We offer these simple – yet powerful – services to help you on your outsourcing journey
Why it’s better to work with Outsource Accelerator to get your outsourced operations started
We connect you with the best outsourcing service provider for your needs. So you get best advice, prices, terms and results.
Although we can provide additional advisory services, if you need a little assistance.
We offer the world’s largest outsourcing marketplace and advisory.
We work with only the best, most legitimate outsourcing suppliers, and can ensure that you will get the best terms, and results possible.
Outsourcing costs and salaries can vary dramatically. For a precise cost analysis, we will need to spend time with you to establish your specific requirements. However, here’s a great guide to get you started.
The ‘total cost’ of outsourcing typically consists of two components: (i) the BPO* ‘seat’ fee, and (ii) the salary. Some other BPO’s might give you a single total cost (ie $14 per hour), but these are less advantageous, as you don’t really know what proportion is going to the staff, and what proportion is going to the BPO.
BPO NOTE: Outsourcing suppliers are typically referred to as ‘BPOs’ – short for Business Process Outsourcing,
A reasonable salary for a good general role is PHP20,000-PHP30,000 per month – that’s $400-$600 per month. These people usually have a university degree and 3-5 years post grad work experience. The obviously wouldn’t be senior management level or a specialist role (ie web developer) for that though.
We have this Comprehensive guide to salaries and compensation and holidays etc. Have a look on the first page, you will see a table of roles and expected salaries. https://outsourceaccelerator.com/guide/comprehensive-guide-payroll-salary-compensation-benefits-allowances-philippines/
As mentioned, there are different pricing structures for different BPOs, but the common one is to have a BPO fee, plus the salary. The BPO fees generally range from $450-$900pm. The BPO fees include EVERYTHING from the A Grade office space, all the hardware, the internet and facilities, plus the recruitment, HR, and all of the payroll and their government pension contributions etc etc. But the staff are generally ‘yours’, meaning that you treat them as you would your own staff in UK, meaning that you have to train them, and show them what to do etc. NB: We basically take a commission of the BPO fee – from the BPO – this won’t cost you anything.
Some of the BPOs might charge an engagement fee. Some do, some don’t. It might be $500-$1000. Generally, this is posted as a recruitment fee, because they need some sort of commitment before they spend time and money on recruiting.
So in short, your costs are: Salary ($400-$600pm), and BPO fee ($450-$900) – so a total of $850-$1,500 per month – per employee – ALL IN. However, we do also suggest you add the Source Coach in with that.
When comparing these costs to US/UK/Australian (etc.) salaries, bear in mind that this is a 100% ‘all in’ price. For Western salaries, you have the salary, and then usually 20%-30% on top of that for all associated employee expenses, including things like government taxes, healthcare, office space and benefits etc. (excluding recruitment costs).
Optimising the outsourcing supply stack structure allows for enhanced control over the short-, medium- and long-term, by offering optimal flexibility, whilst maximising cost efficiency.
Outsourcing can can split into four distinctive sections: (i) facilities, (ii) employment structure & payroll, (iii) staff salaries, and (iv) the operational layer. They can be treated separately to generate more control and ensure best prices and results
Below is a chat demonstrating the typical cost breakdown of a total ALL-IN cost of outsourcing.
People are sometimes surprised that an outsourcing supplier fee (BPO ‘seat fee’), can often be as much as a regular workers salary. There is good reason for this, and once you understand what goes into a great BPO, then you’ll probably agree. A BPO is a cross between a flexible office-space supplier, a recruiter, and a business/management consultant. To varying degrees, a BPO is your business partner who helps develop your team and add significant value to your company’s processes. Below is a cost breakdown of their common functions.
Here’s a guide to the typical ‘all-in’ costs of outsourcing roles.
These figures represent a good cross section of roles, and include the office space and hardware, recruitment and HR, employee salary, taxes and benefits, plus oversight and account management.
BPO seat fee:
BPO seat fee:
BPO seat fee:
BPO seat fee:
Outsourcing gives you access to a wide range of qualified and highly motivated resources, at a fraction of the cost. Here are 14 great examples!
Below is a comparison chart of like-for-like salary costs when comparing the Philippines with other major economies.
All amounts are in $USD per annum. This is just base salary, and does not include typical employment overhead which can be a further 25%-30% on top.
Outsourcing is one of the most powerful and transformative tools available to businesses today
Outsourcing allows you to save 70% on staffing costs, whilst driving innovation and growth.
You can save a huge amount of money with outsourcing, but it really isn’t (just) about that. Outsourcing gives you unparalleled access to a highly qualified, young, eager, and abundant workforce.
With this affordable army, you can simply out-compete, and out-strategize your competitors.
Outsourcing can be applied to virtually any business within any business sector. It is transforming the way that business, is done, it is transforming the employment landscape, and can add incredible rocket fuel to each and every business.
The benefits of outsourcing have been enjoyed by the big corporates for the last 25 years. Previously, it was inaccessible to smaller companies and startups.
More recently, access to outsourcing has been democratised… now its cheaper, more accessible and more flexible than ever.
However, still only 0.5% of small and medium sized businesses (SMEs) outsource… Outsourcing remains the business world’s best-kept secret.
You can dramatically enhance your business with outsourcing. It is much simpler, and much more affordable than you think. Get started today.
We look forward to seeing how we can help you with your outsourcing journey.
Outsource Accelerator is the trusted source for independent information & advisory for Philippines’ Business Process Outsourcing (BPO)
Outsource Accelerator is the world’s leading platform and marketplace for outsourcing. It specifically promotes Philippines outsourcing to the world.
The Outsource Accelerator website has over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 600+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.
Outsource Accelerator is not a BPO, and will never provide outsourcing services. That is why it can be trusted by everyone in outsourcing. We offer advisory services related to outsourcing, but not actually outsourcing.
Derek Gallimore has been in business 20 years, outsourcing 6+ years and living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.