COVID’s New Jobs Threat – The Rise of Overseas Outsourcing

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In recent years, the rise of technology and the ability to work remotely has transformed the job market. No longer are professionals bound to big cities for professional jobs. The concept of business process outsourcing (BPO) has emerged as a popular option for companies looking to delegate certain tasks to external specialists. While outsourcing has traditionally been associated with frontline tasks like call centers, there is now a growing trend of outsourcing more complex and difficult tasks.

This article explores the impact of COVID-19 on the outsourcing industry and discusses the potential threats and opportunities it presents. We will delve into the advantages and disadvantages of outsourcing, the types of jobs being outsourced, and the implications for both employees and businesses.

The Changing Landscape of Remote Work

The pandemic has accelerated the shift towards remote work, with many companies implementing work-from-home policies. This transformation has not only impacted the lives of employees but has also altered the mindset of employers. As businesses adapt to the new normal, some employers have come to realize that they can operate with fewer staff members than before.

Dr. Brendan Rin, an expert in labor economics, believes that businesses will continue to explore ways to streamline their operations. Technology has enabled companies to achieve similar levels of productivity with fewer employees. As a result, there is a growing trend of outsourcing less complex tasks to external specialists, freeing up resources to focus on more specialized and higher-value jobs.

The Rise of Business Process Outsourcing

Business process outsourcing has long been a common practice for companies looking to delegate certain tasks to external providers. These tasks can range from call center operations to customer support. However, with advancements in technology, the scope of outsourcing has expanded to include more intricate and specialized tasks. Large corporations like Probe Group have capitalized on this trend by employing thousands of specialists to handle tasks such as web app development, SEO, SEM, content moderation, and mortgage origination.

While outsourcing provides benefits such as cost savings and access to specialized expertise, it also raises concerns about data security and privacy. Companies must carefully balance the advantages and disadvantages of outsourcing to ensure they protect their customers’ sensitive information.

The Regional Opportunity

The shift towards remote work has presented a significant opportunity for regional Australians. Previously, many professionals felt compelled to relocate to major cities to access high-paying jobs. However, with the rise of remote work and outsourcing, geographical location is no longer a limiting factor. Businesses are now able to hire talent from regional areas, allowing individuals to remain in their hometowns while still having access to a global job market.

Charles Ferguson, an employer for companies hiring globally, sees this shift as a tremendous opportunity for regional Australians. He believes that individuals are more interested in the overall market rather than specific cities, opening up new avenues for talent and employment in the regions.

The Precarious Nature of Outsourcing

While outsourcing can provide employment opportunities for individuals, it also introduces a level of uncertainty. The nature of outsourcing often involves discrete piecemeal work, which can be unpredictable and unstable. Organizations may opt to outsource certain tasks on a project basis, resulting in a lack of job security for employees.

Additionally, outsourcing can lead to the resharing of jobs between countries. Recent examples, such as Westpac’s decision to bring back 1,000 call center jobs from India and the Philippines, demonstrate the risk of overdependence on a single country. External factors, such as political instability or health crises, can disrupt the outsourcing process and impact a company’s ability to deliver services effectively.


The rise of overseas outsourcing has presented both opportunities and threats to the job market. While it offers cost savings, access to specialized expertise, and the ability to leverage global talent, it also introduces uncertainties and challenges for both employers and employees. As the world continues to navigate the impacts of COVID-19, businesses must carefully consider the implications of outsourcing and strike a balance between efficiency and job security.

In summary, COVID-19 has significantly accelerated the trend of outsourcing, pushing businesses to reevaluate their workforce needs and explore the benefits of remote work. The shift towards remote work has opened opportunities for regional Australians and presented a competitive market for high-value jobs. However, it is essential to approach outsourcing with caution, considering the potential risks it poses and the importance of ensuring job stability and data security.

The new reality of overseas outsourcing necessitates a fine balance between embracing technological advancements and safeguarding the welfare of employees. By carefully managing the outsourcing process, businesses can navigate these challenges and leverage the benefits that outsourcing offers to remain competitive in an ever-changing job market.

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