Offshoring companies in the Philippines are often the first option businesses consider when they want to reduce costs and scale operations. However, many companies do not realize there are two very different approaches to offshoring, each with its own trade-offs.
This guide compares the top offshoring companies in the Philippines, outlines when the traditional BPO model makes sense, and highlights a direct hiring alternative that gives businesses more control and lower costs.
Table of Contents
What is an Offshore Outsourcing Company?
An offshore outsourcing company is a third-party service provider that manages business functions for companies located in another country.
These providers recruit, employ, and oversee offshore teams that handle tasks such as customer support, IT services, finance, or back-office operations.
Instead of hiring staff directly, businesses pay the outsourcing company a bundled fee that includes salaries, management, infrastructure, and overhead.
This model is commonly used by companies that want a fully managed offshore setup without being involved in day-to-day hiring or team management.
Read our ultimate guide to Offshoring in the Philippines
Why Companies Offshore to the Philippines
The Philippines is one of the most popular offshoring destinations due to its strong English proficiency, skilled workforce, and cultural compatibility with Western businesses.
English is widely used in professional settings, which makes communication with international teams and customers clear and efficient.
Cost efficiency is another major reason companies offshore to the Philippines. Labor costs are significantly lower than in the United States, Europe, or Australia, while service quality remains high.
Combined with government support and modern infrastructure, these advantages make the Philippines an ideal location for offshore outsourcing.
The Two Ways Companies Offshore to the Philippines
When businesses talk about offshoring to the Philippines, they are usually referring to one of two models.
Understanding the difference is critical before choosing a provider, because each option fits a very different type of company.
Offshore Outsourcing Companies (BPO Model)
Traditional offshoring companies, often referred to as BPOs (Business Process Outsourcing firms), manage offshore teams on behalf of their clients. These companies handle recruitment, HR, payroll, office space, and day-to-day management.
This model is most commonly used by large enterprises that want fully managed offshore operations without being involved in hiring or team management.
Typical characteristics of offshore outsourcing companies:
- Best suited for large, process-driven operations
- Managed teams with layered management
- Long-term contracts
- Higher per-employee costs due to markups
- Limited control over individual hires
Direct Hiring Without an Offshore Agency
The second model is direct hiring, where companies hire Filipino professionals themselves rather than going through an offshore outsourcing company. This approach has become increasingly popular among startups, small businesses, and online companies.
Instead of paying agency markups, businesses work directly with their remote team members and manage them internally.
Typical characteristics of direct hiring:
- Lower overall costs
- Full control over hiring decisions
- Direct communication with team members
- Flexible work arrangements
- Better long-term retention
Platforms like RemoteWork.ph make this model accessible by connecting businesses directly with Filipino talent, without acting as a middleman or agency.
- Hire individuals directly
- Lower costs
- More flexibility
RemoteWork.ph
For companies looking to hire directly and avoid middlemen, RemoteWork.ph is an excellent choice. This platform allows you to connect directly with skilled Filipino professionals, making it a simpler, cost-effective way to find remote employees without agency fees. Whether you’re hiring virtual assistants, developers, or customer service reps, RemoteWork.ph provides access to a large pool of talent eager to work for international companies.
Choosing between an offshore outsourcing company and direct hiring depends largely on your company’s size, budget, and management style.
Below is a high-level comparison to help clarify which option may be the better fit.
| Model | Best For | Cost | Flexibility | Control |
|---|---|---|---|---|
| Offshore BPO Companies | Large enterprises | $$$ | Low | Low |
| Direct Hiring (RemoteWork.ph) | SMBs & startups | $ | High | High |
Offshore outsourcing companies make sense when businesses want a hands-off solution and are comfortable paying higher fees in exchange for managed services.
Direct hiring, on the other hand, is often the better choice for companies that want to scale efficiently, reduce costs, and build long-term relationships with their team members.
7 Best Offshoring Companies in the Philippines
The following offshoring companies are among the most established providers operating in the Philippines. These firms primarily serve enterprise-level clients and offer fully managed outsourcing solutions.
Each company listed below specializes in large-scale offshore operations rather than individual direct hires.
1. Accenture (offshoring companies in the philippines)
Best for: Large enterprises and multinational corporations
Accenture is one of the largest offshoring companies in the Philippines, employing tens of thousands of professionals across the country. The company offers a wide range of services, including IT outsourcing, customer support, finance, and business process management.
Accenture is best suited for organizations that need large, structured offshore teams and are prepared for long-term contracts and premium pricing.
2. IBM (offshoring companies in the philippines)
Best for: Technology-driven enterprises with complex IT needs
IBM has a long-standing presence in the Philippines and focuses heavily on IT services, cloud infrastructure, and data analytics. Its offshore operations support global clients that require advanced technical expertise and enterprise-grade solutions.
IBM is ideal for companies that prioritize innovation and technology over cost savings.
3. Teleperformance (offshoring companies in the philippines)
Best for: High-volume customer support operations
Teleperformance is a global BPO leader with extensive operations in the Philippines. The company specializes in customer service, technical support, and sales support across multiple industries.
Teleperformance works best for businesses that need large call-center teams with standardized workflows and 24/7 coverage.
4. Concentrix (offshoring companies in the philippines)
Best for: Customer experience and support-focused organizations
Concentrix provides customer engagement services, technical support, and sales operations. Its Philippine workforce supports clients across healthcare, technology, and eCommerce sectors.
The company is known for using analytics and automation to improve efficiency, making it a good option for businesses focused on customer experience optimization.
5. Sitel (offshoring companies in the philippines)
Best for: Companies seeking customer care and back-office services
Sitel operates multiple delivery centers in the Philippines and offers inbound support, outbound sales, and technical help desk services.
Sitel typically works with mid-to-large companies that want standardized customer support solutions at scale.
6. Acquire BPO (offshoring companies in the philippines)
Best for: Businesses seeking flexible offshore solutions
Acquire BPO provides customer service, finance, IT, and administrative support services. With a strong presence in the Philippines, the company serves both mid-market and enterprise clients.
Acquire BPO is known for tailoring solutions based on client needs rather than offering one-size-fits-all packages.
7. Sutherland Global Services (offshoring companies in the philippines)
Best for: End-to-end outsourced operations
Sutherland Global Services offers customer support, technical services, and back-office outsourcing solutions. The company focuses on process improvement and operational efficiency.
Sutherland is best suited for companies that want fully managed offshore teams and are comfortable outsourcing entire business functions.
Offshoring Companies vs Hiring Direct with RemoteWork.ph
While offshore outsourcing companies play an important role for large enterprises, many businesses find that direct hiring offers a better balance of cost, control, and flexibility.
RemoteWork.ph is not an offshoring company or agency. Instead, it is a direct-hire platform designed to help businesses connect with Filipino professionals without middlemen or ongoing fees.
Why Businesses Choose RemoteWork.ph Instead of Offshore Companies
- No agency markups or placement fees
- Hire and pay workers directly
- Greater transparency and control
- Ideal for long-term remote roles
- Built for small businesses and startups, not enterprises
For companies that do not need fully managed offshore operations, hiring directly through RemoteWork.ph is often the most efficient and cost-effective way to build a remote team in the Philippines.
If you are looking for a step-by-step breakdown of how to hire and manage a Filipino virtual assistant without an agency, you can read the complete guide here:
Hire a Virtual Assistant in the Philippines (Without an Agency)
Post a Job for Free on RemoteWork.ph
If you’re looking for a cost-effective way to hire Filipino talent, consider using RemoteWork.ph.
The platform allows businesses to post jobs for free, making it easier for small-to-medium enterprises to tap into the country’s skilled workforce without upfront costs. You can connect with candidates directly, eliminating the need for expensive middlemen or agencies.
Simply create an account, post your job, and start receiving applications from skilled professionals ready to work remotely. Whether you need a virtual assistant, a developer, or customer service representatives, RemoteWork.ph is the easiest way to get started with offshoring to the Philippines.
FAQs
What are offshoring companies in the Philippines?
Offshoring companies in the Philippines are service providers that handle business functions for foreign companies using Filipino talent. These companies typically operate as BPOs (Business Process Outsourcing firms) and manage hiring, training, payroll, and day-to-day operations on behalf of their clients. Common services include customer support, IT services, finance, and back-office work.
Why do companies choose the Philippines for offshoring?
Companies outsource to the Philippines because of its strong English proficiency, highly educated workforce, cultural compatibility with Western countries, and significantly lower labor costs. Outsourcing in the Philippines allows businesses to scale operations efficiently while maintaining high service quality.
What is the difference between offshoring companies and direct hiring in the Philippines?
Offshoring companies act as intermediaries that manage offshore teams for their clients, often charging higher fees due to management and overhead costs. Direct hiring involves working directly with Filipino professionals without an agency, which offers greater control, flexibility, and cost savings. Platforms like RemoteWork.ph support direct hiring by connecting businesses directly with Filipino talent.
Are offshoring companies in the Philippines only for large enterprises?
Most traditional offshoring companies in the Philippines primarily serve large enterprises that require fully managed teams and long-term contracts. Small businesses and startups often find direct hiring to be a better option, as it allows them to build lean remote teams without agency markups or rigid contracts.
How much does it cost to use offshoring companies in the Philippines?
Costs vary depending on the provider and service type, but offshoring companies in the Philippines typically charge significantly more than the actual employee salary due to management fees, infrastructure costs, and profit margins. In many cases, direct hiring can reduce overall costs by 50 to 70 percent compared to traditional offshore outsourcing companies.
Is it better to outsource to an offshore company or hire directly?
The better option depends on your business needs. Offshore outsourcing companies are suitable for businesses that want a hands-off, fully managed solution. Direct hiring is often better for companies that want more control, lower costs, and long-term team members. Many modern businesses prefer hiring directly to avoid agency lock-in and ongoing fees.
Can small businesses offshore to the Philippines successfully?
Yes. Small businesses can successfully offshore to the Philippines, especially through direct hiring. With the right platform and clear expectations, small teams can hire Filipino virtual assistants, marketers, developers, and support staff without working with large offshoring companies.
Is RemoteWork.ph an offshoring company?
No. RemoteWork.ph is not an offshoring company or agency. It is a direct-hire platform that allows businesses to connect with Filipino professionals without middlemen, commissions, or ongoing fees. Employers hire and pay workers directly, making it a more transparent and cost-effective alternative to traditional offshore outsourcing companies.
What roles are commonly outsourced to the Philippines?
Businesses commonly outsource customer support, virtual assistant work, administrative tasks, bookkeeping, social media management, content creation, and IT support to the Philippines. Many companies have also outsourced Philippines-based teams for specialized roles such as SEO, development, and design.
How do I get started with offshoring to the Philippines?
Businesses can start offshoring by deciding whether they want to work with a traditional offshoring company or hire directly. For companies that want flexibility and lower costs, direct hiring through platforms like RemoteWork.ph is often the fastest and simplest way to build a remote team in the Philippines.