Best Software Outsourcing Companies in the Philippines: Staff Augmentation & Project Shops
In this article
I own one of the companies featured here, so let’s address that up front. Full Scale is a software development staffing company based in the Philippines. My opinion on how to choose between them is as valuable as a car salesman’s advice on which vehicle to purchase.
I’ll also be candid about when we’re not the right choice for you, since the type of company is more important than the brand, and it would be disingenuous to publish a listicle from someone who is selling something.
One detail that these lists typically omit is: some of these firms assemble a long-term team for you; others complete a project for you, and then depart. They perform different tasks. A firm that excels at one tends to struggle with the other. Choosing a company from a top-ten list without clarifying whether they provide staff augmentation or project completion is why many of these projects fail, and the blame is then wrongly attributed to the Philippines rather than the wrong choice of partner.
So, first, a brief explanation. Then, the companies, organized into three categories by function.
Staff augmentation vs outsourcing
Do you want long-term help with your product, or do you just want some code written?
Long-term help means staff augmentation: devs working in your code base, attending your standups, staying for years. Some code written means project outsourcing: a vendor takes your spec, writes code, delivers, and leaves.
Check their site rather than taking their word for it. A staff augmentation company will advertise its ability to build a team, featuring words like dedicated engineers and long-term collaboration on the front page. A project outsourcing shop will advertise its ability to get the job done, featuring words like milestones and deadlines. The copy tells the story, once you know where to look. Consider this just an initial check, though, since some shops intentionally blur the lines, which is why I’ve listed a few companies below in both categories.
For a more thorough breakdown, including a comparison chart and a four-question decision framework, check out our article on staff augmentation vs. outsourcing. For now, though, we’ll just list them by category.
The case for software development outsourcing in the Philippines
Philippine software outsourcing has been around for years. The Philippine IT-BPM industry’s own reporting puts the sector at tens of billions of dollars a year, supporting nearly two million jobs. English is taught from grade one, the culture runs on American business norms, and the local cost of living means a quality engineer costs a small fraction of an American equivalent.
That’s why so many providers exist to help you find your next Philippine hire. A mid-level to senior developer typically earns $15-$30 an hour working locally. An offshore provider like Full Scale starts rates for similar talent around $35 an hour, roughly 50-70 percent less than a comparable US rate. Those are real savings, but they’re only half the equation. Focusing on the cheapest rate alone is what we call cheapshoring, and it’s exactly why the model you pick matters as much as the hourly rate.
We’ll dive into Philippines call center outsourcing vs software development elsewhere, but if you’re looking for BPO outsourcing companies in the Philippines, see our guide to BPO outsourcing companies in the Philippines. And if you’re looking for IT companies in the Philippines that aren’t purely software, check out our list of IT companies in the Philippines.
The best software outsourcing companies in the Philippines, grouped by what they do
There are plenty more companies worth your consideration, and here are six, and where Full Scale slots in. I stuck to companies that offer primarily software services, not traditional offshoring or BPO companies that list software development as one capability among many. I also grouped them by engagement model instead of a linear ranked list. It’s like comparing apples and oranges to rank a staff augmentation company and a project shop in the same numbered list. The tags below were compiled by looking at each company’s website, and applying the criteria above, so consider the company names and founding dates in the same light: these are self-reported metrics, not something Full Scale independently verified.
Staff augmentation: companies built to join your team
Full Scale
That’s us. We hire, manage, and retain software engineers in the Philippines who plug into your team directly, work in your codebase, and report to your own manager. We achieve 93%+ retention rates and have staffed over 200 companies since 2018. If you have a one-time build with a fixed scope and just want it shipped, we’re not for you. Skip to project outsourcing.
Chromedia
According to their website, they’re based out of Denver, CO, but have a local engineering center in Cebu City. Their homepage copy talks about building “a scalable, high-performance team in the Philippines” and offers staff augmentation as a core service alongside their custom software development offering.
Mugna Technologies
Mugna’s also based in Cebu, and according to their own About page they were founded in 2019. They tout dedicated engineers and staff outsourcing for ongoing web, mobile, and software projects (yes, outsourcing is in their own company name). Looking at their services page, though, it’s really team augmentation, centered around dedicated engineers and not a one-time project deliverable.
Both models: companies that do staff augmentation and project work
White Cloak
Manila, established 2014, per website. Website cites enterprise customers like UnionBank and Ayala. Staff augmentation is listed as a service, and separate from that, software development and managed services are listed as project-style delivery options. Find out what model you’re entering before you assume.
SSA Group
Most transparent of all these companies about offering both models. Website explicitly describes three ways to cooperate: fixed price, time and materials, and dedicated team. Both a project shop and a staff augmentation shop under the same banner, with clear labeling instead of ambiguous wording.
Project outsourcing: companies built to hand you a finished deliverable
ThinkBIT Solutions
A Quezon City company that states it’s been around since 2014 and lists clients on its website such as Globe Telecom and international NGOs. Their marketing talks about delivering finished, high-performance web applications, which sounds like a company that wants to build a site and hand it over. If you have a specific project with a completion date in mind, this is the kind of company you want.
Accenture
The biggest company on this list by far. Accenture employs tens of thousands of people across Manila, Taguig, and Cebu doing consulting, cloud work, and custom development for large global brands. It doesn’t really fit either bucket. I’m putting it here because Accenture runs enterprise programs and long-running managed engagements, not a small dedicated team you manage daily like the companies above. That’s the right choice if you’re a large business with a complex project and a big budget, and the wrong choice if you’re a startup looking to hire three engineers.
What decides whether the engagement works
Choosing the right model takes you most of the way there. What’s left is the same set of questions no matter which vendor you pick. Are you dealing with the engineers directly, or just one project manager whose name is all you ever learn? Is the company actively recruiting, or do they just post the job and forward whoever applied? What happens to all that expertise when the project ends?
That last question shouldn’t be taken lightly. On a project outsourcing engagement, the engineer who knows why something was done goes home the day the invoice gets paid, and eighteen months later you’ll have to pay someone else to figure out why it was done by digging through your own source code.
A company that gets your model right and your vetting wrong will still burn your budget. None of those considerations show up in a directory listing, which is the other reason top-10 lists are generally useless.
Frequently asked questions
What is the best software outsourcing company in the Philippines?
There’s no single best vendor overall, since staff augmentation and project outsourcing serve different purposes. For long-term engagements, look at companies built for staff augmentation, such as Full Scale, Chromedia, and Mugna Technologies. For a defined, one-time project, a vendor with a project-focused delivery model like ThinkBIT Solutions is a better fit, and for large-scale programs, you’d want to work with a big global enterprise like Accenture.
What’s the difference between staff augmentation and project outsourcing?
With staff augmentation, developers are added to your team and work under your direction for as long as the engagement runs. Project outsourcing is when a vendor takes a defined project and delivers a finished result. The easiest way to tell which one you need is to ask whether you want someone working on your product over time, or just a piece of code they write and hand off.
Are IT outsourcing companies in the Philippines reliable?
Established ones are. The country has a proven track record with both its infrastructure and talent pool, backed by a business-process industry worth tens of billions of dollars annually. On the company level, reliability depends on whether you chose the right engagement model and vetted the particular vendor, not on the country.
How much does software outsourcing in the Philippines cost?
This will be a range, not a single number. Local developer pay and staffing-partner billing rates both scale with seniority and specialty, but in any case it’ll end up well under a comparable US hire. The tricky part isn’t the rate on the quote, it’s the rework and turnover cost that follows whichever number looked the most attractive at face value.
Can one company do both staff augmentation and project outsourcing?
Yes. Some of the companies listed here, such as White Cloak and SSA Group, provide both types of services. This in itself isn’t a bad thing, but it means that you should double-check the terms before you sign.
The list isn’t the decision
These companies are just the beginning. The right one is whichever matches the job you actually have. If you choose correctly, the Philippines will be one of the best countries in the world to develop software. If you get it wrong, you’ll blame the country for a mistake that has nothing to do with the country.
If you’ve gone through the primer and decided you want staff augmentation, book a call with Full Scale and we’ll see if we’re the right fit for your project.
