Outsourcing in the Philippines is still cheap

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November 21, 2007

I just saw this because Jojo Paderes had his status in GTalk pointing to this link.


According to Mercer, the Philippines is still one of the cheapest IT outsourcing destination in the world. The figures states that as of 2007 IT Managers in Manila only earn $22,280/year on an averaged ranking third compared to Switzerland, the highest paying country which has their IT managers average a whooping $140,960/year[link].





















Figure 1*


















































































IT Manager: 10 top-paying countries (various currencies)
 

 

Local USD EUR GBP
Switzerland 176,920 140,960 110,990 74,150
2 Denmark 722,310 123,080 96,890 64,750
3 Belgium 95,380 121,170 95,380 63,760
4 UK 62,180 118,190 93,090 62,180
5 Ireland 85,200 108,230 85,200 56,950
6 US 107,500 107,500 84,650 56,550
7 Germany 84,020  106,730  84,020  56,160 
8 Canada 106,000 93,860 73,870 49,370
9 Hong Kong (China) 702,720 90,340 71,120 47,530
10 Australia 115,480 88,850 69,950 46,740
Figure 2*


















































































IT Manager: 10 lowest-paying countries (various currencies)
Local USD EUR GBP
Vietnam 15,470 15,470 12,180 8,140
2 Bulgaria 34,25o 22,240 17,510 11,700
3 Philippines 1,106,700 22,280 17,540 11,720
4 India 1,120,490 25,000 19,680 13,150
5 Indonesia 289,155,000 31,720 24,970 16,690
6 China (Shanghai) 265,810 33,770 26,580 17,770
7 Malaysia 129,930 35,260 28,040 18,740
8 Czech Republic 791,430 35,880 28,250 18,880
9 China (Beijing) 285,130 36,220 28,520 19,060
10 Argentina 133,040 43,180 33,990 22,720
 

Figure 3* Figure 4*


































IT Manager: 5 highest paying positions in Asia
    Local USD
Hong Kong 1 702,723.00 90,344.03
2 Australia 2 115,483.00 88,846.75
3 Japan 3 10,347,000.00 87,638.17
4 South Korea  4 69,374,000.00 74,022.62
5 Singapore  5 104,127.00  66,615.70


































IT Manager: 5 lowest paying positions in Asia
    Local USD
Vietnam 1 15,473.00 15,473.00
2 Philippines 2 1,106,700.00 22,281.05
3 India 3 1,120,486.00 24,996.90
4 Indonesia 4 289,155,000.00 31,721.24
5 China – Shanghai 5 265,814.00 33,768.74

*Note:




  • Average total cash compensation includes base pay and annual bonus.



  • Foreign exchange conversions were made as of November 2006.



  • Source: Mercer: 2007 IT Pay around the World. 


You can treat the numbers above in different ways… either Manila is not getting the big piece of the pie because we are undervalued (considering that we are the largest english speaking nation in Asia) or… That we can attract more companies to outsource to Manila because we are talented and cheap enough to do projects for other countries which means a larger economic growth for our country.


I think the numbers above would fluctuate specially knowing that the US Dollar is currently in a slow decline and Euro starting to dominate the markets. 


The Philippines has a great talent pool when it comes to IT and most of the them work hard to hone their skills even if they don’t get paid that much. That’s what I call responsibility and commitment to bringing ang building a world class application from a truely world class workforce.


Hayy, I hope Manila gets a bigger piece of the pie 🙁 Till then, Mabuhay ka Filipino Developer!

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