The Philippines is gaining traction in terms of providing outsourcing services not only for customer support but also for tech services to different foreign businesses. What's promising about the Philippine IT industry is that it's still growing despite the economic and legislative challenges the country faces. 

According to Glassdoor, the average salary in the web industry in the Philippines is estimated to be around $265 - $957/mo, making the country one of the cheapest IT service providers in the region. Due to this factor, the Philippines is considered to be a good outsourcing opportunity for many international web agencies and IT companies. 

Why You Should Work With the Philippines' IT Companies

Most of the Philippines’ IT companies and web agencies provide services for a significantly lower price than you can find in any other country in the region. Another reason why Philippine IT companies are attractive is the local talent pool. In 2025, more than 1.3 million tech professionals were working in software development, data science (31% annual growth), AI, cybersecurity, and blockchain. This ensures a high productivity rate and helps small IT companies transform into medium and large competitors that ultimately reach the global market. 

What to Be Aware of When Working With Philippine IT Companies

The good production rate of IT companies from the Philippines is balanced by a sub-developed business culture and a lack of global-level IT specialists in most of the companies. The contrast becomes higher with an underdeveloped IT education system in the country, which makes the Philippines companies lower the price rate below the ASEAN average. 

How Reliable Are the Philippines' IT Companies

Considering the latest evolution of the IT sector in the country and the increasing number of foreign companies investing in the digital sector, Philippine companies have improved their reputation on the world level by implementing the minimum standards required by potential foreign clients, according to Rappler. 

With all these, not many IT companies managed to exit the internal IT market and create a well-known name on a global level. This is why Tech Behemoths recommends taking a closer look when selecting a potential partner for web, software, and mobile projects from the Philippines, as well as from any other country. 

Why Outsource Software Development to the Philippines?

Companies choose to outsource software development to the Philippines due to the multiple benefits it brings. It includes a high English proficiency that reduces communication limits, cultural compatibility due to their strong Western influences. Additionally, what makes the Philippines an attractive destination for Outsourcing is its cost-effectiveness, a rich talent pool, flexibility in time zone, strong work ethics, support from the government, tech-centered education, and rapid adoption of new technologies. 

How the Philippines' IT Industry Relates to the Neighboring Countries

The Philippines, alongside Malaysia, Thailand, Indonesia, and Vietnam, represents the Tiger Cub Economies that are following the same model of technology and economic development as the Four Asian Tigers, which consist of South Korea, Singapore, Taiwan, and Hong Kong.

With a lot of competitors in the region, like China, Japan, Singapore, and Indonesia, the Philippines still needs to progress to reach a quality competitive level in the region. On the other hand, cheap prices for web & IT products and services attract small and medium businesses to invest and cooperate with Philippine-based IT companies. 

Software development is the service of creating custom software applications for specific business requirements. This process involves designing, developing, testing, and releasing the applications. Useful in this regard are programming languages, frameworks, and other different methods that are used to ensure the creation of robust software that will handle a large number of users.

Software development includes many specific services such as Custom Software Development, Web Application Development, Mobile App Development, Software Testing and Quality Assurance, Software Maintenance and Support, E-commerce Development, Cloud-based Solutions, etc.

According to Statista, revenue in the Software market is projected to reach US$659.00bn in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 5.42% from 2023 to 2028.

The importance of Software Development Services is obvious. This results in:

• Productivity increase;

• Improving the user experience 

• Increasing efficiency and productivity 

• Providing solutions that can scale as the business grows;

• Ensuring data security and preventing unauthorized access

Selecting the right software development company to partner with can be a difficult task. That's why, it's good, when you make this choice, to consider the following aspects:

1. Expertise and Experience of the company in delivering similar projects successfully.

2. Check Portfolios and References to get an idea of their reputation and the quality of their works

3. Evaluate the technical skills and qualifications of the development team.

4. Communication and Collaboration are key to a successful partnership.

5. Discussing costs and budget is important to avoid unexpected expenses.

6. Timely delivery is crucial to avoid unnecessary delays.

7. It's important to have ongoing support, bug fixes, and updates once the software is deployed.

By carefully considering these aspects, you can make an informed decision and select the right software development company, because it can rightly be said that Software Development Services represent an investment for long-term success. And it doesn't matter if it is a small startup or a large enterprise, software development can have a positive impact on your business.

There are more than 15892 service providers that specialize in various software development solutions on TechBehemoths. 

Discover the perfect Software Development Company by entering specific criteria on the main page, such as service, hourly rate, company name, location, or profile score. Apply filters and we will ensure a successful search.

Alternatively, you can simply submit your project, and within approximately one hour, our team will handpick the best company, this service is completely free.