How Much Does Outsourcing Cost (Really)?
Let’s unpack the costs and risks of outsourcing, how BPOs compare, and why staff augmentation with Walter is the smarter move.
So you’re thinking about outsourcing. That’s cool, but do you know what it’s actually going to cost you?
Outsourcing is an $855 billion global industry for a reason: it’s the old school move for slashing expenses and scaling fast.[*] But it’s not your only option — and it's definitely not your best one.
Before we get into how much outsourcing costs, let’s break down what it is, whether it’s worth the risk of bad press or team side-eye, and how you can get better results without the stress.
☂️ What is Outsourcing Exactly?
Outsourcing is the big umbrella term for handing off business tasks to someone outside your company — whether that’s a freelance designer or a full-blown third-party IT provider.
Affordable outsourcing saves time, shrinks overhead, gives you access to specialized talent, and lets your in-house team focus on what they do best.
Now, your outsourcing partner could be across town or halfway around the world. Where they’re located matters a lot when it comes to price.
🤝 Onshore Outsourcing: Local But Pricey
This is when you outsource services to a provider based in your own country. You get same-time-zone convenience, strong cultural alignment, and easy communication, which all sound great on paper.
But here’s the catch: onshore pricing models are highest because you’re still paying local rates. Cost savings? Minimal. You might as well hire in-house.
💡 Read this: Remote Hiring vs. Traditional Hiring: Which is More Cost-Effective?
👋 Nearshoring: Close Enough To Click
Nearshoring means outsourcing to nearby countries — like a company in the US working with teams in Latin America.
You’ll get overlapping work hours, shared cultural context, and easier travel options for in-person meetings.
Thanks to lower labor costs and reduced taxes in LATAM, nearshore pricing models typically cost up to 50% less than North American or European counterparts.
✈️ Offshoring: Maximum Savings, Global Reach
Offshoring is all about tapping into talent oceans away. Think Canada or the UK hiring in the Philippines.
It’s the go-to option when cost savings are top priority. And many offshore pricing models boast savings of up to 80%.
So now that we’ve covered the best places to hire talent, let’s talk about how you might do it.
🤔 What is a BPO?
BPO stands for Business Process Outsourcing — aka when you hand over an entire business function (like customer service, payroll, or IT) to a third-party company that runs the whole operation for you.
It’s outsourcing on autopilot: they hire the staff, manage the workflows, handle the tools, and report back to you. You’re paying for the process and the people, which makes them helpful if you want a hands-off setup.
😬 Now for the bad news.
BPOs require you to give up a huge chunk of control.
They also come with long contracts, hidden fees, and less flexibility.
You’re locked into their systems, and if the quality dips? You’re stuck until the contract’s up or you eat the switching costs.
And that brings us to our outsourcing cost comparison.
💰 How Much Does Outsourcing Cost? Walter vs. BPOs
Walter is the fresh alternative to bloated BPOs — a modern headhunter service that makes international remote hiring easy, affordable, and actually worth it.
You get all the benefits of outsourcing without the stress, overhead, or endless invoices of a BPO.
Let’s compare the real outsourcing costs — both the obvious and the sneaky hidden stuff — to see how Walter stacks up.
🕵️ Hidden Fees & Sneaky Costs: What BPOs Really Charge
BPOs love a complicated fee structure. On paper, it might look affordable. But once you dig into the risks and cost implications, the hidden costs of outsourcing start stacking up fast.
Here’s what you’re really signing up for:
💸 Service Fees & Retainers. Monthly charges just to keep your outsourced team working. This could be fixed, hourly, or tied to specific projects.
Factors affecting outsourcing costs include location, scope of work, project complexity, expertise level, usage, work hours, and more.
💸 Setup Fees & Onboarding Costs. Want them integrated into your systems? That’ll cost you. Think training, software setup, and system configuration.
💸 SLA Upcharges. Faster turnaround times or strict compliance standards? You’ll pay extra for that level of service.
💸 Operational Costs. Maintenance fees, support costs, transaction charges, and unexpected add-ons as your needs grow.
💸 Data Security Risks. You’re handing sensitive info to a third party. If something goes wrong, it’s on you.
💸 Scalability Penalties. Long-term contracts can lock you in. Need to switch providers or scale up or down? Enjoy the penalties.
It’s challenging to create an outsourcing budget between all the hidden fees in the contract and the unexpected costs during the process.
So plan to budget 10–20% more than what’s quoted in your outsourcing pricing model once all the extras roll in.
👉 The Walter Difference: We keep it simple.
You pay one transparent placement fee — that’s it. No subscriptions. No hidden charges. No financial landmines. Just elite remote talent, hired your way.
🚨 Brand Reputation + Team Morale
“Outsourcing” still raises eyebrows that affect your bottom line.
To customers, it can scream cost-cutting and lower quality service. That’s a problem when over 60% of consumers say a company’s reputation is very important, and 83% cite trust as the emotional driver behind the brands they love.[*]
To employees, it can feel like you’re replacing their teammates with faceless, disposable help. That kind of “us vs. them” vibe tanks morale big time.
👉 Walter skips the outsourcing stigma.
We help you hire vetted international remote employees or contractors directly, so they’re not just a name on a spreadsheet. They’re your team.
You choose who fits your culture, onboard them your way, and give them a seat at the virtual table. We handle the recruiting, vetting, and all the red tape.
What we do is more like staff augmentation, so you can scale without blowing your budget.
🎮 Culture & Control: Who’s Running the Show?
Company culture defines how your team thinks, works, and wins together.
Handing off an entire process to a BPO? That means giving up direct control. The BPO handles hiring, firing, training, and internal performance management.
You don’t get to shape the day-to-day. And if the output’s off-brand or subpar, good luck fixing it before you start losing money.
🏁 But Walter puts you in the driver’s seat.
We help you find remote talent who fit your culture from day one — not just technically, but in how they communicate, collaborate, and show up for your team.
We start with a Discovery Call to understand your brand, workflows, and what makes your team tick.
When you hire with us, you’re not just filling a role; you’re strengthening your culture. And studies show that companies prioritizing culture average a 33% increase in revenue.[*]
🤝Support You Can Actually Count On
Most BPOs take a set-it-and-forget-it approach. Once the contract’s signed, you’re basically on your own.
You don’t always know who’s working on your account — and they can swap team members in and out without notice. That means inconsistent quality, lost context, and constant retraining.
You can ask for a replacement if someone’s not working out, but the final call is theirs. You’re paying for outcomes, not people — and you rarely get a say in who’s delivering the work.
🥔 Walter doesn’t play hot potato with your hires.
We’re here to build lasting relationships that support your growth and success. That’s why we check in monthly for the first 6 months to make sure your team’s thriving.
New hire not vibing? We’ve got you. Our 12-month guarantee means we’ll replace them — no drama, hidden fees, or strings attached.
💪 Max Your Outsourcing ROI with Walter
The cost of outsourcing isn’t a one-size-fits-all number. It’s more like a custom-blend coffee — it depends on the beans, the roast, and where you buy it.
But once you take a sip, you might realize the cost savings aren’t worth the aftertaste of hidden fees and lost control.
You deserve simple, stress-free, cost-effective talent solutions. Walter makes that happen. 🚀
Whether you want to hire from LATAM or hire from the Philippines, our streamlined remote hiring process delivers the benefits of outsourcing without the markups, tradeoffs, or headaches.
👉 Get your FREE cost analysis with Walter now and see what you could save! 👈
