Outsourcing has become a popular way for businesses to cut costs and increase efficiency. Two countries that have emerged as popular outsourcing destinations are India and the Philippines. While both countries offer a range of benefits, there are some key differences between outsourcing to India and the Philippines that businesses should consider before making a decision.
CostsOne of the primary reasons businesses outsource is to reduce costs, and both India and the Philippines offer cost savings of around 70% compared to Western countries. The cost of outsourcing to India and the Philippines can vary depending on factors such as the type of work being outsourced, the level of expertise required, and the location of the service provider.
Keeping that in mind, see below some general costs for some popular roles in both countries according to Payscale and Glassdoor in 2023:
Software Engineer:India: Average salary Glassdoor US$9,178, Payscale $7,126Philippines: Average salary Glassdoor US$9,883, Payscale $5,301
Accountant:India: Average salary Glassdoor US$3,424, Payscale $5,603Philippines: Average salary Glassdoor US$7,602, Payscale $6,217
Customer Service Representative:India: Average salary Glassdoor US$6,118, Payscale $3,399Philippines: Average salary Glassdoor US$4,344, Payscale $3,326
Language and CommunicationAnother important factor to consider when outsourcing is language and communication. India has a large English-speaking population, and many Indian workers have been educated in English. This means that communication is generally good when outsourcing to India. However, there are many different accents and dialects in India, which can sometimes make communication challenging.
In contrast, English is an official language in the Philippines, and most Filipinos are fluent in English. This makes communication easier when outsourcing to the Philippines, and also reduces the risk of misunderstandings due to language barriers.
According to the […]