26 Jul How outsourcing industry has impacted on Australian Businesses
In the wise words of Max Tennant, Salmat’s general manager, “Productivity shouldn’t be limited by geography.” As we move further into the communication age, businesses of all stripes are increasingly breaking down barriers when it comes to workforce composition. Savvy business owners know that talent gaps can be filled in by skilled offshore workers, and new entrepreneurs operating on strict budgets understand they can find affordable help overseas. Continue reading to find out the growth of outsourcing industry in Australia
While the trend towards outsourcing is a global one, Australia has become a particular hotbed for creating international teams in recent years. In fact, it now represents one of the largest economies engaged in outsourcing, as reported by B&T Magazine. There are a few factors driving this increase, such as:
Proximity – Outsourcing industry
Australia enjoys a favorable location, being within one or two timezones of most of the primary outsourcing nations. This limits communication issues when working with an outsourced service provider as Australian business owners can easily connect with workers in Sri Lanka, India, and the Philippines via Skype. Furthermore, because there is a fair bit of immigration between Australia and the aforementioned nations, it’s not uncommon to find South Asians in Australia and Australians in South Asia. As a result, cultural issues seldom arise when Australians work with outsourced service providers.
A strong desire for growth – Outsourcing industry
Entrepreneurial culture has exploded in Australia during the past two decades, so there’s a lot of people with brand new businesses they want to see grow and expand. As revealed by Salmat’s report, Beyond Borders, it’s these small businesses which are driving the outsourcing boom—not large firms attempting to “cut costs” by replacing Australian workers with offshore personnel. In fact, the Beyond Borders report showed that outsourcing by entrepreneurs actually creates more jobs within Australia: Australian entrepreneurs who outsource IT, finance, or customer service tasks have more money to invest in local services like marketing… And they do. According to the report, “80% of businesses using offshore resources had retained or increased their local staff, with the average increase in their domestic workforce of more than 200%.” The final verdict? The more we share resources, the faster our companies grow.
A need for flexibility – Outsourcing industry
Another aspect of entrepreneurial culture is the inevitable dismantling of the old “nine to five” work model. Entrepreneurs typically set their own hours and they need talent that is willing to work with them on their terms. As a direct result, they find it easier to work with flexible offshore freelancers than conventional office workers, customer service personnel, and bookkeepers. Likewise, offshore freelancers can be hired to work as much or as little as needed, so it’s easier to hire services on an “as needed” basis.
Clearly, outsourcing is revolutionizing the way Australian businesses of all sizes are operating in the digital era. Rather than being a simple cost-cutting measure, outsourcing is a clever method to ensure competitive growth, the fluid exchange of talent and ideas, and a more flexible, dynamic work environment for all involved. If you’re doing business in Australia, it’s therefore worthwhile to consider extending your team internationally.