Introduction
Outsourcing often gets a bad rap. But when done right, it’s one of the highest-ROI investments an SME can make. Let’s look at the actual numbers.
The Cost Comparison
Local Hire (US/UK/AU)
- Salary: $40,000 – $60,000/year
- Benefits: $10,000 – $15,000/year
- Equipment: $2,000 – $3,000
- Office Space: $6,000 – $12,000/year
- Training: $2,000 – $5,000
- Total: $60,000 – $95,000/year
Philippines Outsourcing (Managed)
- Full-time Professional: $18,000 – $30,000/year
- Equipment Included: $0
- HR/Admin Handling: $0
- Supervision: $0
- Total: $18,000 – $30,000/year
Savings: 60-70% compared to local hiring
Beyond Cost Savings
1. Productivity Gains
Filipino professionals are known for:
- Strong work ethic (40+ hours of actual productive work)
- High English proficiency
- Cultural alignment with Western business practices
- Tech-savvy and quick to learn
2. Business Continuity
With managed outsourcing:
- Backup coverage during absences
- No disruption from employee turnover
- Immediate replacements if needed
3. Focus on Core Business
Free up your time from:
- Administrative tasks
- Hiring and HR management
- Daily supervision
- Performance management
Real ROI Examples
Case Study 1: E-commerce Business
- Investment: $24,000/year (2 VAs)
- Result: Handled 500+ customer inquiries/week, processed 200+ orders/day
- Revenue Impact: $300,000 additional sales (better customer service = higher conversion)
- ROI: 1,150%
Case Study 2: Marketing Agency
- Investment: $30,000/year (1 specialist)
- Result: Managed 8 client accounts, created 100+ content pieces
- Revenue Impact: Freed agency owner to close 5 new clients = $150,000
- ROI: 400%
Case Study 3: SaaS Startup
- Investment: $22,000/year (1 support specialist)
- Result: Response time reduced from 24hrs to 2hrs, CSAT up to 95%
- Revenue Impact: Reduced churn by 15% = $180,000 saved
- ROI: 718%
The AssistFlex Advantage
Not all outsourcing is created equal. With AssistFlex:
- Pre-screened talent (only top 5% accepted)
- Full HR management included
- Performance monitoring and reporting
- 30-day replacement guarantee
- Dedicated account manager
Calculating Your ROI
Use this formula:
ROI = (Revenue Gained or Cost Saved - Investment) / Investment × 100
For most SMEs, the ROI is 300-500% in the first year alone.
Conclusion
Outsourcing to the Philippines isn’t just about saving money—it’s about unlocking growth. The question isn’t “Can we afford to outsource?” It’s “Can we afford not to?”
Ready to calculate your specific ROI? Contact AssistFlex for a free consultation and custom analysis.