How outsourcing helps fix the labor shortage in Australia
How does outsourcing fix the labor shortage in Australia?
Outsourcing fixes the labor shortage in Australia by giving firms access to skilled offshore talent, often in the Philippines, at a lower cost and without long local hiring delays. So businesses can keep growing even when local roles stay hard to fill.
- Australia’s labor shortage spans many roles and industries.
- Offshore staffing opens a far larger talent pool. As a result, firms fill gaps faster.
- It also cuts cost and helps firms improve how they work.
It is clear that much of the world, and many developed countries, faces a labor shortage. In short, global firms struggle to find the right people for the job.
Australia feels this too. The country has long relied on worker migration. So tighter borders in recent years and higher pay demands both strained skilled hiring.
Fortunately, many firms now see a “fix” in outsourcing. Tremayne Murphy, Director at 24×7 Direct, shares his view in episode 388 of the OA podcast.
The nature of labor shortage in Australia
Per Tremayne, Australia has “a challenge in labor shortage across various disciplines and roles.” As a result, many firms tightened their belts and turned to offshore staffing.
Border limits played a part in the shortage. For example, skilled worker immigration dropped to 70,000 in 2020 and fell further toward 20,000 in 2021. Meanwhile, many temporary migrants left the country.
On top of this, rising pay and benefit demands added pressure. So some small businesses had to limit services or offer steep raises.
The lasting shift toward flexible work
Still, Tremayne is upbeat that “the spirit is high” with the future of work in Australia [1] . In short, firms learned they can run well without losing output or staff welfare.
A study from the University of Melbourne found that almost 70% of remote workers wanted to keep that setup. As a result, many firms stayed open to new ways of working.
Because of this, companies grew “a bit hesitant [to return to] the old ways of coming back and working in the office.” Instead, firms of all sizes now “look at a new way of interfacing employment with work-life balance.”
Meanwhile, demand for offshore outsourcing rose fast. Tremayne agrees that “the notion of looking globally to build out [a] team and scale” is now far easier thanks to technology. For many Australian firms, outsourcing to the Philippines has become a core part of that plan.
How outsourcing can fix the labor shortage in Australia (and more)
Firms like 24×7 Direct help small and medium businesses in Australia beat the labor shortage. So here are a few ways outsourcing can fix labor gaps, and more, for local firms.
Access to talent pool
Tremayne recalled one client, an established firm, that could not find the talent it needed at home. However, it found that talent in the Philippines through offshore staffing.
Usually, local-only hiring limits your search. By contrast, outsourcing opens a far larger talent pool you can tap from miles away. In fact, offshore staffing is now a go-to answer for hard-to-fill roles.
Cost-rationality
Tremayne agrees that firms get skilled staff “at a great price” through offshore services. In addition, the provider handles everything to hire and run a team, from recruitment to certifications, at a flat rate. This model is often called staff leasing.
As a result, firms do not have to cut their offerings. In fact, they can improve customer experience too. In short, it is a smart investment.
Improved processes
At the same time, outsourcing helps firms improve how they work. For example, good providers work hands-on with clients to build processes they can scale later.
However, Tremayne warns that clients “can’t outsource [their] problems.” Instead, the team helps you optimize each role so it works for you. The benefits of outsourcing grow when the process is sound from the start.
24×7 Direct on providing outsourced staffing to Australia
Established in 2003 by Devang Parikh, 24×7 Direct began as a contact center serving local firms in Australia. The company “sought to offshore support function because it was cost-rational.”
This move paid off well for the firm and its market. For example, when many enterprise clients paused services, the company built virtual teams for small and medium businesses instead.
Today, its operations sit in the Philippines, with over 120 employees serving a wide range of clients. Building a strong remote team this way is now a proven path for growing firms.
So go to www.24x7direct.com.au or connect with Tremayne on LinkedIn for inquiries. In addition, you can listen to episode 388 of the OA podcast here.
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Frequently asked questions (FAQs)
Why is Australia facing a labor shortage?
Several factors mix together. For example, the country relies on migration, and tighter borders in recent years slowed skilled arrivals. In addition, pay demands rose, which made some roles harder to fill.
Which roles do Australian firms outsource most?
Firms often outsource customer support, admin, IT, and back-office roles. Still, the list keeps growing. As a result, many skilled and technical jobs now move offshore too.
Is outsourcing to the Philippines reliable for Australian businesses?
Yes. The Philippines has a deep, skilled, English-speaking workforce. In addition, time zones line up well with Australia. So teams can work together in near real time.
How much can Australian firms save by outsourcing?
Savings vary by role and provider. In general, though, offshore staff cost far less than local hires. So many firms cut staffing costs while keeping strong quality.
Does outsourcing mean lower work quality?
Not when it is done well. A good provider hires, trains, and manages skilled staff for you. As a result, quality often stays high while your team grows.
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