+$1.44M in Annual Savings: Re-building a Global Team for a $100M+ Auto Parts Distributor w/ CloudHire

Introduction:

When a leading auto parts distributor in the U.S. with over $100M in revenue needed to streamline their offshore operations, they turned to CloudHire. The company had been relying on an Agency of Record (AOR) in the Philippines, managing 160 staff. However, they were facing several critical challenges:
*Spending: $400K/mo or ~5M annually on staff

Impact

$1.2 Million

Savings

$1.2 Million

Savings

$1.2 Million

Savings

Challenges:

High Staffing Costs & Lack of Transparency:

The client was spending significantly more on their offshore team due to the AOR’s opaque pricing model. They had no visibility into what their employees were actually being paid.

Retention Issues & High Churn:

Without control over salaries, the client couldn’t offer competitive pay or career paths, resulting in high turnover and constant retraining.

Connectivity Problems:

Poor internet quality led to inefficiencies, especially in server-dependent workflows. The distributed team faced constant delays and interruptions, slowing down overall performance.

CloudHire's Solution

CloudHire implemented a comprehensive strategy to address all of these pain points, delivering a tailored solution to meet the client’s needs.

1. Research and assessment:

We took an inventory of existing resources, their skill level, and the most common issues our client faced with their teams. We conducted an in-depth market analysis for compensation per title and created a comprehensive action plan for our client.

Result:

We uncovered that the agency of record had an internal margin of 50%+, and it was significantly more than recruiting your own team and using CloudHire EOR/Contractor payments (at just $350/$50, respectively). We uncovered a monthly savings at least $100,000, or $1.2m annually.

2. Recruiting Your Team & Significant Cost Savings:

We transitioned the client’s offshore operations from the AOR to a done-for-you offshore team-building setup, where CloudHire’s flat 20% recruitment fee allowed full visibility into their employees’ salaries and costs.

Result:

We saved the client over $1M in hiring costs while offering competitive salaries to retain top talent, hiring over 100 people in a single calendar year.

3. Building a High-Performance Team Across Regions:

CloudHire sourced and hired a 40-person contractor team across multiple markets:

  • Philippines, India, Colombia, Brazil, and Argentina
  • Each hire was tailored to fit the client’s operational needs, providing top-tier talent for technical, customer support, and backend operations.

Result:

The expanded team not only reduced costs but also improved overall
performance, thanks to culturally and technically aligned hires.

4. Improving Infrastructure with Local Partnerships:

Understanding the critical importance of connectivity for their server operations, CloudHire secured a Wi-Fi partnership in the Philippines. This ensured all contractors had the best internet infrastructure, reducing ping jitters and optimizing server performance. We also created a virtual office for them to improve their culture.

Result:

The client saw an immediate improvement in system reliability, eliminating downtime and enhancing workflow efficiency—a 12% increase in opt-in work hours from staff.

In this Story

Research and assessment

Recruiting Your Team & Significant Cost Savings

Building a High-Performance Team Across Regions

Improving Infrastructure with Local Partnerships

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Outcomes:

$1.44M+ Saved Annually: By switching to CloudHire, the client significantly reduced costs compared to their previous AOR.

Improved Retention: With higher pay and career alignment, the churn rate dropped, providing stability.

Enhanced Productivity: Better infrastructure and high-quality hires boosted team efficiency.

Strategic Scalability: The client is currently expanding operations with 20 new open roles under CloudHire’s guidance.

Conclusion:

CloudHire’s expertise in global recruitment and infrastructure management enabled this $100M+ auto parts distributor to overcome their operational challenges. By providing a cost-effective, transparent, and scalable staffing solution, we not only saved them millions but also positioned them for continued success in a highly competitive market.