the risk of disputes between the client and the vendor, as there may be disagreements over the specific benchmarks or outcomes that have been established.
Uncertainty: Incentive-based pricing can be uncertain, as the final payment to the vendor may depend on the performance of the project.
A type of outsourcing pricing model called profit sharing divides the project's profits between the vendor and the client. This method is often utilized when the vendor's performance is directly related to the project's success and the vendor is prepared to undertake more risk in exchange for a potential profit sharing.
Alignment of interests: Profit sharing aligns the interests of the client and the vendor, as both parties are motivated to achieve the highest level of profits possible.
Increased efficiency: Profit sharing can increase efficiency, as the vendor has an incentive to complete the project as quickly and efficiently as possible in order to maximize their share of the profits.
Flexibility: Profit sharing can be flexible, as the terms of the contract can be customized to fit the specific needs and goals of the project.
Complexity: Profit sharing can be complex, as it requires the development of a system to divide the profits between the client and the vendor.
Risk of disputes: Profit sharing can increase the risk of disputes between the client and the vendor, as there may be disagreements over the division of the profits.
Uncertainty: Profit sharing can be uncertain, as the final payment to the vendor may depend on the profits generated by the project.
The shared risk-reward model is similar to the incentive-based model, as it involves additional payment beyond the usual flat rate. In this model, both the client and the service provider share the risks and developments of the operation. Assigning responsibilities to the partner in this model can mitigate risks associated with new technologies, processes, or models, and has become an advantage for both the provider and their clients.
Increased transparency: With a shared-risk reward model, both parties have a clear understanding of the potential rewards and risks involved, which can increase transparency and trust between them.
Encourage innovation: By sharing the risks and rewards, both parties have an incentive to think creatively and come up with innovative solutions to problems that may arise. This can lead to the development of new and improved products or services.
Improved flexibility: A shared-risk reward model can be more flexible than other pricing models, as both parties can negotiate the terms of the agreement to better meet their needs and goals. This can be particularly beneficial in cases where the product or service may be subject to unexpected changes or challenges.
Complexity: Shared-risk reward pricing models can be more complex than other pricing models, as they involve negotiations between the seller and the buyer to determine the terms of the agreement. This can take more time and effort to set up and manage.
Risk of conflict: When two parties are sharing the risks and rewards of a product or service, there is a potential for conflict to arise if one party perceives that they are not getting their fair share of the rewards or are bearing more than their fair share of the risks.
Difficulty in measuring success: It can be challenging to determine how much of the success (or failure) of a product or service can be attributed to each party. This can make it difficult to fairly distribute the rewards and risks.
Partnering with a reputable outsourcing service provider like KDCI can help you make more informed and strategic decisions about outsourcing pricing models, and ensure that you get the best value for your money.
With our long-decade leadership in Ecommerce outsourcing, we can help you assess your business needs and determine which pricing model would be the most suitable. This may involve evaluating factors such as your budget, the complexity of the tasks or services being outsourced, and the level of control you want to maintain.
Click the button below and get your FREE consultation with one of our outsourcing experts today!
Running an Ecommerce brand involves many different tasks, which is why it can be challenging for small and medium-sized businesses. There are product sourcing, inventory management, order fulfillment, and customer service. That’s why some companies outsource their Ecommerce back office support services. Not only were they able to avoid adding employees on their payroll, but they also accomplished high ROI tasks while cutting on operating expenses. Should your business also outsource its Ecommerce back office support services? Read on to find out.
Ecommerce back office support services refer to a range of administrative and operational tasks that are necessary for running an Ecommerce business. These services may include tasks such as managing inventory, processing orders, handling customer inquiries and complaints, managing financial transactions, and tracking shipping and delivery.
Back office support services are typically provided by specialized service providers or professionals who have the necessary expertise and resources to handle these tasks efficiently and effectively. These services can be especially useful for small or growing ecommerce businesses that may not have the time or resources to handle all of these tasks in-house.By outsourcing these tasks, ecommerce businesses can focus on other aspects of their operations, such as marketing and sales, and free up time and resources to help grow their businesses.
Here are the major reasons why it’s a smart move for your business to outsource Ecommerce back office support services:
Outsourcing back office support services can be more cost-effective than hiring a team of in-house employees to handle these tasks. This is because outsourcing allows businesses to take advantage of economies of scale and access specialized expertise at a lower cost.
Outsourcing allows businesses to scale up or down their back office support services as needed, which can be useful for businesses that experience fluctuating demand or seasonal spikes in sales.
Back office support service providers often have specialized knowledge and experience in areas such as inventory management, customer service, and financial management. This can be especially useful for businesses that may not have in-house expertise in these areas.
Outsourcing back office support services can free up time and resources for businesses to focus on other aspects of their operations, such as marketing and sales.
By outsourcing back office support tasks to specialists who have the necessary expertise and resources, ecommerce businesses can improve the efficiency and effectiveness of their operations. This can lead to increased productivity and profitability for the business.
KDCI offers scalable staffing solutions for businesses looking to outsource their Ecommerce back office support services. Here are back office support roles you can hire from our company to increase your resource flexibility:
A Salesforce administrator is responsible for managing and maintaining the Salesforce platform for an organization. In an ecommerce business, a Salesforce administrator might be responsible for tasks such as:
Hiring a Salesforce administrator can be beneficial for you because Salesforce is a powerful and flexible platform that can help businesses streamline their operations, improve customer relationship management, and gain insights into their business. A Salesforce administrator with the necessary expertise and experience can help you set up and customize the platform to meet your specific needs and goals. In addition, a Salesforce administrator can assist you in staying up-to-date with the latest features and functionality of the platform, ensuring that your business is getting the most out of the platform. This can help you stay competitive and drive growth.
A data entry specialist is in charge of entering and updating information into a company's computer systems. A data entry specialist can help your Ecommerce store by performing the following tasks:
Because precise and updated data is necessary for the efficient functioning of the business, hiring a data entry specialist can be advantageous for you. An Ecommerce business may make more informed judgments and increase its efficiency by ensuring that its data is correct and comprehensive with the assistance of a data entry professional. Additionally, delegating data entry work to experts can free up time and resources for your business so you can concentrate on your core competencies and other business functions, like marketing and sales. This can aid in the expansion and success of your Ecommerce brand in a cutthroat market.
A product data entry and encoding specialist can help you stay on top of enriching, organizing, and maintaining your product information. Similar to data entry professionals, they perform the following functions for product content enrichment:
Experienced product data entry professionals may master your tools and software within a brief training time, whether you're using industry-standard Ecommerce software or your own internal platform for data encoding. Data encoders can also take care of your product attribute enrichment, data cleansing, and data normalization, so you can stay ahead of the competition with complete and consistent product information.
An Ecommerce product data specialist is responsible for managing and organizing product data for a company. They can help you in implementing your seasonal strategy and boosting your website’s catalog performance. Here are some of the critical functions they can do to support your Ecommerce business:
Ecommerce product data specialists have exceptional analytical and data processing skills. They can manage any type of data set and address any problems your company might be experiencing.
A product catalog specialist is in charge of creating, organizing, and maintaining a comprehensive list of products that a company offers for sale. This list, known as a product catalog, serves as a reference for customers, salespeople, and other stakeholders to learn about the products and services available from the company. It may also include information such as product descriptions, images, pricing, and availability. The key responsibilities of a product catalog specialist involves several key tasks, including:
Product catalog specialists are aware of how crucial it is to optimize the taxonomy of the catalog and have well-organized product information. They identify pertinent information, classify structured and unstructured product data, and establish parent-child relationships to enhance customer experience and assist your customers in finding the information and products they need in real time.
Are you looking to scale up your Ecommerce workforce to meet your business growth challenges? Then partner with the leader in Ecommerce outsourcing so you can better respond to your rapidly changing customer needs and market conditions. Consider KDCI, an Ecommerce outsourcing company that assists Ecommerce businesses in increasing their operational efficiency through scalable back office support services. We’ve helped dozens of online brands become successful sellers on major marketplaces like Amazon and eBay. Through our 100% quality assurance and fast turnaround times, we can drive repeat business and increase your company’s bottom line. Click the button below and get your FREE consultation with one of our outsourcing experts today! Contact Us
The term service level agreement (SLA) is among industry jargons you’ll encounter when planning to outsource to a service provider. Understanding how it works will help you set clear expectations for the level of service you expect to receive from your outsourcing vendor. In this blog article, we listed down some of the frequently asked questions about SLAs, and how it plays a crucial role in getting your outsourcing journey off to a smooth start.
A service level agreement (SLA) is a contract between a service provider and a customer that defines the level of service the customer can expect from the service provider. In the context of business process outsourcing (BPO), an SLA is a document that outlines the terms and conditions under which a BPO provider will deliver services to a client.
The SLA typically includes details such as the types of services that will be provided, the performance standards that the BPO provider will be expected to meet, and the terms and conditions under which the customer can terminate the agreement.
A service level agreement (SLA) is typically used to establish clear expectations and accountability for both the service provider and the customer, and to ensure that the customer receives the level of service they need to achieve their business objectives. Here's an example of how an SLA might work:
A highly customized service level agreement is the most critical factor for a successful outsourcing contract. Without a well-defined SLA, there is no guarantee that the client will receive the service levels they expect or that the BPO provider will be able to meet the client’s expectations. If an SLA is not detailed enough, or if it is too rigid, it may not be applicable to a BPO contract, in which case the parties may need to negotiate a new SLA. If an SLA is too vague, it could lead to misunderstandings or disputes between the parties.
Service level agreements are often used in outsourcing contracts. The service level is perhaps the most critical factor in determining whether an outsourcing deal will succeed. An outsourcing deal involves more than just plugging servers and computers into a network. The outsourcing partner must understand the client’s business, know their customers and know how the company’s internal systems operate.
Because of these complexities, clients often demand very high service levels from their outsourcing partners. This is especially true for companies that have large IT departments, since these companies have a high bar for internal service levels.
Typically, the client and the BPO provider will negotiate an SLA and sign it as part of the outsourcing contract. The client may want to hire an outside consultant to help them develop the terms and conditions of the SLA, or they may choose to use the services of their existing business partners. If the outsourcing contract is large enough, or if the agreement is between two major companies, the parties may enter into a co-operation partnership or strategic alliance. In these situations, the parties may have an independent third-party organization draft the contract between them.
An SLA is an important part of any outsourcing deal as it defines the quality of service the client can expect from the BPO provider. The client usually monitors the BPO provider’s performance against the agreed SLA, and if the BPO provider fails to meet the service level specified in the SLA, the client can terminate the contract. If an SLA is not detailed enough, or if it is too rigid, it may not be applicable to a BPO contract, in which case the parties may need to negotiate a new SLA. If an SLA is too vague, it could lead to misunderstandings or disputes between the parties.
Are you looking for an outsourcing partner to handle your business processes? Partner with a Philippine-based outsourcing company with an established SLAs so you can free up internal resources and focus on your core competencies. Consider KDCI, a leading offshore staffing solutions provider that helps businesses scale their operations quickly. Our collaborative SLAs and metric-intensive performance has earned us operational excellence in working with global companies in the Ecommerce industry. With our established SLAs, we ensure 100% quality assurance on our back-office services and faster turnaround times on our design and marketing services. Click the button below and get your FREE consultation with one of our outsourcing experts! Contact Us
Some businesses that operate online struggle to increase their conversation rates for a simple reason—having a poor user experience (UX) design. They thought a well-designed website can stand alone and attract the right customers. Hence, they overlook the most important aspect of user experience and that’s usability and functionality.To improve user experience that drives repeat business, companies have started outsourcing their UX design needs to service providers. It resulted in increased conversion rates and larger order volumes. Should you hire a UX designer too? Read on to learn more about UX designers and how they bring value to your business and your customer base.
A UX (user experience) designer is a professional who is responsible for designing and improving the usability and accessibility provided in the interaction between a user and a product. This includes the design of websites, applications, and software, as well as physical products such as appliances and vehicles.
The role of a UX designer is to ensure that a product is intuitive and easy to use, while also being visually appealing. This involves conducting user research, prototyping, and testing to gather feedback and iterate on the design. UX designers work closely with product managers, developers, and other designers to create a cohesive experience for the user.Some specific responsibilities of a UX designer may include:
To sum up, the role of a UX designer is to create a seamless and enjoyable experience for the user, and to ensure that the product meets their needs and expectations.
The cost of hiring a UX designer can vary widely depending on a number of factors, including the designer's level of experience, their specific skills and expertise, and the overall demand for UX design services in the location where they are based.According to data from Glassdoor, the average annual salary for a UX designer in the United States is $95,576 as of December 2022. However, this figure can vary significantly depending on the designer's location, level of experience, and other factors. Some UX designers in the United States may earn significantly more or less than this average salary, depending on their skills and the specific projects they are working on.In addition to the designer's salary, there may also be other costs associated with hiring a UX designer in the United States, such as benefits, taxes, and other overhead expenses. Hiring a UX designer is considered expensive. With this reason, companies in the US choose to hire in the Philippines.
There are several benefits to hiring a UX designer for your business:
A UX designer focuses on improving the overall user experience of a product or service. This can lead to increased customer satisfaction and loyalty.
A well-designed product or service can help users accomplish their goals more quickly and easily, leading to increased efficiency and productivity.
When you hire a UX designer, you can increase your conversions and sales by making it easy for users to find what they are looking for and take the desired action.
A positive user experience can help to improve the reputation of a brand, leading to increased customer trust and loyalty.
A UX designer can help to identify and eliminate unnecessary features or design elements, leading to cost savings in development and maintenance.
A strong UX design can give a business a competitive advantage over its rivals, as customers are more likely to choose products or services that are easy to use and provide a good user experience.
There are pros and cons to both hiring an in-house UX designer and outsourcing the work to a service provider. Here are a few things to consider when deciding which option is best for your business:
Outsourcing can often be more cost-effective than hiring an in-house UX designer, especially if you only need design work on a project-by-project basis. However, if you have a lot of ongoing design needs, it may be more cost-effective to hire a UX designer in-house.
When you hire an in-house UX designer it gives you more control over the design process, as the designer will be working directly for your company and will be able to understand your brand and design needs more intimately. On the other hand, outsourcing gives you access to a wider range of design talent, but you may have less control over the design process.
If you have an urgent design need, outsourcing UX design services may be a good option as you can often get started on a project more quickly than if you were hiring an in-house UX designer. However, if you have ongoing design needs, an in-house UX designer may be more efficient as they will already be familiar with your company and design style.
Both in-house UX designers and outsourced UX designers can produce high-quality work, but it's important to carefully review portfolios and conduct interviews to ensure that you're working with someone who has the skills and experience to meet your needs.Ultimately, the decision to hire a UX designer in-house or outsource the work will depend on your specific business needs and resources. It may be helpful to weigh the pros and cons of each option and consider factors such as cost, timing, and quality to determine the best fit for your company.
KDCI offers offshore staffing solutions to cater to your high-volume UX designs. Our UX design services are focused on usability, visual aesthetics, and functionality. We can ensure that your audience has the best experience possible, compelling them to take action on your website.We offer faster turnaround times on most design projects allowing you to rapidly increase your operational efficiency. Our top-notch designers have worked with renown global brands like Apple, Canon, and Dell. That means your UX design needs are held at the highest possible standards powered by industry-leading tools.Click the button below and get a FREE consultation with one of our outsourcing experts today!Contact Us
In some businesses and geographical areas, staffing shortages can be a serious problem. For instance, a survey by the Manpower Group in 2021 discovered that 40% of American employers had trouble filling available positions, with skilled crafts, sales reps, and drivers being the hardest occupations to fill.Businesses may suffer from a lack of qualified personnel. That's why it's critical for businesses to take a proactive approach to staffing shortages. In this blog article, we explain what a staffing shortage is, why it happens, and how your organization can handle it before it affects your company’s bottom line.
A staffing shortage is a situation in which there are not enough people available to do the work that needs to be done within a company or organization. This can happen for a variety of reasons that will be explained later on.
A staffing shortage can negatively impact a company or organization by decreasing productivity and efficiency, increasing workload for existing employees, and potentially leading to financial losses.
Potential reasons why a staffing shortage might occur vary across industries and organizations. However, here are some common causes:
If a company or organization experiences an increase in demand for its products or services, it may need to hire more employees to meet this demand. However, if there are not enough qualified candidates available, a staffing shortage could result.
Even if there are open positions available, a company or organization may struggle to fill them if there is a shortage of qualified candidates in the job market. This can be due to a lack of skilled workers in a particular industry or geographic region, or a mismatch between the skills and qualifications required for a job and the skills and qualifications of available candidates.
A high rate of employee turnover, or the rate at which employees leave an organization and are replaced, can also contribute to a staffing shortage. If a company or organization is losing employees faster than it can replace them, it may struggle to maintain an adequate workforce.
Other factors that can contribute to a staffing shortage include changes in economic conditions, competition for skilled workers, and changes in government policies or regulations.
When your company has a staffing shortage, it can be difficult to meet customer demand and maintain high levels of quality. Here are some of the best industry secrets to effectively address a staffing shortage:
Consider if your hiring process is efficient and if there are any bottlenecks that are causing delays. You may want to streamline the process or consider alternative hiring methods, such as partnering with an outsourcing company or hiring temporary or contract workers.
Consider offering incentives to attract and retain employees. This could include things like bonuses, flexible schedules, or additional training opportunities.
Encourage your current employees to take on additional responsibilities or offer them the opportunity to advance within the company. This can help you fill positions without having to go through the hiring process.
If you have a short-term staffing need, consider outsourcing some of your job roles to an offshore staffing solutions company. This can be a good option if you don't want to commit to a long-term hire.
If you have the option, consider allowing your employees to work remotely. This can help you access a larger pool of candidates and may make it easier to find the right fit for your team.
Investing in the training and development of your current staff can help you retain employees and increase their skills and productivity. This can also help fill gaps in your staffing needs.
Consider partnering with other organizations or businesses in your area to share resources and personnel. This can help alleviate staffing shortages and reduce costs.
Companies might use outsourcing to get access to specialized talents or expertise that might not be present within their own organization. It enables them to hire outside expertise on a temporary or permanent basis, which can be a perfect solution to deal with staffing shortages. Even in the face of staffing issues, this can help the organization achieve its goals and keep running efficiently. Consider KDCI, an offshore staffing solutions provider with a long-decade of leadership and experience in Ecommerce outsourcing. We offer outsourced services at an affordable rate in customer support, product information management, web development, digital marketing, and accounting. Let us help you improve your staffing levels and improve your overall work environment. Click the button below to get your FREE consultation with one of our outsourcing experts today! Contact Us
Increasing average order value is among common problems that a modern-day online retailer faces today. Although there is a surefire formula to it, most online retailers can’t seem to find the ultimate hack resulting in low order sizes and underwhelming sales revenue.Are you looking for effective ways on how to increase average order value for your Ecommerce store? Read on to find out how you can potentially increase your profits per customer with our proven and tested strategies.
Average order value (AOV) is a metric used to measure the size of an average purchase made by a customer on a website or in a store. It is calculated by dividing the total revenue generated by the number of orders placed.
For example, consider a website that has generated $10,000 in revenue from 500 orders. The AOV for this website would be $20. Here’s how to calculate average order value for your Ecommerce site:AOV = Total Revenue / Number of Orders= $10,000 / 500 orders= $20This means that, on average, customers are spending $20 per order on the website.AOV can be a useful metric for businesses to track because it can help them understand the value of their customer base and identify opportunities to increase sales. For example, if a business wants to increase its AOV, it might consider offering bundle deals or upselling products to customers during the checkout process. That said, it’s crucial to understand how to increase average order value.It's important to note that AOV is not the same as the average sale price of a product. Average sale price refers to the average price at which products are sold, while AOV refers to the average size of an entire order.
There are several reasons why average order value (AOV) is important for online retailers:
Most online retailers don’t have effective strategies on how to increase average order value for their Ecommerce sites. If you’re an Ecommerce business owner looking to increase your conversion rates, then here are some proven and tested strategies you can start today:
If you don’t know where to start on how to increase average order value, then start with offering bundle deals. Offer customers the option to purchase related or complementary products together at a discounted price. This can encourage customers to add more items to their order.
Suggest higher-priced or upgraded versions of the product the customer is considering, or recommend related products that would complement their purchase.
Use limited time offers or sales to encourage customers to make a purchase now rather than later. This can increase the likelihood that they will add more items to their order.
Customers may be more likely to add more items to their order if they know they won't have to pay extra for shipping.
Use data and machine learning techniques to suggest products to customers based on their past purchases or browsing history. This can help customers discover new products that they may not have considered otherwise.
Make it easy for customers to see related or complementary products by displaying them on the product page or in the checkout process.
Consider offering loyalty rewards or a loyalty program to encourage customers to make more purchases and increase their average order value.
Use email marketing to promote special deals or sales to your email subscribers. This can encourage them to make a purchase and increase their average order value.
Consider offering payment plan options, such as financing or layaway, to make it easier for customers to make larger purchases. This can increase the average order value for customers who may not have been able to afford a larger purchase upfront.
Outsourcing certain tasks to an Ecommerce service provider can help you streamline your operations, improve efficiency, and focus on driving more sales and revenue, which can ultimately help you increase your average order value.KDCI, a leading Ecommerce service provider in the Philippines, offers scalable offshore staffing solutions for businesses looking to outsource their Ecommerce operations. We offer a wide range of outsourcing services from product information management to design, web development, and customer support. Partner with us and let us help you drive more sales and increase your average order value.Click the button below and get your FREE consultation with one of our outsourcing experts today!Contact Us
2022 is the year of recovery, recovery from a global pandemic, recovery from sudden and drastic work changes, and recovery from setbacks. And KDCI celebrates this year of abundant recovery by throwing a colorful, fun-filled Y2K themed party to end our year!
On the eve of Dec. 17, 2022, KDCI employees from all around the Metro came to Black Olive, Estancia, where the company celebrated its 2022 year end party. After 2 years of celebrating the holidays remotely, friends and colleagues are seeing each other and celebrating the eventful year that is quickly coming to a close.To send off the memorable year together, KDCU prepared a lot of party activities. We held a talent show, played several games and raffles, and of course, enjoyed abundant food and drinks.
What company party would be complete without a hit smashing talent show of its own? Like the previous years, KDCI held its very own talent competition, with various teams competing for the ultimate title of KDCI’s Got Talent!
We witnessed several talented teams compete, showcasing the song and dance numbers they took weeks to carefully prepare. And what an effort it was! The teams’ hard work paid off as they gathered a cheering crowd whose support was palpable throughout the party.
As the teams hyped up the crowd, they received overwhelming love from their colleagues, who rooted for any one of the teams to win the grand prize of the show.With three teams competing, all teams managed to take home a prize, with the winning team taking home the twenty thousand pesos in cash!
As fashion finds its way back to the present, we see a resurgence of early 2000s fashion and have it as our theme for this year end party. Y2K shows a blend of bright popping colors along with kitschy aesthetics that are unapologetically maximalist.This year, KDCI chose Y2K as its year end party theme. Here are some of our best looks for our Y2K theme party.
This was truly a night to remember in KDCI fashion history. We witnessed our employees touting iconic trends from the late 1900s and early 2000s, with each showing off their Y2K outfits in true Y2K styles. As for our best dressed competition, we have outfits inspired by Barbie all the way to Michael Jackson in true Y2K aesthetic!
The year is ending and KDCI is all about giving back to the people who helped us endure through the pandemic, and recover with a bang as we emerge from the economic turmoil post pandemic.
To celebrate, KDCI held various end of year party games and raffles, with various prizes up for grabs.
And as our grand prize, we raffled off a 52 inch wide screen LG TV, which one of our lucky employees brought home with her.
More than the fanfare, the year end party is all about catching up and celebrating the great things we accomplished together in the past year. With hundreds of attendees, the whole restaurant was decked out for KDCI.
We served delicious Filipino buffet, complete with a signature lechon, spaghetti, and chicken peri peri. And as we ended the party program, we had an open bar serving everyone sweet mojitos, zesty sprite vodkas, and thirst quenching beers.
This 2022 Y2K themed year end party is a memorable one, not only for what the party signifies, but also for the new and old friends we have made in KDCI. As a workplace, KDCI is more than an office or a job that pays, it’s a supportive community that helps individuals grow into the best versions of themselves.
As we cap the night, our president, Raymond Jamin, and our CEO, Anthony Layug, thanked every single person who contributed to the success and growth of KDCI. The leaders also recognized the achievements and loyalty of employees who have stood by KDCI since the beginning of its journey.
And before ending the program, we had a heartfelt celebration of camaraderie and gratitude, as team members flocked with their senior managers for a group photo.
After the heartwarming reunion, we officially ended the program thanks to our talented and energetic hosts, and we officially opened the dance floor and had a DJ pumping the house with electrifying music.
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.
