Outsourcing in Australia: How Huge Has the BPO Industry Grown?

Businesses in Australia are joining the global rush to outsourcing. With the proliferation of third-party service providers and professionals doing freelance work, business process outsourcing has become a more accessible tool even for small companies.

Outsourcing Trends in Australia

Outsourcing in Australia has become big in the past few years as more and more companies learn about the advantages of shifting some of their operations offshore or to a third-party provider. Based on this industry analysis report, the steady growth of the Business Process Outsourcing (BPO) industry owes itself to the “increasing demand from downstream businesses”. This trend is expected to continue over the next five years as businesses gravitate towards offshore locations to seek new business opportunities. Apparently, the trend is driven by a huge demand for technical talent and expertise, particularly in IT, human resources, recruitment and finance. As online work expanded into non-tech tasks, outsourcing in Australia has also grown to include legal, article writing, and translation services. Although companies primarily outsource to save on overhead cost, Australian companies do it to be able to leverage top talents from around the world. The goal is to achieve operational efficiency while maintaining or increasing quality.

Why Australian Companies Outsource

Apart from the practicality of an outsourced business model, Australian companies enjoy other not-so-obvious benefits of outsourcing.

Flexibility. Through outsourcing, companies are able to build a business that scales. This is because they are not tied up to backend office tasks that, although mundane and tedious, are critical to effective business operations. Since they can now afford more time for developing their core competencies, companies have greater flexibility and more opportunities to scale.

Low entry cost. For this company, running an outsourced business model has made it possible to break into the crowded cafe industry at the lowest entry cost possible. And where entry cost is low, the risks are relatively low. What the company did was outsource the production and distribution of their product, which eliminated the need to invest in machinery, labour and logistics.

Access to technology. For small Australian businesses, outsourcing is their ticket to accessing advanced accounting programs or IT infrastructure that they can’t otherwise afford themselves.

Get closer to clients and market opportunities. Many companies find that farming out their production or operations to offshore locations takes them closer to end users and grants them access to new business opportunities.


Outsourcing has revolutionised the way people do business in the digital age. It’s a strategy that helps small companies scale faster and operate more efficiently.