Benefits of Outsourcing IT Staff to the Philippines

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Outsourcing your IT staff to the Philippines has many benefits, including lower costs for offshore workers who are skilled in Microsoft Windows System, maintaining windows devices, help desk support, or creating advanced website designs.

Benefits of Outsourcing IT Staff to the Philippines

One of the most beneficial aspects of outsourcing your tech staff has to offer is the ability to hire talented workers. Despite high costs (the average tech worker in the Philippines makes $2,500 AUD), you can still expect between an 80 percent and 95 percent reduction in cost. With this much savings, you will not only be able to keep the quality of your tech support but also invest back into your company to grow at a higher pace.

Canva, one of the most successful start-up australian companies, was founded in Australia, by Melanie Perkins, together with Cliff Obrecht and Cameron Adams. The company was built last 2012 and In its first year alone, this graphic design platform acquired a whooping 750,000 users. Outsourcing these tasks requires fewer resources, brings heavily-reduced communication conflicts, and allows a firm to focus primarily on its development efforts.

There are many benefits to outsourcing IT staff to the Philippines. It saves money and is easy for them to receive a work visa, allowing them to arrive in a short period of time. The more manpower that a business has the more product they can produce. For example, outsourcing one person saved a company on labor alone, while eight employees were made possible because of this greater workforce.

What does “virtual” technology mean?

Almost every company has outsourced computing or data centers to outsource their technical jobs to the Philippines. Manila is an important hub for outsourcing such as this. Outsourcing IT staff can be complicated because it’s not just about finding people to take your role, but also how much you’re willing to pay and what kind of benefits they will receive.

Businesses are increasingly looking for lower-cost alternatives to traditional office setups. The world of technology does not exist in a bubble, though. When you choose to outsource your IT staffing overseas, make sure that the company you are working with is based in the United States or has connections domestically.

Pros and Cons of Outsourcing your IT Team, and How it can benefit you.

Outsourcing your IT Team is a smart choice for many businesses, especially in the current economy. Outsourcing is not free; but it has many benefits such as decreased IT costs and improved efficiency among other things. It can also provide new opportunities like better profits and increased competitive advantage.

This outsourcing can be a struggle for companies, as management and oversight is ‘diluted’. Because of this struggle between deadline delivery and long-term security/benefits, many companies choose to establish a fully-staffed IT department.

Why hire a virtual team in the Philippines?

One example is when you need a software engineer from the Philippines to work on a project for your company. Utilizing a team in the Philippines can be much more beneficial for outsourcing because they can offer custom software development services, which provide room for customizations. Additionally, outsourcing a team allows you to lower your overhead costs and increase revenue.

One of the biggest and most appealing reasons some companies use for outsourcing IT to the Philippines is its low cost and comparable skill level. It also doesn’t hurt that some countries in the Philippines have lower labor regulations than USA. As a result there can be greater numbers of qualified people available for less pay.

Outsourcing your IT team to the Philippines is the easiest way to stay competitive in today’s fast-paced online world. Our skilled Filipino staff deliver top quality work, 24/7 support, and innovative ideas. In addition to these advantages, contract employees from abroad will be able to strengthen your brand as a local business.

Cost savings of Virtual Technology over a regular location

A study done on the cost of sending IT staff to local facilities versus outsourcing on Virtual Technology has shown that it can provide an annual cost savings of 65% on major infrastructures. There are some limitations- the facilities must allow Virtual Technology students, and presence must be agreed to in advance.

IT outsourcing has the benefit of providing the newest technologies without interrupting your location business. With virtual technology, you do not have to worry about relocation fees or taxes that are incurred by using a regular location. Sometimes it is simply too expensive to relocate IT resources away from an operational base.

The Philippines offers an ideal place for IT outsourcing, with low costs of living and many IT-related opportunities. Outsourcing to the Philippines does not only save company on overhead but can also enhance productivity levels due to outsourcing services like data storage and business process optimization.

Compare a typical Philippine IT infrastructure to US infrastructure

Outsourcing IT services to the Philippines is a great decision. A common argument used in why outsourcing companies should go there is the expectation of cheaper labor rates in the countries, which are generally lower than American standards. But when comparing to each other, International Business Machines Corporation provides IT staffing services at around 2.6 times more expensive rates in China.

When outsourcing from the US to a low-cost destination, typically only a small percentage of the costs are paid by corporate. This means that because of the tax treaty, your corporate rate stays low and negative search costs for IT staff no longer exist. By leveraging a consulate or completely going offshore, you can save on your IT frontline frontline.

The Philippines is a beautiful country located in Southeast Asia. One of the top per capita vendors in the US when it comes to IT is outsourcing with 21% of IT jobs being outsourced. I would compare their infrastructure to that of themselves per capita or to what they are outsourcing per capita to the US.

References used

Outsourcing employees from other countries to take care of IT activities has been a hot topic lately, plus the benefits have been known for quite some time. A new study found that companies can save up to 15% on their IT expenses simply by hiring employees in the Philippines. If you are like many businesses, outsourcing is already an option you are already considering or will consider in the future.

With 24×7 Direct, you can systematise your business processes and have them completed by an experienced offshore team. We use our years of expertise in offshore staffing to hire the best virtual staffing who can get your business tasks completed in the most affordable and efficient way possible.  Still wondering how we can help with your business process outsourcing needs? Give us a call on 03 9014 1414 and talk to us now!