Why You Might Want To Consider Philippine IT Outsourcing

Discover why the Philippines is an ideal destination for IT outsourcing. Benefit from exceptional services, skilled professionals, and reliable IT support to keep your operations running smoothly in the digital era.
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Written by Allie Delos Santos

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Digital technologies are growing in importance for businesses of all sizes. Companies are under pressure to use and provide exceptional information technology (IT) services. Many choose to handle IT by hiring an offshoring provider in the Philippines.

Organizations across different industries rely on IT services in some way. Operations come to a standstill when the IT infrastructure is out of order. Hence, your choice of IT support is critical.  

This blog discusses why you should consider the Philippines for IT outsourcing.

Why You Should Consider Philippine IT Outsourcing

The Philippines has been a top choice for foreign clients looking for IT outsourcing services in the past few years. 

Filipinos have the perfect blend of qualities that companies across the globe want in a worker: service-oriented, friendly, and courteous. Over a million Filipinos work in the business process outsourcing (BPO) industry, providing quality service.

One of the solutions that businesses outsource to the Philippines is IT. The country is home to countless IT professionals, from programmers to computer engineers, who can work with customers worldwide. 

Here are reasons to consider outsourcing your IT functions to the Philippines:

Tap Into Workers With Impeccable English Skills

One of the most pivotal aspects of any function is clear communication. IT technicians should be able to understand the user’s needs and offer a straightforward and concise solution. If the technician’s English skills are not up to par, the chances of miscommunication are higher, which leads to frustration and dissatisfaction for the end user.

The highly educated Filipino workers in the BPO industry can comprehend, read, write, and speak fluent English. Filipino IT teams can converse with users, whether they be from the U.S., the UK, Australia, or other English-speaking countries. 

Filipino technicians can confidently troubleshoot systems and use technical terms fluently and correctly.

Concentrate on System Security

One of the biggest concerns among businesses is the privacy of confidential and sensitive information. According to inVerita, 70% of companies are not prepared for cyberattacks. Unpreparedness might be caused by an underlying problem: the need for more expertise and talent in cybersecurity functions.

Data from Cybersecurity Ventures shows that the cost of cybercrime is expected to hit $8 trillion in 2023. As security continues to be a critical problem, businesses are looking for cybersecurity experts who are cost-effective and proficient in asset monitoring.

The Philippine government has been keen on cybersecurity. They enacted the Data Privacy Act of 2012 to ensure compliance with international standards. Outsourcing IT to the Philippines proved successful for organizations aiming to implement more diligence when handling internal data.

Improve Strategic Collaboration and Partnership

When an organization outsources to gain support, it usually assigns smaller projects and simpler tasks to a third party. This gives the company a better idea of how the service provider works and if the latter can deliver quality as required. 

Some companies outsource to multiple service providers for different functions. However, the trend in the IT field is to prefer strategic partnerships with one vendor that manages larger projects with various needs.

A strategic collaboration between in-house and third-party teams minimizes the risk of working with multiple service providers. Partnering with multiple third parties with vastly different ways of working can lead to a disconnect. On the other hand, a strategic partnership gives both parties a chance to act as true partners, ensuring their long-term visions align.

Remain Proactive Than Reactive

In-house IT teams tend to be more reactive than proactive when handling issues that arise throughout the workday. Although reactiveness depends on the size and nature of your business, it makes sense because in-house technicians are always at your beck and call, willing and ready to help staff troubleshoot computer problems through a phone call.

If the in-house technician works on-site, they might be compelled to go to the location of the problem, fix it, and provide consultation. This consumes a significant portion of the workday, reducing their time to work on forward-thinking, expansive projects.

With technical support outsourcing, companies work with an external service provider who monitors assets 24/7. The third-party team detects potential problems and resolves them before they turn into big complications. They also design new processes that align with your needs, preventing downtime, maximizing efficiency, and reducing lost revenue.

Gain Scalable Support for Small Organizations

Outsourcing IT to the Philippines is an excellent option for small and mid-sized enterprises (SMEs). The flow of IT tasks comes in waves. The demand for service is high on some days and low on others.

Therefore, keeping an in-house IT team does not make sense for SMEs; there might not be a steady flow of tasks for the technicians. Engaging an offshore provider in the Philippines lets you scale the service depending on your needs. You can increase or reduce IT capacity based on demand, which lets you access reliable support when needed.

Get Quality Professionals for Less

Building an in-house IT team is not easy. It drains money, effort, and time from the business resources. When in-house, you must invest in expensive IT infrastructure, hire and train candidates, and worry about retention.

Outsourcing this function to the Philippines gives you access to talented Filipino workers who have built their careers in the IT field, minus the expensive labor costs. These technicians have invaluable knowledge and insights they have acquired through experience. They can help you manage IT functions to deliver an excellent experience to your users.

Access Above-average Customer Service

You can guarantee Filipino technicians can meet or even exceed your IT support standards when outsourcing to the Philippines. The country is well known as one of the most hospitable nations in the world. Filipinos have an innate desire to help others, making them great for service-oriented roles.

No matter how advanced or complex the issue is, teams providing IT support services in the Philippines can provide unparalleled solutions to your users, leading to more positive experiences and higher efficiency.

Gain Stability

Another reason to consider Philippine IT outsourcing is the national government’s strong support for the industry. BPO workers receive training opportunities from their companies and the government to meet the rising demand for their profession. Outsourcing to the Philippines offers you peace of mind that your infrastructure is in the right hands.

Outsourcing also comes with less risk because you do not need to invest heavily in network servers and other costly IT equipment. The risk is lower than when handling a business process in-house, where you support your IT team.

Cost of IT Outsourcing to the Philippines vs. Other Countries

Reduced overhead costs often encourage businesses to choose Philippine IT outsourcing. It is no surprise that back-office outsourcing services are more affordable offshore.

We gathered the average salaries of programmers for various programming languages in the Philippines. We compared that to in-house costs and the costs from other outsourcing destinations.

Programing LanguagePhilippinesIndiaU.S.
Python$14,985.86$10,021.24$112,130
C/C++$13,646.79$10771.04$117,739
C#$11,761.24$9146.56$112,344
Java$13,080.51$12,078.53$109,534
JavaScript$11,011.16$8,079.04$108,344
PHP$9,232.54$4,245.74$87,969

Whether it be IT or data entry services, outsourcing to the Philippines is a more affordable option.

Sample Computation of Outsourced IT in the Philippines

If you plan to outsource tech solutions, your service provider must check all the right boxes. Moreover, you should analyze the cost to see your potential savings. Outsourcing makes sense only if you are saving money and resources.

When doing a cost analysis, calculate the total in-house expenses. Then find the total cost of outsourcing. The final step is subtracting the total cost of outsourcing from the in-house expenses.

If the difference shows that outsourcing significantly reduces costs, you can justify proceeding with the strategy. 

Here is a sample cost analysis for Philippine IT outsourcing vs. keeping the business function in-house. 

In-house Costs

  • Salaries: $340,000
  • Supplies: $70,000
  • Furniture/equipment: $100,000
  • Utilities: $30,000
  • Rent $200,000

Total in-house costs: $740,000

Outsourcing Costs

  • Contractor bid price: $250,000
  • Contract administration: $20,000
  • Transition costs: $35,000

Total cost of outsourcing: $305,000

Total Savings

  • Total in-house costs: $740,000
  • Total outsourcing costs: $305,000

Total savings: $435,000

The Bottom Line

Outsourcing your IT functions helps you attain success. Whether running a small or large business, engaging specialized expertise that improves processes for greater efficiency and supports day-to-day operations delivers results that get you one step closer to your goals.

Your business stands to benefit from offshoring to the Philippines, whether you need a contact center as a service (CCaaS), website development, or IT outsourcing solutions. You not only enjoy financial benefits from affordable rates, but you also tap into a pool of capable and talented individuals.

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