Building an offshore team in the Philippines is a smart move for global companies. It helps you scale operations quickly while significantly reducing overhead and operational costs.
Traditionally, companies have relied on Business Process Outsourcing (BPO) to access offshore talent and support services. However, more businesses are now turning to alternative models that offer greater control, flexibility, and long-term value. This guide explores how to build and manage an offshore team in the Philippines beyond the traditional BPO setup.
Instead of outsourcing to third-party vendors, we focus on Employer of Record (EOR) Philippines solutions. These approaches give you more oversight, compliance support, and better integration with your company’s processes and culture.
Why Building an Offshore Team in the Philippines Makes Business Sense
The Philippines is a top destination for offshore operations, with its BPO sector contributing around 9% to national GDP. But the traditional BPO model isn’t the only way to access this skilled and growing talent pool.
Building an offshore team in the Philippines through using an Employer of Record (EOR) offers strategic advantages.
- Complete control over recruitment and team composition
- Direct communication with team members
- Stronger integration with your company culture
- Customized training and development programs
- Greater flexibility in scaling operations
According to a report, 87% of organizations consider outsourcing jobs, but many are now exploring flexible models like EOR for greater agility.
Understanding the Modern BPO Model for Offshore Teams
One of the modern outsourcing models, EOR, is changing how companies manage offshore teams. It allows you to retain full control over daily operations and performance. Unlike traditional outsourcing, where BPOs manage staff and operations, the EOR model empowers you to lead your offshore team directly. This is especially powerful when building an offshore team in the Philippines, boosting quality, loyalty, and operational flexibility without the old BPO markup.
Comparing Traditional BPO and EOR
Both models offer strategic advantages depending on your priorities. The traditional BPO model works well for turnkey solutions and quick ramp-ups. The EOR route fits companies looking for ownership, integration, and long-term growth with their offshore team in the Philippines.
Traditional Philippines Outsourcing vs. Employer of Record for Your Offshore Team in the Philippines
When building an offshore team in the Philippines, businesses often choose between outsourcing through traditional BPO or partnering with an Employer of Record (EOR). Both models offer strategic advantages depending on your priorities, whether it’s speed, control, cost, or long-term team engagement.
Traditional Philippines outsourcing allows a BPO provider to manage hiring, training, infrastructure, and operations, offering convenience and faster team setup. This model works well for companies seeking quick scale and minimal day-to-day involvement in team management or local operations.
Employer of Record (EOR) in the Philippines lets you directly hire talent without opening a local entity or navigating complex legal requirements. You retain control over how your team works, while the EOR ensures compliance with payroll, benefits, and local labor laws.
Here’s a quick side-by-side look at both options:
Cost Structure
- Traditional BPO: Often includes higher markups due to bundled services and provider fees
- EOR: Offers transparent salaries and fewer third-party costs
Team Management
- Traditional BPO: Employees are part of the BPO, not your direct team
- EOR: Employees are legally hired under the EOR but work solely for you
Management Control
- Traditional BPO: The BPO provider manages the team’s performance and productivity
- EOR: You oversee daily work and manage performance directly
Compliance
- Traditional BPO: Legal, tax, and labor compliance handled entirely by the BPO
- EOR: The EOR assumes compliance responsibility while keeping you informed
Scalability
- Traditional BPO: Easily ramp up teams using the provider’s built-in systems
- EOR: Flexible hiring at your pace with fewer setup obligations
Both traditional BPO and EOR are proven ways to expand in the Philippines, it depends on how hands-on you want to be. Choose the model that best aligns with your goals, budget, and how you want to build your offshore team in the Philippines.
How EOR Philippines Services Simplify Team Building
For companies not ready to open a legal entity, EOR Philippines services offer a flexible alternative to traditional BPO. An Employer of Record (EOR) legally hires employees on your behalf while you manage their daily tasks and team operations. EOR handles compliance, payroll, taxes, and benefits, ensuring your offshore team in the Philippines meets all local employment regulations.
Benefits of Using an EOR Philippines Service:
- Legal compliance without entity setup – EOR ensures your business complies with Philippine labor laws from day one.
- Rapid deployment – Your offshore team in the Philippines can begin working in about two weeks, fully compliant and ready.
- Risk mitigation – The EOR carries legal responsibilities, helping reduce your exposure to fines, penalties, or employment disputes.
- Simplified administration – Enjoy consolidated invoicing, fewer vendors, and less back-and-forth with HR paperwork.
- Scalability – Grow or adjust your Philippine team quickly, without needing legal restructuring or administrative delays.
Related post: How AI in Offshoring Philippines Is Revolutionizing the Workforce
Step-by-Step Guide to Building Your Offshore Team in the Philippines
1. Strategic Planning and Role Identification
Before hiring, assess which roles are best suited for offshoring to the Philippines based on business needs and structure.
- Focus on roles that don’t need physical presence, have measurable outputs, or face talent shortages in your local market.
- Target positions where offshoring offers clear cost savings and operational efficiency without compromising quality or performance.
- Write detailed job descriptions that outline responsibilities, skills needed, and success metrics for your offshore team in the Philippines.
Clear expectations are critical with an EOR Philippines provider for compliance.
2. Choosing Between Traditional BPO and EOR Services
Decide between BPO and EOR services based on your goals, control preferences, and how involved you want to be. Traditional BPO providers manage entire processes or teams, often with less direct control from your side. EOR services let you manage your offshore team directly while handling compliance, payroll, and legal employment.
Use conventional BPOs if you’re outsourcing high-volume, standardized functions and prefer a hands-off or shared management approach. On the other hand, choose EOR if you want to build your own offshore team in the Philippines while staying compliant and agile.
Consider factors like speed, control, hiring scale, legal comfort, and long-term strategy when making your decision. If testing the market or scaling fast, EOR is a flexible and low-risk way to start operations. If your needs are task-based or transactional, conventional BPO might offer better cost efficiency with minimal oversight needed. EOR is ideal for companies seeking strategic growth and ownership of team performance without setting up a local entity.
3. Recruitment and Talent Acquisition
The Philippines offers a vast talent pool with a huge number of college graduates annually. When recruiting for your offshore team in the Philippines, consider these approaches:
- Online job platforms: Use widely used job portals in the Philippines to reach a broad pool of qualified candidates.
- University partnerships: Collaborate with top universities to access fresh graduate talent and future professionals.
- Professional networks: Tap into industry-specific groups and local associations to find niche or experienced talent.
- Recruitment agencies: Work with local firms like EORs that specialize in offshore hiring and understand the local talent landscape.
- Employee referrals: Establish a referral program to leverage your current team’s network and attract trusted candidates.
When screening candidates, pay special attention to:
- English proficiency (both written and verbal)
- Technical skills and certifications
- Previous experience with international companies
- Cultural fit and adaptability
- Communication style and responsiveness
Building Your Offshore Team in the Philippines Strategy
When you outsource Philippines operations, you can choose between a traditional BPO model or an Employer of Record (EOR) approach. Each option offers benefits depending on your goals, desired oversight, and how closely you want teams aligned with your company.
Traditional BPOs provide scalability and predefined systems, while EORs allow more flexibility, direct oversight, and faster talent integration into your existing operations. Both models help you build an offshore team in the Philippines that supports growth and aligns with your business culture.
The Philippines offers skilled professionals, strong English proficiency, and cultural compatibility, making it a top location for global team expansion. As remote work evolves, businesses that outsource Philippines operations can stay agile while maintaining performance and quality standards.
Frequently Asked Questions (FAQs)
Q1: What is an EOR and how does it help with building an offshore team?
An Employer of Record (EOR Philippines) is a service that legally employs workers on your behalf while you maintain day-to-day management. The EOR handles compliance with local employment laws, payroll, benefits administration, and tax obligations. This approach allows you to build an offshore team Philippines without establishing a legal entity, combining the control benefits of direct hiring with the compliance simplicity of outsourcing.
Q2: What types of roles work best for offshore teams in the Philippines?
The Philippines excels in various roles including customer support, back-office operations, IT development, creative services, and specialized functions like accounting and HR administration. When you outsource Philippines operations, look for roles with clear deliverables, minimal physical presence requirements, and good alignment with the Philippine talent pool’s strengths in English communication, service orientation, and technical education.
Q3: What is offshore in the Philippines?
Offshore in the Philippines refers to the practice of hiring professionals based in the Philippines to perform business functions for companies located in other countries. This setup allows global businesses to reduce costs, access skilled talent, and maintain operations without setting up a physical office locally.
Q4: What is an offshore team?
An offshore team is a group of professionals located in another country who support a company’s operations remotely. These teams can handle various functions, from customer service and IT to back-office support, offering businesses scalability and 24/7 productivity.
Q5: What is the one country team approach in the Philippines?
The one country team approach means building an entire remote team in the Philippines, all working cohesively as part of the company’s operations. This model ensures streamlined communication, consistent cultural alignment, and improved team synergy, even from abroad.
Choosing between a conventional BPO or an EOR model is a critical step in building a scalable offshore team in the Philippines. Each option offers different levels of flexibility, control, and support. CORE® empowers you with end-to-end solutions that go beyond standard offshore services. We help you stay compliant, simplify onboarding, and unlock the full potential of Filipino talent. Contact us today!
