What are the overall financial benefits of outsourcing to the Philippines?

While cost efficiency is usually the primary driver for UK and Australian businesses to consider outsourcing the Philippines, the total return on investment of taking this step goes far beyond direct employment cost savings. Measuring the full ROI requires factoring in the cost, wider benefits such as increased capacity for local teams and reduced recruitment overheads/time.

In this guide, we take a transparent look at the economics of outsourcing the Philippines. We explain how to build a comprehensive business case that includes both savings and business impacts.

The financial benefits of outsourcing to the Philippines

Employment cost savings of up to 70% most often initiate interest in exploring IT outsourcing companies in the Philippines and / or offshore accounting in the Philippines.

Rising local direct salary costs, rising local taxation rates (such as the UK’s recent National Insurance hike) plus increases in broader ‘costs of employment’ (healthcare provision, office space, IT etc.) reach a tipping point where they negatively impact growth. Your business may be experiencing these challenges, which is why you’re reading this guide!

A pattern we also see is business leaders wishing to respond to competitors that have already reduced their costs through outsourcing to the Philippines. They want to restore their competitive position in their market(s). We can certainly help achieve this for you.

But this isn’t the whole story.

There are five huge financial advantages of outsourcing IT or outsourcing accounting. These are:

Outsourcing lowers employment costs by up to 70% (as we’ve covered).
Outsourcing enables businesses to afford to engage specialist skills that enable them to win work.

Do you leave revenue opportunities on the table because of unaffordable local specialists? This risks leaving toeholds for competitors. Our clients do one of two things so that they can afford the specialists they need to offer their own clients a wider range of services and keep competitors out:

They ask us to directly find the skills they need.
More often, they ask us to reduce their costs by filling their back-office IT, accounting, and business support roles with overseas talent. They use savings made to afford local specialists.

Outsourcing frees up senior local experts for chargeable work and/or to win new business.

Many of our clients tell us that they spend far too much time on HR and recruitment issues because local talent is in short supply. Getting ‘ghosted’ by local candidates results in repeated recruitment cycles.

Bigger competitors can offer higher salaries, leading to high employee churn rates.

Backing off routine IT, accounting, and business support tasks to a dedicated team in the Philippines gives business leaders new capacity for growth. We take on recruitment so that our clients get their time back (but still have opportunities to interview candidates that we’ve shortlisted).

Outsourcing frees funds for growth.

Do you need more marketing money? Would you have funds to invest in new initiatives?

Most Yempo Solutions clients are small to medium-sized enterprises. Many are owner / founder led with a preference for self-reliance over taking on debt to support growth activities. Outsourcing to the Philippines allows transfer of employment spend to other areas of their businesses.

Outsourcing lowers technology costs and associated cyber risk.

Brilliant technology combined with cyber security excellence underpins trust in the best outsourcing businesses (including Yempo Solutions). We’re out of business if we cannot be trusted with our clients’ data. For clients, this means:

We provide their specification of PCs for their dedicated team members in the Philippines.
We invest in cyber security.
They pay lower costs because these things are our overheads, not theirs.

Follow our guides (linked below) to calculate the complete financial gains from outsourcing for your business:

IT outsourcing in the Philippines.

Offshore accounting in the Philippines.

What are the hidden costs of outsourcing to the Philippines?

Inferior quality outsourcers win business by presenting ‘too good to be true’ prices to their clients. Like all businesses, outsourcers must make money…which is why ultra-cheap providers have a range of mechanisms to recoup costs post contract. We’ve listed these in our ‘top ten reasons why choosing the lowest cost outsourcing provider isn’t right for your business, but tricks to watch out for are:

Adding costs for IT, meeting rooms, communication technology.
High staff churn…they pay low, incentive leaving…meaning you’re always in ‘onboarding’ mode.
Inexperienced staff and coached candidates…they pay low, you get lesser skills.
Poor experiences for your clients…cheaper, less experienced, staff undermine your brand.
Poor IT – slow, lack of adequate security…because it’s cheap for the supplier…the risk is on you.
Lack of support when things go wrong…they can’t afford to pay for proper HR support.
Poor working conditions…because they need to keep costs down.

At Yempo Solutions we don’t go in for any of these tricks. We’re not the cheapest because we pay fairly for curated talent. We have a fully supported HR and IT team so that our clients are protected from risk.

‘Yempo provides the confidence that IT, data protection, and cyber security are up to our required standards. Yempo operates like an ‘e’ supplier. It all just happens.’ – Katie W., Yempo Solutions UK client.

How fast will outsourcing deliver a return on investment?

Fast! And it’s a simple route to measurable ROI:

Send us job specifications for the IT, Accounting, and/or Business Support roles you’d like to fill.
Sign a master services agreement with Yempo Solutions.
Our recruitment team dives into our decade-deep candidate database.
We pre-screen candidates.
You interview a shortlist, selecting who you’d like to be dedicated to your team.
We hire them under using our Employer of Record Philippines status so that you’re protected from legal and HR risks.
They work for you.
You pay one monthly invoice.

How fast? Sometimes just a week or two.

‘If you want an offshore team then Yempo will help you to hire, find great candidates, run all HR, and provide easy systems – all in a friendly manner. With Yempo everything is under control.’ – Shareef H., Yempo Solutions client

Are there any compromises from outsourcing to the Philippines vs hiring locally?

Choosing the right partner is the biggest single influence upon outcomes from outsourcing IT or accounting to the Philippines. Getting this right means that compromises are few. Candidates we hire on behalf of our clients will:

Use the same IT platforms as your local teams.
Speak perfect English.
Demonstrate high technical skills.
Be qualified to match the standards of your local employees.
Work your hours (UK hours are known as the (popular) ‘second shift’ in the Philippines).
Take and respond to your clients’ questions.

The only compromise of outsourcing vs local hires is if a role requires regular local site visits. Typically, these roles are best filled by locals…who are made affordable by using funds saved by placing roles that can be done remotely in the Philippines.

‘English skills are excellent. Incoming calls to our Perth number are answered by anyone in our team – Australia and Philippines – and customers can’t tell the difference.’ – Andrea H, Yempo Solutions client

The true ROI of outsourcing to the Philippines

Yes, vastly lower employment costs make the headlines. But the true ROI of outsourcing comes from:

Lower costs
Re-direction of savings to growth
Less management time taken with hiring and HR.
Being able to fill tricky to recruit roles
A high quality, dedicated team.

Book a quick chat with Michelle today, to know more about our best practices in providing offshore accounting and IT staff from the Philippines – or shoot us an email at [email protected]. We are happy to answer your questions!

Learn more:

Read more helpful information about outsourcing from Australia or the UK to the Philippines:

5 Huge Financial Advantages of Outsourcing Australian Accountancy Functions

5 Huge Financial Advantages of Outsourcing Australian IT Development Functions

Top 8 industry sectors that most frequently outsource to the Philippines

Outsourcing to the Philippines: Ensuring Fair Pay, Benefits, and Conditions

Fair Work and Offshore Hiring: Philippines Compliance