Unlocking the True Cost of Outsourcing to the Philippines
Thinking of outsourcing to the Philippines?
Wondering how much it’ll cost you… And how much you stand to save?
You’re in luck! As an offshore staffing agency fueled by Filipino remote talent, we have all the answers. We’ve put them together below to give you an honest, comprehensive guide on the true cost of outsourcing to the Philippines.
We cover base costs (per hour and monthly), locations, 13th-month pay, and more. We also break down exactly how much you stand to save with remote Filipino professionals.
Ready to dive in?
Getting to Know the Philippine Pricing Model
There are two pricing models for business process outsourcing (BPO) in the Philippines: monthly and per-hour.
These models provide flexibility; each is suitable for different business needs and budgets. Each has its own benefits and disadvantages. Let's take a closer look at these pricing structures.
Hourly rates in the Philippines
Hourly rates are often used for project-based work, e.g., freelance gigs. The employer and professional agree on a job’s estimated duration. Only hours worked are billed for and their volume can change based on tasks given. To make sure they can easily do the job, many invest in tools to boost productivity and efficiency.
This model is perfect if you need to fill short-term needs or are facing workload fluctuations.
Per-hour work is popular with Filipinos and overseas employers. A study by GCash and Payoneer found that 1.5 million Filipinos earn money through freelancing and short-term work. And if you have a short-term need, hiring someone and paying them per-hour makes a lot of sense.
The minimum hourly rates in the Philippines range from $4 to $10. These rates depend on the work's complexity and the required level of expertise. But in the upper end of that range - $8-10 - you can get a qualified worker for a fraction of what you’d pay in the West.
Expert hires - developers, skilled designers, accountants, etc. - may run you $20-30 per hour. This is more expensive but still a lot less than what you’d pay in the West.
However, hiring per-hour remote talent has its downsides too…
- You’re not top-of-mind for your worker. You’re usually one of many employers competing for their attention.
- The worker doesn’t have the time (or commitment) to focus on your business. Their work can be good but will rarely be outstanding.
- You often end up paying more money than you’d pay when hiring per month.
Next, let’s look at monthly rates in the Philippines.
Monthly rates in the Philippines
With monthly rates, you get a permanent hire dedicated to you and your business. This pricing model is better for long-term support or steady workloads.
Monthly rates in the Philippines start at $500 to $1,500 per employee. Skilled employees can cost you $2,000-$3,000 per month. These rates can vary depending on their credentials, experience, industry background, location, and more.
To see a full list of salaries, check out our free salary guide below!
The downside to monthly rates is that you pay someone for a full month of their time. This may not make sense if you have a low workload or don’t want to commit to regular payments. But if you’re serious about scaling operations and getting help, monthly rates mean:
- You get a committed, motivated specialist focused on your business.
- You can train your specialist to get better at their job over time.
- You end up paying less per-hour than you would otherwise.
Real Outsourcing Rates in the Philippines
MultiplyMii put dozens of hours into crafting a comprehensive salary guide for outsourcing to the Philippines. We used our extensive internal database of 100,000+ Filipino workers, and here’s what we found….
Want to see a full list? Click the link to get the full salary guide for free!
The guide covers the top 50 roles in the Philippines, along with their monthly salaries and US salaries for equivalent roles. Get it and see how much money you could be saving today!
Key Elements that Affect the Cost of Outsourcing to the Philippines
Outsourcing to the Philippines can result in significant savings. You can save up to 83% while getting access to the same level of talent thanks to lower costs of living compared to Western countries.
That being said, what’s the real cost of outsourcing to the Philippines?
To understand, let’s look at the 4 main factors that influence the cost of Business Process Outsourcing in the Philippines. These are service type, location, and level of expertise… And #4 - hidden costs. Below, let’s break down each element in more detail.
Skills required
Different skill sets come with different costs.
Let's take an example. Software Developers are pretty pricey: up to $2,500 for a skilled backend or frontend specialist per month. This is pretty expensive for the Philippines (although an equivalent stateside developer can run you $7,500 + benefits).
The reason is that software development is a complex field. It requires a lot of training and experience to do well.
Similarly, digital marketing requires a high level of creativity and marketing savvy. That’s why Creative Directors with more than 5 years of proven work can expect a salary of $2,400 per month. Factors like their background and industry experience can add to the cost.
Simple and repetitive tasks often have a lower cost than more specialized ones. For example, a data entry specialist might be available for as little as $500-800 per month. That’s because it’s fast and easy to train a data entry specialist compared to the other roles mentioned above.
Location
Location can also have an impact on outsourcing costs. People in large cities and premium business districts tend to cost more to hire.
For example, Makati and Bonifacio Global City (BGC) are central business districts (CBDs) known for their high-end office buildings. These areas attract skilled, talented workers. This results in a higher cost of living, pushing labor costs up.
Other areas in the Philippines, like Cebu and Davao, cost less to live in. Living expenses and labor are both lower in areas like these - meaning you can pay less.
A smart way to get the best talent without overpaying is to tap a remote staffing company like MultiplyMii. Since we have databases with thousands of employees, we are able to find you the best talent for the best possible price.
Experience
Experience plays a significant role in determining outsourcing costs. More experienced professionals have higher salary expectations than entry-level workers.
Take a senior software developer with ten years of experience. They've gained specialized knowledge and skills over the years. They can handle complex software development projects. This experienced individual will ask for more than a junior software developer.
Here’s an example. Developers with less than 2 years of experience have a salary of $1,100. For those working 3+ years, the pay can range from $1,800 to $2,500 per month. That’s a tangible difference - and it applies to other fields.
An experienced digital marketing specialist costs more than an entry-level one. They contribute more to your bottom line, and so they also cost more.
Hidden Costs
The many benefits of outsourcing can sometimes overshadow the costs. Don’t get us wrong! Outsourcing is still the way to go, but you must be fully aware of all possible expenses before pushing through with it.
Here are costs often overlooked by businesses looking to outsource:
Taxation
BPO firms have tax exemptions as long as they register with the Philippine Economic Zone Agency and operate in ecozones. If not, they can’t enjoy the numerous tax benefits, like income tax holidays, special corporate income tax, etc.
Cost of hiring
It costs resources to look for people, but when you hire MultiplyMii, you only have to pay a one-time fee.
Once you sign up with MultiplyMii, you’ll have a dedicated recruiter assigned to you. We'll be with you all throughout, from filtering potential candidates to assessments and interviews. And if you’re dissatisfied, we offer a 60-day replacement guarantee – free of charge!
Paperwork
What comes next after hiring the right candidate? Paperwork. You have to get them to sign your service agreement. Most importantly, you have to pay their salary.
At MultiplyMii, transparency is a priority. We believe in giving our clients clear and accurate information about the expenses involved in outsourcing. We work closely with our clients, outlining the cost structure and breaking down each component. No hidden fees or surprises— just straightforward and honest communication!
Other Reasons to Choose Offshore Staffing in the Philippines
Although offshoring to the Philippines can cut down costs by as much as 71%, it’s not the only reason to outsource abroad.
Here are 3 key reasons to outsource (beyond cost savings).
Have access to skilled talent
The Philippines has a robust education system. It churns out graduates in IT, engineering, and business fields regularly. The country boasts a workforce that is… :
- Highly educated and qualified
- Experienced with foreign employers and fluent in English
- Committed to high-quality service
- Motivated and excited to work with you
All of this means that you can get better talent for a fraction of the cost by working with the Philippines. A big difference-maker.
Time zone benefits
The Philippines is 12 hours ahead of the Eastern Time Zone in the United States. With the time differential, your offshore team can continue working while you're asleep. Such adaptability leads to quicker turnaround times on projects and uninterrupted work at all times.
Scale your business
Funds saved through outsourcing can fuel your business growth. Instead of bearing the costs of hiring expensive, local talent, you can redirect your savings to:
- New technologies
- A bigger, more qualified team
- Marketing
- Other business growth initiatives
Understanding these savings and benefits will help you make an informed outsourcing decision. Take note of these factors to ensure you're making the right move for your business!
Save Money and Catapult Your Business to Success Today!
By outsourcing to the Philippines, you get access to world-class talent without breaking the bank.
Imagine a team of passionate, hardworking professionals focused on one thing: growing your business.
How much easier will it be to grow your business with a team like that?
And how much easier will you sleep at night, knowing they’re on top of operations - even when you’re off the clock?
To most managers and entrepreneurs, this is an out-of-reach fantasy.
But to MultiplyMii, it’s the reality we’ve created for hundreds of clients.
Ready to take your business to the next level?
You can start by reading our salary guide…
Or you can stop dreaming and start scaling your business today.
Book a free strategy consultation with MultiplyMii, and see what you can achieve with our handpicked, Philippines-based talent.
