The Philippines has always been one of the top choices for offshoring staffing needs. In fact, as per a study conducted by Outsource Accelerator, the most outsourced services from the country are back office and customer support.There’s no question about the quality of service that you’ll get from offshoring to the Philippines. The only concern now is the cost. In this article, we’ll discuss how much money you need to offshore staff from the country, and how much you’ll be able to save compared to outsourcing from others.
How Much Do Offshore Companies Usually Cost in the US?
The price plans offered by offshore companies in the US can vary depending on several factors, such as the type of service you’re looking into, the level of expertise required, and the location of the offshore company.For outsourcing services, the cost of an offshore company in the US can range from $20 to $80 per hour. The hourly rate still needs to take various things into account, including the complexity of the work, the current scale and level of demands of your business, and the additional services that come with it.You will also have to consider the offshore company and its corresponding pricing model. Some charge a fixed monthly rate while others set a percentage of employees’ salary.
How Much Does It Cost to Offshore Staff from the Philippines?
On average, the hourly rates for offshore staff from the Philippines range from $5 to $15 per hour. This range may vary depending on the specific tasks that the offshore staff will be performing. For instance, tasks that require specialized skills such as web development or software engineering may have higher hourly rates than administrative tasks such as data entry or customer service.In addition to hourly rates, offshore staffing companies may charge additional fees such as setup fees, recruitment fees, or management fees. It is important to consider these fees when comparing offshore staffing companies.Learn more about how much it costs to outsource to the Philippines.
How Much Money Do Companies Save by Offshoring to the Philippines?
The amount that companies can save by offshoring to the Philippines can vary widely depending on various factors such as the industry, type of work to outsource, location, and the size of the company.However, in general, the cost of labor in the Philippines is lower compared to developed countries like the United States, Australia, and Western Europe, which makes it an attractive destination for companies looking to save on labor costs.According to a report by Everest Group, companies can save between 60% to 80% on labor costs by offshoring to the Philippines compared to onshore operations in developed countries. The lower salaries and wages of employees in the Philippines, as well as the lower cost of living in the country, attribute to these significant cost savings.For reference, the hourly rate for an offshore company in the US can range from $20 to $80 per hour. In contrast, the hourly rates for offshore staff from the Philippines range from $5 to $15 per hour. Therefore, companies can potentially save between $5 to $75 per hour by offshore staffing from the Philippines compared to outsourcing services in the US.Moreover, the Philippine government offers various incentives to encourage foreign companies to invest in the country, such as tax holidays, exemptions, and reductions. These incentives can further lower the costs of doing business in the Philippines.Overall, while the exact amount that companies can save by offshoring to the Philippines can vary, it is generally considered to be a cost-effective option for companies looking to reduce their labor costs while maintaining quality output.
Why Is Offshoring More Affordable Than an In-House Staff?
Lower Labor Costs
One of the primary reasons offshore staffing in the Philippines is more affordable is due to the lower labor costs. Since the said country is still developing and comes with lower costs of living and lower wage rates compared to first-world countries like the US.Offshoring is popular for being a cost-efficient option compared to hiring an in-house staff. Here are some reasons why.
Lower Operational Costs
When a company hires an in-house staff, they need to provide various benefits like health insurance, retirement plans, paid time off, and other benefits, which can add up to a significant cost. In contrast, offshore staffing companies typically offer more flexible arrangements, with fewer benefits or other expenses that can drive up costs.
Access to Specialized Skills
Offshoring provides companies access to a global talent pool, allowing them to access specialized skills that may not be readily available or affordable locally. This can enable companies to scale up their operations and stay competitive without incurring the high cost of hiring specialized talent in-house.
Lower Overhead Costs
Companies that offshore staffing also typically save on overhead costs, such as rent, utilities, and office equipment. Now, since there will be no need to provide these in-house infrastructures, companies can expect to lower their overall expenses.
What Are the Benefits of Offshoring to the Philippines?
Offshoring to the Philippines offers several benefits to businesses. Below are the following advantages.
Cost Savings
One of the primary benefits of offshoring to the Philippines is cost savings. The cost of labor in the Philippines is generally lower than in developed countries like the US, making it a cost-effective option for businesses looking to reduce their labor costs.
High-Quality Talent Pool
The Philippines has a highly skilled and educated workforce, with a large number of graduates in fields such as IT, engineering, and business. This makes it an attractive destination for businesses looking to tap into a skilled and diverse talent pool.
English Proficiency
English is widely spoken and understood in the Philippines, making it an ideal destination for businesses looking to outsource customer service, technical support, or other tasks that require excellent communication skills.
Cultural Compatibility
The Philippines has a strong cultural affinity with Western countries, which makes it easy for businesses to work with offshore staff from the Philippines without facing significant cultural barriers.
Timezone Compatibility
The Philippines is located in a time zone that is compatible with many Western countries, making it possible for businesses to maintain real-time communication and collaborate effectively with offshore staff.
Government Support
The Philippine government has implemented various incentives and initiatives to encourage foreign investment and support the growth of the offshoring industry.
Offshore Your Staffing Needs to the Philippines
Looking to scale your business operations while maintaining quality output and reducing labor costs? Offshore your staffing needs to the Philippines!At KDCI, we offer cost-effective staffing solutions that can save your company up to 70% on labor costs. Our highly skilled and educated workforce in the Philippines can handle a variety of tasks, including back office, customer support, graphic design, digital marketing, finance and accounting, and web development.Click the button below to contact us and learn more about our offshore staffing services.Contact Us
