Kforce Inc's Strategic Use of Offshore Teams in 2025 Q2 Earnings

Kforce Inc. discusses "offshore teams" within the broader context of its strategic approach to delivering technology talent solutions. The company highlights offshore teams as a critical component of its ability to provide cost-effective, flexible, and high-quality talent to clients, especially in a competitive and evolving technology landscape.

Context and Strategic Positioning

Kforce emphasizes the importance of sourcing highly skilled talent from outside the United States as part of its solutions-based engagement model. This approach complements its U.S.-based sales and delivery capabilities and vendor network, enabling a comprehensive talent delivery structure that includes onshore, nearshore, and offshore teams.

"An increasingly important aspect of providing cost-effective solutions is our ability to source highly skilled talent from outside the United States. Our development center in Pune, combined with our robust U.S. sales and delivery capabilities and a high-quality vendor network, enables us to comprehensively address the evolving needs of our clients whether onshore or blended onshore, nearshore or offshore teams."

This statement reflects Kforce’s strategic shift from traditional staffing toward more flexible, blended delivery models that leverage offshore resources to meet client demands efficiently while maintaining margin stability.

Business Implications and Financial Impact

The use of offshore teams supports Kforce’s ability to maintain a stable average bill rate in its Technology business, despite economic uncertainties. The company notes that the average bill rate has remained around $90 over the past three years, helped by a higher mix of consulting-oriented engagements, which typically command higher rates and margins.

This suggests that offshore teams are integrated into a broader service offering that balances cost-effectiveness with high-value consulting services, enabling Kforce to sustain profitability and competitive positioning.

Alignment with Technology Trends

Kforce links its offshore capabilities to its focus on emerging technology areas such as data and AI, digital transformation, application engineering, and cloud services. The company sees strong demand and an improving pipeline in these areas, which require access to critical talent that can be sourced globally.

The offshore teams, particularly through the Pune development center, appear to be a key enabler in delivering these advanced technology solutions, including AI-driven workflows that enhance client productivity and sales effectiveness.

Summary

• Offshore teams are a strategic enabler for Kforce’s cost-effective and flexible talent delivery.
• The company leverages its Pune development center alongside U.S. operations and vendor networks to offer blended delivery models.
• This approach supports stable average bill rates and margin profiles despite economic uncertainty.
• Offshore talent is integral to meeting client needs in high-demand technology areas such as AI, digital, and cloud.
• Kforce positions itself as adaptable and capable of sourcing quality talent at scale globally, reinforcing its role as a trusted partner in technological advancement.

Overall, offshore teams are presented not just as a cost-saving measure but as a vital part of Kforce’s evolving service model that balances quality, flexibility, and financial performance.

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Relevant excerpt:

"An increasingly important aspect of providing cost-effective solutions is our ability to source highly skilled talent from outside the United States. Our development center in Pune, combined with our robust U.S. sales and delivery capabilities and a high-quality vendor network, enables us to comprehensively address the evolving needs of our clients whether onshore or blended onshore, nearshore or offshore teams."