Software Outsource to the Philippines vs. Australia: Which One to Choose? (2023)

Not every day do we get to choose between two equally attractive outsourcing destinations like the Philippines and Australia. It really depends on your company’s specific needs and preferences when it comes to who you outsource software development work to, but we’re here to make that decision a little easier.

In this blog post, we will explore the challenges and factors to consider when outsourcing software development to either the Philippines or Australia. We will also throw in a few of our own top offshore companies from each country to get you started.

Challenges in the Outsourcing Industry

The digital age has opened the door to a whole new world of opportunities when it comes to outsourcing software development. However, there are still certain challenges that need to be addressed.

Here are some of the most common challenges faced by companies when considering offshore outsourcing their software development:

Language Barriers

It is essential that everyone involved in the project is able to communicate clearly. Even with advancements in translation technology, it’s still important that both parties can understand each other, especially when it comes to developing software.

Time Zone Difficulties

Due to distance, working hours can vary from country to country. If you’re from a different time zone, you will have to make sure that the outsourced team is available during your working hours or make allowances for any delays.

Productivity

Since both parties are apart, it’s difficult to ensure that the work is being completed to the highest standard. Whether it’s for a mobile or website development project, it’s important to establish a timeline that outlines the progress of the project and milestones along the way.

Legal Issues

With all the legal aspects of the venture in business processing outsourcing, any organization should be aware of all aware of the legal risks that come with it. It is important to have a comprehensive understanding of all relevant laws in order to ensure that everyone involved is properly protected.

Costs

Outsourcing solutions doesn’t always mean saving money. The key to success is finding the perfect balance between yourself and your wallet. It may require some effort, but with a little time and patience, you’ll be able to discover what works best for both of you!

Now that we have a better understanding of the challenges associated with outsourcing companies let’s dive into the two countries we are considering.

Philippines or Australia: Which One to Choose When Outsourcing Your Software Solutions?

It’s a tough decision, and many factors come into play. As a business owner, you need to consider the cost, quality of services, language barriers, time zone, and cultural differences.

Here are some of the major points to consider when deciding between the Philippines and Australia as an outsourcing partner:

Outsourcing Industry

The Philippines has been a popular outsourcing destination for many years, and it continues to be a top choice among companies from all over the world. Their robust Business Process Outsourcing (BPO) industry is proof of that.

In the early 2000s, the Philippine government began to take steps toward welcoming foreign investors. They encouraged growth with tax breaks and streamlined business registration proceedings, as well as making improvements in infrastructure. As a result of these policies, the industry quickly took off on an upward trajectory.

On the other hand, Australia is also making moves in this direction and gaining traction as an outsourcing market. There are Australian companies that specialize in software and IT solutions, providing sophisticated technologies and services.

However, they cannot keep up with the business needs of the global market in terms of cost and speed, which is why they are seeking collaborators from other countries.

Cultural Considerations

The cultural gap between the Philippines and Australia is an important factor to consider. Filipino workers are well-adjusted to Western culture because of the colonization of the country by Spain and the United States.

Additionally, people in the Philippines are known for their hard work ethic and friendly attitudes toward foreigners. This makes it easier for employers to build strong relationships with offshore staffing and receive quality results.

On the other hand, Australia is a unique cultural melting pot with a variety of Asian and European influences. This creates a vibrant working environment where ideas can be exchanged without much difficulty.

Competence and Skill Level

When it comes to having a highly skilled workforce, you cannot go wrong with either the Philippines or Australia.

Many businesses in the Philippines have access to world-class talent, as the country is home to many universities offering high-level education. Filipinos are also known for their strong technical aptitude and are able to adapt quickly to the changing demands of the market.

In Australia, there is a wide range of qualifications and certifications that are recognized around the world. To give you an idea, graduates from Australia’s universities often get job offers even before they’ve finished their studies.

What comes down is that both the Philippines and Australia have their pros and cons when it comes to outsourcing an offshore team for your software project. However, with a clear understanding of your needs and goals, it is possible to find the perfect match for you!

Language Capabilities

English is the primary language used for communication in both countries, making it easier for employers to communicate with their outsourced staff.

Filipino workers are also fairly proficient in other languages, such as Spanish. This makes it easier for Filipino workers to collaborate with companies from Europe or Latin America.

Australians, on the other hand, are well-versed in both English and Chinese, making it easier for them to collaborate with teams from China or other Asian countries.

Pricing

Cost reduction is often the aim of outsourcing. In this regard, the Philippines is often seen as a more cost-effective option as compared to Australia. This is especially true when it comes to tasks that require basic technical knowledge and repetitive processes.

According to Clutch, you can expect an average cost of $25-49 per hour when you outsource to the Philippines, while the cost savings may be slightly lower when outsourcing to Australia. Of course, this will still depend on the complexity of your software project.

Australian outsourcing companies, however, are the more expensive option among the two countries when it comes to complex tasks and more specialized services, such as building software.

With its high-quality life standards and stable economy, Australia has become a preferred destination for companies seeking quality service and assurance for their projects. The average rates can be as high as $100-190. This still depends on when hiring junior to senior developers.

Time Zone

Compared to having an in-house team, having a developers team means you’ll need to adjust your communication and working hours.

The Philippines is in the GMT+8 time zone, while Australia is in GMT+10. This means you’ll have to work more hours if your remote staff is based in the Philippines, and it will take some getting used to.

On the other hand, an Australian team may be more convenient for companies based in Europe as it provides a more favorable time zone for business communication.

But if you choose to outsource to the Philippines, project management tools are your best friend. The right ones will help you manage time and communication efficiently, regardless of where your team is located.

Now that you have the facts and figures, it’s up to you to decide which country is best suited for your software project! To give you a headstart, we will provide you with the top outsourcing companies in both the Philippines and Australia. Check them out below!

Top Outsourcing Companies in the Philippines

Here are the top Philippines outsourcing companies we recommend:

1. StarTechUP

StarTechUP is a Cebu-based company that offers tailored software solutions for big or small businesses and any type of organization. From web development to business analytics, they have a team of experts that can help you achieve your project goals.

Started in 2013, the company has years of experience providing software development services in the competitive European market. Trust that their services are tailored to meet the highest standards of quality.

Contact them here!

2. Accenture Philippines

Accenture is a multinational company that has a large presence in the Philippines, with several delivery centers across the country. The company offers a range of services, including developing software, application maintenance, and testing.

Their pricing, however, may be on the higher side compared to most companies that offer outsourcing in the country. But their years of experience in software engineering make it an ideal choice for complex projects.

3. Exist Software Labs

Exist is a homegrown IT company that provides software development, maintenance, and testing services. It has a strong focus on open-source technologies and has expertise in areas such as cloud computing, big data, and mobile app development.

So, if you need a global technology innovator and leading Java Developer in the Philippines with over two decades of experience providing enterprise solutions, they’re the one to call.

4. Pointwest Technologies Corporation

Pointwest is another homegrown IT company that provides a range of services, including software development, application management, and data management. It also offers specialized services in areas such as analytics, cybersecurity, and cloud computing.

This Filipino-owned IT and BPO company was established in 2003. Its founders are pioneers of the Philippine outsourcing industry who aimed to create a global brand name for Filipino professionals.

5. Arcanys

Arcanys is a software development company that provides custom software development, mobile app development, and cloud computing services. It has a strong focus on agile development methodologies and has expertise in areas such as blockchain, artificial intelligence, and machine learning.

Arcanys is located in Cebu, Philippines. It has a team of professionals with over years of experience providing software solutions to clients in the US, Europe, and Asia.

Top Outsourcing Companies in Australia

Here are the top Australian companies where you can outsource your software project:

1. DWS

DWS is an Australian IT Consulting Services Group and a subsidiary of HCLTech that was founded in 1991. The company offers a wide variety of services, such as IT Consulting Services, Digital Transformation, Business Analytics and Data, and Program and Project Management.

With over 700 employees, DWS has offices in multiple locations across Australia and New Zealand, catering to a diverse clientele ranging from blue-chip corporate clients to various government agencies.

2. DiUS

Founded in 2004, DiUS aimed to become the best Australian product development company, engineering software and hardware devices using advanced technologies. The company’s vision is to positively impact clients, their customers, the industry, and communities.

Over the past 18 years, DiUS has delivered over 1,000 projects and created a community of client partnerships, leading the industry in new technology applications. DiUS values reflect their passion, purpose, and beliefs, and they strive to create a better world.

3. Intergy Consulting

Located in Sydney, Intergy Consulting is a software development company established in 2004. With extensive experience in enterprise software application development projects, they specialize in delivering customized services for Australian businesses and government organizations looking to grow.

Whether you need high-quality custom web development, digital transformation, staff augmentation, or mobile app development services, Intergy’s team of skilled software developers is here to help provide top-notch user experiences.

4. Vrinsoft Technology

Vrinsoft Technology is one of the Australian businesses in Melbourne that provides application and software development services and digital marketing services. The company has over years of experience in delivering tailor-made solutions to organizations across the region.

With a team of experts in development, design, and marketing, Vrinsoft Technology strives to deliver the highest quality solutions for a wide range of industries.

5. Alliance Software

Alliance Software is an Australian IT company located in Nunawading. This company specializes in custom comparison software, CRM solutions, and other UI/UX web design services.

With years of experience in providing software solutions, Alliance Software has worked with several big clients in the finance and insurance industry. They strive to create innovative software that helps organizations increase revenue and reduce costs.