Outsourcing to Colombia vs. The Philippines: A quick comparison

Outsourcing to Colombia vs. the Philippines: which should you pick?

Outsourcing to Colombia suits US firms that want nearshore teams, timezone overlap, and bilingual tech talent, while the Philippines still leads for support roles and deep cultural ties with the US.

• Colombia offers a close timezone and strong Spanish-English skills.
• The Philippines shines in customer support and American-style service.
• Costs are close, so the right pick depends on the role and market.

South America has grown as an outsourcing hub for years. With more than 20 years of growth, it is now a go-to option for firms that want a nearby delivery base. To see how the numbers stack up, it helps to review the latest outsourcing statistics.

Colombia is one of the most popular spots in the region. Its solid infrastructure and steady flow of graduates draw many US clients each year.

In fact, providers such as Booth now run operations in the country. Chris Mueller, head of sales at Booth, compares outsourcing to Colombia and the Philippines in episode 439 of the OA podcast.

Colombia as the new Philippines for nearshoring

Many call Colombia the new Philippines for nearshoring services.

The country ranked 13th in Kearney’s 2021 Global Services Location Index. On top of that, its outsourcing industry gets strong support from the government.

Here are some factors that make Colombia a strong nearshoring base:

• IT infrastructure readiness. The country’s IT setup keeps improving. So far, it has passed key milestones with more than 65% connectivity.
• Workforce availability. Per Chris, Colombia turns out around 13,000 university graduates each year.
• Ease of doing business. The World Bank ranks Colombia among the best places to invest.
• Timezone convenience. By outsourcing to Colombia, US clients get only a few hours of time gap. As a result, teamwork feels easier.

Outsourcing to Colombia vs. the Philippines: How the two countries fare

Chris shared that choosing Colombia felt natural for Booth. After all, many providers are also settling there.

He said Colombia is very well set up for business, with quasi-governmental authorities that promote the country and help firms set up shop. Still, both countries have distinct strengths for companies that want to outsource.

Popular roles

Companies still turn to the Philippines for support-related services. Meanwhile, Colombia is rising fast for higher-value goods and services.

Per Chris, Booth wanted to be where there was a growing tech market. With thousands of workers building tech skills, he noted that the industry is becoming much better known as part of the economy.

Cultural alignment

Chris also said clients pick a nearshore base for many reasons, including culture.

According to him, one reason Booth set up in Colombia is to give people the chance to offer Spanish-English bilingual services in the same timezone. Admittedly, the Philippines has strong education and deep cultural ties with the US, thanks to its shared history. Its skilled Filipino workforce remains a big draw. Still, for close collaboration in the same timezone, Colombia can be the better fit.

Costs

Per Chris, the cost gap between the Philippines and Colombia is not so wide. Depending on the role, clients can still find quality tech work at a fraction of local rates.

Popular remote work platforms

One clear difference Chris noticed is the tools that nearshore staff use. According to him, many software platforms are more common in Colombia than in the Philippines.

For example, Colombian teams tend to know Monday.com better than teams in the Philippines.

The future of global outsourcing

Chris agrees that each country has its own strengths in certain roles. For instance, the US market values Filipino staff for their Americanized accents. Meanwhile, Britain often works with India because of British English.

Chris adds that outsourcing keeps getting easier as the world grows more connected.

Per Chris, Booth focuses on clients rather than on set industries or roles. As a result, they make it easy to start with one employee and grow the team over time.

They can fill many roles, as long as they find the right people in the local market. To do this well, Chris highlights strong recruitment and stable, long-term ties with staff and clients.

In the end, stability and workforce continuity matter more than upfront cost savings. Contact Booth through their website.

Frequently asked questions

Is Colombia cheaper than the Philippines for outsourcing?

The cost gap is small, per Booth’s Chris Mueller. Your final cost depends on the role and skill level, not just the location.

Why do US firms outsource to Colombia?

Colombia offers a close timezone and bilingual Spanish-English talent. It also has a growing tech market and strong government support.

What is the Philippines best known for in outsourcing?

The Philippines leads in customer support and voice services. Its staff are known for clear, Americanized accents and warm service.

What does nearshoring mean?

Nearshoring means outsourcing work to a nearby country. For US firms, Colombia is a popular nearshore option with a similar timezone.

Which country should I choose for my team?

Pick Colombia for timezone overlap and bilingual tech roles. Choose the Philippines for support work and deep US cultural fit.

Key takeaways

• Colombia and the Philippines both offer strong, affordable outsourcing talent.
• Colombia wins on timezone overlap and Spanish-English tech skills.
• The Philippines leads in customer support and cultural fit with the US.
• Costs are close, so the role and market should guide your choice.
• Booth helps US clients build and grow nearshore teams in Colombia.