Offshoring is currently the best way forward for Australian businesses grappling with the implications of rising costs, given Australia’s concerning economic outlook for 2025.
This is mainly due to the significant cost arbitrage that offshoring offers, with Sri Lanka pioneering the industry with a whopping 70% reduction in all-inclusive costs.
To put things into perspective:
- The base salary alone for an onshore accountant in Australia would be $70,000-$90,000 annually.
- An outsourced accountant from Sri Lanka would cost $25,000 to $30,000 annually, inclusive of infrastructure, initial set-up, employee benefits, and operations management.
Here’s a side-by-side comparison of the cost of onshore employees to offshore teams at H Connect International:
1. Recruitment costs:
The main costs involved with an onshore employee begin with an extensive hiring process including job advertising, recruiting, interviewing, and any background checks if necessary for higher profile positions.
The end-to-end recruitment process at H Connect International is set up in a way that sources the best fit for your required role with both technical qualifications and interpersonal skills to completely align with your team – at no additional cost to you.
2. Base Compensation:
When it comes to base compensation, our mature yet unsaturated market and strategic location offer lower labor costs compared to Australia without compromising on quality.
You get the best-in-class talent for a fraction of the cost.
3. Infrastructure and Set-Up:
The cost of providing workspaces, hardware, software, IT solutions, and other initial set-up requirements for daily operations can add up to a significant overhead.
We take all these requirements off your plate.
Our dedicated IT and compliance team oversees all facilities required for the smooth running of daily operations including ISO/IEC 27001:2022 supervision and complete compliance with GDPR and DPA 1988, Australia.
4. Initial and Ongoing Training:
Once the employee has been onboarded, initial training, technical courses, and consistent upskilling add up to ongoing costs.
Not with us.
Our dedicated training and development lead maps out a pathway for each employee to complete mandatory training and upskill with zero involvement from your end.
In addition to dedicated technical courses and cultural awareness modules through our in-house LMS, employees are also assigned transition management training to fully integrate into your onshore operations. Additionally, our partnerships with global entities like ACCA, CIMA, CMA, and CPA give our workforce full access to exclusive workshops and special training opportunities.
5. Ongoing Costs:
For onshore Australian employees, there are additional ongoing costs including penalty rates, overtime pay, state payroll taxes, Workers’ compensation insurance, Paid Time Off, and superannuation.
By offshoring to us, your offshore team will adhere to Sri Lankan labor laws and regulations which are fully taken care of by our in-house HR team at no cost to you. Additionally, all employee benefits are managed, including well-being, team engagement, and day-to-day requirements.
The overall cost of an in-house full-time employee in Australia is 1.25-1.4 times their base salary. By offshoring instead, you gain a 70% cost advantage covering all required bases.
Reach out to us to have a conversation on how we can help reduce your overhead and set up your business for financial success.
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