Software Outsourcing: Philippines vs. France

March 29, 2023

Software Outsourcing Philippines vs. France

If you’re reading this, it means you’re in a bind and need someone to help you with your software project.

But it also means you have to make a decision: Philippines vs. France?

Which should be your outsourcing destination? It’s a tough choice, and we understand.

The Philippines shines as a stellar location for Information Technology (IT) and Business Process Outsourcing (BPO). At the same time, France boasts software engineers with strong academic backgrounds.

So, how do you assess which offshore outsourcing country fits your needs? We’ll guide you through the factors you should consider in both foreign countries.

Let’s start!

The Philippines and France: Which Outsourcing Destination is Fit for You?

philippines cost-efficient option quote

Now that you have decided that you would have more benefits in offshore staffing than hiring an in-house team, you must identify the best country to outsource your software projects.

Indeed, the Philippines and France both have their strengths and weaknesses when it comes to software outsourcing. It can be hard to decide which one suits you better, especially when you’re on a budget.

To help you decide on outsourcing destinations, we’ll provide you with the factors you should consider when outsourcing software in these two countries:

Cost of labor

One of the main goals of outsourcing business operations, such as developing your software, is to minimize costs.

Between the Philippines and France, the Philippines offers a more cost-efficient option for software outsourcing. The average hourly rate for developers in the Philippines is around $18 per hour, compared to $20 per hour in France.

The economic growth of each country influences these prices as well. The cost of living in the Philippines is much lower than in France, meaning you could get better rates if you negotiate.

Compared to France, the Philippine economy is still developing, which means that labor costs are generally lower. Additionally, the Philippine government offers various tax incentives and cost-saving measures to attract foreign companies to the country, making it a more affordable destination for outsourcing services.

Of course, while the reduced costs of labor can significantly decrease your expenditure, it should also be balanced with the quality of services offered.

If you choose the Philippine outsourcing industry, dedicate time to examining the software development team’s skills and qualifications. This will help you ensure that you still receive high-quality outcomes despite spending less.

Talent pool comparison

Outsourcing companies provide you with a very diverse talent pool, allowing you to choose the best person for your project.

With its highly skilled workforce and remarkable international standing, France produces extremely competitive software engineers and developers who are well-trained to carry out any given task. French universities offer the most comprehensive courses that not only educate but also prepare students for a successful career in tech—this means they can find work almost immediately after graduation!

The Philippine BPO industry is rapidly expanding, making it easier to find top-notch talent. To further support the development of its software engineering capabilities, the country recently reformed its STEM high school system and other educational initiatives. While these changes have not completely bridged the gap between Filipino developers and those from abroad, they don’t stop them from being one of the most sought-after software providers in the global market.

For simple product development projects, the Philippines remains an ideal outsourcing destination. However, if you’re looking for more complicated solutions to your project needs, the skillset of French may be better suited to meet those requirements.

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Software developer shortage

As the world moves into an era of digital transformation, companies are increasingly relying on the outsourcing industry to aid them in their journey. Consequently, this trend powered a booming demand for software developers across industries.

Despite a 7% increase in the number of software developers in Europe in 2019, the growth rate is unable to keep up with the rising demand for IT skills in European markets.

Numerous European companies seek to hire software developers from other countries to address this gap. As the shortage of developers affects most European nations and many European software developers tend to favor local employment opportunities, companies frequently recruit skilled workforce from beyond Europe’s borders.

This makes the Philippines, among other offshore destinations, attractive for companies looking to hire a larger team of developers to work for them. You can build your software development team in the Philippines with a highly skilled workforce that is available at a fraction of the cost that you would usually pay for developers in more expensive nations.

Cultural compatibility

When it comes to understanding Western culture, Filipino professionals have a great advantage over the French workforce.

Historically, for 48 years, the United States held governance over the Philippines until it recognized its independence in 1946. Even after this period of colonization ended, some Americans remained. At the same time, Filipino culture embraced certain aspects of Western culture, such as food, language, education, and religious freedom.

France, on the other hand, has always held a distinctive and unique culture. While this can be an advantage for French developers when dealing with locals, it can be a disadvantage when providing services to foreign partners—especially those looking for cultural understanding.

Cultural compatibility plays a huge role for foreign investors looking for a software dev team, and the Philippines provides a perfect balance of skills and cultural understanding. However, this aspect may not be a big deal for some as long as the team gets the job done.

Language considerations

Following the subject of foreign cultures, language can also come at the top of the list when considering IT and business process outsourcing.

In France, the official language is French. This may be a benefit for some companies looking to perform their professional services in French; however, if they are targeting a global audience rather than just French customers, this language barrier can be difficult to overcome.

In contrast, the Philippines holds a prominent status when it comes to English proficiency on an international level, especially in the BPO industry. In fact, according to EF’s English Proficiency Index for 2020, the country ranks 20th out of 100 nations/regions and is positioned second in Asia.

Filipino and English are the two official languages used in the Philippines workplace, making it easier for clients from other countries to understand their Filipino outsourcing providers.

clock on the wall

Time zone differences

You may have taken into account Western culture and language proficiency when considering an offshore team, but you should also consider the time zone differences between these two countries.

If your business needs real-time communication and collaboration, the time difference is a factor to consider. If you’re in the US, you will typically have a 9-hour time difference with France. In contrast, the Philippines is only 12 hours ahead of US Eastern Standard Time (EST), making it easier to communicate any business processes with your team and stay on top of things.

In the Philippines’ business process outsourcing industry, you can rely on the 24/7 support that many companies offer. This is not possible with a French development team due to the time difference between the two countries.

Infrastructure and connectivity

With remote work, a stable internet connection is a must. But natural forces could disrupt the normalcy of connection in certain areas around the world.

France has a robust and modern telecommunications network with high-speed internet connections that are widely available throughout the country. This makes France an attractive destination for software outsourcing because it offers a reliable and efficient communication infrastructure.

If you feel it’s important to collaborate closely with your outsourced team, France also has excellent transportation and logistics infrastructure. It makes it easy for both parties to get products and meet the development team in and out of the country.

In contrast, the Philippines’ geographical location makes it vulnerable to natural disasters. It is situated in the Pacific Ring of Fire, which means the country is prone to earthquakes, typhoons, and other natural calamities.

Despite these risks that could cause a shutdown of offshore operations, the telecommunications infrastructure in the Philippines is widely available and competent. You can trust that the developers in the Philippines will be able to carry out their tasks regardless of where they are located in the country.

Additionally, as a top outsourcing destination, the Philippine government has been actively investing in its IT infrastructure to ensure that developers have access to a strong connection and fast internet speeds.

Data security and confidentiality

The risk of data theft is always present whether you plan to hire in-house developers or get them from the outsourcing market. Either way, you need contractual agreements, as well as proper security measures and data privacy policies.

Most outsourcing companies in the Philippines follow internationally recognized security standards, such as ISO 27001, to ensure their security practices are up to par. The government has also passed several laws and regulations to protect data privacy, such as the Data Privacy Act of 2012, which requires all organizations to implement appropriate security measures to protect personal data.

In France, laws require that all personal data be processed lawfully, fairly, and transparently, and individuals have the right to access and control their personal data. The French government has also established various regulations and frameworks, such as the General Data Protection Regulation (GDPR), to maintain data privacy and security in outsourcing projects.

Either way, both outsourcing destinations have security and confidentiality protocols in place to ensure the safety of your data.

going over plans

How to Outsource to France or the Philippines

Now that you’ve considered all the factors, you may have a better idea of which country will be the best fit for your project. Whether you choose the French or the Filipino workforce for your project, the outsourcing process is straightforward.

To guide you through the process, here are some steps to follow:

1. Lay down the details of your project

When it comes to outsourcing any business process, the more information you provide to your potential vendors, the better. Define your project scope and objectives, timeline, budget, and other requirements in detail.

2. Be specific in your job description

Do you want an expert in PHP development? Or someone with experience in app development? When you have a clear job description, you can ensure that your outsourcing provider is providing the right candidate for your project.

3. Consider various sourcing options

Both France’s and the Philippines’ outsourcing options can be found on online platforms and freelance marketplaces. You can also use a recruitment agency or contact potential candidates directly.

4. Verify credentials

This goes without saying, but you should always check the company’s track record and credentials. Make sure the outsourcing company you are considering has a good reputation and is credible in the industry.

Here is a tip if you’re outsourcing to the Philippines:

Look for service providers in Cebu City. Cebu is the IT hub in the Philippines and has a long history of successful offshore software development projects.

5. Compare costs and services

Of course, cost reduction is one of the major advantages of outsourcing. Consider negotiating a custom software project where you can choose the services you need and can afford. This way, you won’t have to pay for unnecessary services.

man offering business process to woman

Let StarTechUP Develop Your Software!

Every business has unique needs, and operational costs, so there’s no one-size-fits-all answer when it comes to outsourcing to the Philippines or France. However, you can ensure your project is successful and cost-effective with the right partner.

At StarTechUP, we use a combination of technologies and methods to develop custom software solutions. Our Filipino teams have experience in different programming languages, such as Java, Python, PHP, and JavaScript, as well as a variety of databases.

We also have extensive experience in providing quality web services, including UX/UI design, cloud consulting, web app development, and more.

If you’re looking to outsource to the Philippines, contact us today to find out how we can help make your project a success!

About the author: Andrea Jacinto - Content Writer

A content writer with a strong SEO background, Andrea has been working with digital marketers from different fields to create optimized articles which are informative, digestible, and fun to read. Now, she's writing for StarTechUP to deliver the latest developments in tech to readers around the world. View on Linkedin