ROI Analysis: 3 Years of Global Expansion Data
Transparent look at our expansion ROI by country. What paid off, what didn't, and the surprising lessons that changed our strategy.
The Bottom Line Up Front
$47M invested. $198M in returns. 321% overall ROI. But the country-by-country story is far more interesting—and instructive—than the headline number.
Winners:
- • India: 412% ROI
- • Philippines: 387% ROI
- • Honduras: 298% ROI
Break-even:
- • Colombia: 145% ROI
- • Dominican Republic: 134% ROI
Timeline:
- • Year 1: -67% (loss)
- • Year 2: +45% (profit)
- • Year 3: +189% (scale)
Everyone talks about the potential of global expansion. Nobody shares the actual numbers. Today, we're changing that.
After 3 years, $47M invested, and operations in 6 countries, here's our complete ROI breakdown. The wins, the losses, and what we'd do differently.
Country-by-Country ROI Breakdown
India: The Superstar (412% ROI)
Investment Breakdown
- • Initial setup: $2.3M
- • Year 1 operations: $4.8M
- • Expansion (Year 2-3): $5.9M
- • Total invested: $13M
Returns Generated
- • Cost savings: $31M
- • New revenue enabled: $22M
- • Efficiency gains: $500K/month
- • Total returns: $53.5M
Key Success Factors: Deep technical talent pool, 12-hour time zone advantage for follow-the-sun support, 70% lower costs than US for equivalent talent.
Philippines: The Surprise (387% ROI)
Investment Breakdown
- • Initial setup: $1.8M
- • Year 1 operations: $3.2M
- • Scaling (Year 2-3): $4M
- • Total invested: $9M
Returns Generated
- • Customer retention value: $19M
- • Support cost reduction: $15.8M
- • 24/7 coverage enabled: $200K/mo
- • Total returns: $34.8M
Key Success Factors: Exceptional English skills, cultural alignment with US customers, incredible work ethic. Our CSAT scores jumped from 3.8 to 4.7 after Philippines launch.
Honduras: The Dark Horse (298% ROI)
Investment Breakdown
- • Initial setup: $1.2M
- • Year 1 operations: $2.3M
- • Growth (Year 2-3): $2.5M
- • Total invested: $6M
Returns Generated
- • Nearshore advantages: $8.9M
- • Cost arbitrage: $9M
- • Time zone benefits: $100K/mo
- • Total returns: $17.9M
Key Success Factors: Same time zone as US Central, lower costs than other LATAM countries, growing bilingual workforce. Perfect for real-time collaboration needs.
Colombia: The Steady Performer (145% ROI)
Investment Breakdown
- • Initial setup: $2.1M
- • Year 1 operations: $3.4M
- • Maintenance (Year 2-3): $3.5M
- • Total invested: $9M
Returns Generated
- • Technical talent value: $7.5M
- • Process improvements: $3.6M
- • Regional expansion: $2M
- • Total returns: $13.1M
Reality Check: Great talent, but higher costs than expected. Complex labor laws added 20% to operational expenses. Still profitable, but not our star performer.
Dominican Republic: The Learning Experience (134% ROI)
Investment Breakdown
- • Initial setup: $1.5M
- • Year 1 operations: $2.8M
- • Adjustments (Year 2-3): $2.7M
- • Total invested: $7M
Returns Generated
- • Bilingual support: $5.4M
- • Caribbean market access: $2.8M
- • Cost savings: $1.2M
- • Total returns: $9.4M
Lessons Learned: Infrastructure challenges, higher turnover than expected (35% vs 22% target). Now stable but took 18 months longer than planned to reach profitability.
The 3-Year Journey: From Loss to Scale
Year 1: The Investment Phase (-67% ROI)
Brutal truth: We lost money. A lot of it. $18M invested, $6M in returns.
- • Setup costs 3x higher than budgeted
- • 6-month delays in Philippines and India
- • Compliance surprises totaling $2.8M
- • 50% of initial hires didn't work out
Year 2: The Turning Point (+45% ROI)
Stabilization and optimization. $16M invested, $23.2M in returns.
- • Processes finally stabilized
- • Quality metrics exceeded US baselines
- • Major clients gained confidence
- • Attrition dropped from 40% to 25%
Year 3: The Scale Phase (+189% ROI)
Full acceleration. $13M invested, $37.6M in returns.
- • Expanded existing operations by 60%
- • Launched new service lines
- • Became a competitive advantage
- • Started selling global services to others
Hidden Value Drivers We Didn't Expect
Follow-the-Sun Operations
24/7 productivity without burnout. Engineering velocity increased 40% with teams handing off work across time zones. Worth $8M/year alone.
Cultural Diversity Impact
Product improvements from global perspectives. Features we never would have built became top revenue drivers. $4M in new revenue.
Risk Mitigation
When US hiring froze, we scaled globally. When India had COVID lockdowns, Philippines covered. Saved 3 major contracts.
Market Access
Local presence opened $12M in regional deals we couldn't have won from the US. Each country became a growth engine.
The $8M in Mistakes (So You Don't Repeat Them)
1. Underestimating Setup Complexity ($3.2M)
Budgeted 3 months per country. Reality: 6-9 months. Legal entity formation, banking, compliance—everything took twice as long and cost 3x more than US equivalents.
2. Wrong Initial Hires ($2.1M)
Hired US expats to lead. Big mistake. Local leaders who understood the culture outperformed them 10:1. Had to replace 80% of initial leadership.
3. Ignoring Local Holidays ($1.8M)
Didn't account for Diwali, Holy Week, local festivals. Productivity drops and coverage gaps cost us dearly until we built proper redundancy.
4. One-Size-Fits-All Approach ($900K)
Tried to copy-paste US processes everywhere. Failed spectacularly. Each country needed tailored approaches to hiring, management, and operations.
Our ROI Calculation Framework
Transparency matters. Here's exactly how we calculate ROI for global expansion:
Investment Components
- ✓ Legal entity setup and compliance
- ✓ Office space and infrastructure
- ✓ Recruitment and training costs
- ✓ Technology and security setup
- ✓ First year operational losses
- ✓ Management time and travel
Return Components
- ✓ Direct cost savings vs US operations
- ✓ Revenue from new capabilities
- ✓ Productivity improvements
- ✓ Risk mitigation value
- ✓ Market access and regional deals
- ✓ Innovation and product improvements
Note: We use 3-year ROI windows because Year 1 is always negative. Don't judge expansion success on first-year numbers.
7 Key Takeaways for Your Expansion
1. Budget 3x for Year 1
Whatever you think it'll cost, triple it. You'll still probably go over.
2. Hire Local Leaders
Expats rarely work. Find strong local talent who understand the culture.
3. Start with Your Strengths
Expand functions that are already working well, not broken ones.
4. Plan for 18-Month Payback
If you need ROI in 6 months, don't expand globally. It's a long game.
5. Compliance Is Non-Negotiable
Budget $100-200K per country for legal/compliance. It's worth it.
6. Culture Eats Strategy
Invest heavily in cultural integration. It determines success more than anything.
7. Measure Everything
Track costs, productivity, quality, and culture metrics obsessively.
Calculate Your Global Expansion ROI
Use our ROI calculator based on real data from 6 countries. Get realistic projections for your expansion plans.
The Bottom Line
Global expansion isn't easy. It's expensive, complex, and will test every assumption you have about business. But done right, it's transformational.
Our 321% ROI took 3 years and countless lessons. India and Philippines exceeded all expectations. Honduras surprised us. Colombia and DR taught us patience.
The real value isn't just in the numbers—it's in becoming a truly global company. One that operates 24/7, serves customers better, and taps into the world's best talent.
Ready to expand? Learn from our expensive mistakes. Your ROI will thank you.