Why more plan managers are outsourcing to the Philippines

Working in a relatively new industry, NDIS plan managers are faced with a variety of challenges that relate to attracting and retaining hard-working, dedicated staff. Not to mention the ever-increasing labour costs and the enormous volumes of back office admin that is crippling to business growth. Because of this, plan managers are seeking strategies that will alleviate the challenges associated with operating in a rapidly growing, highly regulated sector - with the added challenge of a costly economy.

Outsourcing is a cost-effective resourcing strategy that can provide plan managers with the support they need to continue to scale and grow their business. It’s why more plan managers than ever are choosing to outsource to the Philippines.

Out of all the outsourcing locations, why the Philippines?

The Philippines has long been viewed as one of the best outsourcing locations in the world. Not only is it a low-cost economy, meaning wages and employment costs are significantly lower than that of Australia, but the Philippines is also one of the largest English-speaking countries in the world. English is a primary language taught in schools and is even spoken in government.

Outsourcing to the Philippines has allowed Western countries to save up to 70% on employment costs and up to 25% on labour costs. It’s also in the same time-zone as Perth meaning there is a very little time difference for Australian businesses.

Technology’s role in outsourcing to the Philippines

Regardless of the Philippines being a low-cost economy, their government has invested heavily into the BPO sector, resulting in world class infrastructure, it’s actually better than what we have here in Australia.

The advancement of technology also means that web conferencing is now ridiculously reliable, fast and great quality. Working with remote teams via the cloud has dramatically improved business efficiency.

Significant tech advancements are a key reason why outsourcing has evolved to where it is today.

The challenges of recruiting and retaining good staff

The NDIS industry is a new and growing sector. Finding and retaining staff to work on routine back office admin is a considerable challenge for many plan management businesses.

If we compare an average salary of a NDIS administration role to an average salary of an offshore assistant, it's evident that there is a real opportunity for cost savings. If we have a look on Seek, a job ad for a NDIS accounts receivable officer is listed with a salary of $61k a year.

This salary doesn’t include other fixed costs such as super, equipment, office space, training or any overheads associated with HR for that matter. Therefore, this $61k a year can quickly become $100k a year.

Hiring an offshore employee in the Philippines can be up to 70% cheaper than recruiting locally.

Want to learn more about outsourcing?

Implementing an offshore team can benefit the overall performance of your organisation. To find out the direct benefits for NDIS plan management businesses, read this blog.