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Growing businesses have two main options for building a back-office team: hire locally or build an offshore team in the Philippines. This page compares the two models honestly across cost, control, security and operational fit.
From $3,150
Saved per person per month
50-70%
Typical cost reduction
The cost difference between hiring locally and building an offshore team is significant once you account for all employer obligations.
| Cost element | Local hire (in-house) | Plus Back Office (offshore) |
|---|---|---|
| Base salary | $3,500 to $5,000 | Included in monthly fee |
| Employer taxes and benefits | $600 to $900 | None |
| Office space and equipment | $400 to $700 | Included |
| HR and payroll overhead | $200 to $400 | Included |
| Recruitment fee (annualised) | $220 to $450 | $280 one-time |
| Total monthly cost | $4,700 to $7,000 | From $1,350 |
Local figures are estimates for mid-level back-office roles. Employer taxes vary by country. Australian employers pay 11.5% superannuation. US employers pay 7.65% FICA plus healthcare. These add significantly to every local hire.
Local hire
Competitive local market. Good back-office staff hard to find and retain. Rising salary expectations.
Plus Back Office
Large graduate pool in Cebu IT Park. Experienced BPO professionals available across all back-office functions.
Local hire
Direct physical management. Staff in your office or hybrid.
Plus Back Office
Remote management with structured oversight. Attendance tracking, activity monitoring, on-site supervisor. Aligned with your business hours.
Local hire
Local employment law, employer taxes, annual leave, redundancy obligations, fair hiring requirements.
Plus Back Office
Philippine labour law managed by Plus Back Office. SSS, PhilHealth, Pag-IBIG handled. No local employer obligations for offshore staff.
Local hire
Full control over physical environment and devices.
Plus Back Office
Company-managed desktops, secure office network, VPN, 2FA, biometric access, CCTV. Comparable controls for sensitive data.
Local hire
Slow to hire, expensive to scale. Redundancy carries legal and reputational risk.
Plus Back Office
Add team members within 2 to 4 weeks. Scale down with proper notice following Philippine employment law.
Local hire
Single location risk. Staff illness or resignation creates immediate gaps.
Plus Back Office
Supervised office environment with structured handover processes and replacement guarantee.
Some roles should stay local. Here is where in-house is the better call.
The offshore model works best for:
Back-office functions that are process-driven, can be documented as SOPs, do not require local physical presence, and have clear measurable outputs.
Most successful businesses do not choose between in-house or offshore. They build a hybrid model that uses both.
This model reduces total headcount cost significantly while keeping critical functions local. Most clients see 30 to 50 percent reduction in total back-office cost within the first year.
Yes, significantly. A local back-office hire costs $4,500 to $7,000 per month all-in including employer taxes, office and overhead. An equivalent offshore team member through Plus Back Office starts from $1,350 per month all-inclusive.
No. Your offshore team reports to you directly on work priorities. We manage the employment, payroll and office operations. You have full visibility through activity tracking and direct daily communication.
Bookkeeping, accounting support, admin and coordination, data entry, HR and payroll admin, customer support and CRM management. Process-driven functions with clear SOPs and measurable outputs offshore most effectively.
Our office-based model uses company-managed desktops, secure enterprise networks, VPN, 2FA, disk encryption, biometric office access and CCTV. Technical controls are comparable to an in-house setup for sensitive back-office data.
Yes. The minimum engagement is 2 office-based staff members. Many clients start with a bookkeeper and admin assistant or two complementary roles.
Most roles are filled within 2 to 4 weeks. IT setup and onboarding takes a further 1 to 2 weeks. Most teams are fully operational within 4 to 6 weeks of the discovery call.
Also compare: EOR vs offshore staffing and Plus Back Office vs VA agencies.
Book a discovery call to see exactly what an offshore team would cost for your specific roles and how it compares to your current local headcount.