The first emergence of outsourcing began in the Philippines in 1992 with the founding of the very first contact center, "Accenture Global Resource Center." The industry saw a sharp rise as 70% of Filipinos can speak English comfortably.
In the early stages, outsourcing in the Philippines only covered some major tasks like data entry, call center services, and virtual assistance. Now, the country is known to be one of the most preferred outsourcing destinations for many global companies.
In this article, we will be discussing Philippine virtual assistant costs and cost affecting factors.
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Earlier Virtual Assistant Cost in The Philippines
In the early stages of outsourcing, around the 1990s and early 2000s, the rates of outsourcing services in the Philippines, including virtual assistant services, were relatively lower. The initial cost ranged $3 to $5 per hour in Philippines.
Countries like the United States found these rates to be appealing as they were substantially less expensive for similar services in their own countries. Soon the country opened its door to many other outsourcing services like cold calling, digital marketing, customer associate services, IT back office services, graphic support and many more.
Five Reasons Behind The Lower Virtual Assistant Cost in The Philippines
Lower Labor Costs
“ Average family income for the year 2000 was estimated at P145.1 thousand, up by 16.9 percent over the P123.2 thousand in 1997.”- Philippine Statistic Authority ( 2001)
The low labor market kept the cost of outsourcing services as low as USD 300 for a virtual assistant.
Living Cost
The Philippines also had a lower cost of living compared to many Western countries, resulting in lower labor costs. This resulted in lower wages for outsourcing sector employees including virtual assistants.
Exchange Rates
The exchange rate between the Philippine Peso and the US Dollar was favorable to keep the cost lower. When other countries outsourced to The Philippines, they had the advantage of paying a rate that kept value for their money.
Government Incentives
The government of The Philippines has always encouraged foreign investments. Foreign companies willing to outsource to the country were benefited by government incentives. These incentives include tax breaks, streamlined processes, and support for infrastructure development.
Skilled Workforce
The Philippines has a large pool of skilled professionals, including virtual assistants, which creates competition and helps keep the costs lower.
The Philippines Virtual Assistant Cost in 2023
As the demand for virtual assistance services increased, the scope of tasks expanded beyond administrative work. On average, an average virtual assistant in the Philippines charges USD $8–$16 per hour for their services.
Compare The Cost in Different Countries
Country | Cost of Virtual Assistance |
The Philippines | USD $8 to $16 / Per hour |
United States | USD $25 to $75 / Per hour |
United Kingdom | £15 to £40 / Per hour |
Canada | CAD 25 to CAD 75 / Per hour |
India | INR 300 to INR 1000 / Per hour |
Eastern Europe | $15 to $40 / Per hour |
Bangladesh | USD $3 to $10 / Per hour |
Factors Determining The Cost of VA in Philippines
Assess The Market Rates: Research the prevailing rates for VAs in the Philippines to gain an understanding of the standard pricing.
Clarify The Scope of Work: Make sure you have a clear understanding of the tasks and responsibilities the VA will handle.
Value Proposition: Engage in a conversation with the VA to understand the unique value they bring to the table.
Negotiate Based on Value: Emphasize the benefits of working with the VA and how their skills can positively impact your business.
Discuss Alternatives: Propose alternative payment structures or working arrangements that could lower the cost.
Trial Period: If you are uncertain about committing to a long-term agreement at the high rate, propose a trial period to assess the VA's performance.
These steps will allow you to evaluate their impact on your business before finalizing the cost.
Reasons Behind Increasing Cost of Virtual Assistants in The Philippines
Technological Advancement
The growth of virtual assistance in the Philippines was largely driven by the advent of high-speed internet. Now the country VAs are able to provide seamless communication for efficient remote work. Thus, the cost of tasks has also increased.
Increasing Demand of VAs
The demand for virtual assistants (VAs) in the Philippines has been steadily increasing over the years. Many more diverse fields of services are being offered. As the demand increases, the supply of skilled VAs may not keep up, leading to a rise in their rates.
Rising Living Costs
Manila is one of the most expensive cities to live in, followed by other cities of the Philippines. Any job with a lower rate no longer copes with the living cost of virtual assistants.
Value-Based Pricing
The Philippine virtual assistants have a strong track record of delivering high quality services. This shifts the rates of hiring a VA higher in the pricing model.
End Note
The cost of hiring a virtual assistant (VA) in the Philippines is gradually increasing over time. Compared to VAs in Western countries, Filipino VAs provide competitive rates. The rate of tasks never fluctuates the quality of work of a Filipino Virtual assistant.
The Philippines remains a popular outsourcing destination for businesses worldwide. Get in touch to learn more about the services.