Giles is back at Warwickshire as sports director after five years away from Edgbaston, and the Bears will lose England star Chris Woakes from their early domestic campaign.
England's County Championship gets under way on Friday, but England seamer Woakes is already out in India preparing for action with Kolkata Knight Riders.
Tymal Mills has attracted a £1.4million salary, while Woakes will net £500,000, leaving Giles insisting the county game must remain circumspect about losing top talents for life-changing pay days.
“It's tough but we have to be realistic, it's an opportunity that these guys can't really turn down,” said Giles.
“There's the cricket side, and there's the experience of playing in the IPL, brilliant, but let's be honest as well, it's a lot of money, and it's an opportunity to earn that money in a short space of time, that most cricketers will never get.
“So it's fine, we will miss him, we could have had him for perhaps six games which would make a massive difference to us, but he goes with our blessing.
“We know whenever he puts a Warwickshire shirt on he's totally committed.”
Giles expects Woakes to continue to shine with England, having blossomed into a fully-rounded Test seamer.
“When I was with him at the beginning of his journey at Warwickshire, we always thought he was going to make it,” said Giles.
“But there was a while where he wasn't quite getting it.
“You had hoped that deep down because he had everything, such a good bloke, such a good cricketer, worked incredibly hard, that eventually he would cross the line.
“And now he has there's no stopping him.”
The build-up to the new domestic season has been dominated by early plans for England's answer to the IPL, with eight city-based teams to compete in a new tournament to launch in 2020.
Middlesex will have Daniel Vettori as a specialist coach for the T20 Blast, but will also defend their County Championship crown. Boss Angus Fraser has backed the new Twenty20 competition in 2020, but insisted each county will continue to fight their own corner amid continued negotiations.
“We've had concerns, but it's going to happen,” said Fraser of the planned T20 contest.
“Every county is trying to make sure that it only affects them in a positive way.
“I'm sure it will have a positive influence on the counties, but you can't help wanting to try to ensure your county is in as good a shape in 10 years' time as it is now hopefully.
“We've got a different set of circumstances to other counties in the way we don't own Lord's and a third party would be coming in there.”
Northamptonshire will enter the new campaign defending their T20 Blast title, but will not host one of the new franchise teams in the new 2020 tournament.
Graeme White urged anyone excited by that future competition not to wait three years, but take advantage of the current T20 offering.
“I can understand excitement about what can be seen as England's answer to the IPL, but I would say those people, get excited about the T20 Blast,” said White.
“I speak to a lot of people who aren't too into cricket but say they've seen the IPL or the Big Bash or the Blast on TV and say it looks great.
“So I'm always saying, come along, it's over and done in a few hours.
“The competition we have at the minute is fantastic, the standard is very high.
“I'm pleased to see that will still be staying in future, and that we have another one next to it.”
