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!
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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!
When companies want to scale operations that require technical expertise like engineering, they need to invest on overhead and commit long-term to building an in-house engineering team.
For most organizations, this is a high-risk investment that can be costly in the long run. As an alternative, more and more companies are considering outsourced engineering services to help improve their operational efficiency, while increasing cost effectiveness and maximizing profitability.
Offshore engineering services involve a company enlisting a third-party agency or professional based in a different country to manage its engineering tasks rather than conducting them internally.
This business strategy is typically used by companies to leverage the engineering expertise of partner firms or specialists, as well as reduce costs, increase efficiency and flexibility, and manage engineering demands.
Some of the most commonly outsourced engineering services include the following:
Involves designing, planning, and overseeing the construction and maintenance of building structures and infrastructure. It involves the application of tech tools like advanced simulation and project management tools to ensure projects are done sustainably, meeting regulatory requirements and aligning with business objectives.
Involves developing, managing, and optimizing data pipelines to ensure data flows and storage solutions are efficient. This service also includes the implementation and maintenance of infrastructure for data generation, processing, and analytics. The goal is to help organizations leverage data for decision making and product development.
Involves designing, developing, and maintaining software and apps to meet organizational requirements. This is done by using the latest programming methods and technology to create efficient, scalable, and innovative software solutions, that optimize operational efficiency and help with product development.
Involves providing tech support and involves troubleshooting, systems integration, and optimization of tech software, apps, and infrastructure. It requires a broad technical expertise, with the goal of solving complex tech problems, enhancing system performance, and enhancing tech operations.
Involves designing, developing, and testing electronic systems and components to provide innovative solutions for electronic devices, systems integration, and power generation. The goal is to ensure reliability and efficiency, while meeting business needs.
Involves testing, auditing, and reviewing processes and workflows by developing QA protocols. Its objective is to enhance systems for ensuring reliability, efficiency, and adherence to quality standards.
With so many outsourcing destinations globally, the seven reasons below make the Philippines particularly appealing for outsourced engineering services.
Compared to its Western counterparts, the Philippines has significantly lower labor costs that companies can leverage to save up to 70% on operational costs.
To illustrate, the average annual salary of a staff engineer in the United States is ~$99,330. Meanwhile, outsourcing a full-time engineering staff to the Philippines costs around ~$23,000 annually. This value already includes salary, benefits, equipment, infrastructure, training, and management, making it much more cost-effective.
Additionally, outsourcing engineering functions to reliable outsourcing partners with engineering expertise leads to operational efficiencies that help companies optimize their resources, and maximize cost-effectiveness for higher return on investment (ROI).
The Philippines has a large pool of skilled engineering professionals. In 2022 alone, the Philippines had 123,872 civil engineers, 51,541 electrical engineers, and 78,678 mechanical engineers. And this number is growing year by year.
When companies outsource engineering processes to the Philippines, they can be certain that the offshore engineers they work with are certified, experienced, and vetted by their reliable outsourcing partner, thus, ensuring high-quality outsourced engineering services.
The success of engineering outsourcing relies heavily on effective communication, smooth collaboration, and detailed documentation and reporting. As the Philippines is the 3rd largest English-speaking country in the world, and ranking 2nd for English proficiency across entire Asia, Filipino engineers serve as excellent extensions of in-house teams.
Effective communication and collaboration go beyond speaking the same language. There are also cultural nuances to consider.
But because the Philippines was colonized by the United States for 48 years, Filipinos have long been exposed to American culture. This makes them more culturally aligned with Northern America, which helps Filipino engineers more easily integrate into organizations with Western cultures.
A key benefit of outsourcing to the Philippines is the outstanding government support towards the business process outsourcing (BPO) industry. Some notable incentives to outsource include:
When outsourcing to the Philippines, companies can choose from multiple engagement models to match their engineering demands.
The most common service offerings come in full-time equivalent (FTE) model, project-based model, and retainer model. These options accommodate the varying needs of companies, allowing them to only acquire the services they need, which helps them maximize cost-efficiency.
The Philippines is located on the other side of the world from Northern America; while it's night in the US, it’s day in the Philippines. This difference in time zone provides a significant advantage for companies that need around-the-clock or after-hours operations.
Ready to outsource engineering to the Philippines? Below are the most recommended engineering outsourcing companies you can partner with to build your offshore engineering team.
KDCI Outsourcing specializes in building offshore engineering teams in various engagement models, focusing on seamlessly integrating with your operations, while also emphasizing cost-effectiveness and innovation. They’re ideal for medium-sized companies needing flexible, integrated engineering support without the overhead of a full-time staff.
Emapta focuses on creating dedicated teams for engineering services, ensuring clients have full control and direct communication with their outsourced staff. Their ideal for businesses looking to scale rapidly while maintaining management control over outsourced engineering teams.
Microsourcing offers specialized engineering services with a focus on cutting-edge technologies and industry-specific expertise, particularly in software and IT. They suit technology startups and established firms looking to innovate and accelerate development cycles.
Outsourced provides high-quality engineering outsourcing services with emphasis on maintaining stringent quality standards and delivering high-performance results. They are recommended for companies in industries like construction and manufacturing that demand precision and reliability.
Sourcefit offers cost-efficient engineering outsourcing solutions, focusing on customizability and client-centric strategies to match specific business needs. They make a great choice for cost-conscious small to mid-sized enterprises looking to optimize their engineering processes without compromising quality.
Outsource-Philippines offers a comprehensive approach to engineering services, combining quality, efficiency, and scalable solutions. Ideal for businesses across various sectors that require flexible and efficient engineering support to complement their growth.
KamelBPO focuses on providing value-driven engineering outsourcing services with a commitment to sustainability and ethical business practices. Their ideal customers are environmentally conscious companies looking for responsible engineering solutions that align with green practices.
Satellite Office excels in providing premium, bespoke engineering services for high-stakes projects requiring exceptional precision and expertise. They cater to large corporations and high-end firms in fields like aerospace and advanced electronics, where precision and expert skills are paramount.
Leverage the benefits of outsourcing to the Philippines when you outsource these offshore engineering roles.
At KDCI Outsourcing, we empower global brands by building them dedicated offshore engineering teams that can help them design, develop, and improve structures, processes, and workflows to solve their problems and meet their requirements.
Learn more about outsourced engineering services.
Contact us today!
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How do you find a skilled and reliable multimedia designer who meets your requirements and fits your brand? With thousands of designers to choose from, the process of sourcing, screening, and hiring can easily get overwhelming
To avoid this daunting task, many companies choose to outsource their creative work to third-party service providers, especially to agencies in the Philippines, not only to streamline the hiring and onboarding process, but also to reduce costs and ensure quality.
There are plenty of reasons to outsource to the Philippines, making it a top outsourcing destination for multimedia. The top reasons include lower labor costs, large pool of creative talent, and high English proficiency.
Being a developing country, the cost of outsourcing to the Philippines is up to 70% lower than those in Northern America. This provides a great opportunity for companies to reduce overhead costs and increase profitability.
Also, the Philippines is a hotbed for skilled professionals, particularly in the creative industry. There are hundreds of colleges and programs specializing in design and supporting the arts. Not to mention, the government supports the arts through various initiatives and accreditation standards, ensuring high-quality education and training for all designers and artists.
Lastly, among Asian countries, the Philippines is the second most proficient country when it comes to English communication. With no language barriers with English-speaking clients, Filipino designers are very well positioned in translating client vision into beautiful designs.
Looking for a multimedia designer you want to work with in the Philippines can be a very long and arduous process. That’s why it’s easier to outsource to a company or agency that will do most of the heavy lifting for you.
Below is a list of outsourcing companies and design agencies that caters to various businesses, industries, and needs to help point you in the right direction.
A leading outsourcing company established in 2011, KDCI Outsourcing specializes in creative design outsourcing. Their mission is to empower global brands by building the best offshore teams from the Philippines, providing best-in-class multimedia services that bring results.
Each multimedia designer at KDCI Outsourcing is skilled at graphic, audio/video editing, and animation, and are proficient in tools such as Adobe Creative Cloud, Autodesk Maya, and CoreIDRAW Graphic Suite. These allow them to create diverse and engaging multimedia content that enhance the digital presence and improve user engagement for clients.
For companies with varied or changing design requirements, who are looking to scale their operations, but are looking for a tailored solution where everything is done for you, KDCI Outsourcing is a great choice. They tailor outsourcing solutions to each client to ensure a great fit, and the biggest benefit of working with them is they do everything for you.
A full-service digital development and production company in the Philippines, 7th Media Digital specializes in creating high-impact designs using cutting-edge IT solutions to support digital campaigns. They offer a diverse range of multimedia services ranging from explainer videos all the way to e-learning.
They have an in-house team of multimedia artists who are skilled at various aspects of design, including graphic design, audio/video editing, and animation. They are also proficient in industry-standard multimedia tools and use their technical skills to provide diverse multimedia solutions to meet their clients’ requirements.
For those looking to hire offshore multimedia artists, especially for specific web-related projects, 7th Media Digital is a good choice. Their extensive experience with IT solutions and web design allows them to tailor their multimedia content, enhancing the overall web experience.
Creative Pool is an outsourcing company that connects companies with creative professionals. They link you with creative agencies, freelancers, and employees so you can find the best designer for your needs.
With thousands of creative professionals in its database, you can use their website’s search function, you may select multimedia designers based on skill level, type of employment, and other filters.
The benefit of working with Creative Pool is you can find both agencies and individuals in their database. This flexibility is great for those who are not yet certain about their design requirements and would like to explore both options. And with their large pool of profiles to choose from, it’s easy to find very specific skills and background that you’re looking for.
Online Jobs is a virtual marketplace that helps you find creative talent through their website. Companies can find skilled Filipino freelancers, including multimedia designers, based on their preferences.
Among the many creative roles they have available, they have a large variety of multimedia artists’ profiles you can choose from. You can also select the specific multimedia skills you require when searching for the designer you want to hire.
Because of this wide selection, you can find a freelancer who can perform multimedia tasks for you at different rates and work arrangements. A great benefit to working with Online Jobs is they allow you to create posts on their job board, which simplifies the search process.5
Remote Staff is a Philippine-Australian outsourcing agency that connects you with professionals, including multimedia designers. Their website displays various profiles, with their specific set of skills, level of proficiency, and even a short audio introduction.
The multimedia designers in Remote Staff cover a wide range of skills and expertise. Moreover, with their profiles and CVs clearly accessible online, it’s easy to screen candidates before committing to work with them.
As an Australian-owned agency that caters to entrepreneurs, Remote Staff is a great option for individual entities or SMBs in Australia looking for a handful of remote multimedia designers. You can pore through their wide range of profiles till you find the ones you want to hire, and they provide after-hire support to help make sure your remote hires smoothly integrate with your environment.
August 99 is a full-service digital agency that is known for its comprehensive multimedia design services. They cater to IT, BPO, and fintech companies, and offer various creative solutions, and can support various digital initiatives.
Their multimedia designers are excellent at both illustration and visualization skills. They can create designs for both online media and print. Moreover, they’ve worked with a variety of industries, making them well-prepared to support any client in their creative endeavors.
For companies in the IT, BPO, and Fintech industries looking for multimedia designers to augment their digital marketing teams or efforts, August 99 is a great choice. As they specifically cater to these industries, they have excellent experience and skills that in-house teams may lack.
It would be great if there’s fixed criteria you can use to select the best outsourcing agency for you. However, there is no one-size-fits-all answer. Sometimes, you need to sit down and discuss your requirements with each outsourcing vendor to discover whether you’re a great fit with them. To help simplify this process, below is a list of factors you should consider in your search
When choosing an outsourcing agency to work with, it’s important to look for their expertise in multimedia. Does the company have a portfolio for past multimedia projects? How about case studies to showcase the success of said projects?
Another thing to consider is the clientele of the agency. Some agencies specialize in multinational organizations, while others cater to SMBs or professionals. Some cater to clients from various industries, while some specialize in a handful of industries like IT and business services. These factors influence the types of contracts offered by the agency, and is also an indication of their capacity, letting you know whether they can easily meet your demands or not.
You should also look at the industry they specialize in. Are they a generalist agency, offering all kinds of services so you can outsource multimedia along with other services? Or are they an agency that specializes only on multimedia design and creative services? Depending on your need, whether you plan to outsource other functions or not, this can be an important consideration.
Lastly, how much control do you wish to have when outsourcing? Some agencies do all the work for you, offering end-to-end service. This means you only tell them your requirements, and they’ll handle everything from sourcing to onboarding, and even management. Meanwhile, there are agencies that let you have greater control. You can look at profiles and shortlist candidates yourself, and once onboarded, they are virtually your employees whom you manage.
Why spend days and weeks finding the multimedia designer that fits your requirements when you can partner with KDCI and we’ll do it all for you?
KDCI Outsourcing knows that you want to simplify your outsourcing process. That’s why when you build your team with KDCI, we handle everything from finding the right person to onboarding them so you can start working with them as soon as possible. We’ll source and vet candidates based on your requirements, train them on your brand, and onboard them so they can seamlessly integrate with your organization.
Interested in outsourcing your creative work to KDCI?
Check out our creative portfolio or contact us to learn more!
The Philippine Outsourcing industry has grown steadily and gained international recognition in recent years. As we step into 2024, it's clear that the industry is thriving due to technological advancements, government incentives, and a diverse workforce.
From offering traditional call center services, Philippine BPO has come a long way, now offering services in IT, finance, healthcare, and creative services. It has also since grown in market share, and is one of the fastest-growing BPO markets available today.
The best way to understand the state of Philippine outsourcing is by looking at the latest data. Below is an industry report containing the latest Philippine outsourcing statistics that will shape the BPO industry in the Philippines in the coming years.
The Philippine BPO industry is a rapidly growing market. With APAC as the fastest-growing market in global outsourcing, and the Philippines as one of the countries leading this development, the latest outsourcing statistics project that the Philippine BPO market, which was worth $35.4 billion in 2023 will grow to $37.87 billion in 2024 with a 7% CAGR.
With this steady growth, Philippine BPO, which contributed to the 6-7% growth in the Philippines services sector, is likely to continue driving economic growth for the country in the coming years.
There are approximately 350,000 Filipino college graduates each year. This makes the Philippines a competitive outsourcing destination, with a larger pool of suitable labor for multinational companies compared to other developing countries.
The Philippines is the 3rd largest English-speaking country in the world. Also, based on the 2023 Global Ranking of Countries and Regions on English Proficiency, the Philippines ranked 20th globally for English Proficiency with a score of 578, indicating high English proficiency. In Asia, the Philippines ranked 2nd for English Proficiency, coming after Singapore who has a score of 678.
The average cost of labor in the Philippines is lower than most other outsourcing destinations in APAC. According to this report by Numbeo, the average monthly salary in the Philippines in USD is $373.83, while it’s $621.74 in India, $853.47 in Malaysia, $923.21 in China, and $4,401.5 in Singapore.
Based on the 2023 data gathered by KDCI Outsourcing, the largest industry that outsources their business processes to the Philippines is Design & Marketing with a 30% market share. This is followed by Retail & E-commerce with 14% market share, Consulting & Business services at 11%, tech & IT at 9%, health services at 8%, and finance & accounting at 6%.
In a 2023 survey of 143 companies interested in outsourcing to the Philippines, KDCI Outsourcing found that 39.2% were looking to outsource customer service, making it the most in-demand outsourced business process. Among customer service processes, the most in-demand are voice-related services such as phone support.
Next is design & marketing services, at 37%, followed by E-commerce services at 16.1%, finance & accounting services at 3.5%, and lastly, back office functions at 1.4%.
The largest BPO population in the Philippines is in Metro Manila, the capital of the Philippines. Meanwhile, 30% of BPO workers are based outside of Metro Manila. Within Metro Manila, majority of BPOs are based in central business districts like Ortigas Center in Pasig, Eastwood City in Quezon City, Bonifacio Global City (BGC) in Taguig, and Makati.
After Metro Manila, the city with the largest BPO population is Cebu City, followed by Clark Freeport Zone, Davao City, Bacolod City, and Iloilo City, respectively.
The Philippines holds 10-15% of the global BPO Market. Also, over 1.3 million Filipinos are employed in over 1000 BPO companies. This makes the Philippines the 2nd leading outsourcing destination globally, with driving factors such as high English proficiency, excellent customer service, BPO-friendly infrastructure, and cultural affinity to North-American culture.
Globally, the Philippines ranks 4th as the most financially attractive outsourcing destination.
In Asia, the Philippines is 1 of the 3 most prominent contributors to the growth of APAC for IT Outsourcing.
While outsourcing statistics give a snapshot of the state of Philippine BPO, it doesn’t paint a picture of its future. To help with this, KDCI Outsourcing industry experts with decades of BPO experience provide input on the likely developments for BPO in the Philippines.
2023 saw the boom of automation. Tools like robotic processing automation (RPA), AI, and cloud computing are transforming the way we work, with many companies now utilizing some form of AI to optimize their workforce, and many more are looking into streamlining their business services using AI.
For BPO companies in the Philippines, this means embracing technological advancements and adapting quickly to the evolving digital landscape in order to meet the changing needs of their clients.
As BPO in the Philippines adopts technologies that would streamline business processes, roles in BPO that engage in repetitive work like data entry, customer service, and other back-office functions will be displaced in the coming years.
However, this transformation also brings new opportunities, as businesses will need employees skilled in managing and overseeing automation technologies like RPA and AI, handling more complex problem-solving tasks, and providing higher-level strategic analysis.
Consequently, BPOs will invest in upskilling their workforce to fill these new roles, ensuring staff can navigate tech integrations effectively and maintain competitiveness in an evolving market
WIth the evolving nature of business services comes new business models. Traditional FTE-based business models that have dominated the Philippine BPO industry for decades will soon be replaced by more flexible volume-based models.
For organizations that outsource, this means greater flexibility, more control over cost, and higher scalability. These will help future-proof businesses to adapt to rapidly changing business demands.
After Covid-19, 70% of Philippine BPOs have already implemented some form of remote work arrangement, while 50% considered hybrid setups. Such flexibility brought forth benefits such as cost savings, enhanced productivity, and ability hire from a larger talent pool.
Given the volatility of the current economy, companies are looking for low-cost options that would help them remain competitive. As such, this trend is likely to continue moving forward, with BPO companies becoming increasingly more flexible in their work arrangements.
As seen in the 2023 Philippine outsourcing statistics and outsourcing trends, 2024 will likely see continuing growth for the Philippine BPO industry, with rapid developments in technology shaping the way outsourcing companies operate their businesses and stay competitive in a large BPO market.
Cost reduction, English proficiency, and a large skilled workforce will continue to drive business into Philippine BPO and more Filipino talent will be joining the outsourcing industry to meet the growing demand in the industry.
In order to remain competitive, more and more companies are turning to outsourcing for low-cost and low-risk solutions. Here are the top BPO companies in the Philippines with excellent track record of providing high quality outsourcing services.
Do you want to learn more about outsourcing to the Philippines? Contact us today!
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