Offshore hiring impacts local job opportunities

From small business start-ups to fortune 500s, offshore hiring helps improve productivity and overall net worth. Since the Covid-19 pandemic has forced the world into remote working, the offshore staffing industry has rapidly expanded to meet this new demand. The effect on local jobs, however, has been questioned with concerns that offshoring results in lower local employment and missed opportunities. In the case of Australia, the opposite has actually happened with an increase in local jobs in response to the greater demand for offshore workers.

Concerns that offshore hiring doesn’t benefit locals

Some people are concerned about hiring workers overseas when people in their own country are looking for work. Founder & CEO of Outsourced, Mike Larcher, challenges this thought by explaining how a more productive firm can pay higher wages to the remaining onshore workers and hire more local employees in different types of occupations than those hired offshore.

Mike went on to say “What we’re finding is that the savings from offshore labour hire for core employees results in businesses hiring local employees, often in more highly skilled roles. This creates a better allocation of costs allowing businesses to remain competitive and achieve sustainable growth. As the businesses grow, they continue to contribute to the local economy, resulting in the creation of even more local jobs.”

Reallocation of resources locally

Contrary to some expectations, Mike explains that the cost savings from hiring offshore remote workers allows resources to be redistributed to the local team. These resources help lift productivity, giving the company a greater ability to take on even more work. Increased growth and resources helps companies to build more meaningful relationships with their customers; business owners can refocus their time and work “on” their business, instead of “in” their business.

Mike further states that business owners need to know that when they hire offshore workers, all their taxes (PAYG, GST, payroll and corporate taxes) are paid in Australia. This dramatically reduces many concerns held by Australian companies who want to explore outsourcing.

Overseas hiring also allows companies to provide 24/7 support to their customers, as well as increasing their workforce to provide better services. Outsourcing also gives companies access to offshore talent pools and allows companies to hire specialised staff. This releases core staff from acting in roles that are not their strengths and frees senior staff from mundane repetitive tasks. 

Characterising the role of outsourcing in terms of business growth, Mike states that “We’re seeing everything from big corporations too small and medium size enterprises take on outsourcing solutions to help their business’ growth, not just as a quick fix, but as a part of their long term business plans”.

Outsourced – a leading player in offshore labour hire

This increased demand for offshore remote workers has seen Outsourced grow from zero staff in 2012 to 350 in early 2021 and is currently employing more than 20 staff per month to keep up with the demand. Outsourced provides dedicated full-time home-based and office-based staff in the Philippines to international companies looking to build offshore teams. From IT and professional services to contact centre and administrative staff, Outsourced builds teams for any roles that can be performed remotely. 

When asked about the future of Outsourced, Mike said “We just opened a 250 seater state-of-the-art office in Manila for companies wanting office-based staff and we are also adding hundreds of home-based roles. We are even offering “Flexidesk” for those who want the convenience of working from home but also the benefits of our advanced premium offices”. With remote working now becoming the new norm, Outsourced is ideally positioned to meet this increased demand head-on.