Unknown to many, it is now possible to outsource developer jobs. As an entrepreneur, you can outsource the whole function of IT development, so that you can focus on your companies’ core competencies. Business process outsourcing is highly advisable especially if you are not adept with web, mobile and software development. Here’s why you should consider outsourcing.

Hiring an experienced developer can be expensive, particularly for residents of a First World country. Aside from the salary, you also spend on recruiting costs, onboarding, employee benefits, and continuous training. Furthermore, your developer needs his office space, table, chair, computer, and other equipment.

If you have a big project, you need to hire many developers and a project manager to supervise the entire development project. However, the expense doesn’t stop there as development costs can skyrocket, eat up a big slice of your budget, and even lower your net profits.

Why outsource software development

Depending on what needs to be developed — web, mobile, or software — you may need to hire other specialists, purchase a specific set of equipment and tools, and spend a more considerable sum of money.

Aside from the developers, there’s also the need to hire a quality assurance expert, business consultant, and UX specialist — who are experienced, knowledgeable, and skilled. Do take note that when it comes to hiring people with a higher level of experience and skills, the cost such as salary and benefits goes up.

Once, you do decide to build an in-house team of developers, a considerable amount of your time will be spent in screening job applicants who have the expertise and skillset that you need. Hiring alone takes a huge chunk of your time, and even if you’ve got a department to take care of the process — you, as the company owner, always end up making the final decision.

The challenges don’t stop there because once you start hiring experienced professionals, there’s another job of monitoring their work, giving feedback, testing and making sure that app, web, or software development strictly follows the set schedule. Also, there’s the job of ensuring that development is still within the budget. More often than not, development costs exceed the limit because of revisions and glitches.

Going through hiring and monitoring a development team, to purchasing all the equipment needed can be taxing on your part as a business owner. Apparently, you spend a lot of time in this department alone that you neglect the core activities of your company.

How to outsource software development

Software development tasks can be outsourced in three ways: hiring a freelancer, a software development company, or through business process outsourcing.

Hiring a freelancer

Freelancers are perfect for one-off tasks or as virtual assistants. They can fix issues on the software and can serve as technical support for internal teams. They are hired directly through freelance platforms and can be contracted for a short period.

FreeeUp

FreeeUp homepage
Image via FreeeUp.com

FreeeUp differs from other freelance websites since they offer pre-vetted freelancers to their clients. All they need to do is fill up a request form for their preferred role then the system will match them to a suitable applicant. 

Upwork

Image via Upwork.com

One of the most popular freelance sites in the market, Upwork lets employers search for freelancers on the platform. They can also post a job offer where applicants will match with their proposal. Hiring, work collaboration, and payment processing are all done on the site for a more secure transaction.

Fiverr

Fiverr homepage
Image via Fiverr.com

Fiverr lets employers buy a freelancer’s service. The latter will post their offer on the platform for as low as $5 then the interested employer will purchase it. They will then start working. This site is perfect for one-off and urgent jobs. 

Freelancer

Freelancer homepage
Image via Freelancer.com

Freelancer is one of the oldest freelance platforms in the market. The site works like UpWork, where employers will either look for their freelancers or post a job offer. They can then hire and work with them through the platform.

PeoplePerHour

Image via PeoplePerHour.com

Lastly, freelancers in PeoplePerHour can be hired and paid by their hourly rates. Once an employer hires their freelancers, they need to secure a downpayment first before the freelancer starts working. Once done and approved, they will then be charged with the rest of the payment for rendered service.

BPO companies

BPO companies, meanwhile, are hired for the regular and ongoing software development process. This includes update releases, bug fixing, and optimization. 

Outsource Accelerator

Outsource Accelerator homepage
Image via Outsourceaccelerator.com

As the leading marketplace for the BPO industry, Outsource Accelerator lists over 700 companies in their site. We also offer staffing solutions from brokerage to co-managed services to provide our client’s software development needs.

The Philippines is one of the top companies to outsource processes according to Tholons. The country highlights its experts on software development and other IT-related services among other skills. Its government also encourages foreign investors to develop the IT sector in the country. As a result, it has one of the cheapest costs on labor and resources next to India. Check the Top 40 BPO companies to learn more.

Outsourcing salary comparison chart

All amounts are in U.S. dollars (USD$) per annum

JOBSPHILIPPINESU.S.U.K.AUSTRALIA
Accountant$5,959$67,190$72,923$58,479
Customer Service$3,337$29,717$22,137$35,275
Copy Writer$4,767$56,600$52,088$62,653
Graphic Artist$3,883$46,658$38,668$37,596
HR Manager$9,506$78,007$46,669$66,518
IT Representatives$5,722$61,758$24,741$59,938
Project Manager$21,458$108,000$57,296$86,029
Software Developer$7,221$81,994$39,913$62,653
Software Engineer$8,333$109,087$44,459$62,653
Technical Support$4,638$36,924$35,225$38,232
Team Leaders$7,152$75,823$31,174$45,428
Virtual Assistance$2,285$42,240$39,066$31,797

Average monthly outsourcing cost guide (USD)

The total cost varies depending on the role and experience level, as well as the BPO facility, service levels and quality.

Total cost $1,200

Entry-level role

Employee salary $400-$500pm BPO facility & service $500-850pm TOTAL COST $900-$1,350pm
Total cost $1,450

Mid-level role

Employee salary $700-$800pm BPO facility & service $500-850pm TOTAL COST $1,200-$1,650pm
Total cost $1,700

Technical role

Employee salary $950-$1,200pm BPO facility & service $500-850pm TOTAL COST $1,450-$2,250pm
Total cost $2,700

Executive level

Employee salary $1,800-$2,200pm BPO facility & service $500-850pm TOTAL COST $2,300-$3,050pm

Using a BPO supplier vs. agency vs. freelancer vs. Upwork

BPO CompanyAgencyFreelancerUpwork
Best rates
Quality control
Expand and scale
Operational backup
Leadership team
Trading and upskilling
Facilities and offices
HOW WE HELP YOU

Proven outsourcing solutions for your business

Outsource Accelerator offers you a full range of independent outsourcing advisory and integration services. We are not a traditional outsourcing supplier, which is what makes us independent – and unique. Our core products make it easier than ever to explore, integrate and optimize outsourcing in your business.

FROM$6 / hr

FULL-TIME DEDICATED
STAFFING & FACILITIES

Simple pricing structure, all inclusive of the ff.

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  • Gross basic salary, plus 13th month bonus (compulsory)
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FROM$0.5 / hr

BESPOKE ADVISORY EXPERTISE

Compatible with any outsourcing structure, supplier or model

ONGOING OUTSOURCING CONSULTATION & ADVISORY

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Staffing for any role, any sector

About Outsource Accelerator

Outsource Accelerator is the trusted source for independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 4,000 articles, 250+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.

Independent trusted advice and implementation

Outsource Accelerator is the leading outsourcing advisory for the Philippines, as well as offering a full spectrum of brokerage, implementation and co-management services.

Derek Gallimore

Derek Gallimore has been in business 20 years, outsourcing 8+ 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.

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