Outsourcing's challenges explained: Its about control

Outsourcing is something that is working very well for many clients. Major players such as Infosys, Tata, and Convergys lead the way in deploying hundreds of thousands of workers to the Fortune 100. In some cases they directly hire the staff for example for $3/hour and resell the staff for $6/hour. This results in a cost pressure that is passed to to the employees, and results in massive workforce turnover. In some industries such as customer service and data entry, this turnover is acceptable.

Some clients seek greater control over this process. Some hiring managers seek to develop a direct employer-employee relationship with their staff, and these managers prefer to have transparency and control relating to the hiring of staff and the salary paid to them. Brealant’s solutions facilitate such control and transparency.

We work with clients to create a tailor an ill fitting suit into a customized suit, for little to no extra cost. The customized solution is solving the BPO issue for clients, control and transparency.

The problem: BPO Turnover in the Philippines

According to the 2016 Towers Watson survey, the most commonly cited reasons why employees left a company were: better pay opportunity (70 percent), relocation or family migration (32 percent), relationship with supervisor (29 percent), health-related reasons (15 percent), and flexible work arrangement or work-life balance (14 percent). Given that average salaries in Manila for BPO staff is around $500/month, it is quite easy to solve the turnover issue by paying $100 per month more in salary (about $0.75/hr). However, in the traditional outsourcing model, where worker's salary is not billed transparently, hiring managers don't have the control to simply pay a little bit more to attract and retain the staff they desire.

The Solution: Control and Transparency through managed services

Brealant earns a fixed fee per staff per month regardless of their salary. We assist you with all HR, recruiting, and provide office space, yet we give you the control to say you want to pay John or Jane $100 more a month, and thus you can attract and retain better staff. As we charge a fixed fee per month, you pay your staff an extra $100 per month, while Brealant's fee remains the same. Turnover also costs Brealant money, as we pay for the recruiting, thus Brealant is also motivated to help you retain staff.

The solution, an overview

The staff leasing model is quite simple, and is all based on transparency and control. Monthly salary (including benefits): $X/month Brealant fee (including office): $650/month ---- Total fee to client: $650/month + salary The Brealant fee includes all HR management, cubical or desk for one staff, computer, IT support, HR, payroll, recruitment, etc. Thus if if the hiring manager decides to give a raise to Jane, the fee to Brealant remains the same. We will show an example below to explain it. If the hiring manager loves Jane, he can give Jane a $100/month raise to Jane, taking her new salary to $700 per month. This type of small raise can often be the difference in keeping or loosing a team member in the highly competitive employment marketplace in the Philippines.

 Pre-raise salary:

Staff name: Jane Doe 

Job title: Customer Service Executive

Monthly salary (including benefits): $600/month

Brealant fee (including office): $650/month

Total fee to client: $1250/month

Post-raise salary:

Staff name: Jane Doe 

Job title: Customer Service Executive

Monthly salary (including benefits): $700/month

Brealant fee (including office): $650/month

Total fee to client: $1350/month 

Both options above provide full transparency and control. To ensure that the staff compensation remain reasonable, Brealant employs a full time recruitment and HR team (at Brealant’s cost). You are always welcome to interact with our market experts free of charge to assist you in managing your benefits and salary levels. Alternatively if you want to replace a staff, we will provide that service free of charge, as it is our duty to locate and assist you with retaining the staff you demand.

The solution overview

Brealant provides all recruiting and HR as part of our solution. It is included in our $650/month per person fees and there are no extra charges for headhunting, etc. Below is an overview of the high level offering. 

Dedicated workspace & PC

Our monthly fee includes a dedicated work-space in our grade A office buildings, complete with managed PC, VOIP phone, generator backup, redundant fiber internet access, & IT support.

Time & attendance

We use login based systems that prove to all clients that your staff are in our offices and working for the hours you pay them for. Our login systems are accessible to clients in real time.


One of the most important commitments that Brealant makes to all clients in that of complete security. We use Symantec Endpoint Security, VPNs, bio-metric and card-key access, live video surveillance.

Recruiting & HR

We recruit and manage all staff employment, including payroll. We ensure all HR compliance is followed and work to maintain a happy and satisfied workplace. It is our job to assist you in finding qualified staff.

Solutions deployment options (managed or dedicated)

You can choose if you would like your staff to be employed by Brealant Inc, working for your company under our umbrella or they can be employed by your wholly owned subsidiary in the Philippines (that we help you to setup). If you choose the latter option, in addition to corporate setup with will also assist with ongoing compliance.  Thus there are two general options below:

Your staff, our company

Most clients choose that staff shall be employed under our umbrella. This passes all risk to our company as the staff are legally employed by Brealant. This is the most cost efficient option, as there is no redundant accounting or compliance tasks. We hire the staff you want, we provide you with full transparency on staff compensation, and full control over hiring and firing of your staff.

Your staff, your subsidary (managed by Brealant)

Some clients choose that staff shall be employed by a subsidiary operating in the Philippines. Often these clients want to sell directly into the Philippines and need an entity in the Philippines or clients corporate policies demand that staff are working for a company owned subsidiary. In this option staff are legally employed by your subsidiary. Brealant provides all compliance and accounting services for this subsidiary, in addition to fully managed HR. This solution is generally more expensive.

Follow this link to learn more about incorporating or using staff leasing

The managed services model and how it works in detail

Below is a diagram that attempts to illustrate the way in which Brealant and clients collaborate to get work done and manage the business. 

In the above diagram we wish to explain and highlight a few choices to make. These choices are flexible and can be changed over time. Brealant will assist you at every step. 

  • Your Onshore Manager: The Onshore manager is an optional position, and there are multiple approaches to accomplishing management in the Philippines.  
    • Some clients to send a full time expat as Onshore Manager (to be located in the Philippines), who also works from our offices. In this case we assist the Onshore manager with locating suitable housing, as well as assist him or her in obtaining the necessary work permits to allow them work in the Philippines. 
    • Some clients elect for the team to be instead managed by the Offshore Manager in the the home country (such as the United States), thereby eliminating the Onshore Manager position in the above diagram.
  • Supervisor: The Supervisor is an optional position, like the Onshore Manager
    • Some clients seek for Brealant to recruit a full time Supervisor. This can be a good decision as this staff acts to supervise the daily work organization in the Philippines. This position naturally has a higher salary than general individual contributor staff, but still the salary is still comparatively low. 
    • Smaller teams are generally supervised by the Offshore Manager in the home country, thus eliminating the position of Supervisor. 
  • Advisory/Consulting: It is common that clients will start without either Supervisor or Onshore manager, to test the model. In this case Brealant will advise the client when we feel it is necessary to add more management staff. It is also possible to hire part time management staff that supervise local staff for one day per week for example. 

An offshore operation customized for your needs...

Your office

 Brealant will provide your staff with either dedicated desks in our shared environment or a dedicated office managed by us so you can put up your own branding and/or encourage your corporate culture. 

Your employees

We recruit and hire staff according to your customized job descriptions. You will choose which staff to hire and what to pay them. These staff will be assigned exclusively and full time to your company. Your staff will never be reassigned to a different client.  If you need your staff to fly to trade-shows around the world to assist your company, we also will assist with that. 

Your tools

You are free to choose the systems your staff will use. Windows, Mac, Linux, Dropbox, Salesforce, Oracle, you choose and we will support it (provided we have the expertise). 

Your culture

Traditional outsourcing creates a culture where workers are not provided with the healthy environment where they get the reward from being part of the creative process of a team. We encourage you to treat your team as an extension of your company. We also provide monthly pizza parties and annual Christmas parties to create a fun work environment for all managed services staff at Brealant. 

Your policies

We will ensure that your Philippine operations will adopt your company policies, processes, and procedures for IT and data security, human resources management, work floor policies, compliance with industry regulations, and any other aspect of your operations.

Your control

You are in control of hiring and firing staff, setting staff salaries, defining policies, culture, and deciding on work tools and hours (we operate 24 hours). Brealant is here to make sure it is all running, and that staff actually work the hours you pay for. Optional: security cameras, card key or biometric access control, and background checks for staff.

Your company

If in the future you would like to form your own company in the Philippines and direct hire your staff, we will also support you with that. Brealant will assist you with this incorporation.  

How much & what's next?

We make our prices as simple as possible. What we do is complicated, but what we charge is meant to be simple and clear. 

  • Staff leasing starts at $675/month per employee, plus salaries. No hidden costs.
  • Company formation (if you choose that additional option) details and prices are found here.

What’s next? The next step is to begin a dialogue with Brealant about your needs. We are happy to help guide you to the solution that is best for you. Please contact us or read more about our services. 

Sample Staff Cost

Call center agent

Philippines $1724
USA $4041

Web developer

Philippines $2536
USA $10230

Finance professional

Philippines $1724
USA $4041

All Brealant costs include, staff salary, grade-A office space with generator backup, redundant fiber internet, managed PCs with IT support, payroll taxes, staff health insurance, etc. Recruitment and staff replacement is provided by Brealant free of charge…

Some more examples of salaries in Manila are as follows, we can also assist you in finding thousands of other job descriptions: 

Profile In the United States At Brealant (in Philippines) Savings
Virtual Assistant $3953 $1411 64%
Call Center Agent $4041 $1724 57%
Clinical Coder $5270 $1284 76%
Copywriter $6473 $1788 72%
Creative Designer $5377 $1540 71%
Data Processor $3077 $1351 56%
Finance Professional $6948 $1956 72%
Human Resources Professional $8057 $1907 76%
Inbound Marketing Professional $7675 $2108 73%
Industrial Designer/Engineer $8468 $3518 58%
IT Engineer $10718 $2319 78%
Online Marketer $7060 $1571 78%
Operations Specialist $6522 $2208 66%
Web Designer $10230 $2546 75%

*These figures above include all costs of hiring staff in respective market, including office costs, health insurance, payroll, Brealant fees, etc. 

Workplace 2.0

What is a workplace 2.0? For clients we enable companies to quickly add managed staff, thereby saving the headaches of global outsourcing. We leverage our scale to provide a quality workplace, that is up to international standards. It is a win-win for both staff and hiring managers. We sit in the middle between our client’s staff and the demands of our clients. Thus we seek to meet the needs of both as best we can. First we provide a secure working environment.

For staff...

Community space

At Brealant all our offices are equipped with a workbar. This workbar has fridge, free water, free coffee & tea, dishes, dishwasher, and most important a clean place for staff to get together for lunch to socialize.

Dedicated workspace

Staff need their space to work, so we provide dedicated workspace they call their own.

Pizza parties

Monthly pizza parties to allow staff to meet, interact, and have fun. It also allows staff working for a small organization of a few staff, to have the camaraderie of working for a large organization.

For hiring managers...

We find that most hiring managers want a few things (besides security and high quality staff), so we do our best to provide those. 

Time & attendance

Our time and attendance systems record staff work hours providing full transparency to clients.

Activity control

You don't pay your staff to surf facebook, so we include standard software to block unwanted surfing.

Background checks

As an option for clients that desire it, we offer background checks of employees.

Security is a complete approach

Most managers tasked with evaluating outsourcing start their evaluation with cost savings, but few projects ever move forward without evaluating the security concerns. Therefore, at Brealant we view security as job #1.

IT Security

First we start with the security of each PC.

Endpoint security

Devices are secured with endpoint security systems that protect from viruses, malware, and malicious attacks.

Managed environment

All devices are managed by a central login system that prevents unauthorized access as well as controls disallowed web-surfing of facebook, etc.

Cloud solutions

We deploy cloud file sharing, email, password vaults as this provides clients with the greatest control over security.

Office access control

An important part of security is control of the office. Some of our clients use dedicated offices, and for those clients we deploy 

Cardkey access

All offices are controlled by card key access that is logged in our databases.

Video Surveillance

Customers have the option of putting video cameras in dedicated offices. All shared offices have video systems installed.

Background checks

For clients that demand an additional level of security, we perform criminal background checks on selected employees.

Information security best practices

This is the headingThere are also standard best of breed steps to employ for information security. We encourage all clients to use these standards and we assist in monitoring compliance.

We use internal procedures to minimize risk. Such mitigation measures include but are not limited to:

  1. Creating a paperless environment, preventing employees from writing down and removing information by ensuring that all work processes are done on the computer, without having to record anything on forms or notes.
  2. Prohibiting the use of cellphones and cameras on the floor.
  3. Prohibiting paper, pens and digital recording devices from being brought onto the floor.
  4. Preventing internet access for employees on the floor.
  5. Limiting functionality and access of personal computers or terminals used by call center agents (for example, disabling USB ports). Companies may also use data loss prevention software to block attempts to download, copy, or transmit sensitive electronic data.

Do we need to incorporate in the Philippines?

This is a common question we are often asked. The simple answer is that your situation should be evaluated case by case. On this page we will go over some of the key issues.

Many companies will start with the slider moved more to the right in the beginning as it reduces risk, startup capital, etc. Over time, as outsourcing operations grow, in size (and thus investment) companies tend to take more control of processes themselves. We are happy to support clients as they make this move over time. There is no right way to grow. There are a list of factors to consider when setting up, and which factors you prefer for Brealant to handle and which you plan to handle. Below you will see a discussion of the factors to consider, then you speak to one of our account managers to guide you.

Physical Infrastructure

  1. Facilities (Furniture, Office Space): It is ideal to start with a nice operating environment. Many will choose serviced offices as a logical place to begin.
  2. Computers and Systems: This includes PCs, servers, VPNs, networking, and telecom systems. Again it is logical for many small to medium sized companies looking at outsourcing to procure managed services.
  3. Security systems, cameras, card key access, etc.

Management Systems

  1. Recruitment and HR: An outsourcing business is all about the people. You need to locate the right staff, have procedures in place to retain them, and labor compliance ensure that your hiring is in line with industry laws. Also included here is support for expat managers and their visa needs.
  2. Finance, accounting, and regulatory. It may be easier to outsource these important but in some cases non-strategic functions.
  3. Technical support and facilities management. Someone has to make sure it all stays running, again sometimes a non-strategic function.

Depending on your evaluation of the above issues, you will decide if you want to incorporate or if you want to use Brealant’s staff leasing. Some clients also do both, for regulatory or control reasons. We are happy to support both options. Note these options below can generally be customized. 

Option #1: Full Incorporation

This scenario you form a company, hire your accountants, hire your IT, and rent an office (or a building). This is often the long term goal for large enterprises. We can support this option as your long term goal, or your short term goal.

Client Brealant
Office & Furniture
Facilities Management & Security
IT Systems & SW
IT Support
HR & Payroll
Finance & Compliance
Expat Support

Option #2: Hybrid

This scenario you form a company that employs your staff. However, this company is hosted in our offices, and Brealant manages payroll, compliance, accounting, recruiting, and HR. This option is best for companies that have rules requiring all staff to be company employees.

Client Brealant
Office & Furniture
Facilities Management & Security
IT Systems & SW
IT Support
HR & Payroll ✔ *
Finance & Compliance ✔ *
Expat Support

Option #3: Staff Leasing

In this scenario you staff are employed by Brealant, but work for you in offices provided by brealant. All salaries are fully transparent. You are not required to pay a fee to setup a company, nor are you required to do any IT.

Client Brealant
Office & Furniture
Facilities Management & Security
IT Systems & SW
IT Support
HR & Payroll
Finance & Compliance
Expat Support

*Brealant and client co-manage these functions.

A comparison of options

Below is a comparison of the factors of Outsourcing, managed operations, and incorporation

As you can see in the above comparison that many issues faced in the outsourcing model are solved in the managed services model. As noted above on this page, Brealant can also build a solution for you where we merge Incorporating and Managed Operations. Clients sometimes seek this hybrid model to gain full legal control over the staff in the Philippines, while maintaining the audit and local expertise experience of Brealant. 

What's next?

Now that you have read the basics on the choices, you likely have a hunch on what approach is best for your enterprise. As a next step, we suggest that you talk to one of our accountant managers to give you some quality advice. Also remember that many of Brealant’s clients transition over time transition over time from one service type to another. For example it is common for companies that choose the incorporation route to also use staff leasing in the interim while the company setup is in process (certain types of corporate entity such as PEZA Registration can take up to a year). 

The benefits of outsourcing (using managed services)

First we will go over what Philippines has to offer your company. After that we will discuss the unique advantages of managed operations (aka staff leasing) for your company.

The Philippines has a lot to offer for clients seeking highly educated English as a native language staff. Brealant offers a non-traditional system of outsourcing designed to put you in control of your processes, outsourcing, and staff.

The numbers...


 Philippines is the #1 global destination for call center and customer service outsourcing.


Manila is the #2 global destination for overall outsourcing, following Bangalore, India. 


  Your Philippines operation will save you on average 70%. 


  The Philippines is the top choice for North American companies seeking an easy to understand accent, ideal for sales and customer support positions. 


  A huge and young workforce that allows clients to choose the best and highest educated candidates. 


  The total Manila urbanized area is listed as having a population of 24,123,000 by Demographia, making it the 4th most populous urban area in the world.


  As of 2016, BPO is generating $25 billion in revenues and 1.3 million direct jobs.


The Philippines provides for zero income tax, zero import duty, and zero VAT for qualified BPO enterprises. 

Opportunity for expansion

Official Name: Republic of the Philippines
Geography: Archipelago of 7,107 islands
National Languages: English, Filipino
Population: 103 Million
Labor force: 41 Million
Currency: Philippine Peso
Religion: Roman Catholic- 90%
GDP: $348B (2016)
Capital: Manila
Literacy rate: 92%
Average population age: 23.1 years 

A few factors make the Philippines an ideal location for outsourcing

  • English is the primary language as according to Philippines law, English is used in governments education. Philippines has a very high literacy rate of over 92% in the general population
  • Excellent higher education system promoted by a nation with historically many overseas workers. There is an abundance of highly trained professionals including engineers, IT professionals, bookkeepers, certified accountants, lawyers, creative designers, and medical professionals. 
  • Compatible Westernized culture as a result of a years of influence under colonization initially by the Spanish in 1565 and later by the United States in 1901. This greatly reduces cultural barriers that are often faced in outsourcing (especially when compared to India). 
  • Low salary levels when compared to developed nations such as the USA. Salaries are on average only 30 % of a comparable hire in the USA, meaning hiring managers will normally realize cost savings with Brealant of 60-80%. 
  • Quality IT infrastructure as a result of Philippines being rated by Fitch, Moody’s, and S&P as investment grade. Philippines has excellent fiber optic connections directly linking it to the USA at 1 Wilshire in Los Angeles, CA. 
  • Politically Stable as a result of a transition from colonization that has moved towards a functioning democracy. 
  • Attractive investment environment as the government welcomes outsourcing and foreign direct investment. The result of this is that your outsourcing activities in the Philippines will generally be tax free, which is supported by public policy as your staff will be paying income tax on their salaries. 

IT Technical Solutions

Brealant offers IT technical solutions in the Philippines

Brealant's IT technical solutions include a wide range of technical IT services. Generally we focus on software engineering tasks that are time consuming.

  • PHP development
  • SQL
  • Database administration
  • ASP
  • Perl Scripts
  • Back end software development

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