“The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity and reduce work cycles.” said Indian tech magnate, Azim Premji.
In this article, we’ll review research, case studies, and the opinions of industry experts, to gain a better understanding of the benefits of software development outsourcing.
According to Andy Hilliard, CEO of software development company Accelerance, companies can save between 30% to 70% by outsourcing software development compared to maintaining an in-house team. This substantial savings is primarily due to lower labor costs in outsourcing destinations like Latin America, Eastern Europe, and Asia, where the cost of living and consequently, the salary expectations are lower compared to North America and Western Europe.
Moreover, outsourcing eliminates the overhead costs associated with hiring, training, and retaining full-time employees, as well as the expenses related to office space and equipment
Outsourcing allows organizations to leverage the talent and experience of their service providers, which can accelerate project timelines as well as improve project outcomes.
By accessing a larger talent pool, companies can collaborate with experts from different geographies, bridging fresh perspectives and specializations that may not be available in-house. Such a diversity in talent can provide an edge in today’s fast-paced technological landscape.
When outsourcing software development, you hire a third party agency to take over the hiring, training, and management of your development operations. This eliminates the need to invest in in-house resources and the responsibilities that come with it. Without this burden, organizations gain more flexibility, allowing them to scale their operations as needed.
In an outsourcing case study by KDCI Outsourcing with tech solutions company, Accesso, the offshore development team scaled up by 100% in two years and produced 7 apps, showing the scalability potential of outsourced development projects and the impressive project outcomes that may arise from such flexibility.
Outsourcing to leverage efficiency of outsourcing partners can accelerate the development projects, allowing companies to market their products or services more quickly.
In the research paper "Exploring the outsourcing relationship in software startups: A multiple case study", one of the significant benefits of outsourcing for software startups is faster time to market. Through outsourcing development, startups can bypass the time-consuming process of building in-house capabilities, enabling quicker product launches.
This strategic approach allows startups to access specialized skills that they may lack internally, enhancing the quality and efficiency of their development efforts. Additionally, outsourcing provides a cost-effective solution, reducing the need for substantial upfront investment in hiring and training new employees.
In the same study mentioned above, researchers also found that outsourcing allows startups to focus more on their core competencies and strategic goals by offloading non-core activities. This focus enables them to allocate more resources to areas that directly contribute to growth and competitive advantage.
On top of gaining expertise and leveraging an outsourcing partner’s efficiency, partnering with specialized external teams through outsourcing can help organizations leverage the latest technologies and industry best practices, further enhancing their innovation capabilities and market responsiveness.
According to "A Case Study on Risk Management Practice in Outsourced Software Migration Projects", researchers highlight the improved risk management in outsourced development projects, as vendors often employ advanced risk management practices and tools that can significantly mitigate potential risks in software migration projects."
Moreover, the case study found that outsourcing allows for the transfer of certain risks to the vendor, who may have more experience and better capabilities to manage those risks." This provides companies with a low-risk strategy for handling complex and high-stakes software projects.
Software development outsourcing companies observe key practices that ensure compliance and security in their outsourced development projects. For instance, at KDCI Outsourcing, we adhere to international standards, ensuring all legal and regulatory requirements are met.
We also implement robust data security measures, which include encryption, secure access controls, and regular security audits for safeguarding sensitive data, as well as conducting coding reviews. And to prevent security vulnerabilities in software, we adopt secure coding standards and conduct coding reviews.
By outsourcing software development projects, companies pass on the burden of compliance and security, allowing them to focus on their core business.
Software development is one of the fastest growing and also evolving industries in outsourcing today. To help companies plan their strategies for outsourcing, below are leading trends in software outsourcing, identified by key players and industry leaders.
Top analysts at Gartner found that the majority of software engineering leaders are investing in disruptive technologies to meet their business objectives.
According to VP Analyst of Gartner, Joachim Herschmann, technology trends (software engineering intelligence, AI-augmented development, green software engineering, platform engineering, and cloud development environments) are “already helping early adopters to achieve business objectives… enabl[ing] software engineering teams to deliver high-quality, scalable AI-powered applications, while reducing toil and friction in the software development lifecycle (SDLC), improving developer experience and productivity.”
Consequently, these trends are making software development outsourcing more attractive and viable, as companies can leverage these advanced technologies to enhance their development capabilities and achieve faster, more reliable results.
The demand for disruptive technologies in software engineering is expected to drive demand in software development outsourcing. As Global Newswire reported, there will be an increased demand for software outsourcing, as the IT and outsourcing market is predicted to grow at a rate of 8.06% from 2022 to 2030.
This urges software outsourcing companies to offer advanced technologies and expertise to drive innovation and give companies a competitive advantage. Such tech advancements shouldn’t only increase flexibility but also minimize the need for physical infrastructure. As these technologies enhance efficiency and productivity through automation, improve quality and accuracy with AI-driven quality assurance, and provide scalable resources on-demand, thereby reducing operational costs and offering financial flexibility.
In NDC London 2023, Richard Campbell talked about the transformative impact of cloud computing on outsourced software development, saying that “[c]loud services are transforming the way we approach software development, providing unparalleled scalability and flexibility. This shift is crucial for managing resources in outsourced projects.”
Particularly, such a shift is making the full-time-equivalent (FTE) based outsourcing model obsolete, promoting instead a volume-based approach that permits organizations to efficiently manage workloads by leveraging cloud infrastructure to provision and deprovision resources as needed.
In the advent of AI and machine learning, it’s become easier to streamline workflows and improve operational productivity in software development outsourcing.
According to research director Charlotte Dunlap of GlobalData, DevOps tools are democratizing access to advanced analytics that were previously restricted to data scientists, while MLOps extract insights from dark data, which are data collected but not effectively utilized.
Srini Kadiyala, CTO of OvalEdge, explains that AIOps is a “time- and resource- saver for software developers” as it enhances speed and accuracy during coding by replacing manual IT operations with automated platforms that handle data collection, event identification, and issue remediation without human intervention.
A holistic approach using MLOps practices encompass the entire machine learning lifecycle, from data collection and model development to deployment and monitoring, ensuring that AI models are scalable and reliable (McKinsey & Company). This allows for more efficient management of resources and quick adaptation to project needs, ultimately enhancing the quality and speed of outsourced software development projects.
The Philippine software development outsourcing industry is one of the fastest growing in Asia. As a top outsourcing destination with world-class developers, the country is quickly gaining market share in the industry, and is solidifying its reputation not only for software development but also IT.
As one of the top outsourcing service providers in the Philippines that offer customer software development outsourcing services, KDCI Outsourcing builds offshore software development & IT teams that not only have the skills and experience required, but also seamlessly integrate with any environment, ensuring smooth adoption and migration of systems, applications, and processes.
Learn more about software development outsourcing. Contact us today!
Legal process outsourcing (LPO) is the practice of a law firm or legal department enlisting outsourced legal services from a third party agency or individual to provide support for their legal processes. The most common reasons for outsourcing legal support is to access specialized legal expertise, improve operational efficiency, eliminate staffing concerns, and reduce costs.
The types of legal services involved in LPO may be as simple as administrative support or may be as complex as litigation, with the most commonly outsourced being legal support roles include paralegal, legal researcher, and contract manager.
There’s been a surge in demand for legal support services in the last few years, and being a top outsourcing destination, the Philippines is experiencing this trend. However, why are people outsourcing legal services and to the Philippines of all places?
Compared to Western countries, the Philippines has a significantly lower cost of living, reflected in the lower labor rates of legal professionals. For instance, the average rate of a paralegal in the US is $4,212/month while it’s only $486/month in the Philippines. With the other fees involved in outsourcing such as management fee, equipment, and benefits, the cost of outsourcing one paralegal to the Philippines is around $2,900.
By outsourcing to the Philippines, law firms and legal departments can reduce their spending on staffing by up to 70%!
The Philippines has over 8,000 law graduates yearly, most of whom are well versed in common law systems similar to those in Western countries. By working with Filipino legal professionals, law firms and legal departments can expect high standards of legal expertise and a smaller learning curve.
The Philippines is the 3rd largest English-speaking country globally, and it ranks 2nd for English proficiency in all of Asia. Not to mention, Filipino culture is pretty close to Western cultures, making it much easier to communicate and collaborate well with legal support staff from the Philippines.
In line with the global demand for innovation, most legal outsourcing companies in the Philippines are picking up new technologies such as AI, machine learning, and blockchain to make legal process outsourcing more effective, secure, and cost-friendly. These advancements allow companies to offer more flexibility in outsourcing engagement models that tend to focus on volume rather than full-time equivalents (FTE).
With Philippine legal outsourcing companies undergoing digital transformation, they're better able to scale their legal operations, providing clients with improved flexibility so they are better able to adapt to changes in business demands and the market.
This becomes a great advantage to maintain competitiveness in the market and, for this reason, the Philippines is a good destination for legal services that have been outsourced.
Looking to outsource your legal services? Below are the top legal services outsourcing companies in the Philippines.
Based in Ortigas CBD, Philippines, KDCI Outsourcing is a company that provides tailored (LPO) legal process outsourcing services. They're known to build great offshore legal services teams by finding the right fit through sourcing roles such as paralegals, legal researchers, and contract administrators. For law firms and legal departments looking for extensions of their in-house teams, they're a great option for high-quality legal support at competitive costs.
Connext Global is a foreign-owned Philippine legal process outsourcing company known for its committed teams and flexible outsourcing options. With extensive knowledge in the industry, they can customize the service they provide to individual clients. Some of the key legal positions that are available with them are in the areas of legal assistants, compliance officers, and intellectual property specialists. This service provider is ideal for businesses looking for highly customized LPO solutions with a focus on quality and satisfaction for the client.
With headquarters in India, Flatworld Solutions is another key player in this industry, with a global spread having service centers in the Philippines. Its USP lies in handling voluminous legal projects with a cost-effective and time-bound approach. Specializing in legal research, litigation support, and document management, Flatworld Solutions is one of the best options for companies seeking scalable legal support services and a strategic outsourcing partner.
Sourcefit is a foreign-owned outsourcing company, headquartered in the Philippines, that provides an unmatched customized LPO, or legal process outsourcing. Their USP lies in the integration of sophisticated technologies and skilled legal professionals to deliver the most accurate legal solutions. The top outsourced roles are for legal analysts, document reviewers, and compliance specialists. Sourcefit is ideal for businesses looking for innovative, technology-driven legal process outsourcing.
Baer Reed is based in the Philippines and is a foreign-owned company that specializes in top-class quality LPO services. The company's USP is its team of experienced U.S. lawyers who supervise and take responsibility for the quality of all work sent out. Important job roles include contract reviewers, e-discovery specialists, and legal project managers. This is a highly recommended company for U.S. law firms and corporations looking to maintain very high legal standards while outsourcing.
A multinational company, Infosys BPM has numerous service centers across the globe, one of which is in the Philippines. Their USP in the LPO market is strong process automation and analytics capabilities, making them highly efficient and accurate. Their services include contract management, litigation support, and legal research. Infosys BPM is the best option for big companies seeking a dependable and technically advanced LPO associate.
Based in the Philippines, PITON-Global is an onshore local outsourcing firm that is quite distinguished for its LPO expertise. Their USP is very deep understanding of local and international legal landscapes that enable one to provide individualised legal solutions. They're particularly good at legal transcription, document review, and paralegal support. PITON-Global fits best with those law firms and businesses who seek effective yet low-cost solutions, where knowledge is power in terms of legal support.
A BPO company, though LPO-capable, primarily operating from the Philippines with its headquarters there, is Microsourcing. It has flexible outsourcing models and a commitment to high service delivery. This company mainly deals with the management of compliance in legal research and the drafting of documents. This company would be recommended for any organization looking for adaptability and reliability in legal outsourcing services.
Emapta, the Philippines-based foreign-owned outsourcing company, offers an extensive array of LPO services. Their unique selling point is the building of dedicated teams that are an extension of the client's in-house team. The company offers roles of legal researchers, compliance officers, and contract administrators. Emapta is best if you're looking for a seamlessly integrated outsourced legal staff within your internal legal operations.
Outsourced PH is an LPO company established in the Philippines and is foreign-owned. The firm stakes its reputation on quality assurance and solutions specifically designed for its clients, thereby offering legal assistance with speed and accuracy. The services include legal document review, e-discovery, and contract management. Outsourced PH is ideal for enterprises in need of very reliable, customized legal outsourcing services.
Legal process outsourcing can help streamline operations, reduce costs, enhance efficiency, ensure compliance with regulatory requirements, and improve overall service quality.
At KDCI Outsourcing, we will build your offshore legal support team in the Philippines based on your requirements to ensure seamless integration with your in-house operations, and provide advanced technological capabilities with AI to enhance efficiency and compliance in your legal processes.
Learn more about legal process outsourcing to the Philippines, contact us today!
The Philippines is the world’s call center capital for a reason. Since the 1990s, the Philippines has housed many call centers, providing customer service to brands all over the world. Today, the Philippines has 432 registered call centers under Philippine Economic Zone Authority (PEZA).
With its high literacy rate, impressive English proficiency, and customer-first attitude, it’s no wonder that the country rose to the top in the customer service outsourcing world. Still, as wondering an outsourcing destination the Philippines is, there are potential downsides to outsourcing there. Keep yourself informed to mitigate the pitfalls of outsourcing to the Philippines.
Did you know that the average salary of a call center agent in the United States in 2024 is $2,692/month? Meanwhile, the cost to outsource a full time call center agent to the Philippines costs around $1,000/month.
That’s over 60% less than an on-shore agent, not to mention, the cost to outsource the Philippine call center agent is inclusive of benefits, equipment, and even administrative fee.
Outsourcing customer service to the Philippines also comes with added value – the use of AI to personalize messaging, the use of chatbots to reduce customer queries for agent resolution, and the use of automation to streamline the customer support process.
With the lower cost of labor and the enhanced efficiencies brought about by outsourcing customer service to a call center in the Philippines, companies can save up to 70% overall, giving them a competitive advantage in a volatile market.
The success of customer service relies heavily on the comprehension and problem solving ability of the customer service agent.
With the country’s high literacy rate of 97% and #2 ranking in English proficiency in all of Asia, it’s no surprise that the Philippines is the world’s call center capital.
Filipino customer service agents are built for customer support, and it shows in the high customer satisfaction, five-star ratings, and increasing number of clients that are patronizing the Philippine customer service outsourcing industry.
Filipinos are globally renowned as happy people with amazing hospitality. These traits are embedded in the country’s culture, and manifests in the ‘bayanihan’ spirit, concept of ‘malasakit’, and the ability to find humor even in the direst situations.
It is these traits that make Filipinos naturally inclined towards customer service, always putting customers first and ensuring satisfaction.
As much as 33.3% of customer service agents feel emotional exhaustion after work. After all, customer service is one of the most emotionally demanding jobs available, especially for people who aren’t built for this kind of work.
For most businesses, it simply saves themselves and their staff a whole lot of stress to outsource customer service to people who are used to it and have protocols to help them cope with the emotional stress of working in customer service. This is particularly true for Philippine call centers with decades of experience.
At the end of the day, one of the driving forces behind outsourced customer service is staff augmentation. Finding the right people just takes too much time and effort sometimes. And hiring an outsourcing company to do the heavy lifting for you is a quick and easy way to solve the problem.
When you outsource to customer service outsourcing companies, they will handle the recruitment, training, and onboarding of your offshore team, and all you have to do is work with them and help them integrate into your in-house operations.
This process is much easier in a country like the Philippines with a large pool of skilled workers. In fact, the country sees about 350,000 college graduates each year, so there’s an endless stream of highly qualified folks to choose from.
Managing your customer service operations takes a lot of time and energy. Simply hiring and training them isn’t enough; you also have to manage them, provide feedback, and continuously QA their work to ensure they are hitting their key performance indicators (KPIs).
But when you outsource customer service, you can do away with that. With customer service out of your way, you can focus on other aspects of the business, giving you more focus, which can go a long way in furthering your business objectives.
Bringing in agents to manage your customer service in-house requires a learning curve, not only for your agents but also for your organization. Everyone has to adjust to the new process and people, and in time, find a system that works well. This can take some time, and even a bit of trial and error, to get used to.
On the other hand, when outsourcing customer service to the Philippines, your outsourcing partner is a customer service expert with years of experience providing customer service to various brands from multiple industries. This gives them an advantage in terms of adapting to your brand and environment, reducing the learning curve significantly, making the process more efficient.
When you outsource to a country on the other side of the world, such as the Philippines, there are things that are out of your control. One is the management of your offshore team. Without your direct supervision, you may experience performance issues and delays in implementing changes – both of which can slow down your operations and hinder the agility of your customer service operations to deal with market changes.
Despite the Philippines being the 3rd largest English speaking country in the world, most Filipinos are not native English speakers. This can make it difficult to understand nuances that can lead to misunderstandings, impacting not only your working relationship with your offshore customer service team, but also your relationship with your customers.
Customer service agents are typically the first point of contact your customers have with your brand. This makes each agent an ambassador of your brand, and whatever they may or may not do is a direct reflection of your brand.
With 64% of customers saying they’ll find another brand if a company doesn’t offer good customer service despite having great products, working with an offshore customer service team who you cannot directly oversee opens up a huge risk for your brand’s reputation.
This is why it’s crucial to work with a Philippine outsourcing company with a reputation of providing excellent customer service.
It’s complicated outsourcing your customer service to the Philippines. Companies should know about the strict labor laws that safeguard workers' rights. Such laws require employees to have benefits, minimum wage, and job security.
Unless you’re aware of these costs, you may mistakenly think you’re only paying agents’ salaries, which is not the case when you outsource. And should you fail to comply with these laws, you will face legal repercussions such as fines and penalties, bringing up your total outsourcing costs and possibly canceling out the savings that first urged you to outsource.
To easily prevent this, work with a reputable outsourcing agency who will take care of your offshore customer service team. They would know the ins and outs of Philippine hiring practices best, and the outsourcing fee you pay them should cover all the expenses associated with maintaining your offshore customer service agents.
Despite heavy investments in the development of infrastructure, the Philippines still faces challenges with infrastructure and technology, particularly in rural areas. Poor internet connectivity and frequent power outages can disrupt customer service operations, leading to delays and dissatisfaction.
Moreover, outdated technology infrastructure hinders the adoption and implementation of advanced customer service tools and platforms, affecting service efficiency and quality. These issues necessitate significant investments in infrastructure improvements and technology upgrades, which can be costly and time-consuming for outsourcing firms.
To avoid this, work with an outsourcing company that is based within Metro Manila; ones with redundant electricity and internet are preferred.
Outsourcing customer service to the Philippines involves sharing sensitive customer data, which can pose significant security and privacy risks. Through the years, the country has faced issues with data breaches and cyber-attacks that can compromise customer information.
Compliance with international data protection standards, such as GDPR, requires rigorous security measures that might not always be fully implemented.
You must find a customer service outsourcing company who has robust cybersecurity protocols in place. Not only that, they should continuously monitor and stay up to date with cybersecurity to avoid cyber crimes or theft, which are ruinous to a brand’s reputation.
The Philippines often faces natural calamities in the form of typhoons and earthquakes, which can disrupt day to day operations. Not only will these create communication, they can also totally suspend your offshore team, leaving your customers hanging without support.
To counteract these dangers, you should allocate funds for disasters’ recovery strategies and pay for absence complications which happen to be both expensive and difficult. In addition, prepare a back-up and diversify your outsourcing partners.
Despite the pitfalls of Philippine call centers, outsourcing customer service to the Philippines remains a top choice for many brands globally due to its proven benefits – cost efficiency, amazing talent, excellent English, and customer-first attitude.
If you want to get peace of mind and ensure your customers are treated well, build your offshore customer service team with KDCI Outsourcing. We specialize in finding the right people for your team; not only do they have the skills and experience that fit your requirements, they also mesh well with your culture to ensure seamless integration with your in-house team.
Learn more about outsourced customer service. Contact us today!
Managing human resources, ensuring they’re paid, keeping them engaged, while complying with labor laws and regulations can be a bit much even for established companies. This is why more and more are outsourcing HR, especially to developing countries like the Philippines.
Find out more about Human Resources Outsourcing and discover why you should or shouldn’t outsource human resources to the Philippines!
HR Outsourcing, Human Resource Outsourcing, or HRO, is the process of contracting an agency or individual to manage a function or the whole process of human resources or HR. This typically involves outsourcing HR services such as recruitment, payroll, and training and development to help reduce costs, increase efficiency and productivity, and improve scalability and flexibility.
Some of the most commonly outsourced HR roles are HR generalist, compensation and benefits analyst, payroll specialist, training and development specialist, and HR compliance officer.
Human Resources Outsourcing (HRO) is a growing industry, with the Philippines as one of the fastest-growing markets. If you’re thinking of where to outsource HR and you’re considering the Philippines, below is a list of benefits that may help you decide!
One of the main reasons why the Philippines is an increasingly popular destination for HR outsourcing is because of its lower labor costs. While it costs $3900/month to hire an HR specialist in the US, outsourcing an HR specialist to the Philippines costs about $1500/month.
Not only is the rate much lower, but the outsourcing cost already covers operational costs, resources like laptops, internet, and power stations, as well as benefits, on top of the basic salary. This allows companies to save up to 70% in labor and operational costs.
The Philippines puts a strong emphasis on education, having a 97% literacy rate. It also produces a large number of graduates yearly and has an active workforce of 49.48 million people in 2024. Not to mention, Filipinos have made a name for themselves in the outsourcing industry with the Philippines as the world’s call center capital.
These highlight the caliber of Filipino HR professionals, making it easier to find the right person with the set of HR skills and experience you’re looking for.
When it comes to human resources, soft skills matter a lot. That’s why outsourcing human resources functions is a more delicate matter than outsourcing other functions that require less cultural compatibility.
However, thanks to the Philippines’ Westernized culture, Western business practices and corporate culture are no longer new, and any learning curve when working with Western organizations is short, making collaboration much smoother.
Not to mention, Filipinos are culturally very hospitable and optimistic. In fact, the Philippines was voted as one of the friendliest countries in the world. Such traits manifest well in the HR profession, a testament to the service orientation and adaptability of Filipino HR professionals that make them effective in handling employee relations and customer service functions.
When it comes to the number of specialized HR outsourcing services, including payroll processing, recruitment, employee training and development, benefits administration, and compliance with local labor laws, the Philippines is never going to come up short.
There are plenty of HR service centers in the Philippines with extensive experience serving various industries, including IT, healthcare, finance, and customer service, providing tailored solutions to meet specific business needs.
Many Filipino HR professionals also obtain globally recognized certifications, such as those from the Society for Human Resource Management (SHRM) and the HR Certification Institute (HRCI), which help maintain high standards and keep them updated with global HR practices
One of the beauties of outsourcing is it provides scalability and flexibility to companies. This is even more so in the Philippines because its outsourcing companies have a large pool of ready-to-work HR professionals and the country’s BPO industry is so large, that hiring, training, and getting them on board is a quick process that boosts scalability and flexibility even more.
This means Philippine HR outsourcing companies can act fast, allowing companies to more quickly adapt to changing business needs, without the delays and costs associated with hiring and training new staff internally.
Additionally, HR outsourcing in the Philippines comes in multiple engagement models, and agreements often come with flexible terms, enabling companies to choose HR outsourcing services that best fit their requirements and adjust them as needed.
Filipino HR outsourcing service providers leverage the latest human resources software and technologies, offering companies access to advanced tools for payroll management, performance tracking, and employee engagement.
Moreover, the outsourcing industry in the Philippines is known for its focus on continuous improvement and innovation, ensuring that HR processes remain efficient and up-to-date with global standards.
HR involves quite a number of laws and regulations that vary depending on your geography. To ensure your compliance, there are plenty of Philippine HR outsourcing companies that have worked with other companies in your location – this makes it easy for them to navigate HR requirements in your area, ensuring compliance and reducing the risk of legal issues for foreign companies.
It also helps that Philippin HR outsourcing agencies have protocols in place to keep them updated with changes in legislation and best practices, providing you with peace of mind regarding their HR compliance.
Even if the Philippines is a popular destination for HR outsourcing, there are disadvantages that you should consider. Below are some of the most common pitfalls of outsourcing human resources to the Philippines, along with some tips on how to mitigate them.
A common challenge that companies may encounter when outsourcing to an offshore location like the Philippines is time zone and cultural differences. The Philippines is in a different time zone from many Western countries, which can lead to challenges in real-time communication and coordination. This may affect the responsiveness and timeliness of HR functions.
And though Filipinos speak very good English, there are cultural nuances in the English language that may still lead to occasional misunderstandings, impacting the clarity of communication.
While there’s little one can do about inherent cultural differences, practicing clear and open communication always helps. Meanwhile, time zone differences can easily be bridged by setting your offshore team’s work shift to match your hours to ensure smooth collaboration.
Outsourcing involves sharing of data, which opens up companies to privacy and security threats especially if the outsourcing partner doesn’t observe proper safeguards and protocols. While the Philippines has data protection laws (such as the Data Privacy Act of 2012), they may not be as stringent as those in the US or EU. Ensuring compliance with international data privacy standards can be challenging.
To ensure utmost security and privacy, finding a reliable outsourcing company that meets data protection standards such as General Data Protection Regulation (GDPR) is a must. Better yet, you should prepare a risk management and recovery plan to cover all your bases.
Outsourcing HR functions can lead to loss of control over key HR processes, which may make it challenging to maintain the same level of management and influence as with in-house human resource department. This can mean misalignment in terms of company policies, culture and values, or lack of quality control, both of which can impact HR service delivery in the form of inconsistent HR practices and employee experiences.
It can also mean challenges in the integration of the outsourced HR provider’s systems with the company’s existing HR and IT infrastructure can be complex and require significant effort and resources.
When it comes to these challenges, assigning an in-house liaison and setting clear expectations and preparing for a smooth transition are key.
An in-house HR expert who can focus on the outsourcing partner’s management helps ensure alignment. Meanwhile, having set KPIs and a QA process or even having your outsourcing partner assign a dedicated QA specialist helps ensure consistency in HR services quality.
As for integrating outsourced and in-house HR systems, develop a phased integration plan with thorough assessments, robust data migration protocols, continuous monitoring, and regular communication between internal IT and the outsourced provider to ensure smooth and efficient system integration.
While the cost of outsourcing HR is typically agreed upon during contract signing, there are instances where additional costs are incurred due to unexpected integration challenges, the need for specialized software, compliance with new regulations, or unforeseen increases in service requirements.
Not only that, some Philippine outsourcing agencies require long-term contracts which can lock companies into agreements that may become less favorable over time. Renegotiating or exiting these contracts can also incur additional costs.
To avoid these, it’s best to carefully weigh the costs and benefits of offshore outsourcing before signing any contract. Find out potential additional costs as soon as possible even if they are not yet relevant to you. And if you think there’s a possibility of terminating contracts early, opt for Philippine outsourcing companies that offer shorter contracts.
When outsourcing HR functions, in-house staff may feel threatened or undervalued, impacting the organization’s morale and lowering engagement. Effective communication and change management are crucial to mitigate these effects.
Meanwhile, the physical distance between the outsourced HR team and the company’s employees can lead to a lack of personal connection, potentially affecting employee satisfaction and engagement as well.
Companies become dependent on the reliability and performance of the HR outsourcing provider. Any issues with the agency, such as financial instability or service disruptions, can directly impact the company’s HR functions.
Not to mention, over-reliance on outsourced HR services can lead to a decline in in-house HR expertise, making it difficult for the company to bring HR functions back in-house if needed.
To mitigate dependency on HR outsourcing providers and maintain in-house expertise, companies should diversify their outsourcing sources, retain critical HR functions internally, and invest in continuous training for their HR staff. Additionally, establishing clear service level agreements (SLAs) and having contingency plans for potential service disruptions or provider instability are essential.
Considering outsourcing HR to the Philippines? With the country’s robust HR staffing services, there are many agencies and even more HR professionals available, making it overwhelming to choose the right people for your offshore HR team.
At KDCI Outsourcing, we specialize in finding the best people who not only fit your needs but also mesh well with your in-house organization to ensure you’re building your offshore HR team for success!
Learn more about HR outsourcing in the Philippines, contact us today!
Search engines have been around for over 20 years, and to this day, the majority (53.3%) of all website traffic comes from organic search. In fact, 60% of all online generated leads are organic, with a whopping 14.6% close rate. But in an era of tech innovation, AI, and sophisticated marketing strategies, how does one play the SEO game? The answer for most – SEO outsourcing.
Search engine optimizations (SEO) outsourcing is the practice of hiring a third-party agency or professional to improve the performance of your website on search engines, and enhance your digital presence. Below we’ll discuss the benefits and drawbacks of SEO outsourcing services, as well as why you should consider outsourcing it to the Philippines and which roles you can outsource.
In 2023, around 37% of all services outsourced to the Philippines are related to design & marketing. Of these services, one of the most in demand is search engine optimization or SEO outsourcing as it is a long-term strategy that requires careful research, consistent execution, and analytics.
Though some companies choose to invest in internal SEO teams, many opt to outsource SEO instead for the reasons listed below!
59% of companies outsource to reduce spending.
In 2024, the average cost of hiring an SEO specialist is $20.88/hr and the cost of tools and software go as high as $5,000 a year. That’s easily ~$4,000/month, significantly higher than outsourcing to developing countries like the Philippines, where the average cost of outsourcing one SEO full-time-equivalent (FTE) typically costs less than $2,500.
Not to mention, building an entire SEO team means more than hiring an SEO specialist; you would need content writers, link building specialists, and more. On the other hand, SEO outsourcing services are available on multiple engagement models, giving you the flexibility to work with dedicated professionals, or outsource SEO projects. It also allows you to access SEO software and tools that are otherwise very costly to maintain.
Optimizing SEO for a particular brand and industry takes time and experience that most individuals don’t have. Hiring someone in-house requires a learning curve that can take anywhere from a couple of weeks to a couple of months.
When you hire a SEO outsourcing company, they have the combined expertise of multiple specialists and have experience working with multiple brands and industries. These allow them to more easily find what works best for your brand and what doesn’t, making it quicker to see results.
Outsourcing agencies that specialize in SEO have years of experience using SEO best practices and sophisticated tools and software to improve website performance and SERP rankings. This knowledge comes in handy when designing a marketing strategy that will help you reach your SEO goals.
They can create actionable plans and help you set expectations about your SEO strategy. Better yet, they can give you regular updates based on analytics that will otherwise be confusing to navigate and make sense of.
Having someone else who is experienced in SEO step in and give you a clear marketing strategy also helps put your mind at ease and makes it easier to project ROI.
When you skip the learning curve, not only do you get enhanced marketing strategy, but you also skip the waiting part and move on to results much faster. SEO outsourcing companies are experienced with optimizing websites and content to help you not only rank on search engine results pages (SERPs), but also target the right audience so you can get qualified leads.
On average, it takes an agency at least three months to see traction on SEO, whereas in-house teams with trial and error take six months or more. And even then, to actually convert engaged users into qualified leads may take even longer.
Any business strategy aims to generate ROI. By outsourcing, you get a clearer picture of when you can achieve ROI, rather than playing the waiting game and hoping for the best.
A business that performs well scales its operations. If you plan to grow your business, you should also prepare for when you should scale your operations. While preparing your recruitment team to hire more SEO specialists helps, this can be a problem if you’re uncertain of how much you’ll be ramping up your SEO operations.
If you’re in the retail sector where demand spikes seasonally, then having a SEO team who can increase their capacity a couple of times a year is the perfect set up. Outsourcing makes this possible by adding more staff to your outsourced team whenever needed, while reducing it to status quo the rest of the time.
This eliminates the worry of having to hire and lay people off – your outsourcing partner has the people to reallocate, so you pay only for the outsourced SEO services you need.
While Google Analytics and Google Search console are free SEO tools, sophisticated ones that offer more in-depth analysis to help you optimize and implement your SEO strategy cost money and paying for multiple tools monthly can quickly add up.
For example, plans from Ahrefs and Moz start at $99/month, while one from SEMrush starts at $119.95/month. These, along with other tools like SpyFu, Screaming Frog, SurferSEO, and Majestic require money to help fine-tune your SEO strategy further.
SEO outsourcing companies have access to all of these as they already provide SEO services to other clients. When you work with them, you get to use all of these too, without having to pay heftily on subscription fees.
As much as we love to boast the benefits of SEO outsourcing, it’s not a be-all-end-all solution that comes with no strings attached. It has its drawbacks, and if you’re considering SEO outsourcing, you should learn about them and mitigate them before you outsource your SEO.
Outsourcing SEO services to a third-party agency means you give control over your SEO to your service provider. Depending on how you communicate with your outsourcing partner, they may or may not employ strategies that align with your overall marketing goals, which may lead to inconsistencies in your messaging.
At the same time, you may experience delays in implementation of SEO changes because of communication gaps between your inhouse team and outsourced team.
A solution to these is to find a white label SEO outsourcing company who collaborates well with your organization. This allows you to seamlessly collaborate with your outsourced team, so you can make sure they’re aligned with your goals, and that they’re working together with your inhouse team.
Having an outsourced team, especially offshore, can mean cultural and time zone differences, which may pose a challenge in terms of smooth communication. There are important cultural nuances that can be missed by simply communicating in the same language; this may impact relationships with your outsourcing partners, and can affect the quality of service provided.
Meanwhile, having your outsourced team in a different time zone can cause delays in responses, which may in turn, delay project updates and completion.
To bridge the cultural gap with an offshore team that speaks your language, build relationships outside of work. Some ways to do this include virtual team building activities such as game nights or town halls.
As for the time zone difference, many outsourcing partners have shifting schedules, so finding one that will work your hours should help solve the problem.
Outsourced teams may not have as clear an understanding of your brand and objectives. This may lead to irrelevant content, which, though may help you rank on SERP, will not target the right audience nor reflect your brand voice. This leads to poor conversions which are going to hurt your overall marketing strategy.
At the same time, you may work with SEO outsourcing companies that lack SEO expertise; they may employ black hat techniques that can lead to penalties from search engines, thereby damaging your site’s reputation.
The easiest way to avoid these problems is finding an outsourcing partner with a proven track record of elevating branding and boosting SEO using white hat techniques. When choosing who to work with, ask for case studies to help you evaluate the company’s SEO capabilities.
Relying on an outsourcing partner helps reduce the burden on your in-house team, but at the same time, it also increases your dependence on an external team, subsequently increasing your vulnerability.
If you outsource all your SEO, your in-house team will lack SEO knowledge. Should your service provider choose to terminate the contract or make organizational changes that impact their service quality, your SEO strategies and operations are going to take a hit.
The best way to avoid this is by retaining key staff who are experts at SEO. Have them serve as a liaison between your in-house and outsourced teams, and use them as point persons for transitioning SEO processes internally in the future.
When outsourcing SEO services, it’s inevitable to share data with your service provider. This, however, increases the risk of data breaches and unauthorized access to your website and analytics data.
A great way to avoid this is by working with a SEO outsourcing company with robust cybersecurity measures that are up to par with industry standards.
Companies outsource their SEO to save on costs, produce reliable and faster results, as well as scale their operations. However, with thousands of SEO outsourcing agencies claiming to provide outsourced SEO services, where should you outsource?
10-15% of the global outsourcing market comes from the Philippines, making it the BPO capital of the world. While there are plenty of other great outsourcing destinations like India, China, and Malaysia – the Philippines remains a top choice for SEO and marketing services primarily because of its excellent English proficiency.
Filipino writers and marketers have a reputation for producing high-quality and high-converting content that not only rank on SERP, but are also relevant to the target audience. Because the Philippines has such a high English proficiency, it’s also easier to find writers who speak native English, and at a fraction of the cost of hiring someone similar in the US, Europe, or Australia.
Excellent English doesn’t only translate into high-quality and engaging content, it also means smoother communication and easier collaboration between your inhouse team and your offshore Filipino team. This means reduced delays, faster turnaround times, and quicker results!
SEO, as a whole, involves quite a number of moving pieces, any of which can be outsourced. Below is a list of the most commonly outsourced SEO processes.
Involves identifying relevant and high-traffic keywords that will help your website rank higher on search engines. It requires the use of specialized tools and expertise to incorporate selected keywords into an SEO strategy.
The practice of writing SEO-optimized content for blogs, articles, and web pages. This is typically outsourced to professional writers, and sometimes agencies with professional writers, who can produce high-quality and engaging content that also ranks well on SERP.
Acquiring high-quality backlinks from reputable websites, which helps improve your website’s domain authority or score, which is the basis of your search engine rankings. Many businesses outsource this to help them build networks and strategies that obtain relevant backlinks to their websites.
Involves the use of titles, headers, meta tags, URLs, and internal link building to optimize user experience and SEO, ultimately, to rank on search engines.
Addressing technical aspects of SEO, such as site speed, mobile-friendliness, crawlability, and indexability to improve a site’s performance. This process involves identifying and addressing issues and errors that hamper site performance and user experience.
Optimization of a business’ online presence in order to attract more local customers. This typically includes managing Google My Business profiles and local citations. It’s particularly important for businesses that have physical locations.
Setting up and monitoring of site performance using tools such as Google Analytics and Google Search Console. The objective is to track user behavior and other SEO metrics to gain actionable insights for ongoing web improvements.
Analyzing competitor websites’ strategies, weaknesses, and opportunities by looking at their backlinks, keywords, and content, with the goal of adapting best practices to improve your own website performance.
Reduce the learning curve, stretch your budget, and maximize your ROI on SEO when you outsource your SEO to the Philippines. By working with offshore Filipino marketers who specialize in white label SEO outsourcing and who speak native English, you’ll see faster results and hit your marketing targets.
At KDCI Outsourcing, we have a large pool of marketing professionals ready to help you with your marketing strategies. By building your offshore marketing team with us, you can expect seamless onboarding, clear and regular communication, as well as KPI monitoring and analytics reporting – all to ensure your operations are running smoothly and helping you get to your marketing goals.
Learn more about SEO outsourcing. Contact us today!
92% of G2000 companies use IT outsourcing (ITO), and countries like the Philippines are amongst the top destinations. Not only does the Philippines house over 1.57 million professionals, it also has tax incentives and infrastructure and hundreds of IT outsourcing companies, making it overwhelming to choose who to partner with.
With the multitude of benefits of IT outsourcing, it’s become increasingly difficult to navigate the Philippine IT outsourcing sphere. Below is a guide to help you choose which IT outsourcing firms to work with to ensure seamless outsourcing and successful digital transformation.
Looking for an IT outsourcing company to partner with can be incredibly difficult, especially with so many IT outsourcing companies all over the world. Below is a quick list of the things you should consider when choosing your IT outsourcing partner.
Before outsourcing IT services, make sure that the company you’re considering is proficient in the specific IT services you need. Look at their case studies for successful projects in your industry or request examples to demonstrate their technical capabilities.
Ensure the company has strong data protection measures and follows industry standards. Check for compliance with relevant regulations such as GDPR, HIPAA, or ISO 27001. Ask about their security protocols, encryption practices, and how they handle data breaches.
Assess the company's communication practices and support infrastructure. Verify the availability of 24/7 IT support, their response times, and the quality of their helpdesk services. Ensure there are clear communication channels and escalation procedures for critical issues.
Determine if the company can scale its services to meet your growing IT needs. Look for flexibility in their service offerings, such as the ability to customize outsourced IT solutions, accommodate increased workloads, or integrate new technologies as your business evolves.
Research the company's reputation within the IT outsourcing industry. Look for reviews and ratings on independent platforms, and ask for references from current or past clients. Inquire about their reliability, quality of service, and overall client satisfaction.
With an idea of how to select your outsourcing partner, here’s a pool of the top IT outsourcing companies in the Philippines to choose from based on your requirements, geographic location, project scope, company size, and more!
KDCI Outsourcing is a Philippine-based company in Ortigas CBD, that offers custom outsourcing services to global brands for the past 13 years. They offer IT and software development services, with a focus on finding tech professionals that fit your requirements and culture for seamless integration and fast results. Given the company’s flexible engagement models and extensive background of working US-based SMBs, we think US brands looking to scale their operations cost-effectively will have a great experience working with them.
With headquarters in Makati City, Philippines, and management in the Netherlands, Global BrainForce is a 15 year old IT outsourcing agency that specializes in custom software development, dedicated IT teams, and consultancy. Due to their cross-cultural expertise and European management standards, they are an ideal outsourcing partner for European SMEs and startups needing a culturally aligned IT partner who is also familiar with regulations like GDPR.
Operating out of Cebu City, Philippines, and managed both locally and from Italy, Altamira is a technology solutions company that was established in 2016. They are known for bespoke software development, IT staff augmentation, and business process outsourcing, leveraging agile methodologies and European quality standards. Mid-sized European enterprises will find their scalable solutions particularly beneficial.
Hireplicity, Inc. is a Cebu, Philippines based staff augmentation company established in 2008. Their outsourced IT services include staffing, custom software development, and support, notable for their precise matching of skilled Filipino talent to client needs. This firm is best suited for US companies seeking highly customized and cost-effective IT staffing solutions.
Based in Makati City, Philippines, Transnational E-Business Solutions, Inc. is a US-owned ICT (Information and Communications Technology) solutions provider established in 2002. Their comprehensive IT services range from enterprise software development to cybersecurity, excelling in large-scale, complex projects. Multinational corporations in need of robust IT solutions will find their services particularly valuable.
ClinkIT Solutions is a locally-managed IT services company based in Quezon City, Philippines, that has been delivering innovative IT solutions since 2014. They specialize in cloud computing, data analytics, and AI-driven services, and are known for leveraging cutting-edge technology. Given their expertise in advanced tech, they’re recommended for tech-driven businesses aiming for digital transformation through advanced IT solutions.
Innerworks International, headquartered in Makati City, Philippines, is a growing IT outsourcing firm with about 100 employees since 2010. They offer IT consulting, managed services, and software development, with a strong focus on cloud solutions and digital innovation. Startups and SMEs looking for agile IT support will find them an excellent fit.
i-Cube Digital Solutions is a Philippine-based IT solutions company that is managed locally and in the US. Since 2012, they’ve provided digital transformation services, IT consulting, and custom software development, emphasizing the integration of emerging technologies. Their wide array of tech services make them an ideal partner for companies aiming for comprehensive digital transformation.
Atticus Solutions, a Manila-based firm established in 2011, is a company that provides a range of outsourced IT services, including software development, IT support, and virtual staffing, distinguished by their personalized approach and strong client relationships. Small to mid-sized businesses seeking dedicated and tailored IT outsourcing solutions will find them ideal.
Based in Makati, Philippines, Infinit-O Global has been a key player in the IT outsourcing industry since its founding in 2005, with management experience rooted deeply in the multinational outsourcing sector. The company excels in delivering IT services such as cybersecurity, cloud computing, and data analytics, setting itself apart with a mission to help SMEs harness the power of these technologies to drive growth. Infinit-O is particularly recommended for small to medium-sized businesses globally seeking to enhance their IT capabilities through secure and innovative solutions.
Given the specialized expertise and robust infrastructure required in IT outsourcing services and outsourced IT support services, it’s crucial to partner with IT outsourcing companies with the capabilities to meet your digital requirements.
If you’re looking to hire dedicated offshore IT staff in the Philippines to support your company’s tech-driven initiatives or digital transformation, KDCI Outsourcing is the right partner for you. With over a decade of experience building teams that will integrate well with client organizations, we can ensure a great fit and seamless integration of your offshore staff with your in-house team, providing you with the best chance of digital success.
Learn more about IT outsourcing to the Philippines. Contact us today!
%20(1)_11zon.jpg)
The history of Philippine outsourcing is lengthy, dating all the way back to the industrial revolution. In the last 30 years, the industry has seen rapid growth, hailing the Philippines as the world’s outsourcing capital.
Though North America still holds the largest market share in outsourcing at 36% as of 2022, Asia Pacific is expected to grow at the fastest rate, with countries like the Philippines at the forefront.
Philippine outsourcing by itself has been steadily growing by 8-10% annually, and a projected market revenue of US$0.72bn in 2024. A key driver for its popularity is the significantly lower cost of labor compared to those of developed countries, allowing global brands to save up to 70% on their operations.
To date, the most popular service in Philippine outsourcing is customer service, with over 788 call centers across the country, followed by IT, design and marketing, and more specialized functions that are increasing in popularity in the last couple of years – healthcare, finance, and legal outsourcing.
The top companies in the world are outsourcing to the Philippines. And understanding why they do requires a more detailed discussion of the Philippines’ business climate, economic conditions, as well as outsourcing infrastructure that welcome global companies to offshore their operations in the country.
Any discussion about Philippine outsourcing wouldn’t be complete without mentioning the cost of outsourcing to the Philippines and how it can lead to significant cost savings global brands enjoy by offshoring their operations to the Philippines.
As a developing nation, the Philippines doesn’t only have a lower cost of labor and cost of living, the peso is also weaker than most currencies like the US dollar, Euro, and Australian dollar. This difference allows companies in developed nations to reduce costs by up to 70% while paying a competitive or even above average compensation to Philippine workers.
The literacy rate in the Philippines was 99.27% in 2021, and the number continues to grow by 0.03% annually. Not to mention, there are 1.7 million workers in the Philippine BPO industry as of 2023.
With such a large pool of skilled labor, companies looking to outsource business processes are bound to find a good match, whether they’re looking for more commonly outsourced functions like customer service or IT, or a more niched service like engineering services or property management.
The Philippines is the 3rd largest English-speaking country in the world. It also ranked 2nd in Asia and 20th globally for its English proficiency. This presents a huge advantage for English-speaking organizations to offshore their operations, not only to a developing country, but one that can easily communicate with them for smoother collaboration.
Despite the economic slow-down, the Philippine economy is expected to grow 4% annually. Not only that, the Philippines was also included in the Forbes Best Countries for Business list, surpassing other popular outsourcing destinations such as India and China. These are largely attributed to its monetary freedom, innovation, investor protection, market performance, as well as property rights and technology.
The Philippine government recognizes the large contribution of the outsourcing sector to the country’s GDP, and has long been supportive of the industry. Some of its notable initiatives include creating special economic zones (PEZA) that offer tax incentives, simplifying business processes to attract foreign investors, and investing in infrastructure. All of these contribute to making the country a favorable outsourcing destination.
While the Philippines is a top outsourcing destination for good reason, there are still drawbacks that one must consider prior to outsourcing. Below is a list that discusses the potential pitfalls of outsourcing to the Philippines.
As an archipelago in the tropics, located near the Pacific Ocean, the Philippines experiences regular typhoons, as well as occasional earthquakes and volcanic eruptions, which can disrupt operations and damage infrastructure.
With this kind of environment, Philippine outsourcing companies typically assign power stations and back-up internet connection to provide redundancy in power and internet connectivity.
Despite the Philippine government’s efforts in improving the country’s infrastructure, there still leaves much to be desired especially in terms of reliable power supply, internet connectivity, and transportation. These pose a significant challenge in the efficiency of outsourced services.
A way companies are working around this is by equipping staff with power stations and back up internet connection, while adopting hybrid and remote work setups to the need for travel.
While hiring offshore teams on the other side of the globe to work off-hours shifts is a great set up, the opposite is also true – having a significant time zone difference could hinder smooth collaboration, resulting in slow response times, poor coordination, and derailed operations.
Communicating well and setting expectations early are great ways to bridge the gap between your time zone and your offshore team’s. The goal is to work remotely while collaborating as if they were just next to you. And the way to do this is through collaborative tools, constant and open communication, and tracking of KPIs to ensure service quality.
While Filipinos speak excellent English, their culture is still different from other nations’. Albeit highly Westernized, Philippine culture has its own unique flavor that can be a communication barrier that could impact business processes and client relationships
There’s little one can do about the culture your offshore team grew up in, however, you can bridge the gap by learning about their culture and introducing them to yours. By having non-work engagements like town halls and game nights, your inhouse staff and offshore team can strengthen their relationships and learn more about each other despite their differences in culture.
A surefire way to ensure you achieve your business goals via outsourcing is to work with reputable companies with track records of providing amazing service. Below is a list of the best Philippine outsourcing companies in terms of reputation, service quality, and feedback from clients.
Founded in 1898, Accenture is a consulting, digital, technology, and operations services outsourcing company. With service centers in the Philippines and India, they primarily cater to large enterprises across multiple industries.
Founded in 1983, Concentrix is a customer experience solutions and technology outsourcing firm that caters to businesses of all sizes. Their clients are mostly in the automotive, banking, financial services, healthcare, and technology industries.
Founded in 1978, Teleperformance is a call center company that specializes in omnichannel customer experience management.
Founded in 1999, Alorica is a contact center BPO that specializes in customer service, technical support, and sales. They offer services to companies of various sizes, particularly in the fields of healthcare, retail, financial services, and communications.
Founded in 1985, Sitel is another call center outsourcing company that specializes in customer experience management, including customer care and technical support. Their clients are large enterprises in healthcare, retail, finance, and telecommunications sectors.
Founded in 2008, TaskUs is an outsourcing company offering customer support and back-office services, primarily to high-growth companies, particularly those in technology, e-Commerce, and social media sectors.
Founded in 1911, IBM Global Process Services is an outsourcing division of IBM that began operations in the early 2000s. This arm offered business process outsourcing services, including finance and accounting, procurement, and customer relationship management.
Founded in 2011, KDCI Outsourcing is a service provider that specializes in creative design, digital marketing, back-office support, customer service, and IT. Their primary target market are medium enterprises across industries like retail, e-Commerce, real estate, and financial services.
The Philippines is certainly a top outsourcing destination, however, finding the right outsourcing partner can be challenging, and one can easily fall victim to the disadvantages of outsourcing to the Philippines.
At KDCI Outsourcing, we have measures in place such as high-tech equipment, redundant power and internet connectivity, robust IT infrastructure, risk management plans, and cyber security protocols to help ensure uninterrupted operations and secure data transfers and storage.
We also have a great track record of not only finding you staff that fit your requirements, but building you results-oriented offshore teams in the Philippines that will seamlessly integrate with your inhouse operations, serving as the perfect extension of your organization.
Interested in outsourcing to the Philippines? Contact us to learn more!
In the age of digitization, even traditionally manual industries like healthcare are turning to outsourcing, particularly of healthcare IT services, as a way to meet the growing tech and IT demands to remain competitive and relevant.
In 2019, 90% of hospital leaders were looking to outsource some part of their operations. Today, that number is reflected in the boom of the healthcare business process outsourcing industry as it grows at a rapid rate of 11.75% from 2024 to 2031.
The popularity of outsourcing in healthcare can be attributed to benefits such as cost savings, scalability, and access to specialized expertise. However, in such a highly regulated industry as healthcare, it’s even more crucial to consider the tradeoffs of healthcare outsourcing services to manage risks and ensure efficient and uninterrupted healthcare operations.
Healthcare IT services pertains to the technological and systematic support provided to professionals and organizations in the healthcare industry, with the goal of improving efficiency, effectiveness, and quality of service delivery.
Given the digitalization in healthcare, such a service is crucial in helping organizations modernize their processes and adapt technologies particularly in the areas of data management, advanced diagnostics, and telemedicine.
Some examples of Healthcare IT Services are as follows:
The advantages brought about by outsourcing for U.S. healthcare companies are enormous. In fact, 80% of US hospitals are satisfied with outsourcing some healthcare functions. Below is a list of benefits that healthcare companies may get from healthcare IT outsourcing.
Outsourcing to a third party with robust infrastructure to support the extensive IT requirements of healthcare institutions. This eliminates the need to invest in in-house resources, allowing U.S. healthcare companies to save up to $140 million through outsourcing.
Reduction of expenses allows healthcare institutions to allocate resources more efficiently. At the same time, outsourcing lets them leverage the IT expertise of third-party providers, so they may enjoy up to 70% productivity increase and 25-50% improvement in accuracy through tech integrations.
Outsourcing allows healthcare institutions to tap into a wide pool of IT professionals with experience in healthcare. Not only will they have the skills, but they would also be up-to-date with the latest technologies and regulatory requirements, ensuring the highest level of IT support.
With IT services managed by a service provider, healthcare institutions can concentrate on patient care, which can improve healthcare service and patient experience.
As healthcare institutions experience growth and changes in service demand, outsourced IT services can scale to meet their changing needs without having to hire or lay off staff.
Outsourcing agencies that specialize in IT have stronger cybersecurity capabilities that allow them to better protect sensitive information such as patient data or banking details against data breaches or cyber threats.
Outsourcing firms that specialize in healthcare IT are aware of compliance requirements such as HIPAA in the U.S., allowing healthcare institutions to meet legal standards to avoid violations and penalties that can damage their reputation.
Technology is changing rapidly, making it challenging for healthcare institutions to keep up while managing patient care. Through outsourcing, they can easily be up-to-date with the advancements in tech, helping them stay competitive.
Before outsourcing, healthcare institutions should carefully consider the drawbacks of outsourcing to minimize risks and ensure quality and efficiency of healthcare services. Below are some outsourcing pitfalls that can be expected and should be mitigated to ensure smooth healthcare IT outsourcing.
Having external service providers manage IT services means healthcare institutions relinquish control over their IT operations and strategies, which may lead to misalignment in terms of organization needs and goals.
Outsourcing involves sharing sensitive healthcare information, which increases the risk of costly data breaches and security lapses if the outsourcing partner does not have strict cybersecurity protocols in place or they don’t have a clear understanding of privacy regulations such as HIPAA.
Outsourcing to offshore agencies entails timezone, geographical, language, and cultural differences which pose a threat to effective communication. Such a challenge can negatively impact the quality of service and speed of issue resolution.
Relying on a third party to manage critical healthcare IT services can create a dependency, which may pose challenges should the outsourcing partner change or stop their services.
The quality of service provided by an outsourcing partner can vary depending on their resources, expertise, and management. Inconsistencies in these aspects may disrupt services and also, healthcare operations.
While the costs of healthcare outsourcing services are declared early on, there’s a possibility of having hidden costs associated with contract negotiations, process transitions, and changes in the outsourcing relationship, which may negate the expected cost savings.
Outsourcing means not hiring inhouse, and this can create morale issues with employees as they perceive a threat to their job security.
When outsourcing to an offshore company, there is the risk of missing relevant healthcare regulations and standards due to varying requirements in different regions.
In 2023, KDCI Outsourcing found that 8% of companies that were interested in outsourcing to the Philippines were from the healthcare industry. Compared to 2.85% in 2022, this number shows a growing openness of companies in the healthcare sector to outsourcing some of their operations to the Philippines.
The primary driver for this increase is attributed to the financial constraints of healthcare in the U.S., which urges traditionally more manual based industries like healthcare to outsource processes such as IT and data management to developing countries like the Philippines, which is known to provide significant cost savings.
Other reasons for outsourcing healthcare services to the Philippines include the country’s growing IT-BPO outsourcing industry, its high English proficiency, and government support that make the Philippines a great outsourcing destination.
Given the growing digitalization of healthcare services worldwide, it is expected that more companies from healthcare sectors will offshore some of their non-core operations to better cope with the growing demands of tech and IT.
This means a significant increase in healthcare IT services jobs for the Philippine outsourcing industry, opening up more opportunities for healthcare workers who opt not to join the Philippine healthcare workforce.
When working with healthcare outsourcing companies, it helps to have a clear understanding of the roles and responsibilities you can outsource, so you can set expectations and requirements prior to establishing a partnership. Below are the most commonly outsourcing healthcare IT roles.
They convert voice-recorded reports dictated by healthcare professionals into text for easier storage and retrieval of data.
They code healthcare diagnoses, treatments, and procedures for billing purposes using specialized software specific to healthcare IT.
They use IT systems to manage patient data, track prescriptions, and process insurance claims, all of which ensure the accuracy and efficiency in dispensing medications.
They use healthcare IT systems to manage patient appointments, records, and communications between patients and medical staff.
They rely on IT systems to manage patient appointments, records, and communications between parties and medical staff.
They use healthcare IT systems to provide customer and tech support, ensuring smooth patient care coordination and systems are working as they should.
They use EHRs to manage patient health information and records.
They use sophisticated IT systems to analyze large amounts of data to generate trends and insights for improvement of patient outcomes and operational efficiency.
They can design, develop, and maintain software that manage patient records, billing, and other health-care related processes.
They create and maintain mobile applications used in mHealth to ensure smooth delivery of healthcare services, collection of patient data, and maintenance of information.
They ensure that healthcare software, applications, and systems function correctly without bugs, as well as meet strict quality standards.
They work on the user interface of healthcare websites and apps to ensure systems are user-friendly for patients and healthcare providers.
They handle the server side of healthcare websites and apps, dealing with database management and integration with other systems to ensure healthcare IT services are robust.
They manage and maintain the IT infrastructure that supports healthcare services for reliable, secure, and efficient healthcare services.
They oversee all healthcare IT services projects, ensuring that new systems are deployed smoothly, while existing systems are updated or maintained well.
They ensure the protection of sensitive medical data to comply with healthcare privacy regulations like HIPAA and protect against data breaches and cyber threats.
As healthcare institutions come to recognize the growing need to digitize, it’s become crucial to partner with an outsourcing company that has not only a robust IT infrastructure, but also extensive knowledge and experience in U.S. healthcare.
KDCI Outsourcing, with over a decade of experience catering to U.S. companies, can build you an offshore healthcare team in the Philippines that will assist you with your IT and tech needs. As we tailor our outsourcing solutions to your organization’s requirements, you can rest assured that you are enjoying the highest quality of service for the best results.
Learn more about outsourcing for healthcare, contact us today!
In 2022, the global procurement outsourcing market was valued at USD 6.73 billion. With a 9.8% CAGR (2023-2030), the industry is expected to reach USD 14.21 billion by 2030.
More and more companies are recognizing the benefits of outsourcing. Why struggle managing supply chains while maintaining quality and compliance when you can leverage third-party expertise, cost savings, and improved efficiencies?
Procurement operations outsourcing can reduce your risk, lower your expenses, and maximize your ROI. If you’re considering outsourcing your procurement functions, learn about its pros and cons to ensure you reap the benefits and mitigate the risks for a successful outsourcing experience.
Procurement outsourcing is the business practice of hiring a third-party agency or person to execute the procurement functions of an organization, such as sourcing, purchasing, vendor management, contract negotiation, and management, quality control, and compliance, spend analysis, and risk management.
The typical reasons why companies outsource procurement functions are cost reduction, leveraging others' expertise in procurement, increasing efficiency, and being able to focus more time and energy on core business functions.
Why are companies outsourcing their procurement rather than managing it in-house? Below are the benefits of procurement operations outsourcing that are converting more and more companies into using this business strategy.
Companies can reduce the cost of their procurement activities by leveraging economies of scale and the capabilities of their outsourcing partner. This includes reduced prices through bulk purchasing, reduction in administrative expenses, and reduction in errors and inefficiencies. The savings can be immense, and the company will be able to divert its resources to other strategic areas effectively.
Agencies that provide outsourced procurement services mostly include advanced technologies and smooth processes, which can enhance the efficiency of procurement operations. These technologies include automated procurement systems, data analytics, and AI-driven insights that produce faster transaction times and reduce manual effort. Therefore, companies can benefit from faster procurement cycles and boost their productivity.
Procurement outsourcing service providers bring deep knowledge of specific markets and categories, lending a wider perspective to companies that leads to better purchasing decisions.
Their procurement experts would know more of market trends, of the capabilities of suppliers, and of leading practices in negotiating and managing contracts. Such insights can help companies base their decisions on knowledge and improved results from their outsourced procurement activities.
Outsourcing non-core functions like procurement allows companies to focus more on strategic initiatives and core competencies. This means that internal teams can dedicate more time and resources to areas that directly impact the company's growth and competitive advantage. By offloading procurement tasks to experts, companies can improve their overall business performance and innovation.
Typically, outsourcing companies have large networks of relationships with suppliers and can manage those relationships more effectively. This means better terms from negotiation, ensuring timely deliveries, and maintaining quality standards.
By leveraging their partnership, companies can build stronger, more reliable supply chains and forge stronger relationships with key suppliers.
Outsourcing agencies, who are external to a company, are better positioned to identify, evaluate, and mitigate the risks in supply chain and procurement processes since they are equipped with the tools and experience to address supply disruptions, compliance issues, and market volatility.
By outsourcing procurement, companies will not only reduce their exposure to risks but also assure a much more stable and secure supply chain.
Because outsourcing agencies take over the management of offshore procurement teams, companies can scale up procurement activities more flexibly in terms of business demands without having to hire or train people directly.
This scalability is particularly useful to companies experiencing growth or seasonal fluctuations in demand. An outsourcing provider can rapidly ramp up or down its services to provide only the necessary support to meet the changing business needs in an efficient way.
There are risks associated with any business strategy. While outsourcing procurement to agencies carries many benefits, it also brings several potential drawbacks that should be considered before outsourcing.
When you hire a third party to manage your procurement, you relinquish control to them, which may affect your capability of ensuring quality and compliance to the company standards. This can be mitigated by establishing clear contracts with detailed service level agreements and regular performance reviews.
Outsourcing entails dependency on a third party, which may pose a problem if expectations are not met or if there are other problems with the contract. To avoid this problem, one must diversify and outsource to several service providers while maintaining some in-house procurement capabilities as a backup.
When outsourcing to an offshore service provider, there will be time zone, language, and corporate culture differences, which pose communications challenges to the effectiveness of the outsourcing partnership. This can be mitigated by establishing strong communication protocols, using collaboration tools, and setting regular meetings to get things aligned.
Outsourcing entails sharing sensitive information on procurement processes and suppliers, which increases the possibility of data leakage and intellectual property theft. Firms can reduce these risks by implementing top-notch data security procedures, conducting periodic audits, and ensuring that the provider is following industry-standard security protocols.
Although the cost savings of outsourcing may be projected at the beginning of outsourcing, these may be offset by hidden costs, such as transition expenses or ongoing management fees, or costs associated with contract renegotiation. A way to avoid this is by doing due diligence in the planning stage; clarify contract terms and continuously monitor all associated costs to effectively manage the total cost of procurement outsourcing services.
As you lose some control over your procurement process, there may be inconsistencies in the quality of services provided, especially if the outsourcing provider does not have stringent quality control measures. Such a risk could be mitigated by choosing providers with proven track records and by including quality metrics and regular audits in contracts.
Outsourcing can cause morale problems within in-house staff if it results in job loss or if they feel that their jobs are being undermined by the outsourced team. This can be lessened through transparency when communicating to employees. Involve them in the transition process and provide training for new roles or offer career development opportunities within the company.
If you’re considering outsourcing procurement but aren’t quite certain how it works, below are sample scenarios showcasing outsourcing different kinds of procurement functions to help you picture what this sort of strategy can do for you.
involves engaging an outsourcing service provider to remotely manage the procurement of key raw materials and components critical for production processes.
Example: A consumer electronics manufacturer partners with an outsourcing company to build them a remote team of procurement specialists who can manage the sourcing of essential components like semiconductors and plastics. The outsourced team leverages global supplier networks to secure high-quality materials at competitive prices, ensuring a steady supply chain.
Involves hiring an outsourcing partner to manage the procurement of non-core goods and services such as office supplies, maintenance services, and IT equipment, which are essential for daily operations but not directly linked to production
Example: A financial services firm hires an outsourcing partner to build them a team of procurement specialists that remotely handle the acquisition of office supplies and technology equipment. These staff optimize procurement strategies to achieve cost savings and efficiency by tapping into extensive networks of suppliers and negotiating bulk purchase agreements.
Involves hiring an outsourcing company to remotely carry out the purchase work, which includes placing of orders, negotiating with suppliers, and managing transactions
Example: A retail chain outsources their buying function to a service provider, who builds them a remote team of purchasing specialists with deep knowledge of how to achieve better prices from suppliers. In this way, the retail chain benefits from the advanced analytics and market knowledge the outsourced team brings to ensure the best inventory levels and maximize cost savings.
Involves hiring an outsourcing service provider to manage supplier relationships, performance, and contracts
Example: A pharmaceutical company outsources the work of managing its vendors to a specialized firm to meet the regulatory compliance standards and enhance supplier performance. The outsourcing partner builds them a team of vendor management specialists with expertise in conducting regular audits and performance evaluations to ensure that all the suppliers meet the high demanding standards of the pharmaceutical industry.
Involves hiring a third-party provider to manage specific spend categories through their expertise and optimize procurement and supplier performance within those categories
Example: A global food and beverage company outsources management of its packaging materials category to get better pricing and innovative solutions from suppliers. The outsourcing partner builds them a team of category management specialists who can remotely perform market analysis and leverage industry relationships to source sustainable packaging options, reducing costs for the company and improving its environmental footprint.
Looking to outsource your procurement process, but you don’t have large-scale operations? Below are some recommendations for SMB friendly procurement outsourcing companies with a track record for providing excellent outsourced procurement services.
Based in Ortigas CBD, Philippines, KDCI Outsourcing caters to small to medium sized businesses of various industries, offering custom, cost-effective, and scalable procurement solutions. They specialize in building offshore procurement teams that can deliver end-to-end outsourced procurement services and deal with the reduction of costs and improvement of efficiency through strategic sourcing and vendor management.
Located in Kansas City, Missouri, Una is the perfect fit for small to medium-sized organizations seeking group purchasing advantages. Their unique value proposition comes from leveraging group buying power to negotiate superior contract terms and pricing, which promises huge savings on procurement costs.
Headquartered in Shanghai, China, Dragon Sourcing serves small and medium businesses through sourcing from low-cost countries. They deliver in-depth market insight and access to a wide network of reliable suppliers, supplying products in a very cost-effective manner and ensuring quality.
Based in Willow Grove, Pennsylvania, Source One's differentiator among other procurement outsourcing services is that it specializes in the needs of the mid-market. By implementing strategic sourcing and category management, they are able to enhance supplier relationship management and improve clients' opportunities for cost savings and process improvement.
Headquartered in the UK, Proxima specializes in procurement services for SMBs, driving value through strategic sourcing and procurement transformation. Their unique approach integrates market intelligence, expert negotiation, and process optimization to yield cost-effective solutions and enhanced procurement performance.
Enjoy the benefits and avoid the pitfalls of procurement outsourcing by offshoring to the Philippines with KDCI.
At KDCI Outsourcing, we build dedicated procurement teams that are not only skilled in end-to-end procurement operations outsourcing, but are also a culture fit with your organization. This ensures they fulfill your requirements and can seamlessly integrate with your environment.
Learn more about offshoring your procurement to the Philippines. Contact us today!
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.
