Navigating talent gap: Outsourcing as a strategy for Australian SMEs

As Australian SMEs strive to stay competitive in the dynamic market, they often face a significant challenge – the talent gap shortage. 

With a growing demand for skilled professionals in various industries, businesses often find themselves struggling to recruit and retain top talent locally. 

In response, many SMEs are turning to outsourcing as a strategic solution to bridge this gap, leveraging the advantages of a global talent pool. 

Enter Arcanys, a trusted outsourcing partner renowned for providing top-tier software development specialists to global businesses. 

This article discusses why Australian SMEs team up with Arcanys to hire skilled tech professionals from the Philippines, streamline operations, and drive growth in a competitive market.

Insights into Australia’s tech industry talent shortage

The talent gap shortage in Australia has become a pressing concern for businesses across various industries. As demand for skilled professionals continues to rise, they face challenges in recruiting and retaining talent locally. 

Understanding the scope and impact of this talent gap shortage is crucial for companies to develop effective strategies for addressing it. 

Here are some current research findings and statistics highlighting the talent gap shortage in Australia, from reputable sources:

• According to The Strategist, nearly 70% of ICT professional occupations in Australia are experiencing shortages. The significant needs in areas like AI and cybersecurity lead businesses to delegate offshore for these skills.
  
• The Australian Industry Group’s (Ai Group) National CEO Survey 2023 revealed that 90% of Australian CEOs were affected by staff shortages. This phenomenon urged them to invest more in staff training and development to retain current employees.
  
• A 2022 survey conducted by the Australian Bureau of Statistics (ABS) found that 31% of Australian businesses reported difficulties in finding suitable employees with the required skills.
  
• The Hays Australia & New Zealand Salary Guide 2023/24 highlighted that 88% of employers in Australia are experiencing skills shortages.

These research findings and statistics underscore the magnitude of the talent gap shortage in Australia. 

Talent gap impact on Australian SMEs

The talent shortage has implications for Australian SMEs’ growth, competitiveness, and operational efficiency. 

Here are some of the main drawbacks Australian SMEs face due to the talent gap shortage:

• Recruitment challenges. Competition with larger companies for limited talent exacerbates recruitment difficulties, particularly in specialized fields.
  
• Skills mismatch. SMEs encounter mismatches between the skills required for available positions and the skills possessed by candidates. It hampers productivity and innovation, hindering their ability to adapt to market demands.
  
• Reduced productivity. The talent gap shortage can result in understaffing or reliance on employees with inadequate skills, leading to decreased productivity levels.
  
• Innovation constraints. Limited access to specialized talent restricts SMEs’ capacity for technological advancements.
  
• Increased turnover rates. Frustrations stemming from the talent gap shortage, such as heavy workloads and limited growth opportunities, contribute to higher turnover rates among SMEs.
  
• Competitiveness. It undermines the ability of SMEs to compete effectively in the marketplace, particularly against larger corporations with greater resources and established talent pipelines.

Addressing the impacts of the talent gap shortage requires proactive measures. Many Australian SMEs explore alternative talent acquisition strategies, such as outsourcing, to mitigate these predicaments. 

3 major benefits of outsourcing for Australian SMEs

Outsourcing to renowned providers like Arcanys offers Australian SMEs strategic advantages, enabling them to address the challenges posed by the talent gap shortage effectively. 

Here are three major benefits of outsourcing:

1. Cost efficiency

By leveraging offshore talent pools in regions with lower labor costs, such as the Philippines, SMEs can reduce overhead expenses from 50% to 60%.

Arcanys’ cost-efficient outsourcing solutions enable SMEs to allocate their resources more effectively as they invest in core business activities and growth initiatives.

2. Access to global expertise

Arcanys provides Australian SMEs access to a diverse pool of software development talents. This includes highly skilled software engineers with specialized expertise in various industries.

Arcanys has a wide network of experienced tech professionals in the Philippines, helping SMEs work with experts from different backgrounds. This collaboration brings new ideas and viewpoints that boost business success.

By partnering with Arcanys, they can tap into a wealth of knowledge and experience that may be scarce or unavailable locally, facilitating innovation and strategic growth opportunities.

3. Increased operational efficiency

Outsourcing to providers like Arcanys offers Australian SMEs greater chances of boosting their operational efficiency even as they face fluctuating business demands.

Arcanys’ development solutions allow SMEs to ramp up their operations consistently as they opt to collaborate with their offshore specialists in the long run.

With Arcanys as a trusted outsourcing partner, SMEs can adapt to changing market conditions and seize opportunities with agility and efficiency.

Arcanys – your trusted tech solutions partner

Arcanys is a leading outsourcing firm providing businesses worldwide with seasoned Filipino tech talents. 

At Arcanys, they believe in the power of real-world success stories to showcase the value they bring to clients. Its website features a collection of insightful case studies accompanied by testimonials from satisfied customers.

To name a few:

“I love working with Arcanys; they’ve become part of our team.”

Mark Nimco (Co-founder, Payment Logic)

“Their management style is very upfront, and they treat us with respect.”

Ian Hamilton (Lead Developer, Institutional Investor)

“Arcanys has a knowledge base and hunger to learn that makes them stand out from the competition.”

Joakim Restadh (Chairman of the Board, Enfo)

These case studies provide a glimpse into how Arcanys has supported various businesses in overcoming challenges, achieving growth, and driving innovation.

Connect with Arcanys’ experts today to know more about how they can help your organization long-term!