If you’ve spent more than ten minutes researching “sending work to the Philippines,” you’ve probably noticed something strange. Everyone throws around the words offshoring, outsourcing, BPO, and EOR as if they all mean the same thing — and most of the time, they’re wrong.
The terminology matters. The delivery model, cost structure, level of control, and business outcomes are completely different. Mixing them up is the fastest way to end up disappointed.
This guide was first written when we launched Ascendia in 2021. It’s designed for Australian and New Zealand SMB owners and senior executives running 10–200-person businesses who are considering hiring their first Filipino team member.
The Short Answer
Offshoring means hiring a full-time employee who happens to live and work in another country — like the Philippines.
They work only for you. They join your meetings, use your tools, follow your processes, and become part of your culture. The only difference is that their employment contract sits with a local Filipino entity so everything is compliant and they receive their proper entitlements.
Outsourcing, by contrast, is when you pay a third party to deliver an outcome: calls answered, books reconciled, leads qualified. You don’t choose the person doing the work. They don’t adopt your culture. You’re buying a result, not a team member.
“Offshoring is hiring a full-time employee in a different country who adopts your way of getting things done. Outsourcing is buying an outcome. People confuse the two, and then they’re surprised when the outsourced team doesn’t work to their standards.”
— David Barlow, Co-Founder & CEO
Why the Philippines?
The Philippines has become the offshore staffing destination of choice for Australian SMBs — and for good reason.
- Filipinos are exceptional to work with. They’re warm, capable, and take pride in their work.
- The time zone works. Only a 2–3 hour difference, and Filipinos are happy to start earlier when needed.
- It’s an English-speaking country. Filipinos have been working with Australian, Kiwi, and US companies for decades.
- The talent is highly skilled. Many roles you struggle to hire locally can be filled by experienced Filipino professionals.
Yes, the cost savings are real — but that shouldn’t be the reason you go.
Go to the Philippines to access talent you can’t afford or can’t find in Australia or New Zealand. Pay a Filipino premium and you’ll attract the best and brightest.
What ANZ SMBs Get Wrong
1. Not paying enough to attract the right calibre of talent
Too many SMBs approach the Philippines like a bargain bin at Kmart.
And yes — someone will always put their hand up for a low-paying role. But their ability to perform the job is often between nil and zero.
I’ve lost count of how many business owners say, “We tried offshoring, but we spent more time teaching them how to do the job than getting the job done.”
If they had simply paid a Filipino premium, they would have had a completely different experience.
You get what you pay for — offshore or onshore.
2. Not understanding the Filipino talent market
Many successful Aussie and Kiwi business owners have limited experience working across cultures. What works in your local talent market doesn’t always translate to the Philippines.
You need an offshore staffing partner who understands the local market and can guide you on how to set things up properly — recruitment, onboarding, culture, expectations, and retention.
3. Not helping your local team transition
This is one of the fastest ways to kill an offshore staffing initiative.
You can’t delegate the change program to middle management and hope for the best.
CEOs think commercially and run a P&L. Middle managers often think, “I can only get things done when someone is sitting next to me.”
Without leadership stepping in to answer the hard questions and support the transition, the initiative never gets off the ground.
4. Not treating your Filipino team like your local team
Filipinos are smart. They can tell instantly if they’re being treated differently.
If you want a high-performing offshore team, you need to bring them into the tent — include them, support them, and treat them like part of the business. Anything less and engagement drops quickly.
5. Picking the wrong offshore staffing partner
This one is more common than you think.
There are thousands of providers, each with different commercial models, service levels, and capabilities. You need the right partner for where your business is now and where it’s going.
- If you only plan to hire one or two people, a massive provider with thousands of staff won’t give you the attention you need.
- If you plan to scale to twenty people, a boutique provider may not have the infrastructure to support you.
Not all offshore staffing companies are the same — far from it.
