Lower Cost of Outsourcing in the Philippines

Obviously the engine that propels the outsourcing industry in any developing country is its lower cost of doing business. The Philippines excels in this area, especially with regard to labor costs. The minimum daily wage in the Philippines is approximately $8 per day and the starting salary for college graduates from good schools begins at around $300 per month.

Salaries in the southern part of the country tend to be slightly lower than in Manila but Manila offers the largest pool of skilled workers, as well as the best English speakers.

Other products and services that benefit from low labor costs, such as office rental, professional services, office supplies, food and lodging are also extremely reasonable in the Philippines. Taxes and health care costs are also much cheaper than in developed countries. Cost savings are not as great for products that must be sourced from abroad, such as computers; and for telecommunication services such as internet access.

Overall, however, a company can expect to save over 50% on staffing costs by outsourcing in the Philippines.