What Does Outsourcing to the Philippines Actually Cost?
The short answer: $1,200 to $2,500 per month per team member, depending on the role and provider. But the real question is what's included in that number — and what isn't.
This guide breaks down the actual costs of outsourcing to the Philippines, compares pricing models, and helps you calculate the real savings for your business.
Cost by Role: 2026 Rates
Here's what you can expect to pay for dedicated, full-time team members through a managed BPO provider:
Entry-Level Roles ($1,200–$1,500/mo)
| Role | Monthly Cost | US Equivalent | |------|-------------|---------------| | Customer Support Agent | $1,200–$1,500 | $3,200–$4,300 | | Data Entry Specialist | $1,200–$1,400 | $2,700–$3,500 | | Virtual Assistant (General) | $1,200–$1,500 | $3,300–$4,600 | | Chat Support Agent | $1,200–$1,500 | $3,000–$4,000 |
Mid-Level Roles ($1,400–$2,000/mo)
| Role | Monthly Cost | US Equivalent | |------|-------------|---------------| | Bookkeeper (QuickBooks Certified) | $1,400–$1,800 | $3,500–$4,800 | | Content Writer (SEO) | $1,400–$1,800 | $3,700–$5,400 | | SDR / Lead Gen Agent | $1,400–$2,000 | $4,200–$5,800 | | Social Media Manager | $1,400–$1,800 | $3,700–$5,400 | | Graphic Designer | $1,400–$2,000 | $4,000–$5,700 |
Specialized Roles ($1,800–$2,500/mo)
| Role | Monthly Cost | US Equivalent | |------|-------------|---------------| | Medical Billing Specialist | $1,600–$2,200 | $3,800–$5,000 | | Executive Virtual Assistant | $1,600–$2,000 | $4,200–$5,800 | | Team Lead / Supervisor | $1,800–$2,500 | $4,500–$6,500 | | RLHF Data Labeling Operator | $1,200–$1,600 | $3,000–$4,500 |
What's Included (and What's Not)
Managed BPO Provider (All-Inclusive)
A reputable managed provider includes everything in the monthly rate:
Included:
- Employee salary and statutory benefits
- HMO (health insurance)
- Office space and workstation
- Enterprise-grade internet with backup
- Computer and peripherals
- HR management and payroll
- Operations manager oversight
- AI tool training
- Backup power supply
Not included (your responsibility):
- Software licenses (your tools — Zendesk, HubSpot, etc.)
- Product/process training time
- Management of work output (you direct what they do)
Freelancers (Hourly/Project-Based)
Freelancer rates vary widely:
| Platform | Typical Hourly Rate | Monthly Equivalent (Full-Time) | |----------|-------------------|-------------------------------| | Upwork | $5–$15/hr | $800–$2,400 | | OnlineJobs.ph | $3–$10/hr | $480–$1,600 | | Fiverr | Project-based | Varies |
What you're responsible for: Management, quality assurance, backup plans, communication tools, and dealing with no-shows.
The freelancer rate looks cheaper on paper, but you need to factor in:
- Your management time (2-5 hours/week minimum)
- Risk of ghosting (industry-wide problem)
- No backup if they get sick or quit
- No office infrastructure (potential security risk)
- No operations management
At a $150/hour opportunity cost for your time, managing a freelancer 3 hours/week costs you $1,800/month in productivity — often more than the savings.
The Hidden Costs of NOT Outsourcing
Before comparing outsourcing costs, calculate what you're spending now:
US Employee True Cost
A $45,000/year US employee actually costs your business:
| Item | Annual Cost | |------|-----------| | Base salary | $45,000 | | Payroll taxes (7.65%) | $3,443 | | Health insurance | $7,200 | | 401(k) match (3%) | $1,350 | | PTO (15 days) | $2,596 | | Office space | $6,000 | | Equipment | $2,000 | | Recruiting costs (amortized) | $3,000 | | Total | $70,589 |
That's $5,882/month — not $3,750/month as the base salary suggests.
Opportunity Cost of Founders Doing Non-Core Work
If you or a co-founder is handling customer support, admin, or data entry:
- 20 hours/week on operational tasks
- At a conservative $100/hour founder opportunity cost
- That's $8,000/month in lost productivity
- An outsourced team member at $1,200/month is a 6.7x ROI
How to Calculate Your Savings
Use this framework:
- List all roles you want to outsource
- Calculate current cost (salary + benefits + overhead, or founder hours × opportunity cost)
- Get BPO quotes from 2-3 providers
- Subtract BPO cost from current cost
- Factor in transition costs (first month of training, reduced productivity)
- Calculate annual savings (monthly savings × 12, minus one-time transition costs)
Example Calculation
A startup outsourcing 3 roles:
| Role | Current Cost | iSuporta Cost | Monthly Savings | |------|------------|--------------|----------------| | 2× Support Agents | $8,000 | $2,400 | $5,600 | | 1× VA | $4,500 | $1,200 | $3,300 | | Total | $12,500 | $3,600 | $8,900 |
Annual savings: $106,800. Even with a $5,000 transition cost, the ROI is immediate.
Month-to-Month vs. Contracts
Most quality providers offer month-to-month service. Be wary of providers requiring 6-12 month contracts upfront — it suggests they're not confident in retention.
At iSuporta, we operate month-to-month because we believe the quality of our service should keep you, not a contract.
The Bottom Line
Outsourcing to the Philippines saves most US businesses 60-70% on staffing costs. The savings are real and immediate — but only if you choose the right provider and invest in proper onboarding.
The cheapest option is rarely the best option. A $800/month freelancer who ghosts after 3 weeks costs more than a $1,400/month managed team member who stays for 3 years.