How Much Does It Cost To Outsource? Unlocking the Savings

Growth-focused companies are increasingly outsourcing key roles and business functions to support their operations. The cost benefits of outsourcing are significant, and now the quality of staff in the Philippines has caught on, demand has been trending upward — by more than 30% per year.  

Outsourcing can help reduce operating expenses by reducing recruitment, payroll, IT and training costs, to name a few, while onshore teams focus on your core business. But the question is, exactly how much can you save by outsourcing to the Philippines? Read on to find out how much it really costs to outsource teams, including outsourcing scenarios. 

Why outsourcing to the Philippines is cost-effective 

It’s common knowledge that sourcing staff from the Philippines brings significant cost savings to a business. But did you know that even the most specialised roles can be outsourced? From high-value sourcing cybersecurity specialists (a key priority, says Deloitte) to financial services professionals, you can fill just about any position with remote Filipino staff. This helps you cut costs while building a strong team enabling better service delivery and business growth.

But what’s less understood is that the Philippines is an ideal destination for sourcing exceptional talent. Filipino professionals are highly educated, fluent in English and hardworking, going over and above to deliver results. Secure a winning team and you’ll save by minimising the costs of rehiring, onboarding, training — the list goes on. 

How much does it cost to outsource to the Philippines?

The short answer is, it depends on the roles you want to hire, where from and the typical salaries in your local area. Below, we describe three common outsourcing scenarios to give you an idea of how much you could save by securing offshore Filipino staff. The larger the outsourced team, the bigger the savings! 

Scenario 1: Outsourcing from the US to the Philippines

Jake works as Head of Finance at rapid-growth fintech company Wiser Wallet headquartered in the US. To contain costs while scaling, Jake and Rosario, their Head of People & Culture, must find reliable, affordable staff willing to work in the Eastern Time Zone. 

The Wiser Wallet team wants to hire:

  • A Software Engineer
  • Two QA Engineers
  • Four Technical Support Specialists
  • A Paralegal

The pair naturally turn to the Philippines. Here’s how much an outsourced team could save them:

Scenario 2: Outsourcing from the UK to the Philippines

Estelle is a HR Manager at a decorated digital marketing agency in London, AlphaCreative. For months, Estelle has attempted to backfill key roles with staff that have the ideal skill sets and a great work ethic. Out of luck, Estelle asks herself, ‘how much does it cost to outsource marketing, anyway?’

She decides to explore the possibility of outsourcing:

  • An SEO Specialist
  • A Graphic Designer
  • An Accountant

Estelle discovers that by outsourcing to the Philippines, AlphaCreative could save tens of thousands of pounds per year: 

Scenario 3: Outsourcing from Australia to the Philippines

Chief Financial Officer Frederic needs to hire more customer service representatives to help his IT Services company Nimbus expand tech support coverage. A shortage of qualified staff in Australia means sourcing staff from the next best place — the Philippines.  

Frederic wants to see the savings of growing the support team with these roles: 

  • Two Customer Service Representatives
  • Two Technical Support Specialists
  • A Help Desk Technician 

He uses the Outsourced Team Builder Calculator, which calculates the cost to outsource IT, and here’s what he finds:

In these hypothetical scenarios, the companies saved 72% of the cost of hiring local staff. But in some cases, the savings can be even greater. 

A shortcut to calculating the cost benefits of outsourcing 

With the Outsourced Team Builder Calculator, it’s quick and easy to find out how much you could save by outsourcing. The calculator estimates the potential savings of hiring Outsourced staff compared to hiring onshore in the US, UK or Australia. Select from dozens of roles across 11 staffing categories to build your ideal team composition and compare the costs of hiring locally. 

Choose any number of roles from these categories:

  • IT
  • Finance
  • Contact Centre 
  • Administration
  • Marketing
  • Creative
  • Education
  • Healthcare
  • Engineering
  • Legal
  • Other professional services

The calculator takes Philippines salaries into account for your selected roles and factors in our fee for managing your full-time outsourced staff. This covers recruitment and other HR practices, payroll, IT and other essential business activities to ensure the smooth running of your outsourced team. 

Try the Outsourced Team Builder Calculator

The cost benefits of outsourcing staff in the Philippines are clear. However, if you also want to hire staff in countries other than the Philippines, Outsourced can help. We build teams in key outsourcing destinations such as India, Malaysia, Vietnam, Columbia and Argentina, in addition to the Philippines, allowing businesses to create a strong outsourced workforce. No matter the destination, you’ll secure an exceptional team sourced from the top 5% of talent in the region.

Want to see the real savings for yourself? Try the Outsourced Team Builder Calculator and start building your outsourced team today. 

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Some of our 250+ happy clients

“I have been working with Outsourced for a few years now and I must say that they have been an invaluable partner for our business. Their dedication, expertise, and professionalism have truly exceeded my expectations.”

"We have been so happy with the people they have brought on board we have decide to expand the operation. This is testament to the flexibility and determination of the Outsourced team who have been more like an extension of our company rather than a 3rd party."

"Outsourced are an extremely professional organisation, easy to to do business with and lightening fast at sorting things out. The staff are super friendly with a 'can do' attitude. They also treat our team very well and we have no complaints (happy productive staff means a happy client)."

"Outsourced have been an enormous support and very patient as we progress down the outsourcing path. They have integrated perfectly into our team and with all interactions with Outsourced staff we have found them to be incredibly helpful and accommodating."

"I want to stress that we have greatly appreciated the services of Outsourced, the service has been exemplary and the work high quality; the staff have been a pleasure to work with. We would like to retain an ongoing relationship with Outsourced."

“Outsourced have a great office space and a great support team who are always willing to help. We were able to pivot quickly and within 6 weeks we were able to start our team. We are very happy with Outsourced.”

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.

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