The Case for Australian Companies Outsourcing Overseas 

Are you searching for a way to improve your company’s performance in an increasingly competitive industry while reducing overhead costs? This article will explore some of the key benefits for Australian companies outsourcing overseas and provide important insights on how to start the process in emerging markets.

Key benefits for Australian companies outsourcing overseas

A cost-effective approach to increasing company efficiency

Outsourcing back-office and customer-service roles to remote workers not only gives you access to more specialized talent in services that they want to optimize, but it also allows you to reduce overhead costs significantly. In emerging markets, standard wages for most in-demand positions are significantly lower than for hiring within the Australian market:

RecruitGo can also help you with the entire hiring process, thus allowing you to further reduce associated costs. This in turn allows you to focus your resources on scaling your business, as well as opens up the possibility of offering your customers more competitive prices and a more thorough selection of service options than what would previously be possible.

Geographic proximity and timezone alignment 

Due to the proximity of most Southeast Asian countries relative to Australia, you can easily manage your remote teams and plan travel between markets for training, meetings, and other corporate events. One of the most popular markets for Australian companies outsourcing overseas is the Philippines, which is approximately 4,417 km from Australia.

Another benefit of outsourcing to emerging markets is the fact that there is a degree of timezone alignment with some parts of Australia, thus allowing for more real-time interaction as well as a broader range of customer service options for the Australian market. Night shifts are also more commonly accepted in most Asian markets. 

Below you will find the main timezone variations between the main business hubs in Australia and the most popular Southeast Asian outsourcing markets:

• Sydney, Melbourne and Brisbane:
  2 hours ahead of The Philippines, Singapore, and Malaysia
  • 3 hours ahead of Thailand, Vietnam and Indonesia
  • same timezone as The Philippines, Singapore, and Malaysia
  • 1 hour ahead of Thailand, Vietnam and Indonesia

  Efficient communication and cultural compatibility 

  One of the key concerns for most companies looking to outsource certain roles into emerging markets is the need to navigate an unfamiliar cultural landscape and potential language barriers. In actuality, most markets boast strong English language skills, as well as an increasingly strong Western influence on culture.

  The Philippines in particular has a highly English-speaking population and, due to its proximity, to Australia, shares many economic and trade ties, leading to more commonalities in terms of cultural compatibility. This makes it easier for remote teams to integrate with their Australian counterparts and can improve teamwork and efficiency.

  There is also the Indonesia-Australia Skills Development Exchange (SDE) program which aims at setting up and facilitating work exchanges for skilled workers, which makes the country an appealing location to outsource your remote teams. RecruitGo can help determine if this program applies to your company and provide valuable insights into each market.

  How to start outsourcing in emerging markets as an Australian company

  Setting up payroll solutions to ensure compliance with local labor laws

  Ensuring compliance with local labor laws is one of your key responsibilities as a foreign employer hiring in a new market. It is recommended that you partner with a locally based payroll service that has expertise in the market to ensure that you follow regulations regarding managing some of the key HR responsibilities:

  1. Calculating mandatory statutory deductions
  2. Managing employee registration
  3. Withholding income tax and submitting timely reports
  4. Providing a minimum amount of employee leave
  5. Setting up legal employment contracts

  RecruitGo can navigate the complexities of payroll administration for Australian companies outsourcing overseas through our managed payroll service. Our locally-based HR experts are well-versed in local regulations and can ensure full compliance for your remote employees. Through our App, you can still access and review any payroll data for your teams.

  Improve reliability and communication through remote hubs

  If you want to maintain the structure and communication provided by physical office spaces for your remote employees, RecruitGo can help you set up a remote hub. We will locate a suitable location for your employees to work in, help you secure equipment, and set up IT infrastructure. Physical office spaces can provide several advantages for Australian companies:

  • Better communication and monitoring for your remote teams
  • Allows for on-site training and seminars provided by Australian management
  • Ease of travel for your employees to and from Australia
  • Social networking for your employees encourages collaboration and limits isolation
  • More reliable network speed and security for performing customer support tasks

  Bypass the need for company registration by partnering with an Employer of Record

  The main challenge faced by most Australian companies outsourcing overseas is setting up a local legal entity in a new market. This process can be expensive and time-consuming. If your primary concern is simply to hire talent in the market, then partnering with RecruitGo’s Employer of Record (EOR) service may present an efficient solution.

  By acting as the legal employer of your remote employees in emerging markets, our EOR allows you to start hiring virtually immediately. Our comprehensive service includes every step of the process from sourcing candidates based on your criteria to managing interviews and onboarding to ensuring compliance through tax and payroll administration.

  As our EOR partner, you get the final say in all decisions and can manage leave requests and payroll data via our easy-to-use employer App. If you are part of an Australian company and want to start setting up a remote team in Southeast Asia, contact us via the form below today!