In an era of digital and data disruption, global companies search the solution to optimize processes and improve performance. Outsourcing allows reimagining the way entrepreneurs used to run their businesses.

If you want to take advantage of IT companies in the Philippines or Ukraine, use our comparison of these two leading offshore destinations. We’ll share with you the most valuable statistics, pros and cons of each country. Also, you may explore key principles how to make your outsourcing cooperation run smoothly.

Philippines outsourcing industry

business process outsourcing

Oxford Business Group figured out that BPO of the Philippines is the largest source of jobs and second-biggest contributor of foreign exchange earnings. Experts predict that BPO industry will worth $39 billion by 2022.

IT BPO is the quickest developing industry in the Philippines nowadays. Experts predict that this sector will enhance employment to 1.5 – 1.7 million new vacancies. This job boom in the Philippines is led by the demand for an offshore call or contact centers as Reuters admitted. In 2016, the Philippines had revenues of $25 billion, which shows a great growth from the time when revenue was only $24 million with just 2,400 employees.

In 2015, the Philippines has become the most attractive country to place call center and now involves more than 1 million workers, according to Don Lee of Los Angeles Times. The revenue reached $23 billion in 2017.

But IT outsourcing Philippines is also developing sector as call centers. It involves software development, data processing, animation services and medical transcription. Sectors like financial services, telecommunications, manufacturing, and hospitality are also popular to outsource among foreign customers.

Moreover, outsourcing company Philippines offers digital marketing and web design services as well. This is a useful opportunity for the startups to cut costs and even large companies take advantage of abilities to decrease the budget.

Also, global product managers use IT outsourcing Philippines as a test market to employ and check new apps. For instance, Facebook added a feature to inform about natural disasters during the Philippine typhoon.

outsourcing company Philippines

English-speaking staff and cheap cost of workforce attract companies all over the world. A good example of outsourcing is American marketplace Thumbtack that uses 1,000 providers in the Philippines.

Young educated employees are attractive for the businesses, especially American. Their average age is 24, and each year more than 130,000 students graduate universities with degrees in IT and engineering. However, the senior web developer Philippines will cost only $25,000 per year. Such attractive price is supplemented by their hard-working skills.

Below you can find Java developer Philippines salary rates.

Java developer Philippines salary

Let’s compare salaries of web developers in dollars per year.

Ukraine Philippines
Java: $17640 $3150-15900
Net: $19200 $3100-10700
PHP: $15600 $3800-12500

As we see, Ukrainian salaries are much higher that means that IT workforce in Ukraine is more experienced and can handle more complex tasks. They may create AR tools, AI-driven solutions, cloud computing and more. With such huge expertise, they can share their knowledge and experience with the customers. Besides, these salaries are much lower than the US cost of IT staff.

Setbacks and threats of software development company in the Philippines

Outsourcing company Philippines needs to switch its attention from call centers to app development, big data analytics, etc. Most customers look for the better IT service providers with more opportunities to use the latest technologies. Also, automation may replace a lot of human employees.

Huge business process outsourcing sector in the Philippines with a revenue $23 billion faces a risk of losing their customers its biggest competitor – China. Additionally, last few years there was a fear that influenced US clients to be penalized for applying resources from foreigners.

Philippines outsourcing industry

Ukrainian outsourcing companies

Outsourcing to Ukraine is smooth and promising. The market of IT services has enlarged by 2.5 times and may be doubled by 2020 according to PwC analysis. Moreover, Ukraine is ranked as one of the 10 top countries with the largest pool of IT employees. It keeps the 4th place among various countries and #1 by a number of IT staff in CEE.

Upwork statistics figured out that Ukraine holds the high position among countries with freelancer earnings increase (10-25%) and with the annual revenue $61 million.

IT professionals in Ukraine has European mentality and most of them have fluent English skills that eliminate possible communication challenges. Besides, there is no staff turnover comparing to Philippines outsourcing industry. Ukrainian employees are more permanent and goal-oriented than Asian workforce.

Ukrainian IT workforce is well-educated and each year thousands of students graduate from internationally approved universities and courses. Many of them have studied abroad including British and US educational facilities. With such background and rich variety of IT resources available in Ukraine, they bring useful know-how to the market.

Bloomberg Innovation Index mentions Ukraine as an innovative country for running a business. In addition, Ukraine is described as an easy country for business issues in 2017.

With more than 100 R&D offices of well-known companies such as Apple, Microsoft, Skype, IBM, Ukraine has been recognized among the best outsourcing providers. Gartner also included it in a list of the best offshoring destinations.

Advantages of outsourcing to Ukraine:

  • Ukraine has gained the title “The best place for IT-outsourcing” on European summit in Madrid.
  • Quality software.
  • Mature IT market.
  • Cost-effective services.
  • Talented and skilled employees.
  • Outsourcing companies obey international standards as ITIL.
  • Safe money transfer.
  • Flexible and agile approaches.
  • Innovative IT solutions.
  • Ukraine outsourcing IT services are one of the most developed in Eastern Europe.
  • No natural disaster.

If taking into account financial factor, this is a cost-effective business solution. Ukraine outsourcing rates you can find here:

Top Tips to Successfully Start Outsourcing in Europe

Nowadays, there are more than 1000 IT companies and most of them are well-known.  As we see, Ukrainian pool of IT talents is much wider than IT outsourcing Philippines sector.

Ukrainian outsourcing companies entirely adjusted to the global IT trends and customers’ demands. That’s why, they offer tech solutions for e-commerce, gaming industry, data management software, cloud computing, etc. Such companies have grown into multifunctional organizations that allow ordering many IT services at one place.

Usually, Ukraine serves as offshore software development, data entry and analytics, business intelligence. Outsourcing for other industries exists but in small quantities.

Setbacks and threats

Corruption and economic instability bring concerns to the potential clients. On the other hand, delegate a part of your business is always risky. The best way to protect yourself and eliminate anxiety is discovering outsourcing company’s testimonials and portfolio.

Moreover, economic issues will not arise as you cooperate with the private sector that is free from corruption challenges. All processes are transparent and may be checked through a reliable financial reports.

Most Ukrainian IT companies have guarantees that ensure win-win collaboration by using global business standards. Besides, you may explore policies of your IT provider and discuss all the issues.

How to outsource like a pro

Business process outsourcing allows optimizing non-core business processes and delegating it to the remote team. However, it’s important to bear in mind the latest outsourcing trends to make sure that all processes add value to your business.

  • Ensure data security. After Cambridge Analytica scandal, customers started worrying about their privacy. So, invest time and financial resources to keep clients records safe.
  • Gain strategic approach. It’s important to prepare your business for the outsourcing and align all functions with the whole strategy.
  • Pay attention to the apps over desktop version. There is a moto “go mobile or go home” that represents the urgent need to move to the app development. Researches showed that people use more their cellphones to purchase products or services. Moreover, a financial sector including banking and healthcare services require user-friendly apps as well.

Both Ukraine and Philippines seem like a good provider of offshoring services. These two countries have skilled employees with good English language skills. The main difference is that Ukraine is more focused on the IT area, and offers full-stack software development. Moreover, Ukrainian mentality is the same as European countries have.

Outsourcing industry in the Philippines more provides such services as call centers, manufacturing, and digital marketing. Besides, you may use their services to refine diversity and target Asian audience.