Offshore Software Development: Philippines vs. Spain

March 23, 2023

Offshore Software Development Philippines vs. Spain

In the 2023 Tholons Global Business Innovation Sustainability Index (TBIS), the Philippines and Spain earned top spots categorized in the “Big Kahuna” nations described as “new leaders having built a vibrant foundation.”

These two countries share one common trait: both have established great offshore software development sites.

So which should you choose to outsource software development? The Philippines or Spain?

Let’s take a closer look.

Benefits of Outsourcing Software Developers

Thanks to the digital age we live in, it’s now easier than ever before for anyone to collaborate and connect with people from any part of the globe. This includes hiring remote software developers who can offer top-notch services that meet or exceed your expectations.

Startechup Custom Software Services

Whether in the Philippines or Spain, here are the benefits of offshoring software development:

Huge cost savings

When we say cost saving is an advantage of software development outsourcing, we not only mean certain aspects of your project but also long-term fees you don’t have to pay.

Everything and everyone will be online. And while an Internet connection is not free, it’s cheaper than the cost that you would pay if they worked in your office, where you’d buy equipment, add more space for new hires, and the like.

Without those, that’s 70% cost savings for your business!

Boosting output efficiency while maintaining quality

When outsourcing is coupled with your team of software developers, it will result in improved efficiency, productivity, and job satisfaction.

For instance, your project needs UI/UX designers, but you don’t have the resources in-house. An outsourcing company can provide you with experienced professionals who are trained to create user-friendly interfaces.

By allowing your in-house team to collaborate with offshore software developers, you can increase your output without compromising the quality of work.

Get skilled professionals trained to use the latest tech

Access to a larger pool of talent means access to software engineers with different experience levels and expertise in various technologies.

Whether you’re looking for experienced software developers in the Philippines or Spain, you’ll be able to find professionals who master common core languages and tools such as Python, Ruby on Rails, JavaScript, Node.js, React, Angular, and more.

Aside from that, you can also get experts in Artificial Intelligence (AI) and Machine Learning (ML) who can help you develop the next generation of software.

According to LinkedIn’s 2020 Emerging Jobs Report, the demand for AI professionals, such as engineers, has increased exponentially by 74% year-on-year over the past four years. So, having access to professionals with these skill sets is a great advantage.

Expansion and scaling of your business are within reach

Outsourcing providers allow businesses to scale up effortlessly during peak seasons, facilitating steady growth with minimal fuss and expense. At the same time, the same level of scalability allows you to downsize if circumstances change.

Keep in mind that your business is not limited to hiring full-time employees, so you can outsource developers for specific projects or tasks and can even switch teams if they ever need to.

As long as you find the right remote staff, your organization can meet increased demand without any issues!

Philippines vs. Spain

the philippines and spain quote

When it comes to outsourcing software development, there’s no clear-cut answer. Both the Philippines and Spain are great contenders for your project, but it really boils down to what works best for you.

To help you decide, here are some factors you want to look into:

Talent & Skill

The Philippines and Spain both have a skilled workforce in the IT industry. The former has a large pool of talented developers who are proficient in various programming languages, such as Java, Python, PHP, and JavaScript.

On the other hand, Spain has a highly educated workforce, and many of its IT professionals have advanced degrees. Spanish developers are skilled in programming languages like Java, Python, C++, and JavaScript.

Both countries have strong IT education programs and produce highly competent developers.


The economies of the Philippines and Spain are quite different.

The Philippines is classified as a developing country with a lower GDP per capita than Spain. This often translates to lower labor costs if you’re looking to outsource software developers there. Unfortunately, the economic downturn caused by the pandemic has led to mass job losses in our country. The Philippine Institute For Development Studies (PIDS) predicts a slow recovery of 4.5-5.5% growth rate for 2023, below the government’s goal of 6-7%.

What does this mean for Filipino outsourcing? This means that although it is still a viable option, you’ll want to be mindful of the country’s economic situation when deciding where to outsource.

In contrast, Spain is a developed country with a higher GDP per capita, but that doesn’t necessarily mean that it’s more expensive to outsource software developers there.

Despite significant economic downturns in the past, this nation has fortunately seen a resurgence due to its booming outsourcing industry. This sector gives citizens reliable employment while guaranteeing outstanding talent for organizations looking to outsource tasks.

hanging headphones

Spoken Language

With English widely spoken in the Philippines, it’s no surprise that it’s becoming a popular destination for offshore development services and Business Process Outsourcing (BPO). As multinational investors flock to the area, Filipinos are overcoming language and cultural barriers by utilizing their mastery of English.

The rise of Philippine software development outsourcing is mainly attributed to its English-speaking citizens. This has been repeatedly and overwhelmingly demonstrated by the country’s BPO industry, which has remained a top contender in global outsourcing for years.

In Spain, however, they are more fluent in their primary language—which is Spanish. While many Spaniards speak English, communication may be more challenging. Recent reports indicate that Spain’s proficiency in English ranks moderately, placing them 25th among 35 countries in Europe and 33rd when measuring globally.


As mentioned earlier, the cost of offshore development services in the Philippines may be lower than in Spain due to the difference in the countries’ economies. What is the effect of the cost of hiring software development companies?

Labor costs in the Philippines are generally more affordable than those in developed countries like Spain. It also depends on whether you’re going to hire a sole freelance software developer or a team of developers.

For a freelancer software developer in the Philippines, it can start at $15 per hour and reach up to $30.

In Spain, you can hire a junior software developer for $11 to $ 17.5 per hour. A senior developer can cost you up to $18 or higher.

A team of developers in the Philippines starts at more or less $25 per hour. Some companies may ask for $50 above per hour.

If you hire a team of software developers in Spain, expect it to cost around $55 to $90 per hour, according to

However, remember that the actual cost of any Information Technology (IT) project will depend on several factors, such as the project’s complexity, duration, and the development team’s experience.

Time Zone Difference

Another factor to consider is the time zone difference. In the Philippines, the time zone is UTC +8, which means that customers in North America can easily reach their development team during regular working hours without sacrificing any sleep.

In Spain, on the other hand, people are 6 hours behind North American time zones (UTC +1). This can be an issue for customers who need to be in frequent contact with their development team.

Some would prefer not to have too much time difference between the customer and their development team, as this could lead to misunderstandings or delays in communication.

Keep in mind that there are project management tools, such as

Asana and Trello can help remote teams stay in sync with each other, regardless of their time zone difference.

Overall, both the Philippines and Spain are great options for software development outsourcing. It all boils down to which country works best for your project and budget. Evaluate each factor carefully and make sure to choose the right one for you!

man on the phone in front of a laptop

Tips for Finding the Right Company

Whether you decide to outsource software development in the Philippines or Spain, it is important to hire a reputable company.

Here are some tips for finding the best software developers:

Look for experience

Choose a company with experience in the type of software development you need. A company that has worked on similar projects can bring valuable insights and expertise to the table.

Check their portfolio

A company’s portfolio can give you an idea of the quality of work they deliver. Look for similar projects, and assess the company’s ability to meet client requirements and deadlines.

Read reviews and testimonials

Customer reviews and testimonials can provide you with an unbiased opinion of a company’s performance. Look for reviews on independent websites or platforms like Clutch or Upwork.

Evaluate their communication skills

With the language barrier and technical jargon, communication is crucial when working with a team of software developers. Make sure to assess their communication skills before hiring them.

Assess their technical expertise

This is a no-brainer. You want to hire a software developer you need, meaning you should know their technical skills and expertise. Don’t hesitate to ask for their portfolio or even a technical interview to assess their experience.

Consider their pricing

While cost should not be the only factor you consider, it is important. Compare pricing across multiple companies and ensure you understand what is included in their pricing model.

Check their availability

Make sure the company you choose has the resources available to meet your project’s needs. This includes both the number of software developers and their availability during your project timeline.

By following these tips, you can narrow your options and find a reputable and reliable offshore development company to help you achieve your software development goals.


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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