Australian small businesses lead outsourcing trend

Edlen Gatchalian
   |   
July 9, 2025

Australian small businesses embrace outsourcing to stay competitive

Rising labour costs, skills shortages, and the constant push for productivity are driving Australian small- and medium-sized enterprises (SMEs) to outsource everything from bookkeeping to computer-aided design.

Research released by MicroSourcing shows that 78% of Australian companies currently using offshore staff are SMEs. The report also highlighted that small businesses represent 98% of all Australian firms and 35% of national GDP.  

Experts noted that this survey highlights a mindset shift: what once felt like a tool reserved for multinationals is now viewed by owner-operators as a survival strategy.

In fact, a growing list of Australian small businesses have already demonstrated the gains of outsourcing, especially from the Philippines. These include Australian startups like:

  • DesignCrowd, a Sydney design-services marketplace, reports saving 78% on labour costs after moving finance, marketing, and customer support roles to remote staff from the Philippines.
  • HR-tech firm Ascender HCM and SaaS success Employment Hero both outsource to the Philippines to keep 24/7 support channels open without hiring additional local staff.
  • Fast-growing platform Linktree and health-tech venture Eucalyptus likewise rely on outsourcing providers in the Philippines to service millions of global users without blowing out payroll.

Even larger corporations like Telstra and Canva among them have validated the revolutionary impact of outsourcing Philippines. However, sector insiders stress that the biggest uptake is now among firms employing fewer than 50 people, the same bracket that feels wage pressure most acutely.

Why the pivot, and why now?

Experts said that there are economic headwinds that nudged owners toward outsourcing in the Philippines, including:

  • Wage inflation: Award-rate increases are outpacing revenue growth in many trades.
  • Talent drought: Technical roles sit vacant for months, stalling projects and sales pipelines.
  • Succession anxiety: Baby-boomer owners are eyeing retirement but still carry the operational burden.
  • Poor Productivity: Apart from house prices, Australia is facing a massive decline in productivity, which started in 2022.

Additionally, many Australian small business owners in their late fifties to early sixties are struggling to maintain profitability while planning for retirement. These owners often find themselves working in the business instead of on it, wearing multiple hats from payroll to production management.

Experts advised that small business owners experiencing this situation should consider outsourcing talent to reduce operational load without sacrificing control or quality.

Younger owners are joining in

While semi-retired operators were early adopters, Skill Cloud, an outsourcing company, says a growing share of enquiries come from founders in their thirties and forties who want to scale without burning cash.  

These owners view outsourcing as a strategic lever rather than a last resort. They deploy offshore analysts, drafters, or social media teams so their local staff can chase new contracts and refine product lines.

With SMEs already the leading users of offshore outsourcing and macro pressures unlikely to ease, analysts expect adoption to accelerate.  

Industry watchers see parallels with cloud software a decade ago: a technology once considered risky becomes table stakes for competitiveness.

For Australian small-business owners, whether eyeing retirement or their next funding round, the message is clear: the right offshore partnership can turn relentless admin and labour headaches into fresh capacity, sharper margins, and, perhaps, a little more life beyond the shop floor.

How Skill Cloud fits in

Skill Cloud specialises in Filipino talent for construction estimating services, engineering design, drafting, tax accounting, and general back-office work, which are sectors where Australian SMEs often feel the pinch first.  

The firm touts five headline benefits.

  1. 70% cost reduction on non-core roles
  1. 38% more budget to lift R&D
  1. Staff onboarded in as little as two weeks
  1. Brand protection through dedicated account managers
  1. Real-time productivity tracking

Skill Cloud lightens the load of invoicing, scheduling, and admin by outsourcing remote staff from the Philippines. This helps small business owners to plan ahead, train successors, or step back gradually. They also support what matters most: more family time, a better work-life balance, and a smoother path to retirement.

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