Is the Philippines a better option for offshore developers vs. Ukraine, Vietnam, China, and Poland?
If you have a huge company that has a lot of different facets, you would certainly welcome the idea of offshoring some of the non-core aspects of your business.
The Philippines has long been one of the best offshoring destinations in the world, but countries like and China, and, as of late, Ukraine, Vietnam, and Poland also prove to be ideal countries to which you can offshore some of your operations. But is the Philippines still a better option for offshore developers compared with these other countries? We'd like to say yes. Here's why:
The Philippines vs. Ukraine and Poland
When we compare the Philippines' BPO industry, the biggest thing that stands out is the cost of talent. According to PayScale, software developers in Poland earn about $23,912 per year, equivalent to about $1,992 or P99,600 per month. Java developers (those earning the most among software developers) in Ukraine, meanwhile, earn $17,640 per year, equivalent to $1,470 or P73,500 per month.
In the Philippines, meanwhile, Java developers earn around $15,900 annually at most. That's just $1,325 or P66,250 per month for the most experienced and qualified developers.
When it comes to the amount of money you need to spend on outsourcing some of your business' operations, the Philippines proves to be a better destination compared to Ukraine and Poland.
The Philippines vs Vietnam
In a report, Dinh Thi Quynh Van, General Director of PwC Vietnam, stated that Vietnam "has [the] potential to become the next BPO giant." In the report, Van cited the eighth edition of the Global Services Location Index, released by A.T. Kearney in 2017, which ranked Vietnam sixth out of 20 emerging markets with the highest potential for BPO growth.
In the report, Van also noted that Vietnam’s BPO revenue only accounts for 1 percent of the country’s GDP last year. This indicates tremendous room for BPO to growth in the country.
As great the potential of BPO growth in Vietnam may be, one thing is clear: it still is yet to prove that it can actually be a giant in the offshoring landscape. If it were up to us, we'd rather offshore our business to the Philippines, a country that has constantly been among the top offshoring destinations in the world over the years.
The Philippines' BPO revenue accounted for 17 percent of the countries’ GDP in 2016 and was the second-largest sector for foreign exchange attraction. With a 20 percent annual growth, the Philippines' BPO revenue ranks third globally and is expected to hit $40 billion in 2020. Clearly, the Philippines is a tried and tested offshoring destination.
The Philippines vs. China
According to a Hacker Rank rating, China has the best developers in the world. The country is also the biggest BPO destination worldwide. It's massive population, the incorporation of technology in the country, and the cost of labor are some of the best offshoring assets of this country.
However, China has what some people would say weird governing rules on the use of technology. For example, China has its own version of Facebook and it does not allow its people to access Mark Zuckerberg's social media platform within the country. China, in general, is also bad in English, especially compared to the Philippines. This makes communication relatively, and at times extremely, difficult.
In contrast, BPO employees in the Philippines are great with the English language. The country also has relaxed laws on technology and software development.
There are so many things that we can still discuss when we consider which country is the best offshoring destination. But with the data that we have provided, we can definitely say that it's better to offshore your operations to the Philippines compared to China, Vietnam, Poland, and Ukraine. This is not to say, of course, that everything will go perfectly if you're offshore to the Philippines.