Why Kiwi Businesses Choose the Philippines for Offshore Teams
Offshoring only works when you get English fluency, time-zone overlap, and costs that still let you hire quality people at scale. The Philippines checks all three.
English That Actually Works
Filipino professionals speak English. Not "we learned it in school" English - actual working English.
They can write clear emails, jump on calls without you straining to understand the accent, handle client communication, and pick up on context and nuance. You're not going to spend your life simplifying everything you say or decoding what they mean.
The Philippines has been running call centres and back-office operations for Western companies for decades. That means there's a massive pool of people who've been doing this work - communicating with demanding clients, writing professional documentation, working across different English-speaking markets - for years.
The communication style is direct enough that you'll actually know what's happening. The accent is neutral. It just works.
English Proficiency Index in Asia in 2024
| Country/territory | EPI score | Regional rank |
|---|---|---|
| Singapore | 609 | 1 |
| Philippines | 570 | 2 |
| Malaysia | 566 | 3 |
| Hong Kong | 549 | 4 |
| South Korea | 523 | 5 |
| Nepal | 512 | 6 |
| Bangladesh | 500 | 7 |
| Vietnam | 498 | 8 |
| Pakistan | 493 | 9 |
| India | 490 | 10 |
Time Zones That Actually Work
Philippines time is 4-5 hours behind NZ depending on daylight saving.
Many Filipino professionals are comfortable working hours that align with the NZ business day. Starting at 5-6am Manila time means they're online from 9-10am NZ time onwards. You get a full working day of overlap for collaboration, meetings, and real-time communication.
They finish their day early afternoon Manila time (1-2pm), which gives them their afternoons and evenings free for family and life. For them, it's a morning shift. For you, it's normal business hours.
It just works without anyone having to compromise their sleep or pull weird hours.
An Honest Look at How Much You’ll Save
This is why most businesses start looking offshore in the first place, so let's not dance around it.
A mid-level role that'd cost you $70-90k in NZ will run $25-40k in the Philippines for comparable capability. Senior technical roles that'd be $100-140k here? You're looking at $35-55k there. That's not exploitation, that's market rate in a country with a completely different cost of living.
But here's the thing: if you're just chasing the cheapest possible labour, you're going to get what you pay for. Pay at the lower end of the market and you'll compete with every other business doing the same thing. Retention will be shocking. Quality will be inconsistent. Pay fairly within the market and you'll attract better people who stick around.
Infrastructure That Works
Internet infrastructure in the Philippines has improved significantly over the past few years. Major providers like Converge, PLDT, and Globe have rolled out fiber across Metro Manila and major cities.
Most professionals working remotely have home fiber setups with backup connections. Power outages happen occasionally (it's the tropics, typhoons are a thing), but anyone serious about remote work has contingencies sorted.
Is it as reliable as NZ infrastructure? No. Will it occasionally cause headaches? Yes. Is it good enough to run a business on? Absolutely, as long as you're hiring people who've got their setup sorted.
National Infrastructure
The Philippines is upgrading its internet backbone
The National Digital Connectivity Plan is the government’s push to expand access, drive down costs, and modernise nationwide infrastructure.
Fiber backbone
New submarine cables & resilient networks
National rollout strengthening core infrastructure
275 Mbps
Target average fixed broadband speed
Mobile speeds expected to reach 225 Mbps
130,000
Public Wi-Fi hotspots nationwide
Free internet access across cities and towns
8 million
New digital jobs expected
Internet costs projected to drop 40–80%
Source: Department of Information and Communications Technology
Talent Depth Across Different Skill Areas
The Philippines has been doing this for 30 years. What started as call centres has evolved into a genuinely diversified talent market.
Customer support and operations? Massive talent pool with years of experience. That's the country's bread and butter.
Development and tech? Strong and growing. Good frontend and backend talent across popular frameworks and languages.
Finance and ops? Plenty of bookkeepers who know Xero, understand NZ GST, and can handle your reconciliations. For day-to-day finance operations, you're sorted.
Marketing, design, and creative? Heaps of talent. The creative sector is strong, especially for digital work.
The key is knowing what you're looking for and being realistic about what's available at different price points.
The Stuff That Actually Goes Wrong
Let's be real about the challenges, because they exist.
Retention can be tricky. The Philippines job market is competitive, especially in Metro Manila. If someone's good, they're getting approached constantly. You need to pay fairly, treat people well, and give them reasons to stick around beyond just a paycheck.
Cultural differences exist. The communication style tends to be less direct than Kiwis are used to. People will say "yes" when they mean "I'll try" or even "probably not." You need to actively create space for honest conversations and build relationships where people feel comfortable being straight with you.
Skill gaps are real in certain areas. Just because someone's CV says they can do something doesn't mean they can do it to the standard you need. You have to be rigorous in your screening and realistic in your expectations during onboarding.
The market's getting more expensive. Salaries have been climbing as demand increases. The rock-bottom deals from 10 years ago are mostly gone. You're still saving significantly compared to NZ, but it’s not 2015 anymore. The infrastructure is better, the talent pool is deeper and costs have gone up.
The Philippines works for Kiwi businesses because the fundamentals are solid: strong English, workable time zones, fair costs, and genuine talent depth across most business functions.
It's not perfect. No offshore market is. But if you're realistic about the trade-offs, invest in finding good people, and build actual working relationships rather than just treating offshore hires as cheap labour, it's one of the best options available for NZ companies looking to scale without breaking the bank.