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May 28

Outsourcing to the Philippines: Transforming Businesses and Lives

Are you looking for a cost-effective way to improve your business? Then you should consider outsourcing. Rather than shelling out a lot of money hiring an in-house employee, you’ll also gain access to top-quality talents.

What’s Outsourcing?

What’s Outsourcing

It is the process of hiring someone to perform services traditionally performed by in-house employees. These sub-contractors are usually located in a different country or even on a different continent, such as India or the Philippines.

This is done by companies to save costs and/or gain access to specialized talent they can’t find locally. It covers a wide range of services such as IT, customer support, accounting and bookkeeping, etc.

The State of Outsourcing

Currently, two primary sub-industries dominate the market. These are the IT Outsourcing (ITO) and the Business Process Outsourcing (BPO). The former focuses on web hosting, cybersecurity, and cloud computing, while the latter is all about HR services, payroll management, marketing, etc.

Today, the industry is rapidly growing. BPO industry spending, in particular, is predicted to be at USD 219 Billion in 2023, a 19% increase from 2019. BPOs are projected to grow further by 9% per year between 2023 and 2030.

Who Outsources to the Philippines?

Who Outsources to the Philippines

Western countries offshoring to Filipino remote contractors often include the US, AU, the UK, etc.

Should Australian Start-ups Outsource?

Definitely. Offshoring allows you to grow your company faster by giving you access to specialized talent at a more sustainable cost.

Why Consider Outsourcing to the Philippines?

Why Consider Outsourcing to the Philippines

There are many reasons why PH is one of the top outsourcing destination for Aussie companies. 

First, Filipinos are well-versed in the English language, making communication easier. You also gain access to a broader talent pool as Pinoys are highly skilled in their areas of expertise.

Time zone differences are also not an issue for Pinoy contractors, since there’s only a two to three-hour difference between PH and AU.  Providing competitive wages is also more sustainable since the AUD – PHP exchange rate is in your favour.

Outsourcing to the Philippines at a Glance

If you’re still on the fence about offshoring, here’s a closer look into the industry:

Outsourcing to the PH Facts:

  • Today, outsourcing contributes significantly to Philippine economy, employing up to 1.4 million people locally.
  • Just behind the US, AU represents the second-largest market for BPOs in PH.
  • The most popular jobs outsourced to PH are call-centre services (this includes sales, technical support, and customer service via phone, social media, video, and email), IT services, and back-office operations.
  • 75% of the outsourced activity in the country occurs in the capital city of Manila.
  • The two popular BPO models in PH include the traditional or fully managed service (where the company supervises your outsourced team) and the staff leasing model, where the company finds and houses your offshore team, but doesn’t manage them directly.

Outsourcing to the Philippines in the New Normal

The pandemic has made outsourcing more popular, so much so that it contributed  USD 26 billion to the Philippine economy. There are more than 1.5 million freelancers in the PH as of this writing, with the country having the largest concentration of call centres in the world.

Outsourcing to the Philippines: A Smart Business Decision?

Outsourcing to the Philippines: A Smart Business Decision

There are many benefits of offshoring to Pinoy remote contractors. These include:

Locations

Since many Pinoys are now working online jobs, the Philippine government and local internet service providers have made efforts to improve internet stability throughout the country. 

Cities like Manila, Cebu, Davao, Tagbilaran, and Zamboanga all have reliable internet connections, ensuring that the remote talents living there are able to work without interruption.

Closer Time Zone

The time difference between the Philippines and your time is two to three hours. This makes communication and collaboration much easier since a synchronous work schedule would be possible. 

Trends

As automation slowly replaces many entry-level positions, the demand for many mid to high-level positions has grown as a result. 

In addition, many SME’s have realized the value of offshoring their needs to Philippine remote contractors.

Great Communication Skills

Another advantage of outsourcing to PH is that most Pinoys are proficient in English. This makes it easier to communicate with them as it eliminates the language barrier.

English Proficiency

PH also ranks high in English proficiency globally, second only to Singapore in Asia, as the language is the medium of instruction at school and work. 

English is the Official Language of the Philippines

Besides Filipino, English is the primary language used by Pinoys. This is a holdover from when the US colonized the country and developed the educational system still in use today.

Wages, Cost, and Pricing

Besides their language proficiency, offshoring your staffing needs to Pinoys is also more economical. Here’s why:

You’ll Save a Lot of Money

One of the most appealing reasons why many Aussie companies outsource is avoiding the various expenses involved in hiring an in-house employee. When your subcontractors work remotely, you don’t need to spend on new equipment, utility costs in the office, and other overhead costs.

Labor Costs Are Favourable

Since PH has a lower cost of living than AU and because AUD go much farther here, you can save on costs while still paying your remote contractors a competitive salary.

Here’s an Example

The average pricing range for a regular accountant in AU is about AUD 5,357 per month. A  Pinoy remote contractor’s average monthly rate is AUD 2,047.73 to AUD 3,070.46.

Salary Savings Compound!

The more tasks you outsource to Pinoy remote contractors, the more you save over time. You can then divert the amount you saved from offshoring to other vital activities to help grow your business. For example, you can use the extra money to further strengthen your company’s brand or expand your product line.

Highly Skilled Workforce

Besides the lower labor costs, Pinoy remote contractors are also highly skilled workers. Companies like Remote Staff require applicants to have a university degree, ensuring their contractors are usually fully-qualified in their field.

So when you hire one to help you manage your company’s ecommerce and digital marketing campaigns, for example, you can be sure the person you hire is more than qualified for the job.

Flexible Workforce

In today’s rapidly changing business environment, you need a workforce that can help your company adapt to these changes. So, why not outsource to Pinoy remote contractors instead of hiring in-house?

Besides being proficient in English, hiring Pinoy remote contractors enables you to tap into specialized skills that may not be readily available in your city, town, or country.

24/7 Staffing – Timezone Neutral

Another benefit of offshoring Pinoy remote contractors is that time will no longer be a constraint for your business.

Since they’re highly skilled and willing to work a graveyard shift, they can be relied upon to help you provide high-quality customer service 24/7.

Access to Technology

Besides having easy access to the internet, most Filipinos are also tech-savvy and know their way around computers and other new forms of technology. And it’s only gotten better as the government continues to support the digital sector.

In addition, Pinoy remote contractors have access to advanced tools, apps, and software that you may not have, which can improve your business processes. 

Great Industry Track Record

Since its beginnings in 1992, the BPO industry in the country has provided high-quality talent to foreign companies for over 25 years. 

The industry has since experienced a ten-fold growth in revenue and consistently ranks close to the top when delivering quality service across the globe.

Track Record of the BPO Industry

Today, the BPO industry contributes almost USD 30 billion to the Philippine economy. It also employed an estimated 1.3 million Filipinos in 2019.

As early as 2005, the industry contributed 2.4% to the country’s Gross Domestic Product (GDP) when it gained +3% of the global BPO market from outsourcing call centres. 

Overall Availability

Since some subcontractors prefer to work the graveyard shift, your business can provide 24/7 customer service. This allows you to service even more customers so you can grow your revenues further.

Legal Exemptions and Government Support

Since it plays a vital role in the current Philippine economy, the Philippine government offers steadfast support to the industry. There are many laws and incentives that entice companies to outsource their business needs to the country.

Reduced Legal Liabilities and Management Issues

When you hire in-house staff, you have to deal with the legal requirements and liabilities that come with getting one, such as requiring you to provide a place and equipment they need for work and covering their government contributions. 

However, offshoring enables you to circumvent these, because the legal risks and responsibilities are entirely on the outsourcing company

Data Security and Privacy

A common concern for many companies is that offshoring can lead to data leaks and other security concerns. Fortunately, the country has several laws in place for these, such as the Data Privacy Act. 

In addition, outsourcing companies use sophisticated security networks and systems to protect sensitive client data.

Better Quality of Life

Outsourcing your business needs allows you to reduce labor costs and tap into specialized skills that may not be readily available in your area. 

These enable you to focus on running your business more efficiently while improving your work-life balance.

Cultural Compatibility

Being a former colony of Spain and the US, PH is no stranger to Western culture. This can greatly minimize the likelihood of culture shock and misunderstandings, thus smoothing over a working relationship.

Good Economic Growth

Even before the pandemic, the outsourcing industry has already contributed to the growth of the Philippine economy. Today, its contributions have only grown, as it contributes nearly USD 30 Billion to the Philippine economy yearly and has helped multiple Australian SMEs grow and achieve their business goals.

Is Outsourcing Good for the Philippines?

Yes, outsourcing provides a stable income for countless Pinoys, and the BPO industry contributes to the country’s economic growth.

The Role of BPO in the Filipino Economy

The Business Process Outsourcing industry is one of the fastest-growing industries in the Philippines, employing more than a million Pinoys today. The country also holds an estimated 10-15% of the global market, contributing nearly USD 30 billion yearly to the industry.

Filipinos are Naturally Friendly

One reason why PH is popular for offshoring is because Pinoys value harmony and collaboration in the workplace, which makes for smoother work relationships.

Filipinos are Open and Adaptable to Change

Besides being friendly, Pinoy remote contractors can also rapidly adjust to diverse teams and can quickly pick up new skills on the job.

Fringe Benefits

One overlooked benefit of outsourcing is it enables you to try out new work setups. 

One example is the “follow the sun” strategy. Here, after your in-house team finishes the day shift, your offshore team can take over, ensuring continuous customer service.

Did You Know That Filipinos Are Very Hardworking?

Filipinos are committed and diligent and strive to produce quality work on time. Many distributed teams have a Pinoy or two working in key positions and providing significant contributions.

How Much Does it Cost to Outsource to the Philippines?

How Much Does it Cost to Outsource to the Philippines

If you’re considering outsourcing to PH, expect to spend around AUD 25 to AUD 49/hour or AUD 735.62 – AUD 2206.86 per month. 

Note that these rates can change depending on the tasks you require and the candidate’s skills and experience.

Salary Rates for Hiring Virtual Staff in the Philippines

The salary rates depend on what role you need them to fulfill. For example, the monthly salary range for a regular virtual personal assistant is from AUD 397.38 to AUD 1059.67, depending on their experience.

Part-time Workers Generally Get 50% of the Above Indicative Monthly Salary Rates

Since they don’t work regular shifts, part-time remote contractors only get half of a regular remote contractor’s salary. 

So if the tasks you’re outsourcing could be done in a few hours, it may be wiser to hire a part-time contractor.

Challenges With Outsourcing to the Philippines

Challenges With Outsourcing to the Philippines

Some common difficulties Aussie companies face when offshoring to PH are the lack of a steady internet connection in the more rural areas of the country, unexpected disruptions such as typhoons and other natural disasters, and the lack of control over your business processes.

Most Common Outsourced Services Availed in the Philippines

Most Common Outsourced Services Availed in the Philippines

So, what kind of tasks are usually outsourced by Aussie businesses to Philippine remote contractors? Here are some of them:

Customer Services

With their warm and friendly dispositions, Pinoys excel at customer service. Due to their familiarity with Western culture and service-oriented mindset, they can provide both efficient and hospitable service for a memorable experience.

Technical Support

Another area where Pinoy remote contractors excel at is technical support. Their strong communication and problem-solving skills allow them to provide accurate and detailed diagnoses while successfully resolving your client’s technical difficulties.

Sales and Lead Generation

Having a skilled and experienced remote contractor handle your sales and lead generation can help your brand reach a broader audience.

Digital Marketing

In today’s digital age, the success of your business often depends on how effective your online marketing campaigns are. 

Outsourcing allows you to tap into the expertise of experienced Pinoy digital marketers to boost your company’s social media presence and ecommerce sales.

Back Office

Offshoring your back office tasks to Philippine remote contractors enables you and your in-house team to focus on more crucial business processes and really grow your bottomline.

IT and Software Development

Instead of spending more money on an in-house IT and software developer, why not outsource? 

Not only are Filipino remote contractors just as good (if not better), but their labor costs are lower than an in-house employee’s.

Creatives and Design

Another area where you’ll save more when you outsource to Philippine remote contractors is in the creatives and design department. 

This gives you access to highly talented Pinoy artists and designers and allows you to quickly scale your team more sustainably.

The Difference Between a Virtual Assistant and a Virtual Staff

The Difference Between a Virtual Assistant and a Virtual Staff

A virtual assistant is an independent contractor providing administrative, technical, and/or creative assistance to a client or office from afar. 

On the other hand, a virtual staff is an employed member of your team who works remotely from the office, using online means to accomplish their tasks and communicate with you.

The main difference is that a virtual assistant doesn’t become a part of your company’s payroll or benefits plan. They’re paid based on how much time they’ve spent on their client’s tasks and what kind of work they’ve achieved.

Key Things to Remember When You Hire Your First Virtual Staff in the Philippines

When hiring your first virtual staff, ensure you have clear objectives and goals. The next step is interviewing and assessing your applicants to determine the best fit for your company’s needs and budget.

After hiring suitable candidates, regularly communicate with them and set your expectations about their deliverables as early as possible. Take time to provide the necessary training to your virtual staff as well, and it helps to have a monitoring system to track your employees’ progress.

Hiring Part-time Vs. Full-time Vs. Freelancers: The Philippines Outsourcing Dilemma

Now that you’ve decided to outsource to Philippine remote contractors, determine whether you need a part-timer, a regular employee, or a freelancer. 

To help you decide, here are some things to consider:

Hiring Part-time Virtual Staff:

If you’re looking for an in-house employee to get some tasks that won’t take an entire day to complete, consider part-time remote contractors. 

Unlike regular employees who work eight-hour shifts, part-timers are a more affordable option.

The Side Hustler Entrepreneur

Since they’re not working a regular shift for you, many part-time remote contractors also have other side jobs or even businesses. This setup enables them to gain more income while providing them with a safety net.

Advantages

Hiring a part-time remote contractor is a more cost-effective solution because they give you greater staffing flexibility and access to a broader talent pool at a lower cost.

Disadvantages

However, hiring a part-time remote contractor means less face time with them, so every minute counts. 

So, if you need to assign more tasks, you may have to wait until tomorrow or their next shift to get results.

Hiring Full-time Virtual Staff in the Philippines

Hiring a regular virtual staff is much more stable than hiring a part-timer or freelancer since they’re always present during working hours.

Who Will Benefit From Having Full-time Virtual Assistants or Remote Staff in the Philippines?

Clients like you will benefit the most from outsourcing to a Pinoy remote contractor. Here’s how:

Advantages

Regular employees offer much more stability and are more likely to stay with you longer than part-timers or freelancers. 

It’ll also be easier to schedule meetings with them as they’re readily available during business hours, and with the right training, they could definitely turn out to be a great asset for your team. 

Disadvantages

While hiring a Regular remote contractor has a lot of advantages, you will likely have to provide employee benefits such as health insurance and paid leaves. 

In addition, regular employees need to be paid a fixed wage, even if your company’s going through a slow season. You’re also responsible for training and upskilling regular staff.

Freelancers (Project-based)

For companies that need specific skills or additional labor for a seasonal period, there are project-based freelancers.

Advantages

Hiring project-based freelancers can give you access to the right talents and skills as needed. They’re also much cheaper than hiring part-time or regular workers.

Disadvantages

Sometimes, the difficulty of finding qualified individuals, particularly in the IT field, can stall your company’s projects. Additionally, the high turnover of staff can affect the morale and productivity of your other workers.

And unlike hiring part-timers or regulars through vetted agencies like Remote Staff, there’s no assurance that your freelancer will do their job well. And if they fail to deliver on their end and skip out on the job, chasring after them online is next to impossible.

Outsourcing to the Philippines vs. Outsourcing to Latin America

Outsourcing to the Philippines vs. Outsourcing to Latin America

One of the main advantages of outsourcing to Philippine remote contractors compared to Latin American remote contractors is that the former is more proficient in English than the latter. 

Another major difference is time zone: the time difference between the Philippines and AU is much smaller than the ones in Latin American countries.

How It Works

If you’re new to the whole outsourcing process, here’s a step-by-step guide on how Remote Staff can make it easier for you:

The Brief

After inquiring via Remote Staff’s website, a Remote Staff lead recruiter will get in touch with you for a discovery call. They’ll discuss the role you need, the job requirements and description, and other considerations.

Recruitment and Selection

After discussing your needs, our lead recruiters will post a job order (JO) to endorse your request to our recruitment operations for headhunting, screening, and processing potential candidates.

Once they’ve found suitable candidates, your assigned lead recruiter will contact you and help you set up interviews. If you don’t find any of the shortlisted ones suitable, Remote Staff will repeat the process until you find the right candidate.

Once you find one that suits your needs, Remote Staff will draft a contract finalizing the arrangement for you to sign.

Start Date Provided

Once all the paperwork is finished, your designated Lead Account Officer will finalize and coordinate your remote talent’s starting date with your input. 

Induction

Before your remote contractor can start working with you, you must establish some rules and job expectations. For this purpose, Remote Staff will schedule an orientation with you and your remote contractor.

This is also the part where RS will discuss procedures for how you can contact us in case of any issues with your remote contractor and our other services.

Training and Handover

Once you’ve finished your orientation, Remote Staff will formally hand them over to you so you can start working together. 

Ongoing Support

Remote Staff’s assistance doesn’t end after you formally onboard your remote contractor. We will continue supporting you and your remote contractor via a dedicated Lead Accounts Officer to help you build a fulfilling and long-lasting working relationship with them.

What Companies in Australia Outsource to the Philippines?

What Companies in Australia Outsource to the Philippines

Curious to know which Australian companies are now outsourcing Philippine remote contractors? Here are some of them:

Canva

Canva is an online graphic design platform allowing users to create visual content for any digital platform. It was founded in 2012 in Surry Hills, AU, and was one of the most successful startups from that year.

In 2014, Canva started outsourcing its graphic design, customer service, and back office operations to Philippines remote contractors. What began as a 6-man outsourced team grew to almost 60 Pinoy graphic designers today.

Telstra

Even AU’s largest telecommunications company, Telstra Corporation Limited or Telstra, has been outsourcing to Philippine remote contractors since 2014. 

They chose the country due to its reputation for outstanding customer service and being a market leader in voice-related services.

Star News Group

Based in Pakenham, Victoria, the family-owned Star News Group is known for producing various content in different media formats. 

It’s also another company that outsources its writers from the Philippines due to their reputation for producing quality content from a technical and creative perspective.

Optus

Another large telecommunications company in AU that outsources Philippine remote contractors is Optus. They set up “microsites,” which are call centers in the country, to support their operations. 

Optus and other big corporations often set up their offices in other countries to avail of the lower cost of operations and labour there.

Vodafone

The second largest telecommunications company in AU, Vodafone Hutchison Australia (VHA), is another company that outsources their business needs to Philippine remote contractors

They’ve since transferred their customer service operations, along with some technical and non-technical roles, to the country.

Why Choose Remote Staff?

Why Choose Remote Staff

If you’re looking for an outsourcing company to help you find the right remote contractors for your business, look no further than Remote Staff. 

Here are some reasons why we’re the go-to outsourcing company for many Aussie Businesses:

Australia’s Trusted Outsourcing Provider in the Philippines

For 15 years, Remote Staff has provided many Aussie businesses with quality Filipino remote contractors.

Our extensive experience with outsourcing enables us to match you with the best talents for your business.

Outsourcing to the Philippines Made Easy

When you outsource via Remote Staff, you no longer have to go through a lengthy process of trial and error to find the right remote talent for your business.

Aside from taking care of the legwork, we’ll also handle your remote contractor’s payroll and mandatory contributions for compliance with Philippine regulations.

All you’ll have to do is pick the most suitable talent for you from our shortlist, and you can get started right away.

Empower Your Organisation Through Filipino Service

Through Remote Staff, you’ll gain access to Pinoy remote contractors famed for their competence and hospitality – giving you an advantage over your competitors and thus bringing your business to new heights.

Your Outsourced Team in the Philippines

Want to know more about our dedicated, experienced, and 100% Pinoy in-house team and remote contractors? Here’s what you need to know:

Exceptional Staff

As one of AU’s leading outsourcing companies, Remote Staff gives you access to a vast selection of talented remote contractors and matches you with the appropriate one for your needs.

Working Area and Equipment

Remote Staff requires its remote contractors to provide their own work equipment, specifically their own desktop computers or laptops, along with a stable internet connection.

Quality Assured

Remote Staff puts all candidates through an extensive pre-qualifying process to ensure that only the most qualified make it to the shortlist.

Expert Support

Our in-house team is trained and experienced to provide you with prompt and effective support should any concerns arise.

Improve Staff Satisfaction

Our support doesn’t end once you’re matched with the appropriate remote contractor. 

With our in-house team’s expertise in bridging the cultural gap between you and your remote contractor, we can provide advice and support to help boost employee satisfaction – so you can hold on to the best remote talent for longer. 

The Story So Far

For 15 years and counting, we’ve been providing AU companies with indispensable remote talent. However, we’ve recently expanded our services to the US; and have also presented such at the recently-finished New York Expo.

In addition, we’ve partnered with the monitoring software Teramind to provide you with an effective way to track staff productivity – even from a continent away.

Exploring Your Options For Building a Virtual Team in the Philippines

Exploring Your Options For Building a Virtual Team in the Philippines

There are many ways to build your PH virtual staff

First, there’s through directly hiring a remote contractor by posting an online job opening. 

Then there’s the option of using an outsourcing platform like Upwork or GURU to find remote contractors. 

Finally, there are companies that can help you look for suitable remote contractors.

No matter what method you choose, it’s always better to hire through a trusted company to ensure a smooth working relationship – and to avoid any hidden fees in the process. 

Companies like Remote Staff ensure that not only will you get the best talent for your needs, but also retain them.

Ready to Outsource Your Staff?

If you’re ready to experience the benefits of outsourcing, schedule a callback with one of our Lead Recruiters to get started.

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