Outsourcing vs local hire: a real cost comparison
Australian businesses pay some of the highest wages in the world. Outsourcing to the Philippines can reduce admin costs by 50 to 70%. Here's what the numbers actually look like.
Quick Answer
Is outsourcing to the Philippines cheaper than hiring locally in Australia?
Yes, substantially. A full-time administrative role in Australia costs $4,500 to $7,500 per month in base salary alone, before super, workers compensation, payroll tax, office space, and equipment. The same role outsourced through Yoonet costs $1,500 to $3,000 per month all-in, including the person's salary, a secured office, compliance, management, and technology platform. That's a saving of 50 to 70% on total employment cost. The trade-off is that the person isn't physically in your office, which matters for some roles and doesn't for others.
The Numbers
Outsourcing vs local hire at a glance
Outsourcing (Yoonet) vs Local Hire (Australia) — key differences
Outsourcing (Yoonet)
$1,500 to $3,000 AUD/month. Includes salary, office, compliance, management, and technology platform.
Local Hire (Australia)
$4,500 to $7,500 AUD/month. Base salary alone for a full-time admin role. Super (11.5%), workers comp, and payroll tax add 15 to 20% on top.
Outsourcing (Yoonet)
Included. Dedicated desk, secured office, monitored network, IT support, and equipment provided by Yoonet.
Local Hire (Australia)
Your responsibility. Office lease, desk, computer, software licences, internet, and IT support.
Outsourcing (Yoonet)
Philippines-based management handles HR, attendance, and operational support. NZ/AU oversight included.
Local Hire (Australia)
You manage directly. HR, performance reviews, conflict resolution, and day-to-day supervision are on you.
Outsourcing (Yoonet)
Included in the service. Yoonet handles sourcing, shortlisting, and vetting. You interview and select.
Local Hire (Australia)
$5,000 to $15,000 per hire through a recruiter. Or significant time investment if you recruit directly via Seek or Indeed.
Outsourcing (Yoonet)
Add team members through the same provider. Faster onboarding from the second hire because Yoonet already knows your business.
Local Hire (Australia)
Each new hire requires a full recruitment cycle, onboarding, and additional office infrastructure.
Outsourcing (Yoonet)
Yoonet handles all Philippine employment law compliance. Your engagement is with an incorporated entity, not an individual.
Local Hire (Australia)
You bear full compliance responsibility: Fair Work, super, workers comp, payroll tax, leave entitlements, and termination procedures.
Outsourcing (Yoonet)
Two to six weeks from first conversation to onboarded team member.
Local Hire (Australia)
Four to twelve weeks on average for an Australian admin hire, factoring in advertising, interviews, notice periods, and onboarding.
| Factor | Outsourcing (Yoonet) | Local Hire (Australia) |
|---|---|---|
| Monthly cost | $1,500 to $3,000 AUD/month. Includes salary, office, compliance, management, and technology platform. | $4,500 to $7,500 AUD/month. Base salary alone for a full-time admin role. Super (11.5%), workers comp, and payroll tax add 15 to 20% on top. |
| Office and infrastructure | Included. Dedicated desk, secured office, monitored network, IT support, and equipment provided by Yoonet. | Your responsibility. Office lease, desk, computer, software licences, internet, and IT support. |
| Management overhead | Philippines-based management handles HR, attendance, and operational support. NZ/AU oversight included. | You manage directly. HR, performance reviews, conflict resolution, and day-to-day supervision are on you. |
| Recruitment cost | Included in the service. Yoonet handles sourcing, shortlisting, and vetting. You interview and select. | $5,000 to $15,000 per hire through a recruiter. Or significant time investment if you recruit directly via Seek or Indeed. |
| Scalability | Add team members through the same provider. Faster onboarding from the second hire because Yoonet already knows your business. | Each new hire requires a full recruitment cycle, onboarding, and additional office infrastructure. |
| Risk and compliance | Yoonet handles all Philippine employment law compliance. Your engagement is with an incorporated entity, not an individual. | You bear full compliance responsibility: Fair Work, super, workers comp, payroll tax, leave entitlements, and termination procedures. |
| Time to hire | Two to six weeks from first conversation to onboarded team member. | Four to twelve weeks on average for an Australian admin hire, factoring in advertising, interviews, notice periods, and onboarding. |
Real Savings
How much can you save by outsourcing?
The direct cost saving is significant, but the full picture includes indirect costs that Australian businesses often underestimate.
Direct salary comparison
A full-time admin or customer service role in Australia pays $55,000 to $70,000 per year base salary. Add 11.5% superannuation, workers compensation insurance (1 to 2%), and payroll tax (where applicable), and the true employer cost is $65,000 to $85,000 per year. That's $5,400 to $7,100 per month before you account for office space, equipment, or recruitment.
Through Yoonet, the same role costs $1,500 to $3,000 per month with everything included. Annualised, that's $18,000 to $36,000 versus $65,000 to $85,000. The saving is $30,000 to $67,000 per year, per role.
Hidden costs of local hiring
Recruitment fees ($5,000 to $15,000 per hire through an agency), job advertising ($500 to $2,000 per listing on Seek), office space ($5,000 to $15,000 per desk per year in metro areas), equipment ($2,000 to $3,000 per workstation), software licences, and the time cost of interviewing, onboarding, and managing. For a small business, hiring one local admin can cost $10,000 to $20,000 before they start producing work.
Compounding savings at scale
The maths gets more compelling with each additional hire. A team of three outsourced roles saves $90,000 to $200,000 per year compared to the same team locally. That capital can be redirected to revenue-generating activities, local hires for roles that genuinely need to be in-house, or growth investments. For a detailed breakdown, visit our pricing page.
Best Fit Roles
What roles work best for outsourcing?
The roles that deliver the most value when outsourced share common characteristics: they're process-driven, don't require physical presence, and consume significant time without requiring senior decision-making.
Administrative support
Email management, data entry, document preparation, scheduling, and filing. The backbone of most outsourcing engagements.
Customer service
Phone, email, and chat support. The Philippines has a strong customer service culture and high English proficiency.
Bookkeeping and financial admin
Invoicing, reconciliation, accounts payable and receivable, and financial reporting using Australian accounting platforms.
Clinical administration
Patient communication, appointment management, billing, compliance documentation. Yoonet's allied health division handles this through Clinic Admin.
Social media and marketing support
Content scheduling, community management, basic graphic design, and reporting. Tasks that follow clear guidelines and brand standards.
Back-office operations
CRM management, inventory tracking, reporting, and process documentation. Operational work that keeps the business running but doesn't need to be local.
For more on the types of businesses we work with, see our outsourcing guide for Australian businesses.
Keep In-House
What roles should stay local?
Outsourcing isn't a replacement for every role. Some functions need to stay in Australia for practical, legal, or strategic reasons. Being honest about this is part of getting the model right.
- Roles that require physical presence — site visits, in-person client meetings, hands-on work.
- Senior leadership and strategic decision-making. Your business direction shouldn't be outsourced.
- Roles requiring Australian professional licences or registrations (lawyers, accountants signing off on audits, registered health practitioners).
- Sales roles that depend heavily on local market relationships and face-to-face networking.
- Roles where real-time, in-person collaboration is essential and can't be replicated over video.
The smartest approach is a blended model: outsource the work that doesn't need to be local, and reinvest the savings into the roles that do. That's not a sales pitch — it's how most of our clients operate.
How It Works
How does Yoonet make outsourcing work?
The gap between outsourcing that works and outsourcing that fails is almost always in the execution, not the concept. Here's what Yoonet does differently from hiring a remote worker on your own.
Proper employment, not contracting
Your team member is a full employee of an incorporated Philippine entity. They receive proper employment contracts, leave entitlements, government-mandated benefits (SSS, PhilHealth, Pag-IBIG), and 13th month pay. This protects them and protects you from misclassification risk.
Secured office environment
All work happens from our office in Bataan. CCTV monitoring, biometric access, disabled USB ports, and firewall-protected networks. No remote work for client-facing roles. This level of data security is difficult and expensive to replicate with local staff working from home.
Two-layer management
Philippines-based team leads handle attendance, HR, and day-to-day support. NZ/AU management provides strategic oversight and acts as your escalation point. You direct the work content. We handle everything around it.
Regional positioning
We deliberately operate outside Manila. Bataan offers lower cost of living, better quality of life, and a deeper talent pool of people who want to build careers rather than job-hop. Our retention rate of 89.29% reflects this.
Structured onboarding
Process documentation, training plans, system access setup, and regular check-ins during the first 30 to 60 days. We don't throw someone at you and disappear. The onboarding period is managed, measured, and supported.
For the full six-step process, see our how we work page.
Honest Assessment
What are the risks of outsourcing?
Outsourcing has real risks. Pretending otherwise would be dishonest and unhelpful. Here are the ones you should consider.
Communication and cultural differences
Filipino communication styles tend to be more indirect than Australian styles. A team member may say “yes” to indicate they've heard you, not that they fully understand or agree. This is a cultural pattern, not a competence issue. It's manageable with clear processes, written instructions, and regular check-ins — but it requires awareness and adjustment from you.
You still need to manage the work
A BPO handles HR, compliance, and infrastructure. It does not manage the actual work output — that's your responsibility. If you don't have documented processes, clear expectations, and the time to train someone, outsourcing will underperform regardless of who provides it. This is the most common reason outsourcing fails, and it's entirely within your control to prevent.
Provider quality varies enormously
The Philippine BPO industry includes world-class operators and fly-by-night agencies running out of apartments. Due diligence matters. Check for an incorporated entity, physical office locations you can verify, management structure, retention data, and willingness to let you visit. If a provider won't share this information, walk away.
Internet and infrastructure reliability
The Philippines experiences typhoons, power interruptions, and variable internet quality — particularly outside Manila. A proper BPO mitigates this with backup power, redundant internet connections, and business continuity planning. A freelancer working from home has none of this. Ask your provider what happens when the power goes out.
Common Questions
Frequently asked questions
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