Local Talent Shortages Are Driving Advisers to Outsource

With unemployment remaining low, advice practices across Australia are increasingly turning to offshore outsourcing to grow their teams. It’s not just about cost—it’s about access to quality talent that simply isn’t available locally.

Talent Shortages Are Limiting Growth

Since the COVID-19 pandemic, Australia’s unemployment rate has fluctuated, recently sitting at 4.1% in September 2024. For many practices, this tight labour market is a real barrier to expansion. As VBP CEO Nathan Jacobsen explains, “Finding quality local resources may actually be a threshold to your own ability to grow. Over time, offshore partners often become a better-quality solution than hiring onshore.”

Outsourcing With Purpose

Deciding what to outsource isn’t just about cost savings—it’s about focusing on what matters most. Jacobsen advises practices to identify low-value, high-volume tasks that are repetitive and trainable. These are ideal for offshore teams, freeing advisers to spend time on high-value client work.

Four main outsourcing models exist: full process outsourcing, active management, seat leasing, and gig economy arrangements. VBP recommends the active management model, where offshore team members integrate into the business as if they were onshore employees, providing both consistency and accountability.

Augmentation, Not Replacement

Some may worry that offshore teams will replace local staff. In reality, the opposite happens. Local teams are freed to focus on high-value activities, moving into new roles and driving the business forward. Offshore support acts as an augmentation, not a replacement, creating a stronger, more capable team overall.

Cybersecurity Is Paramount

Outsourcing introduces new risks, especially around cybersecurity and client data protection. Before engaging offshore partners, practices need to ask key questions:

• Is the partner ISO 27001 certified and externally audited?
• Is client data staying in Australia, or is it leaving the country?
• How are labour laws and employment standards being handled?
• Are there risks of sham contracting?
• How is cyber risk being managed and IT infrastructure secured?

By addressing these questions upfront, practices can enjoy the benefits of outsourcing while protecting their clients and their business.

The Takeaway

Outsourcing isn’t just a cost-saving measure—it’s a strategic lever to expand capacity, improve efficiency, and focus on high-value work. When done thoughtfully, with the right processes and safeguards, it allows advice practices to grow sustainably in a tight labour market.

This article first appeared on www.ifa.com.au.