Offshore staffing solutions Philippines: What you need to know

What are offshore staffing solutions in the Philippines?

Offshore staffing solutions in the Philippines let you hire skilled Filipino talent through marketplaces or an Employer of Record (EOR), often at a fraction of onshore cost. The country pairs low rates with a stable, skilled digital workforce.

• Two main routes exist: online marketplaces and Employer of Record partners.
• Marketplaces are fast but carry misclassification and compliance risk.
• An EOR handles hiring, payroll, and compliance for you.

This article is an original guest post submission from USource. USource is a digital outsourcing company delivering back office services and digital staff, at scale and speed, for digital services, operations and digital platforms.

When it comes to offshore staffing solutions, the Philippines is a go-to spot for startups and large firms alike. The rates are easy to swallow. In fact, you can hire a whole marketing or customer service team for the cost of one onshore hire.

What stands out even more is the skills gap. The gap between onshore and offshore staff keeps closing. As a result, the offshore option looks more appealing than ever.

Here are some options for outsourced offshore staffing.

Options for offshore staffing solutions in the Philippines

Today, the Philippines is one of the top outsourcing destinations in the world. First, Filipinos worked in customer support and IT. Now they also excel in digital work across marketing and human resources.

Cost is not the only draw. The neutral accents and stable, skilled workforce also matter. So the United States, Australia, and the United Kingdom keep outsourcing here.

You can find millions of Filipino professionals on marketplaces and through Employers of Record. Still, each route works in a different way. For a wider view, see this guide to outsourcing to the Philippines.

Marketplaces

Marketplaces are handy platforms with a vast pool of independent contractors across many niches. Skilled contractors and agencies look for clients on Upwork, TopTal, Guru, People Per Hour, Authentic Jobs, and Freelancer. So talent acquisition feels fast and simple.

These platforms make it easy for employers and freelancers to work together. For example, they offer time trackers and automatic billing. Because of this, platform-based hiring boomed.

Common projects include web design, programming, graphic design, mobile and web development, and sales and marketing.

Hiring on marketplaces is simpler than ever. However, one risk stands out. If you misclassify a regular employee as an independent contractor, the penalties can be costly.

For example, in 2018 the Department of Labor and Employment (DOLE) fined the Philippine Long Distance Telephone Company (PLDT) $1.8 million. The fine covered unpaid benefits for 8,000 misclassified employees.

There are other trade-offs too. You must wade through many applications. You may also need a second hire if the first does not work out. So there is a delay between your job post and the day work gets done.

The hiring process on marketplaces

When you post a job on a busy marketplace, you can get hundreds of applicants. Hiring can take a few days to a few months. It depends on the talent you need and your qualifications.

Here is the average timeline of the steps.

• Sign up: You can link your account with your socials and describe your culture. Access to the global talent pool takes only minutes. At this point, verify your payment method too. Most talent will skip job posts marked “Payment method not verified.”
• Job posting: A clear, short job description takes less than a day. Still, spell out your qualifications and add a fair budget. As a result, you attract better candidates.
• Proposal review: Marketplaces show who is interested through resumes or profiles. Some let you invite matching applicants. This step can take weeks or months, based on your time to review portfolios.
• Interview: You can use the platform’s chat or a video call to interview candidates. Note that contractors may accept, decline, or ignore your invites. So top talent gets engaged fast.
• Contract signing: It can take at least 5 days to verify contracts. This covers ID, billing, and payment checks that protect both sides.

Employer of Record

An Employer of Record is the employer on paper. Most outsourcing companies are Employers of Record. So they take charge of your tasks and the staff assigned to them.

In short, you collaborate legally and with less friction. Your partner handles the admin and HR side of hiring. They also protect your IP. As a result, they cut the hassle of hiring, paying, and managing your international team. To weigh the model, compare EOR vs. BPO.

For example, USource Global Services Inc. is an EOR company in the Philippines. In short, it can assist with your hiring, HR, compliance, and admin tasks needed to manage staff.

We make hiring Filipino workers frictionless. So you do not worry about payroll, tax, benefits, incentives, or leave. We cover it all, from talent acquisition to onboarding and exit.

We help businesses offshore with skilled staff across digital roles. For example, this covers advertisers, SEO, IT development, automation, graphic design, and customer support.

In addition, you can hire our team even without a legal entity in the Philippines. There are no hidden charges either. You pay your monthly fees at the beginning of each calendar month. In turn, we pay your staff their full salary with performance-based incentives.

You also skip the tax burden. We process their taxes (BIR) and government contributions for you, including SSS, Pag-Ibig, and Philhealth. We track attendance and keep work on schedule too.

Other EOR providers make offshoring here easier as well. For example, Sky Executive, East Vantage, and Atlas serve this market. These firms work closely with international teams. Besides HR, compliance, and payroll, they also offer consulting for smooth talent acquisition.

In addition, established offshore companies with offices in the Philippines cover projects of all sizes. For example, Concentrix, Teletech, Alorica, TaskUs, Outsourced, and Teleperformance are well-known names. They handle hiring, training, and management for core tasks like customer support, IT, software development, and marketing.

The hiring process with EOR

You can complete hiring much faster with an EOR than on a marketplace. Here is how it works when you hire from USource.

• Enquiry: Share your project details. Our Client Managers guide you from the pipeline of work to pricing. Then they connect you with the most suitable team members.
• Free trial: We match you to a specialist. So you can start part of the work with a trial task.
• Onboarding: Our accounts, compliance, and client managers set everything up. Work runs month-to-month, unless you need a longer contract. We also set up communication channels, security measures, and any NDAs.
• Ready-to-start: You set the start time, now or on an agreed date. Then sign your contract and connect through tools like Slack, email, Asana, Trello, and ClickUp.
• Work is underway: That is it. Your team members are up and running.

What happens when contracts end

On marketplaces, when a contract ends, that is it. You can rehire the same specialist later. For now, though, you part ways. When you let them go, they move to another client. After all, it is their income.

They can also be hired by your competitor. So you lose control over their future work. You might even get ghosted.

With EORs like USource, staff are regularized. We handle salaries, benefits, incentives, and taxes. In short, we have skin in the game. We are your partner.

If a team member does not work out, we connect you with another. Meanwhile, the outgoing member moves to a new client or gets more training. So they are ready for the next role.

Regularized vs. non-regularized employees in the Philippines

It is tricky to tell regularized employees from independent contractors. This is true on freelancing networks. Non-regularized workers in the Philippines have no job security and no benefits.

You do not pay taxes or benefits when you hire an independent contractor. So this can cut costs. However, it also exposes you to misclassification and non-compliance. Tax registration here takes time, which pushes some freelancers to skip the rules.

If you misclassify a contractor, or if your hire skips their taxes, the savings vanish. High fines and legal issues take their place.

Contractors also lack job security. So they often juggle two or more clients besides you. As a result, there is always a chance they ghost you for a higher-paying client.

A skilled contractor will do the job well. Still, they usually cost more. So watch for red flags when you offshore contractor work.

Freelancing networks hold many non-regularized workers. This can put your business at risk of tax issues. However, these networks also host regularized staff from established agencies. Weighing staff leasing is one way to lower that risk.

Meanwhile, regularized employees in the Philippines pay taxes through automatic withholding. In addition, their employer helps with government contributions. They also get regulated penalty rates for holiday work.

Both offshore staffing options can meet your digital needs. As an alternative to a long marketplace search, you can hire an EOR like USource for compliant, worry-free hiring. To pick the right route, compare offshoring vs. outsourcing first.

Frequently asked questions about offshore staffing solutions in the Philippines

What are offshore staffing solutions in the Philippines?

They are ways to hire Filipino talent from abroad. For example, you can use online marketplaces or an Employer of Record. Both give access to skilled, cost-effective staff.

How much can you save with offshore staffing in the Philippines?

Savings are large compared to onshore hiring. In fact, you can hire a full team for the cost of one local hire. So it suits both startups and large firms.

What is the difference between a marketplace and an EOR?

A marketplace connects you with freelancers directly. Meanwhile, an EOR becomes the legal employer for you. So the EOR handles payroll, taxes, and compliance.

Is offshore staffing in the Philippines compliant?

It can be, if you follow local labor law. Misclassifying staff brings fines and risk. So an EOR helps keep your hiring compliant.

Which roles can you offshore to the Philippines?

Yes, you can offshore many digital roles. For example, common ones include customer support, IT, SEO, and graphic design. Marketing and admin work are common too.

Key takeaways

• The Philippines offers skilled offshore staffing at a fraction of onshore cost.
• Marketplaces are fast but carry misclassification and compliance risk.
• An Employer of Record handles payroll, taxes, and compliance for you.
• Regularized staff bring more stability than independent contractors.
• Match the route to your budget, timeline, and risk tolerance.