Australia’s robust business landscape needs upskilled talents. Fortunately, offshoring to the Philippines and its talented workforce is helping address the talent shortage. and its talented workforce is helping address the talent shortage.
Australia is renowned for its robust economy and thriving business sector, making it a sought-after location for local and international companies. The country boasts a highly educated workforce, a stable political environment, and a robust legal system, making it an ideal place for businesses to prosper. But despite these advantages, Australia faces an increasing talent shortage that hinders its ability to compete on a global stage.
A report by Deloitte reveals that over 60% of Australian businesses are grappling to find the skilled personnel they require to grow. This shortage is particularly acute in the technology, engineering, and construction industries, with rising demands for highly-skilled professionals.
The Australian government has acknowledged the severity of the problem, with the Minister for Jobs and Industrial Relations admitting that “the skills shortage is a real challenge for business and the economy.” A survey by the Department of Jobs and Small Business showed that almost 40% of businesses reported difficulties filling job vacancies due to a lack of suitable candidates.
This talent shortage significantly affects the economy, with businesses struggling to expand and compete effectively. Fortunately, the country’s connection with the Philippines and its outsourcing workforce is immensely helping alleviate the problem.
The Partnership Between Australia and the Philippines Goes Way Back
The talent shortage in Australia did not happen overnight. It has been a recurring problem, but the Philippines and its talented workforce have always been ready to help.
Australia has faced a prolonged talent shortage for many years, particularly in the healthcare, technology, and construction industries. This shortage has made it difficult for businesses to find skilled personnel to grow and compete globally. Many Australian companies have turned to overseas talent, including Overseas Filipino Workers (OFWs), to overcome these challenges.
The number of Overseas Filipino Workers (OFWs) in Australia has been growing since 2002 as more and more Filipinos seek job opportunities there. The country has the fourth-highest tally of OFWs working abroad, and the numbers are not going down anytime soon.
OFWs in Australia are highly sought after by employers due to their strong work ethic and highly-skilled backgrounds. They are often employed in various industries, including healthcare, construction, and information technology, which happen to be where Australia lacks talent.
One of the most in-demand jobs for OFWs in Australia is the healthcare sector, where they are valued for their nursing and caregiving skills. Many Filipinos have taken on roles as registered nurses, care workers, and personal care assistants. In the construction sector, OFWs are employed as electricians, plumbers, and carpenters. They are known for their technical expertise and attention to detail.
OFWs are valued for their software development, data analysis, and cybersecurity expertise in the information technology sector. They play a crucial role in supporting the growth of Australia’s technology sector and are helping to drive innovation in the country.
The Philippines has a large pool of skilled and highly-educated professionals, making it a top talent-sourcing destination for Australian businesses. The widespread use of English in the Philippines, combined with the country’s cost-competitive labor market, has made it a popular destination for companies in Australia looking to expand their workforce.
The arrival of OFWs in Australia has led to a strong partnership between the two countries regarding labor. Australian businesses have been able to tap into the Philippines’ skilled talent pool, helping to address the challenges of the talent shortage and drive economic growth.
The partnership between Australia and the Philippines regarding labor has proven mutually beneficial. Australian businesses have overcome the challenges of the talent shortage and drive growth. OFWs have been able to access new job opportunities and develop their careers. This close relationship between the two countries is set to continue as both sides look to build on the success of their partnership and address the challenges of the talent shortage together. Fortunately, the exceptional performance of OFWs opened Australia to the potential of working with Philippine workers more through offshoring.
Why Australia Continues to Outsource to the Philippines
Due to talent shortage, offshoring and outsourcing have always been a business practice in Australia. The only question is: where do Australian businesses go when seeking offshoring solutions?
It is not difficult to see why offshore outsourcing in Australia is dominated by Philippine workers. Over 300 companies in Australia are outsourcing an estimated 44,000 Philippine professionals. There are many reasons for this, but here are a few eye-opening statistics that justify the partnership.
One of the critical reasons for the Philippines’ popularity as a talent-sourcing destination is its well-educated workforce. The country has a literacy rate of over 96% (according to the World Bank) and many university graduates, many of whom are skilled in IT, engineering, and business management. This, coupled with the widespread use of English in the country, makes it easy for Australian businesses to find talented professionals who can communicate effectively with their counterparts in Australia.
The cost-competitive labor market in the Philippines is another critical factor that has made it an attractive destination for Australian businesses. The cost of living in the Philippines is significantly lower than in Australia, with data showing that the cost of living in Manila is about 40% lower than in Sydney. This makes it possible for Australian companies to access skilled talent at a lower price. This is particularly important for small and medium-sized businesses looking to expand their workforce without breaking the bank.
Outsourcing, however, has its limitations. Because the Philippine workforce is integrated into Australia’s business landscape, companies are looking for long-term partnerships that allow them to tap into more resources for business other than talent acquisition and cost-efficiency. This is where offshoring becomes supreme over outsourcing.
The battle between offshoring vs. outsourcing has always been a confusing debate. Both provide talent-sourcing capabilities that help companies expand without breaking the bank. However, offshoring is different from outsourcing because it offers a more comprehensive package that allows businesses in Australia to feel more confident about the longevity of their partnership with offshoring companies. The additional services include world-class support services in training and development, accounting, payroll, IT support, facilities, and employee engagement.
For more details, take a look at how offshoring works.
Why iSupport Worldwide is the Ideal Offshoring Partner for Companies in Australia
iSupport Worldwide is a leading offshoring company that provides businesses in Australia with the support they need to succeed. With a proven track record of delivering high-quality services to clients across various industries, iSupport Worldwide is the ideal offshoring partner for companies looking to expand their operations and overcome talent shortage challenges.
If you are an organization in Australia needing a talented Philippine offshore team and high-quality offshoring solutions, you can book a FREE discovery meeting with us! Let’s discuss how you would like us to be part of your operations.