- 75% of American employers struggle to find skilled talent locally. That’s why offshore staffing has become a smart move.
- Some benefits of outsourcing to the Philippines are cost savings, access to top talent, strong cultural compatibility, scalability and flexibility, and time zone advantage.
- Employer of Record (EOR) services take over employment-related responsibilities without the need to establish a local entity.
- Sysgen RPO provides EOR services, making offshore staffing in the Philippines seamless, compliant, and hassle-free.
Did you know that 66% of American companies outsource at least one department, resulting in 300,000 jobs being filled through offshore staffing each year?
This comes as no surprise, given that 75% of employers struggle to find and recruit skilled talent locally. As businesses face ongoing labor shortages, many turn to offshore staffing to bridge the gap, reduce costs, and scale efficiently.
Although many countries offer offshore staffing services, like India, Brazil, Mexico, and Malaysia, the Philippines remains one of the top choices for global businesses.
In fact, the country’s call center industry—largely driven by demand from U.S. businesses outsourcing customer support, technical assistance, and other back-office services—was worth around USD 32 billion at the end of 2024.
Read this article to explore how your business can benefit from getting offshore staffing services in the Philippines.
Why is the Philippines the Best Choice for Offshore Staffing?
The Philippines remains a top offshore staffing destination due to its unique strengths that many businesses can benefit from.
Let’s take a closer look at the benefits of outsourcing to the Philippines!
1. Cost-Effectiveness
The Philippines’ offshore staffing services offer significant savings because of faster time-to-hire, lower advertising costs, and reduced overhead expenses like rent, equipment, and office space.
You can also access highly skilled professionals at a fraction of the cost. For example, the average salary for Filipino software developers is approximately $7,174, around 10% of the average American software developer’s salary.
2. Highly Skilled and English-Proficient Talent
The country ranked 22nd out of 116 countries in the 2024 English Proficiency Index (EPI). This proves that its workers are ‘highly proficient’ English speakers, which can contribute to smooth communication and collaboration with your in-house teams.
Beyond language skills, it also boasts a diverse talent pool that can handle voice and non-voice services, such as data entry and analysis, customer service, and document transcription across industries, including legal, finance, healthcare, and information technology (IT).
3. Strong Cultural Compatibility with Western Businesses
The Philippines has had strong ties with the U.S. for a long time, influencing many of its norms and values. This cultural connection helps Filipino professionals integrate seamlessly into your business, understanding etiquette, communication styles, and customer service expectations.
Moreover, their work ethic is a powerful asset in today’s competitive labor market. Their resilience, adaptability, and loyalty make them highly dependable team members, contributing to long-term success both locally and internationally.
4. Scalability and Flexibility for Businesses
Whether you need to expand your team during peak seasons or scale down during slower periods, the Philippines offers a highly adaptable workforce that allows you to adjust operations without the high costs and stress of traditional hiring.
The country’s well-established outsourcing industry provides you access to on-demand talent across various roles, from customer service and IT to back-office support and specialized fields.
5. Time Zone Advantage and 24/7 Operations
Strategically located, the Philippines offers a time zone advantage that aligns well with U.S. businesses. This allows real-time collaboration with your in-house teams, ensuring smooth workflow and productivity.
Moreover, offshore staffing in the Philippines enables 24/7 operations for industries with high service demands, such as customer support, IT, healthcare, and finance. This round-the-clock availability helps enhance customer satisfaction, reduce downtime, and improve response times.
Simplify Hiring with Employer of Record (EOR) Services
While outsourcing to the Philippines has many advantages, expanding into its job market comes with legal and administrative challenges.
To simplify the process, you can partner with an agency that offers Employer of Record (EOR) services.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party service provider that legally employs workers on behalf of businesses, handling all employment-related responsibilities. This means you can hire talent in the Philippines without establishing a local entity.
How Businesses Can Efficiently Expand Operations with EOR
Complying with local employment laws, tax regulations, and HR requirements can be complex and time-consuming when you’re new to offshore staffing.
An EOR can help you scale efficiently and legally. Here’s how:
Step 1: Understanding Your Workforce Needs
The first step is assessing your business objectives, workforce requirements, and industry-specific regulations. With this information, your chosen EOR provider will determine the best strategy for hiring and managing employees in the Philippines, ensuring alignment with your company’s goals.
Step 2: Crafting a Customized EOR Plan
Based on the consultation, your EOR will tailor a comprehensive employment solution, such as:
- Payroll management: Ensuring accurate salary processing and tax deductions.
- Employee benefits: Managing contributions to SSS, PhilHealth, Pag-IBIG, and private benefits if needed.
- Legal compliance: Drafting employment contracts that meet Philippine labor laws.
- Work permits and visas: Assisting with legal requirements for foreign employees.
Step 3: Ensuring a Seamless Hiring Process
Your EOR will also facilitate the end-to-end onboarding process, allowing your offshore teams to start working quickly and compliantly. This may include, but is not limited to:
- Preparing and signing legally compliant employment contracts.
- Registering employees for mandatory government benefits.
- Managing payroll setup, tax registration, and bank account coordination.
Step 4: Ongoing Employment Management
Even after onboarding, your EOR will continue to manage all aspects of employment, providing:
- Payroll processing: Timely salary disbursement and tax withholding.
- Human Resource (HR) support: Handling employee relations, leave management, and dispute resolution.
- Termination and offboarding assistance: Managing employee exits following Philippine employment laws.
Partner with Sysgen RPO for Seamless Offshore Staffing
Offshore staffing in the Philippines is a smart move because of its offered cost savings, access to highly skilled talent, strong cultural compatibility, scalability and flexibility, and time zone advantage.
However, managing legal compliance, payroll, and HR responsibilities can be complex without the right support. This is where Sysgen RPO can help you.
With our EOR services, we take care of all employment responsibilities so you can hire Filipino professionals quickly and legally without setting up a local entity.
Ready to build your offshore team with ease?
Contact us today and gain a competitive advantage in the outsourcing market by making offshore staffing simple, legal, and stress-free!
