Top Software Development Companies in the Philippines

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Last updated: March 2024

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The software development industry has grown exponentially in the last few years, and job markets are booming in countries like the Philippines. The demand for jobs in this sector is higher than ever, and workers and employers are benefiting. 

Thousands of businesses across various industries and government agencies seek talented individuals who can develop innovative software solutions to improve their operations. Because of this, IT has continued to flourish after the pandemic and even through economic downturns.

The digital landscape is expanding rapidly, and software development plays an essential role. Mobile applications, websites, and new interfaces not only improve people’s daily lives but simplify business processes. Software development encourages innovation and efficiency in this ever-changing digital space.

The Philippines is one of the fastest-growing economies in Asia today, and it owes much of this to the Business Processing Outsourcing (BPO) sector. From there, the software development industry alone contributes 10% of the Philippines' GDP, close to $26 billion! 

Software development in the Philippines is booming, and this article outlines all you need to know about the best software development companies in the Philippines and benefit from a large talent pool. 

Major Software Development Hubs in the Philippines 

If you're looking for IT hubs in the Philippines, you'll be happy to know you have plenty of options. The country is among the best places to find top-notch IT professionals or partner with other companies. You can look into various regions to find good talent and the best software development companies in the Philippines. 

Since the Philippines has become “the” outsourcing destination, it has a wide selection of candidates.

Some regions you can consider for your business in the Philippines include: 

Manila

The capital city of Manila has some of the best software development companies in the Philippines affiliated with IBM, Google, and Oracle. The most prestigious educational institutions in the country, like De La Salle University, the University of Santo Tomas, and the University of the Philippines, are known to produce top-of-the-line graduates who live in nearby cities. 

Along with talented individuals, you'll also find reliable and accessible internet and access to modern IT tools in the area. 

Cebu

Cebu is a city chock full of cultural heritage and is one of the fastest-growing tech hubs in the country. The city is equipping itself to grow significantly in the next few years, with billions worth of infrastructure projects in progress. 

And, like Manila, Cebu has some of the finest universities, like the University of San Carlos, the University of Cebu, and the Cebu Institute of Technology. 

Davao

Davao is situated in the southernmost part of the Philippines and is a coastal commercial center. The city is an up-and-coming IT hub. Since it has one of the largest economies in the country, it is rising as another busy center for IT and BPO companies. Naturally, the city serves as an excellent foundation for investors and business owners. 

The city is home to graduates from the University of the Philippines Mindanao and Ateneo de Davao University, making it an ideal place to recruit top-notch candidates.

Iloilo City

Iloilo City, also known as the Heart of the Philippines, is in the middle of the country. It has experienced a significant economic boom due to new ventures, high-end investments, and its goal to meet the IT industry's demands. 

Iloilo City’s Central Business District (CBD) has ample retail and office space for enterprises and IT providers. Because it is one of the fastest-growing cities, individuals with impressive backgrounds in IT are flocking here, making it an ideal place for businesses to operate.

Cagayan de Oro

The City of Golden Friendship, Cagayan de Oro (or simply Cagayan), is also called the Port City. It is home to many BPO companies and other industry leaders, including IT, making it another prime tech hub for the best software development companies in the Philippines. 

Educational institutions like Xavier University have been producing exceptional IT graduates for many years, so international companies and enterprises looking at Cagayan can pick from some of the best talent in the country.

Market Overview: Software Development in the Philippines

In the last few years, rapid developments in enterprise software have encouraged local Philippine firms to aggressively pursue digital transformation. The release of Microsoft Windows 10 has also driven organizations to access significant security and feature updates. According to the IMD Digital Competitiveness Ranking 2020 report, the Philippines ranks 57th out of 63 countries.

With over 400 software firms operating in the Philippines, the country's welcoming outsourcing (BPO) industry is a strong market customer for enterprise applications. In 2020, the Philippines’ IT and Business Process Association calculated that the BPO industry in the country generated around $26 billion in revenue. 

Industries like retail, manufacturing, and fintech need robust software for smooth daily operations. Local software providers are taking advantage of this need and meeting demand through low-cost consultation and maintenance services.

Some of the current software development trends in the Philippines match with the rest of the world: 

Low-code/No-code

This type of software development helps those who do not know coding or do not have time to learn to create software. Although these low-code and no-code frameworks use actual coding languages like Python and Java, users need not look at the specifics.

Thanks to no-code platforms, those interested in developing software only need to drag and drop blocks of pre-made code in a visual interface. While they still need to have some amount of technical knowledge, the shortcuts provided can help them complete projects faster.

Experienced developers in the top software development companies in the Philippines and other countries can also leverage this trend to streamline their workflows and boost their productivity significantly.

Cloud Computing

The pandemic called for remote work for millions of people, which brought the rapid growth of cloud computing. Businesses made the best of this sweeping change and found that the cloud was the perfect platform to make adjustments and provide the best environment for workers all over the world.

As a result, the demand for cloud-native software engineers grew immensely. Professionals with experience in Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS) saw the most demand.

Cybersecurity 

Cybersecurity is more important than ever—malware, viruses, spyware, and ransomware are expected to increase as the digital age continues. As a result, businesses are looking for the right tools to keep their assets secure. Fortunately, with cloud computing, improving security only gets easier. 

In 2020, ransomware attacks increased by 435% compared to 2019. Today, organizations are going above and beyond to invest in keeping their assets secure, and top software development companies in the Philippines can provide everything they need. 

Artificial Intelligence

There was a time when Artificial intelligence (AI) technology was considered to be far in the future. Well, it's now in the present and is being applied in many business sectors, including software development. These applications can process images, detect objects, recognize human speech, and more. 

According to IMARC Group, it was estimated that in 2021, the global AI revenue was around $56.5 billion. By 2027, this number is expected to grow to $308.5 billion. 

The use of AI also helps reduce costs and errors by increasing efficiency on all fronts. Healthcare is one industry that has experienced the most benefits after using AI software. According to a survey in March 2021, 90% of hospitals had an AI strategy in place.

This shows that AI is here to say, and its applications will be bigger and better than ever before.

Other trends in the software development front are: 

  • 5G
  • Expansion of the Internet of Things (IoT)
  • Outsourcing 
  • Progressive Web Applications (PWA)
  • Augmented Reality (AR) and Virtual Reality (VR)

Technical Expertise in the Philippines

With the demand higher than ever in the Philippines, more and more professionals are getting on board in the industry. The best software development companies in the Philippines are becoming increasingly competitive in Asia and the world.

Popular Technologies and Frameworks Used in the Philippines

Programming languages are what create computer programs and their functions. As the demand for software development increases, professionals must familiarize themselves with these languages to keep up with evolving trends and meet the industry’s needs. 

Some of the popular languages that are outsourced to the Philippines include:

Python

Python is one of the top programming languages in the world—an open-source one that is quite versatile and easy to use, allowing professionals to leverage it in various applications. It can be used for web development, learning, and data analysis.

Java and JavaScript Developer 

Java is the most commonly used language for creating applications across various platforms: desktop, mobile, and web. 

Similarly, JavaScript is best for interactive web apps and pages. Developers use the language as a base for many operations.

C, C++, C#

All C-languages are used for programming, gaming, and other performance-based applications. Although challenging to learn, programmers and developers find it is the best to create intricate projects.

While programming languages act as a script for a device, web frameworks streamline the coding process. They provide templates and help accomplish the desired results.

Some of the popular programming frameworks used in the Philippines include: 

Angular

This is a front-end web framework best used for single-page applications. Angular uses HTML and TypeScript because it allows for easier, faster testing and code review.

jQuery

JavaScript developers love jQuery because its vast, time-tested library reduces the amount of code writing required. This framework can reduce complex operations and functions in animations, APIs, and browsers into single lines of code.

Ruby on Rails

Another open-source full-stack framework, Ruby on Rails is great for startups and large companies. It has many plugins and third-party libraries, efficiently reducing the effort of development.

Besides these, Go, Kotlin, and R are also becoming quite popular in the Philippines. Developers with knowledge in Perl, Go, Ruby, and Rust are seeing some high salary scales as well.

Successful Software Projects in the Philippines 

A recent study has shown that developing countries like India, Brazil, and the Philippines have the highest success rates with handling outsourced businesses. The study delves into the practices of the top software development companies in the Philippines. 

The developing country has consistently appeared on lists of top software outsourcing destinations, and one of the main factors for that is agile methods in software development. 

According to a study, more than 50% of Fortune 500 organizations are going offshore to complete their software projects. These sites include India, China, Ireland, Philippines, Taiwan, Singapore, Hong Kong, Malaysia, Israel, Brazil, Russia, Mexico, South Africa, Hungary, and the Czech Republic.

Based on a survey by the Philippine Software Industry Association (PISA), approximately 190,000 developers reside in the country, and they work on high-end projects with IBM, Hewlett Packard, Microsoft, and APEX IT Innovators, among many others. 

Education and Talent in the Philippines 

There are plenty of institutes that provide quality education for individuals to pursue a career in software development in the Philippines. Besides full-time programs like Computer Science, aspiring software developers also take advantage of boot camps. 

Some of the institutes worth looking at include: 

  • The University of the Philippines Diliman, Quezon
  • De La Salle University, Manila 
  • Ateneo de Manila University
  • The University of Sto. Tomas
  • Mapúa University
  • Cebu Institute of Technology

Boot camps that aspiring software developers can look at: 

  • Uplift Code Camp
  • WeStride 
  • Osmi Pro
  • Zuitt Coding Bootcamp
  • And more

Career Opportunities 

Jobs in IT are the most in-demand in the Philippines. They comprise the up-and-coming hubs for software development and the best software development companies in the Philippines, so job opportunities for software engineers, data scientists, cloud architects/engineers, project managers, and business analysts are on the rise. 

Currently, the country is undeniably a leading outsourcing destination in Asia and the world. In fact, the World Bank calculates the Philippines’ IT market as worth $38.19 billion, thanks to the 11,000 IT companies in the country.

Salaries and Compensation in the Philippines 

The average salary a software developer earns in the Philippines can range from $362 to $706 per month or higher, depending on the location and company they choose. 

Bigger cities like Manila and Quezon have the top software development companies in the Philippines, with significantly better pay scales ranging from $700 to $1,500 and even higher for managers. Meanwhile, software development jobs in mid-range cities like Davao and Cebu can draw around $618 and higher. Even smaller cities like Iloilo offer IT with salaries on the lower end, from $362. 

As with any position, salary increases with experience and skill set. Based on designation, here’s what employers can expect to pay IT professionals in the Philippines (monthly salaries):

  • Junior Engineer - $525 or higher
  • Mid-Level Engineer - $804 or higher
  • Senior Engineer - $1266 or higher

Cost of Living in the Philippines 

With IT becoming more prominent than ever, there’s no doubt that the Philippines is an ideal market for international companies. Another question must be asked: what is the cost of living in the Philippines?

Like anywhere in the world, regular expenses depend on lifestyles and preferences. Locals can spend as little as $500 monthly, even in the big cities. However, for a relatively luxurious lifestyle accounting for rent in a busy commercial area and various forms of entertainment, the monthly budget could go up to $1,000 or higher.

These low costs make the Philippines a much sought-after employment option for software development companies all over the world. Comparatively lower employee expenses for top-level output is a significant enticement. 

The cost of living index incorporates various living expenses, such as rent, transportation, grocery costs, and even entertainment. It creates an aggregate to measure what individuals can use as a benchmark to calculate expenses. However, different indexes may calculate living expenses differently. 

Let’s see an example of a city based in the USA. In 2023, Kiplinger found San Diego – not New York – the most expensive city based on Community and Economic Research. The Council's index measured expenses for housing, groceries, utilities, transportation, healthcare, and grooming. Turns out, San Diego was more expensive, with the cost of housing 122% above the national average. Companies hiring in San Diego would have to provide higher salaries for their employees to remain competitive in the area. 

However, companies that hire talent in other regions wouldn’t pay nearly as much because the cost of living is much lower. This reduces expenses and helps maximize profits.

Why Choose the Philippines for Software Development?

The Philippines has been proven to be one of the best countries for outsourcing business processes. Large international enterprises and corporations have been flocking for decades, providing opportunities for millions of individuals. 

Partnering with the top software development companies in the Philippines is certainly a winning idea. Here are the top reasons to do so:

Expertise 

With software development taking off, around 83,000 students graduate with degrees in engineering and technology and 74,000 with completed courses in information technology. As a result, software companies would have no trouble finding skilled individuals who want to work in the industry.

Labor

Labor costs for a website developer in the Philippines are much lower than in many other countries. The cost of living in the country plays a huge role in this. Numerous companies in the US, Canada, and Europe are already outsourcing their software development needs to this country to minimize overall expenses.

Timezone 

The country is well-located to serve companies based in Japan, Australia, and New Zealand. Time differences are limited, making collaboration easier. 

The distance and 12-hour time difference haven’t stopped US companies, either. Thousands of software developers in the Philippines are more than willing to work in late shifts to coordinate closely with team members based in the western hemisphere. 

Conclusion

The Philippines is a no-brainer for software development companies to set up shop in. Its low cost of living and high-quality labor with tons of knowledge and expertise is unmatched in Asia. 

With many prestigious universities producing top talent, finding individuals who meet an organization’s demand is easy. Software developers can work in various coding languages and keep up with global trends, so they can work on many different projects. 

Aside from hiring freelancers, enterprises can also partner with the best software development companies in the Philippines that have been working on solutions for various technological challenges.