How Companies are Reducing Risk and Increasing Profitability

The strategy of working with offshore developers to improve profitability and help businesses remain competitive has been around for some time. Many that have dabbled with either foreign Development Agencies or Freelancers have had problematic experiences.

Lack of transparency, communication, quality control and security are regular issues however 2014 saw the birth of a new innovative breed of offshore provider built with the aim of solving these problems. UK/US companies such as Cloud Employee have developed fully Managed offices in central Philippines Tech hotspots with the aim of attracting the top 5% of Developer talent in the country. Unlike the larger outsourcing companies, Cloud Employee specialises in supporting SMEs who may require just a single Developer resource.

They handle everything from headhunting to desk setup to on-going supervision working the same office hours as their international clients. This setup saves clients considerable initial investment, enables total client control and removes the headaches and risks associated with outsourcing.


What are the benefits?

1. Access to a Larger Global Talent Pool

This is the largest benefit of working with Dedicated Remote Staffing Providers. The Philippines is graduating 130,000 students each year from internationally recognised universities.


Working with accredited offshore agencies enables professional access to this talent pool rather than those hiring exclusively from their local resource base. The chances are if you are based outside major cities, it’s hard to find a high-level C++ developer.


2. Get More for your Money

The Philippines has a much lower cost of living. In the UK, one might have to pay £30 – £100 an hour for a top-level contract developer. Hiring staff on the payroll comes with risks, additional taxes and can get in the way of business growth.


Startups in particular often don’t have lots of capital at the beginning, so saving money while getting quality work can make a huge difference between success and failure. For more established companies, the savings made increase profitability and ensure they remain competitive.


3. Free Up Time to Focus on Sales and Marketing

Hiring affordable Development staff enables you to focus where you need to in order to grow your business. Knowing that your existing client work is being taken care of you can spend time on business development, generating leads and speaking to more potential customers.


4. Hiring and Onboarding is Less Hassle

Hiring offshore Developers is comparably simple versus hiring an employee and bringing them on board in an office. When you’re hiring an employee locally, you may have to go through multiple rounds of interviews, pay recruitment agencies large fees, spend time integrating the new hire into the team, deal with the additional tax requirements and more just to have one person on the payroll. Offshore agencies take away most of this stress by handling all of the pre-screening and charging a flat rate each month on rolling contracts.



Ready to build your tech team through IT outsourcing? Let Cloud Employee help! Talk to us, learn how Cloud Employee works, or check out our Developer Pricing Guide.  You can hire offshore developers with us across these technologies.

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We did an analysis on the difference between western and Philippines developer salaries. Uk, USA and Australia pricing comparisons available.


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