Last Updated on 2024-10-11
High market competition makes companies recognize the benefits of offshore software development.
Offshore solutions can be a means to tap into global talent pools, optimize costs, and speed up product development cycles.
Among the many countries vying for a piece of the offshore software development market, two have recently captured the attention of tech leaders: Siberia and the Philippines.
Although both locations offer distinct strengths, a closer examination reveals that the Philippines holds a clear edge over Siberia for businesses seeking to build high-caliber, budget-friendly software development teams.
In this blog post, we’ll dive into the critical aspects that differentiate the Philippines from Siberia and make it the perfect choice for your offshore software development requirements.
Overview of Top Offshore Destinations: Siberia vs. Philippines
Siberia and the Philippines are two frequently mentioned locations when it comes to software development outsourcing.
In these nations, technical expertise is available at lower rates than local employment. Therefore, many organizations consider them possible locations for offshore development teams.
Siberia’s multiple time zones, some of which overlap with European countries, can facilitate more convenient collaboration for European clients.
The cost of software development in Siberia is also generally lower compared to Western countries.
Meanwhile, the Philippines boasts an exceptionally high level of English proficiency, thanks to the country’s strong cultural ties with the United States.
The country also offers cost advantages, with lower software development expenses than in Western countries.
Let’s compare the advantages and disadvantages of each location.
Siberia vs. Philippines: Diving Into the Comparison
Siberia and the Philippines offer a pool of highly skilled developers, two popular choices for many businesses.
However, we’ll have to compare these two locations based on various factors to help you decide on your offshore software development needs.
| Category | Siberia | Philippines |
| Cost of Offshoring | – $40-70/hour range on average | – $35-50/hour range |
| Talent Pool | – Estimated 60,000 software developers | – 200,000+ current IT professionals – 30,000+ graduating annually |
| Language Proficiency | – English as a second language – Level of proficiency varies | – High level of proficiency in English – Ranked #2 in Asia – Ranked 20th globally |
| IT Infrastructure | – More robust infrastructure, particularly in urban tech hubs like Novosibirsk and Tomsk | – Robust IT infrastructure, supported by the government and private sector |
| Government Support and Policies | – The Russian government has promoted Siberia as an outsourcing hub, but recent geopolitical issues have heightened the business risks there | – Philippines is a global leader in IT and Business Process Outsourcing (BPO) industries – Supported by government through tax breaks, training subsidies, and streamlined trade policies |
| IP Protection and Security | – IP protection laws are in place, but enforcement is not always consistent | – The Philippines does have close ties to the US, which provides some additional confidence around IP protection for US companies |
| Potential Challenges | – Geopolitical issues can disrupt your business |
Cultural Compatibility
Below is a comparative analysis of offshore software development in Siberia and the Philippines, focusing on cultural compatibility.
| Category | Romania | Philippines |
| Work Ethics | – Strong work ethic; value diligence and meeting commitments – Adhere to rules and processes; respect authority | – Hardworking and willing to go the extra mile for clients – Adaptable and open to finding creative solutions – Prioritizes client satisfaction over rigid processes |
| Communication Style | – Direct communication can come across as abrupt or unfriendly – Noticeable accent may cause miscommunications with US clients – Proactive updates are helpful but might overwhelm clients | – Indirect communication style maintains positive relationships – A neutral accent is easy for US clients to understand – Provides updates as needed without overloading clients |
| Time Zone Differences | – Significant time difference with the US requires early/late calls | – A 12-hour difference enables efficient overnight work for the US |
Why Choose the Philippines for Offshore Software Development?
The Philippines is an excellent choice for offshore software development for offshore software development due to the following reasons:
- A Large pool of highly skilled talent: The Philippines produces many STEM graduates, making it a prime source of skilled IT professionals for companies.
- English-proficient IT professionals: Talent is fluent in English due to American influence, which enhances its appeal for offshoring.
- Significant cost savings: Labor costs in the Philippines are much lower than in the US or Western Europe. This allows companies to save 50-70% on salaries without sacrificing quality.
- Westernized work culture and strong cultural compatibility: The Philippines’ interaction with the US has shaped its work culture, resulting in a strong work ethic and familiarity with Western business practices.
- Robust IT infrastructure and government support for the industry: The Philippine government supports IT-BPO growth with infrastructure investment and tax incentives.
- Proven track record in the BPO industry: The Philippines has a reputation for delivering high-quality BPO services for over two decades, earning reliability and expertise in the offshore services industry.
- Favorable time zone differences: The Philippines’ time zone, 12-16 hours ahead of the US, supports a 24-hour development cycle, speeding up product development and market entry by leveraging global teams.
These factors make the Philippines an attractive destination for businesses looking to leverage offshore talent, reduce costs, and accelerate development cycles.
For Your Offshore Software Development Needs, Work with Full Scale as a Partner
If you’re convinced the Philippines is the right offshoring destination for your company, consider working with an offshore software development center like Full Scale.
Full Scale is a US company with an offshore development center in the Philippines, giving you the best of both worlds—talent pool and competitive pricing.
Some key advantages of partnering with Full Scale include:
- A large pool of pre-vetted, qualified developers available to interview and hire quickly
- Established HR, administrative, and operational processes to make offshoring turnkey
- Physical offices and infrastructure in the Philippines to host your team
- Direct client-developer model without project managers in between
- Ongoing training, career growth, and retention programs for developers
- US-friendly shifts and optimal time zone overlap
- Month-to-month, cancel anytime contracts for maximum flexibility
With Full Scale’s team supporting you, setting up an offshore software development team in the Philippines is easier than ever. You can focus on your core business while Full Scale handles the rest.
Hire the Best Offshore Developers
Matt Watson is a serial tech entrepreneur who has started four companies and had a nine-figure exit. He was the founder and CTO of VinSolutions, the #1 CRM software used in today’s automotive industry. He has over twenty years of experience working as a tech CTO and building cutting-edge SaaS solutions.
As the CEO of Full Scale, he has helped over 100 tech companies build their software services and development teams. Full Scale specializes in helping tech companies grow by augmenting their in-house teams with software development talent from the Philippines.
Matt hosts Startup Hustle, a top podcast about entrepreneurship with over 6 million downloads. He has a wealth of knowledge about startups and business from his personal experience and from interviewing hundreds of other entrepreneurs.
