Throughout the years, the practice of outsourcing one’s various operational strategies has evolved. From being something that companies or entities with no capacity to hire an in-house team do to being a strategic operational approach by even multi-national entities, choosing to outsource their various functions to experts in the field to be able to get value-adding results that helps companies grow.
What functions? All companies require some level of administrative, customer service, accounting and back-office tasks to be done to be able to keep their company operational and outsourcing these tasks have become easier – with professional service firms and expert outsource service providers being there to not only provide your needs but optimise your processes it as well, improving the quality of both your services and your service delivery process.
However, just how much has the demand for outsourced services grown?
Most credit the COVID-19 pandemic as the catalyst for the boom of demand for outsourced services. According to Deloitte, 70% of businesses during the height of the pandemic last 2020 turned to outsourcing to be able to reduce costs and remain afloat. In a report published by the NTT in the same year, it was said that about 45% of global corporations planned to outsource more of their core tasks in the following year – which the 2021-2024 BPO growth can attest to.
Since then, the demand for outsourcing has only been growing annually, with countries such as the US, UK, Australia and Japan seeing a growth in the number of registered business process outsourcing companies operating locally and the number of local companies that employ offshore outsourced support.
The Increasing Demand in Australia
What was once a strategy to be able to overcome the financial setbacks office restrictions of the COVID-19 pandemic that companies face has now become a valuable strategy for most Australian companies to be able to adapt to the present market.
In the accounting industry, Australia is reported to be experiencing a shortage CPAs, accountants and auditors and bookkeepers to keep up with the demands in the country. In a study done by the Chartered Accountants Australia and New Zealand, it was shown that there are various finance and accounting-related occupations that are suffering from lack of applicants. Because of this, the CA ANZ is vying for these occupations to be added to the Final Core Skills Occupation list to pave the way for offshore talent to apply and relocate to Australia and address the shortage.
For companies and business owners, the lack of finance and accounting professionals available has opened the avenue for them to outsource to offshore partners – the top countries they outsource to being the Philippines, Vietnam and India.
Case in point, DesignCrowd – an Australian linking platform for entities and individuals to avail design services from their chosen partner, found a professional services firm (PSF) in Manila, Philippines who were able to cater to their payroll needs, helping in the increase of profit that the company experienced after shifting to outsourcing their various needs
Read: How Much Tax Does a Small Business Pay in Australia?
Preparing for the Changes in the Australian Economy
With 2025 being an election year for Australia and the start of a new presidency in the US, politics will play a significant role in shaping economic policies and global trade relations. Being considered as one of the largest economies in its region, Australia’s markets may see shifts connected to these global markets.
Alongside this, Australia’s inflation rate has changed rapidly throughout the years with relatively low rates throughout 2022, an all-time high in 2023 and a plateau around 2024 – the 2024 trend is projected to mimic 2025 as they reach their target inflation rate of 2-3% during the first half of the year.
The fluctuating inflation means constantly having to assess your company’s operational costs, wages, supply chain agreements etc. – making it harder for businesses to maintain a status quo. For Australian companies, these projected trends this 2025 means you need to be able to stay adaptive and find cost-effective and quality solutions to remain competitive within your market.
For companies who do not have the capability or the willingness to have to pivot your entire strategy as the market fluctuates, outsourcing can be a viable solution for you to navigate the changes brought on both by the political changes and the economic changes.
This along with what we previously mentioned wherein the Australian workforce is facing skill shortages in finance and accounting and even with industries such as IT and customer services – presents offshore outsourcing to fill your company’s talent gaps with high quality support while also staying competitive and reducing operational costs.
By strategically outsourcing your operational functions to offshore partners, Australian companies can mitigate uncertainties throughout the year while remaining operational. Remember, outsourcing as a strategy does not merely provide you access to a broader talent pool but also offers flexibility and scalability — allowing companies to scale operations up or down based on economic conditions.
The Benefits of Outsourcing to Offshore Companies
While outsourcing in itself an advantageous practice as it helps with cost savings, streamlining your operations and optimising your current processes, offshore outsourcing may be more beneficial for Australian companies. With access to global and specialised expertise and the option for flexibility and scalability, offshoring provides a strategic edge that paves the way for long-term growth and sustainability.
Constant Costs
With one of the primary benefits of outsourcing being cost reduction, having an offshore partner whose prices are set for the global market and remains constant allows for Australian companies to be able to budget and prepare for it without any surprises. With this, your company will no longer have to handle job search, hiring, training and the legal paperwork that comes with an in-house team as you only need to communicate the expertise and number of people you need to your chosen partner and the team members they would provide.
Offshore partners also usually offer tailored packages meant to suit your company’s specific business needs. Meaning, you will not have to pay for any extra services that you will not end up using as is common from one-size-fits-all packages – only having to pay for the services you do use at a fixed price.
Access to Global Talent
With offshore partners being fluent in the finance and accounting needs of global industries, various countries and governments – being able to tap into that expertise allows you to become globally competitive.
This benefit serves as a competitive edge especially if you are a company whose products or services are being sold overseas or if you have a local and international office. Being able to access the best finance and accounting professionals out there without location serving as the barrier and being able to use their expertise to enhance your local and international operations gives you added value to help your company succeed.
Flexibility and Scalability
Given that your outsourced team are not your in-house employees, it is easier for you to scale your operations up or down depending on demand. For example, if your company is in the business of seasonal products or services, your team can quickly expand your workforce with your offshore partners during peak seasons to meet customer demands without the long-term commitment of hiring full-time staff.
Similarly, during routine operational periods where you are in no need of support – you can scale back your outsourced operations with the assurance that should you need their service again in the next few months, the same quality and support will be there to help you with your operations.
Letting Go of Routine Tasks
Outsourcing your needs to offshore providers also allow your full-time employees to give more value to the company – allowing them to play a more active role in your growth. By delegating time-consuming and repetitive tasks to your offshore partner, both management and employees can dedicate their attention to strategic growth, innovation, and customer engagement.
One benefit of leveraging your employees’ insights during strategic meetings is that they are well aware of how your operations work at a grassroots level. You would be surprised at how their insights on their daily tasks and how to improve them can greatly affect your company’s development and optimisation efforts as a whole.
Experts in the Latest Technology
Regardless of whether or not your company makes it a priority to adapt the latest technology in your field, your offshore partners do. Offshore and outsourced providers make it a point to be up-to-date on the latest technology and industry best practices.
In fact, many outsourcing firms and business process outsourcing companies invest in cutting-edge tools and software, giving you the convenience and security that comes with it. This results in improved efficiency, faster service delivery, and enhanced data security. For example, in the finance and accounting industry, your outsourced accounting partner would be proficient in the latest in accounting technology – using it as they provide CFO Support, taking your accounting processes up a notch in terms of accuracy, efficiency and compliance.
So the question remains, should you outsource to offshore partners this 2025?
With these changes in the horizon, the decision to outsource has now become a strategic move that can future proof your business. Australian companies navigating an evolving financial landscape must prioritise resilience, efficiency, and adaptability—qualities that outsourcing inherently provides.
As we move into 2025, companies will need to carefully assess their operational structures. Rising wages, skill shortages, and fluctuating inflation rates mean that traditional business models may no longer be sustainable. Instead, companies must focus on leaner, more agile approaches that allow them to allocate resources efficiently while ensuring quality output. Outsourcing enables this by granting access to a skilled global workforce without the burden of recruitment, training, and overhead costs.
For Australian companies weighing their options, the key takeaway is this: outsourcing is no longer just a temporary fix; it is a strategic investment in long-term growth. Whether your goal is to reduce costs, scale operations, or bridge talent gaps, outsourcing offers a tailored solution to keep you ahead in an unpredictable market.
By making the right partnerships today, you position your company for success in the years to come. The question isn’t just whether you should outsource—it’s whether you can afford not to.
Offshore Outsourcing as a Long-term Strategy
While outsourcing was initially viewed as a short-term solution for reducing costs, it has now evolved into a long-term business strategy that supports sustainable growth. Companies that integrate outsourcing into their long-term business models gain a competitive advantage by leveraging global talent, optimising costs, and maintaining operational efficiency.
One of the reasons outsourcings is a viable long-term strategy is its ability to provide business continuity. Economic fluctuations, labor shortages, and industry disruptions can pose significant risks to Australian companies. By establishing reliable outsourcing partnerships, businesses can ensure that critical functions remain operational, even during challenging times. This is especially beneficial in industries like finance, where compliance and reporting requirements must be met consistently.
Another key factor is the adaptability that outsourcing provides. As companies grow, their needs evolve. Outsourcing allows companies to expand their operations without the logistical challenges of hiring, training, and managing an in-house team. Whether a company is entering a new market, launching a new product, or scaling its customer service operations, outsourcing offers the flexibility needed to adjust to changing demands.
Read Next: 8 Different Types of Outsourcing: Which one is for you?
Ready to Outsource your Accounting Needs?
Working with Australian clients for over 12 years, D&V Philippines has made it a point to ensure that we are up to date in Australian accounting and tax regulations and have a wide expertise in handling various markets.
With our mandate to stay ahead of the finance and accounting industry on a global scale to always ensure compliance and be equipped with the latest in finance and accounting technology, we can help you scale your company operations up or down as you need. Contact us today and we’ll help you find the right solution for your company.
You can also download our Outsourcing: How to Make it Work guide today and discover how we provide quality tailored offshore accounting support.
