Australian businesses are increasingly turning to offshore outsourcing to tackle rising costs and skill shortages, a trend set to grow this year. According to recruitment firm Hays, industries such as information technology, customer service, finance and accounting, healthcare, and digital marketing are particularly likely to explore international talent pools.
Matthew Dickason, CEO of Hays Asia-Pacific, emphasised that while cost savings motivate this shift, the trend is driven by broader factors, including the need for specialised skills and efficiencies. Companies are utilising global expertise to fill gaps in the local workforce, especially in tech and professional services. Additionally, innovations in technology, such as artificial intelligence and automation, facilitate the management of remote teams, further encouraging outsourcing adoption.
Businesses of all sizes are considering this approach; for instance, Westpac announced plans to relocate nearly 200 roles from New South Wales and South Australia to the Philippines. However, Dickason advised that firms must navigate challenges such as data security, language barriers, and time zone differences when collaborating with remote teams. It’s crucial for businesses to understand their legal responsibilities before opting for overseas outsourcing, particularly as this can vary when replacing existing workers versus hiring new offshore staff, as highlighted by Dr Giuseppe Carabetta from the University of Technology Sydney.
Employers are encouraged to seek legal guidance to ensure their outsourcing motives are legitimate and to adhere to proper procedures. This precaution can be vital depending on the specifics of their transition processes.
Hays also identified the primary roles likely to be outsourced, which encompass a wide range of responsibilities:
- Information Technology: Software development and infrastructure management.
- Customer Service: Call centres and support roles.
- Finance and Accounting: Payroll, bookkeeping, and tax preparation.
- Healthcare: Billing, coding, and telehealth support.
- Digital Marketing: SEO, social media management, design, and content creation.
Overall, while cost is a critical factor, businesses are realising that leveraging international talent can be a holistic solution to pressing skill shortages and operational needs.