From the rise of offshore staffing to the shift toward remote and hybrid work, every phase of outsourcing has reshaped how businesses build and scale teams.
Today, the next major shift is hybrid outsourcing. In a podcast conversation with Outsourcing Fit, our CEO, Dominic Procter, explained how Outsourced Staff blends people and AI in ways that benefit both clients and the Filipino staff we work with.
“Now what we offer to any new clients is a hybrid solution,” he said. “A client can come to us and say, ‘Hey we’re looking for 20 customer service reps, or whatever the role might be.’ We’d say, ‘Great, we can provide you that. Would you like AI? Would you like human? Or would you like a combination of both?’”
Research supports this blended model, too. A McKinsey study found that AI can automate 60% of jobs in certain industries, yet only about 30% of jobs can be fully automated. That means people remain essential.
Let’s further discuss this type of hybrid outsourcing model and how it can benefit the way you run your business and how it operates.
Table of Contents
- What is Hybrid Outsourcing?
- 5 Benefits of Combining Humans and AI in Outsourcing
- How AI Elevates Human Performance
- How Humans Optimise AI’s Potential
- The Future of Hybrid Outsourcing
- FAQs
What is Hybrid Outsourcing?
In this case, hybrid outsourcing refers to the collaboration between human professionals and AI within outsourcing operations.
Unlike the traditional definition of hybrid (a mix of offshore and onshore teams), this model focuses on combining AI-driven tools with skilled staff to maximise results.
For example, a customer support centre might deploy AI chatbots to handle common inquiries 24/7, while Filipino staff manage complex escalations.
It’s a strategy that both makes processes more efficient and protects the quality of the work. As Dom explained in the podcast, “We introduced our own AI CRM, which, incidentally, is QA’d by humans based in the Philippines and is managed by humans in the Philippines as well.”
Hybrid outsourcing isn’t designed to replace staff either. The goal is to empower them with better tools and a more balanced workflow.
Dom put it simply: “Our take on AI is it’s just a tool, and we can still use our Filipino staff to actually work with that product or work with that service.”
5 Benefits of Combining Humans and AI in Outsourcing
This hybrid model offers several clear advantages:
1. Cost Efficiency Without Sacrificing Quality
AI handles repetitive, time-consuming tasks at scale, reducing the workload of human staff. This lowers operational costs by up to 30% (as per ISG’s shared calculations) while allowing employees to focus on higher-value work.
2. Scalability and Flexibility
AI systems can manage large volumes of work instantly. For example, an AI agent can answer six customer calls at once, something no human can match.
Dom noted, “You might have a call centre at the moment that’s got six staff, and they can’t take 50% of the calls… so then we put in an AI agent that can take six calls at once, and they no longer get that 50% of people hanging up.”
3. Improved Employee Experience
By letting AI take on routine tasks, human staff avoid burnout from monotonous work. They can instead focus on problem-solving and relationship-building, which are more fulfilling.
4. Stronger Security and Compliance
With both home-based and office setups, Outsourced Staff ensures client data stays protected.
Dom, an ex-IT professional, highlighted that “Whatever they do locally in Australia, or New Zealand, or the US for security, we (also) do with their staff in the Philippines.”
5. Customer Satisfaction
AI provides speed, but humans bring empathy and adaptability. Together, they create a customer experience that is both efficient and personable.
How AI Elevates Human Performance
When used strategically, AI allows people to perform better by:
- Freeing Up Time for Critical Thinking – AI can handle data entry, initial customer queries, or invoice processing. Employees then have more bandwidth for decision-making and strategic planning.
- Supporting Round-the-Clock Availability – AI-powered agents can operate 24/7, filling gaps in service where it isn’t cost-effective to hire full-time night-shift staff. “Some people don’t want to start full AI,” Dom said. “They just want overflow… that painful, 2-call-a-night, night shift filled and not pay three grand a month.”
- Reducing Errors – AI systems process large amounts of data quickly and accurately, cutting down mistakes that can occur with repetitive manual tasks.
- Providing Insights Through Data – AI tools can analyse trends and deliver reports instantly, giving managers better visibility and helping them make informed decisions.
How Humans Optimise AI’s Potential
Even the best AI requires human input to reach its full potential. Skilled staff optimise AI in several ways:
- Quality Assurance – Human staff monitor AI outputs to ensure accuracy and compliance.
- Contextual Understanding – AI may struggle with cultural nuances, sarcasm, or sensitive topics. Humans step in to handle these conversations with empathy and clarity.
- Problem-Solving – When issues fall outside AI’s programmed responses, human workers provide the creativity and adaptability needed to resolve them.
- Continuous Improvement – Staff provide feedback to refine AI tools, ensuring they evolve to meet business needs. As Dom explained, Outsourced Staff invests in retraining so staff are not replaced but upskilled to work alongside AI.
The Future of Hybrid Outsourcing
This kind of hybrid outsourcing represents the future of global work. Gartner predicts that by 2029, 80% of customer interactions will involve AI. But the key here is that human involvement will still be critical for complex and high-value cases.
So, the takeaway is clear: AI should not be viewed as a replacement for human staff, but as a partner. Companies that embrace this mindset will gain a competitive advantage by building operations that are both cost-effective and human-centred.
For workers, hybrid outsourcing presents an opportunity. Instead of being sidelined, they can move into more strategic roles where they manage, train, and optimise AI tools.
As Dom said, “We’re just looking at how do we upskill our staff in the Philippines, so that they’re not put out of work?”
In other words, the future of outsourcing isn’t AI vs humans, it’s AI with humans.
Listen to the whole podcast episode:
FAQs
What makes hybrid outsourcing different from traditional outsourcing?
In our case, hybrid outsourcing combines human expertise with AI. Unlike traditional outsourcing, which relies solely on human staff, hybrid models use AI to handle repetitive tasks while humans manage complex or sensitive work. This creates efficiency without losing the human touch.
How does hybrid outsourcing help reduce costs?
AI handles high-volume, repetitive tasks at scale, reducing the workload of human staff and cutting overheads.
For example, AI agents can manage multiple calls simultaneously, which lowers the need for additional staff. This allows businesses to scale while keeping costs predictable.
Is hybrid outsourcing a threat to jobs?
No. Hybrid outsourcing is about upskilling, not replacing. For us at Outsourced Staff, our Filipino employees play a vital role in managing, training, and quality-assuring AI systems.
Companies could also focus on retraining employees to work alongside AI, ensuring that technology creates more opportunities rather than fewer.