Our unique recruitment process has been paramount to our offshore staffing success and how we’ve become a leading Philippines Staff Outsourcing provider.
Our unique recruitment process has been paramount to our offshore staffing success and how we’ve become a leading Philippines Staff Outsourcing provider.
The Ultimate Guide to IT Outsourcing (and Why the Philippines Leads the Way)
The global IT skills shortage has reached critical levels, and it continues to intensify. Across Australia, the United States, and the United Kingdom, technology leaders struggle with prolonged vacancies, escalating salary demands, and fierce competition for top-tier talent. Case in point: the global talent shortage could cost businesses up to US$8.5 trillion in lost revenue annually by 2030, highlighting the need for new talent strategies.
To stay competitive, forward-thinking businesses are shifting their hiring models. Many now build dedicated offshore IT teams to access skilled professionals, reduce overheads, and accelerate growth.
What is offshore IT outsourcing?
Offshore IT outsourcing means engaging skilled professionals overseas to perform key IT roles. Instead of recruiting locally, you build a remote team that supports core functions such as software development, cybersecurity, and data analytics.
This model helps you:
Access specialized talent beyond your local market
Scale your workforce flexibly
Reduce costs without sacrificing quality
Deliver services faster and around the clock.
When you manage your offshore team well, they become a seamless part of your organization.
Key benefits of building a dedicated offshore IT team
A dedicated offshore IT team delivers long-term value. Here’s why more companies choose this approach:
Close talent gaps by hiring qualified professionals from larger global pools.
Scale operations quickly in response to business demand.
Cut staffing costs by up to 75%.
Extend support hours and improve service delivery.
Increase speed-to-market with a high-performing, cost-effective team.
In-demand IT roles you can outsource
From infrastructure to innovation, a wide range of IT functions are well-suited to offshore delivery. Common roles include:
Software developers (web, mobile, full-stack)
Design, build, and maintain applications across platforms, from responsive websites to native mobile apps and complex end-to-end systems. These developers bring digital products to life and keep them running efficiently.
QA engineers and testers
Ensure software reliability through rigorous testing and quality assurance. They identify bugs, validate functionality, and help deliver seamless user experiences with minimal downtime or disruption.
Systems and network engineers
Manage and optimize your IT infrastructure. These engineers configure, monitor, and maintain networks and servers to ensure system availability, performance, and security across your organization.
DevOps and cloud engineers
Bridge the gap between development and operations by automating workflows and deploying cloud-native solutions. They streamline software delivery, improve scalability, and reduce time to market.
Cybersecurity specialists
Protect systems, data, and users from cyber threats. These professionals assess risks, implement security measures, and respond to incidents, keeping your digital assets safe and compliant.
Data scientists and business intelligence (BI) analysts
Turn raw data into strategic insights. Data scientists build models and predictive analytics, while BI analysts interpret trends and performance metrics to support data-driven decision-making.
IT architects and database administrators
Design robust technology frameworks and manage the integrity of your data. IT architects develop scalable systems aligned with business goals, while DBAs ensure databases remain secure, efficient, and accessible.
Start by identifying your most critical roles. Then scale your team as your needs evolve.
Why the Philippines leads in IT outsourcing
The Philippines continues to lead as a top IT offshoring destination, and for a good reason.
Globally recognized for offshore excellence
The Philippines has earned international recognition as a leading outsourcing hub. It has received the Offshoring Destination of the Year award three times from the Global Sourcing Association (UK), highlighting its reputation for delivering quality, reliability, and scalability in IT outsourcing services.
More than just cost savings
Many businesses initially explore IT outsourcing in the Philippines for its cost advantages. However, they quickly discover that the value extends far beyond pricing. Filipino IT professionals deliver exceptional outcomes at competitive rates, without compromising capability, expertise, or innovation.
Trusted by global markets
Enterprises across Australia, North America, and the UK continue to build long-term relationships with providers offering IT outsourcing services in the Philippines. These businesses value the country’s strong service culture, technical proficiency, and close alignment with Western work practices.
A rapidly growing talent pipeline
Each year, more than 80,000 IT graduates enter the Philippine workforce. Projections show that by 2028, 2.5 million professionals will work in IT and business process management, marking a 47% growth from 2023. This ensures a sustainable supply of skilled talent for all areas of information technology outsourcing.
English fluency and cultural alignment
English is widely spoken and one of the Philippines’ official languages, and the standard in business. This fluency, combined with strong cultural alignment, makes collaboration seamless across time zones and geographies.
Salary comparisons across markets
Cost is one of the most compelling drivers of offshore IT staffing. Companies hiring in the Philippines can realize significant savings compared to sourcing talent locally.
Job role
The United States (US) annual salary (USD) 1,2
Philippines’ annual salary (USD) 1,3
Cost saving p.a ($)
Cost saving (%)
Database Administrator
$110,000
$13,000
$97,000
88.2%
Data Scientist
$115,000
$13,000
$102,000
88.7%
IT Architect
$110,000
$19,000
$91,000
82.7%
IT Security Analyst
$120,000
$11,000
$109,000
90.8%
Software Developer
$133,000
$13,000
$124,000
93.2%
QA Tester
$106,000
$9,000
$97,000
91.5%
Web Developer
$88,000
$9,000
$79,000
89.8%
Table 1. Salary comparison between the US and the Philippines. 1 Salaries represented in United States Dollars, rounded to the nearest $1,000 2U.S. Bureau of Labor Statistics (2022) 3Indeed (2024)
Job role
Australian annual salary (AUD) 1,2
Philippines’ annual salary (AUD) 1,3
Cost saving p.a ($)
Cost saving (%)
Business Intelligence Analyst
$136,000
$20,000
$116,000
85.3%
Database Administrator
$141,000
$20,000
$121,000
85.8%
Data Scientist
$148,000
$19,000
$129,000
87.2%
Full-stack Developer
$143,000
$20,000
$123,000
86%
Software Developer
$159,000
$20,000
$139,000
87.4%
DevOps Engineer
$188,000
$29,000
$159,000
84.6%
Network Engineer
$137,000
$14,000
$123,000
89.8%
Table 2. Salary comparison between Australia and the Philippines. 1 Salaries represented in Australian Dollars, rounded to the nearest $1,000 2Hays Salary Guide FY23/24 3Indeed (2024)
Job role
UK annual salary (GBP) 1,2
Philippines’ annual salary (GBP) 1,3
Cost saving p.a ($)
Cost saving (%)
Business Intelligence Analyst
£52,000
£10,000
£42,000
80.8%
Database Administrator
£57,000
£10,000
£47,000
82.5%
Data Scientist
£70,000
£10,000
£60,000
85.7%
Full-stack Developer
£67,000
£10,000
£57,000
85.1%
IT Security Analyst
£54,000
£9,000
£45,000
83.3%
Network Engineer
£62,000
£7,000
£55,000
88.7%
QA Tester
£49,000
£7,000
£42,000
85.7%
Table 3. Salary comparison between the United Kingdom (UK) and the Philippines. 1 Salaries represented in Australian Dollars, rounded to the nearest $1,000 2Robert Half 2024 Salary Guide 3Indeed (2024)
Similar trends apply across the US and UK markets. As you scale your offshore team, the cumulative cost savings become even more significant, without compromising talent quality.
How to maximize the performance of your outsourced IT team
Building a team is only the beginning. High-performing offshore IT teams require intentional management and ongoing support. Consider these best practices:
Deliver a great onboarding experience. Set the tone early with proper orientation, expectations, and relationship-building.
Establish clear KPIs. Define success upfront with quantifiable metrics and responsibilities.
Communicate regularly. Use collaboration tools like Slack, Jira, Zoom, and Microsoft Teams to stay connected and aligned.
Monitor performance. Track productivity, sprint completion, and code quality to assess progress and make data-driven improvements.
Seek feedback continuously. Encourage cross-functional feedback and engage your provider to implement improvements.
A well-managed offshore team will feel like a seamless part of your organization.
Keeping your offshore IT team for the long haul
Retention is just as important offshore as it is onshore. To ensure your team remains engaged and productive:
Foster a culture of inclusion. Recognize individual contributions and promote a sense of belonging.
Invest in training and development. Offer access to ongoing learning to keep skills current and staff motivated.
Support mental health and wellbeing. Wellbeing programs increase productivity and reduce attrition.
Recognize achievement. Regular feedback and rewards encourage high performance and loyalty.
Partnering with a provider that prioritizes culture, engagement, and well-being will significantly increase staff retention and team stability.
Building your outsourced IT team in the Philippines
Outsourcing IT to the Philippines offers clear advantages for growing businesses. You gain access to a highly skilled talent pool, reduce operational costs, and strengthen your capacity to deliver at scale.
When you build a dedicated offshore IT team in the Philippines, you unlock the flexibility to expand, the technical expertise to drive innovation, and the performance required to support sustainable growth.
Now is the right time to assess how IT outsourcing in the Philippines can enhance your delivery model and support your long-term business strategy.
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Outsourced Service Categories
There are hundreds of roles we can recruit for you in the Philippines. Below is a list of some of the most popular roles our client’s request within each industry.
