‘By leveraging a low-cost talent market, they can be more cost efficient,’ says Sunny Kaila, CEO of IT By Design.

IT By Design has opened a new headquarters in the Philippines to further expand operations and offer cost-efficient talent to MSPs.

The new office will create more than 250 new roles within the master MSP as the need for top talent at low cost grows. The company currently has more than 100 employees.

Sunny Kaila, CEO of Marlboro, N.J.-based IT By Design, said opening the Philippines office gives access to another low-cost talent market, “and a lot of MSPs are looking to improve their EBITDA (earnings before interest, taxes, depreciation and amortization) dollars.”

He said even smaller MSPs that are looking to cut costs in hopes to be acquired one day are looking at offshore talent to build valuation.

“The natural strategy there is, ‘What can I do backstage in the Philippines or India [in terms of talent],’” he said, adding that work culture in the Philippines closely mirrors that of the U.S. work culture.

There are a few drivers for a Philippines office including the need for MSPs to staff 24/7 “as nighttime and weekend staffing is challenging.”

“The customer demand is to have a capability which is available 24/7, like helpdesk and NOC (network operations center),” he said.

A significant driver, though, is the cost of labor.

“By leveraging a low-cost talent market, they can be more cost efficient,” he said. “We advise MSPs to use their own security talent for front stage, which is more customer facing. Not everything can be done offshore. You are positioning your business in a way that whatever is going on backstage, it can be staffed from a low-cost talent market.”

Additionally, some specialized cybersecurity skills are not as available in the market.

“There are tons of jobs that are open right now in cybersecurity and cloud,” he said. “Now, more and more I hear, ‘Do you have AI engineers?’ We can’t get those people, they are going to Silicon Valley where they are making $200,000 to $300,000. That’s when we have people coming to us and asking if we have staff in the Philippines or India.”

IT By Design now has offices in the U.S., the Philippines and India with plans to expand into Costa Rica in 2025.

ITBD partner Marco Prieto, in-house manager at East Hartford, Conn.-based Tab Computer Systems Inc., said he is starting to see more and more customers ask for 24/7 cybersecurity services.

“I think it’s a good option,” he told CRN of the Philippines office. “Depending what you’re looking for, it can be another resource where you can have low-cost help around the clock.”