How much does it cost to outsource IT tasks in the Philippines? (With top 5 companies) 

With businesses worldwide increasingly relying on technology to drive growth and innovation, finding cost-effective IT solutions has become essential. The Philippines has emerged as a prime destination for IT outsourcing, combining affordability with a highly skilled workforce that meets global standards. 

In this article, we’ll explore the costs associated with IT outsourcing in the Philippines and highlight the top five companies leading the industry. 

How much do you pay to outsource IT functions in the Philippines?

The cost of IT outsourcing in the Philippines can vary depending on the type of work, the skill and experience of the employee, and the length of the contract:  

A permanent hire for a business, starting at $500–$1,500 per month for entry-level employees and up to $3,000 per month for skilled employees. This model is best for long-term support or steady workloads.  

What influences the cost of IT outsourcing in the Philippines 

Understanding these factors helps businesses effectively align their budgets and maximize their outsourcing partnerships’ value. 

Service complexity 

When you outsource IT tasks, the complexity of those tasks is one of the BIGGEST cost drivers

Tasks like basic IT support or data entry are generally straightforward and can be completed with minimal specialization, making them more affordable. However, more complex services—such as software development, AI and machine learning integration, or cybersecurity—require specialized skills, experience, and potentially longer timeframes, all of which increase the cost. The level of expertise needed for complex services often requires highly skilled professionals, which impacts pricing. 

Technology requirements 

The specific technologies required for a project can also affect costs. Outsourcing projects that use common technologies (such as popular programming languages, standard databases, or widely used software frameworks) may be more cost-effective.

However, projects that involve advanced or niche technologies—like blockchain development, AI algorithms, or specialized data analysis tools—may require rare skill sets, specialized software, or proprietary tools, all of which can raise costs. Additionally, licensing fees, subscription-based tools, and infrastructure requirements can also make it more expensive to outsource IT work.

Team size and composition 

The size and structure of the team needed to meet project goals will directly impact cost. Smaller projects may only need one or two dedicated team members, while larger or more complex projects might require a full team, including project managers, developers, designers, quality assurance specialists, and technical support.

Each role adds to the overall cost, and for large-scale projects, it’s common for team structures to be customized and expanded as needs evolve.

Project timeline and duration 

When you outsource IT functions, longer projects typically incur higher costs, especially if they require extended support or maintenance. Additionally, urgent timelines or expedited delivery can increase costs, as teams may need to work overtime, add more staff, or use expedited project management techniques to meet deadlines. Businesses should carefully evaluate the timeline needs of the project and consider any potential flexibility in deadlines to balance cost and delivery speed. 

Why should you choose IT Outsourcing in the Philippines? 

The Philippines has become a standout choice for businesses seeking reliable, innovative, and cost-effective IT outsourcing. In fact, the country ranked among the most attractive destinations for outsourcing business services in 2021. 

The revenue of IT outsourcing in the Philippines is projected to grow at an annual rate (CAGR) of 12.39% from 2024 to 2029, reaching a market size of $1.283B by 2029. 

The Philippines has a strategic advantage fueled by talent, infrastructure, and a supportive business environment to support companies wishing to outsource IT processes and tasks.

Cost efficiency without compromising quality  

In a world where balancing budget and quality is key, the Philippines offers a unique blend of affordability and excellence. Compared to other outsourcing destinations, the country provides highly competitive rates, making it an attractive choice for businesses aiming to optimize costs. Companies outsourcing to the Philippines can reduce labor costs by up to 70%.  

But this isn’t about cutting corners. The Philippine IT sector is focused on delivering exceptional service quality, allowing companies to save on expenses without sacrificing results. This balance between cost and quality has become one of the country’s defining advantages in the global outsourcing landscape. 

Skilled and versatile IT talents 

A key factor behind this is the Philippines’ skilled workforce, especially in IT. The country boasts a large, young, educated, and English-speaking labor pool capable of delivering high-quality IT services at competitive costs. Moreover, the Philippines’ cultural alignment with Western countries makes it an appealing choice for companies seeking to outsource IT services. 

Future-ready IT infrastructure  

The Philippines is among the ASEAN countries with the highest level of digital readiness. In addition,  

The Philippines is not only keeping pace with technological advancements; it’s setting the stage for long-term digital growth. The country has made significant investments in building its IT infrastructure, with high-speed internet connectivity, world-class data centers, and increasing support for advanced technologies like cloud computing and artificial intelligence. 

This infrastructure enables companies to rely on secure, fast, and efficient digital services, ensuring projects run smoothly and downtime is minimized. The Philippines’ focus on future-ready technology makes it a compelling destination for businesses looking to leverage innovative solutions for growth. 

Top 5 IT outsourcing companies in the Philippines 

In this section, we explore the top 5 leading IT outsourcing companies in this country to give you a brief overview of their differentiators and key offerings.  

GEM Corporation 

Named among Asia’s fastest-growing IT service providers, GEM Corporation is the trusted digital partner of 300+ businesses worldwide. 

GEM boasts a dynamic tech stack that incorporates the latest technologies (AI, Blockchain, IoT, and Big Data). Companies that outsource IT functions in collaboration with GEM are promised impactful and value-focused solutions.  

Key services 

GEM offers 35+ services, which are divided into 7 main categories  

• High-performing offshore delivery center establishment 

• Digital acceleration services 

• App development & Modernization 

• AI & Automation 

• Data services 

• Cloud services 

• Quality assurance & Testing 

SD Solutions 

SD Solutions is a top IT consulting firm in the Philippines, with a wealth of experience in the industry. Its team of skilled professionals is dedicated to delivering high-quality IT services and solutions, empowering client companies to achieve their fullest potential. 

Key services 

• Business application 

• Cloud services 

• Data & Integration 

• Managed services  

Outsource Philippines 

Outsource Philippines leverages the expertise of top Filipino professionals to provide customized outsourcing solutions.  

Outsource Philippines offers a range of services, including Business Process Outsourcing, HR Outsourcing, IT Outsourcing, and more. 

Key services 

• Data management 

• Contact center 

• Website management  

• Contact center 

• Back office 

• Digital marketing 

• Creative design 

• Data annotation 

• Technical writing 

PEAK Outsourcing 

PEAK Outsourcing leverages deep expertise and years of experience to offer exceptional Business Process Outsourcing and IT Outsourcing services. Their team has specialists who bring both skill and a passion for excellence, consistently delivering results that exceed client expectations. 

Key services 

• Network management 

• Mobile device management 

• Server management 

• Application management 

• Desktop management 

• NOC services 

• Helpdesk services 

iSupport Worldwide 

iSupport Worldwide is a U.S.-owned firm specializing in world-class staffing, facilities, and managed operations. 

It is a strategic offshoring partner dedicated to empowering business growth across industries, sectors, and languages. 

Key services 

iSupport Worldwide offers several note-worthy IT outsourcing services including: 

• Application/Software development 

• CMS development 

• Game development 

• Game engineering 

• Web development 

• Cloud management 

• Computer network 

• Database administration 

• Information technology management 

• Network security | Information security 

• Cybersecurity  

Closing remark 

When you outsource IT work to a provider in the Philippines and other promising Asian countries, it can be a powerful, strategic choice to drive transformation and enhance competitiveness on the global stage. 

By understanding the cost factors, exploring the advantages, and selecting the right partner, you can maximize the benefits of outsourcing in the Philippines.

GEM – An IT partner that knows you and your values

GEM Corporation is an award-winning and globally known IT outsourcing company located in Asia – a rising innovation hub.

With its CMMI-appraised and ISO-certified delivery process, GEM is committed to delivering outcome-driven tech solutions that yield measurable impacts.

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