Top Reason To Offshore Engineering Services to the Philippiness

Posted on:
May 22, 2024
min read
Table of Contents
What are the benefits of outsourcing to developing countries?
What are the challenges of outsourcing to developing countries?
Top 5 Most In-demand Developing Countries for Outsourcing
What are some successful examples of companies that have outsourced to developing countries?
What are the best practices for outsourcing to developing countries?
7 Reasons To Offshore Engineering Services to the Philippines
KDCI Outsourcing
May 22, 2024

When companies want to scale operations that require technical expertise like engineering, they need to invest on overhead and commit long-term to building an in-house engineering team.

For most organizations, this is a high-risk investment that can be costly in the long run. As an alternative, more and more companies are considering outsourced engineering services to help improve their operational efficiency, while increasing cost effectiveness and maximizing profitability.

What Are Offshore Engineering Services?

Offshore engineering services involve a company enlisting a third-party agency or professional based in a different country to manage its engineering tasks rather than conducting them internally.

This business strategy is typically used by companies to leverage the engineering expertise of partner firms or specialists, as well as reduce costs, increase efficiency and flexibility, and manage engineering demands.

What Are Samples of Offshore Engineering Services?

Some of the most commonly outsourced engineering services include the following:

Civil Engineering

Involves designing, planning, and overseeing the construction and maintenance of building structures and infrastructure. It involves the application of tech tools like advanced simulation and project management tools to ensure projects are done sustainably, meeting regulatory requirements and aligning with business objectives.

Data Engineering

Involves developing, managing, and optimizing data pipelines to ensure data flows and storage solutions are efficient. This service also includes the implementation and maintenance of infrastructure for data generation, processing, and analytics. The goal is to help organizations leverage data for decision making and product development.

Software Engineering

Involves designing, developing, and maintaining software and apps to meet organizational requirements. This is done by using the latest programming methods and technology to create efficient, scalable, and innovative software solutions, that optimize operational efficiency and help with product development.

Tech Engineering

Involves providing tech support and involves troubleshooting, systems integration, and optimization of tech software, apps, and infrastructure. It requires a broad technical expertise, with the goal of solving complex tech problems, enhancing system performance, and enhancing tech operations.

Electrical Engineering

Involves designing, developing, and testing electronic systems and components to provide innovative solutions for electronic devices, systems integration, and power generation. The goal is to ensure reliability and efficiency, while meeting business needs.

Quality Assurance Engineering

Involves testing, auditing, and reviewing processes and workflows by developing QA protocols. Its objective is to enhance systems for ensuring reliability, efficiency, and adherence to quality standards.

Why Offshore Engineering Services To The Philippines?

With so many outsourcing destinations globally, the seven reasons below make the Philippines particularly appealing for outsourced engineering services. 

1. Cost Efficiency

Compared to its Western counterparts, the Philippines has significantly lower labor costs that companies can leverage to save up to 70% on operational costs. 

To illustrate, the average annual salary of a staff engineer in the United States is ~$99,330. Meanwhile, outsourcing a full-time engineering staff to the Philippines costs around ~$23,000 annually. This value already includes salary, benefits, equipment, infrastructure, training, and management, making it much more cost-effective.

Additionally, outsourcing engineering functions to reliable outsourcing partners with engineering expertise leads to operational efficiencies that help companies optimize their resources, and maximize cost-effectiveness for higher return on investment (ROI).

2. Engineering Expertise

The Philippines has a large pool of skilled engineering professionals. In 2022 alone, the Philippines had 123,872 civil engineers, 51,541 electrical engineers, and 78,678 mechanical engineers. And this number is growing year by year.

When companies outsource engineering processes to the Philippines, they can be certain that the offshore engineers they work with are certified, experienced, and vetted by their reliable outsourcing partner, thus, ensuring high-quality outsourced engineering services.

3. English Proficiency

The success of engineering outsourcing relies heavily on effective communication, smooth collaboration, and detailed documentation and reporting. As the Philippines is the 3rd largest English-speaking country in the world, and ranking 2nd for English proficiency across entire Asia, Filipino engineers serve as excellent extensions of in-house teams.

4. Cultural Compatibility

Effective communication and collaboration go beyond speaking the same language. There are also cultural nuances to consider. 

But because the Philippines was colonized by the United States for 48 years, Filipinos have long been exposed to American culture. This makes them more culturally aligned with Northern America, which helps Filipino engineers more easily integrate into organizations with Western cultures.

5. Government Support

A key benefit of outsourcing to the Philippines is the outstanding government support towards the business process outsourcing (BPO) industry. Some notable incentives to outsource include:

  • Tax incentives for foreign companies
  • Special economic zones (SEZs) and IT parks tailored for outsourcing companies
  • Laws and regulations on intellectual property rights, upholding of contractual obligations, and support of data privacy
  • Promoting the country as a global outsourcing destination
  • Investing in education and training programs to align with outsourcing demands, like engineering

6. Flexible Service Offerings

When outsourcing to the Philippines, companies can choose from multiple engagement models to match their engineering demands. 

The most common service offerings come in full-time equivalent (FTE) model, project-based model, and retainer model. These options accommodate the varying needs of companies, allowing them to only acquire the services they need, which helps them maximize cost-efficiency.

7. Time Zone Advantages

The Philippines is located on the other side of the world from Northern America; while it's night in the US, it’s day in the Philippines. This difference in time zone provides a significant advantage for companies that need around-the-clock or after-hours operations. 

Top 8 Companies For Outsourced Engineering Services (Philippines)

Ready to outsource engineering to the Philippines? Below are the most recommended engineering outsourcing companies you can partner with to build your offshore engineering team.

KDCI Outsourcing specializes in building offshore engineering teams in various engagement models, focusing on seamlessly integrating with your operations, while also emphasizing cost-effectiveness and innovation. They’re ideal for medium-sized companies needing flexible, integrated engineering support without the overhead of a full-time staff.

Emapta focuses on creating dedicated teams for engineering services, ensuring clients have full control and direct communication with their outsourced staff. Their ideal for businesses looking to scale rapidly while maintaining management control over outsourced engineering teams.

Microsourcing offers specialized engineering services with a focus on cutting-edge technologies and industry-specific expertise, particularly in software and IT. They suit technology startups and established firms looking to innovate and accelerate development cycles.

Outsourced provides high-quality engineering outsourcing services with emphasis on maintaining stringent quality standards and delivering high-performance results. They are recommended for companies in industries like construction and manufacturing that demand precision and reliability.

Sourcefit offers cost-efficient engineering outsourcing solutions, focusing on customizability and client-centric strategies to match specific business needs. They make a great choice for cost-conscious small to mid-sized enterprises looking to optimize their engineering processes without compromising quality.

Outsource-Philippines offers a comprehensive approach to engineering services, combining quality, efficiency, and scalable solutions. Ideal for businesses across various sectors that require flexible and efficient engineering support to complement their growth.

KamelBPO focuses on providing value-driven engineering outsourcing services with a commitment to sustainability and ethical business practices. Their ideal customers are environmentally conscious companies looking for responsible engineering solutions that align with green practices.

Satellite Office excels in providing premium, bespoke engineering services for high-stakes projects requiring exceptional precision and expertise. They cater to large corporations and high-end firms in fields like aerospace and advanced electronics, where precision and expert skills are paramount.

Offshore Engineering to the Philippines

Leverage the benefits of outsourcing to the Philippines when you outsource these offshore engineering roles.

At KDCI Outsourcing, we empower global brands by building them dedicated offshore engineering teams that can help them design, develop, and improve structures, processes, and workflows to solve their problems and meet their requirements.

Learn more about outsourced engineering services

Contact us today!

Build Your
Outsourcing Team
Talk to us about outsourcing needs
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Related Articles
We Provide Amazing Services
Our training and strategic outsourcing services have helped thousands of organizations succeed
Get in touch with us
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Philippine Office
3008 One Corporate Centre, Julia Vargas Avenue, Ortigas Center, Pasig City 1605, Metro Manila, Philippines
USA Office
552 E Carson St. Suite 104, Carson, CA 90745, USA
Contact Sales
Contact Recruitment