Australia’s tech industry is rapidly evolving, driven by digital transformation and innovation. However, as companies increasingly adopt new technologies, they face a significant challenge: a shortage of tech talent. With demand outpacing supply, businesses are struggling to fill crucial roles, particularly in fields such as cybersecurity, software development, and data analytics. To bridge this gap, many Australian businesses are turning to Flat Planet for their outsourcing needs in Southeast Asia, where a highly skilled, offshore workforce offers both expertise and cost-effective solutions.

The Australian Tech Skills Gap

The tech skills gap in Australia has been a pressing issue for several years, with recent reports highlighting the severity of the problem. According to a 2023 report from RMIT Online and Deloitte Access Economics, Australia will need an additional 156,000 technology workers by 2025 to meet growing demand[1]. The shortage is particularly acute in areas such as cloud computing, cybersecurity, and software engineering, where businesses report significant difficulties in finding qualified candidates. Furthermore, a 2022 survey by the Australian Computer Society (ACS) revealed that 47% of Australian businesses are struggling to fill tech-related positions.

The combination of high demand and a limited local talent pool has led to increased competition among employers, driving up salaries and recruitment costs. This talent shortage is not only hindering growth but also impacting Australia’s global competitiveness in the tech sector. As businesses look for ways to address this challenge, many are exploring outsourcing solutions that provide access to specialised talent from global markets.

The Rise of Knowledge Process Outsourcing (KPO)

Knowledge Process Outsourcing (KPO) has emerged as a strategic solution for Australian companies seeking to fill the tech skills gap. Unlike traditional outsourcing, which focuses on administrative tasks, KPO involves the delegation of high-level, knowledge-based work such as IT services, data analytics, and software development. By leveraging KPO providers in Southeast Asia, Australian businesses can access a diverse pool of highly skilled professionals who are well-versed in the latest technologies.

Southeast Asia, particularly countries like the Philippines, Vietnam, and Malaysia, has become a hub for KPO services, offering a combination of technical expertise and cost savings. The region boasts a growing number of universities and technical institutions producing graduates with strong STEM (Science, Technology, Engineering, and Mathematics) skills. For example, the Philippines produces over 80,000 IT and engineering graduates annually, while Vietnam has seen a significant rise in tech education programs, positioning itself as an emerging leader in software development.

Benefits of Leveraging Southeast Asian Talent

With an increasing number of businesses turning to Southeast Asian talent for cost-effective solutions, with labour costs up to 50% lower than in Australia, resulting in significant operational savings. Southeast Asia’s tech workforce offers specialised expertise in areas such as cloud computing, AI, data analytics, and cybersecurity, providing access to skills often scarce locally.

Outsourcing through KPO providers such as Flat Planet, allows businesses to scale teams flexibly, adapting to demand fluctuations without long-term hiring commitments.

The Future of KPO in Australia

As Australia’s tech skills gap continues to widen, the role of KPO in addressing this challenge is expected to grow, with industry forecasts suggesting that the global KPO market will expand at a compound annual growth rate (CAGR) of over 20% from 2024 to 2031, with Australia playing a significant role in this growth.

Flat Planet, an Australian-owned KPO provider operating in Southeast Asia, is at the forefront of this movement, connecting Australian companies with skilled offshore talent, while delivering significant cost savings. With a proven track record in IT, data analytics, and software development, Flat Planet is helping businesses across various sectors, effectively manage their skills shortages and achieve long-term success.

About Flat Planet:

Established in 2010, Flat Planet® is a family-owned, Australian-operated leading provider of high-value outsourced staffing solutions. Connecting businesses worldwide with skilled talent in Southeast Asia, offering a competitive edge through cost-effective, high-quality staffing solutions. With offices in the Philippines, Vietnam, and Malaysia, we employ over 400 staff serving global clients. Our state-of-the-art infrastructure and blend of local and Australian management practices ensure excellence in service delivery. At Flat Planet, we’re committed to creating pathways to a brighter future – not only by providing businesses access to a globally competitive workforce but also by supporting initiatives like our Gift of Life project, which funds critical heart surgeries for children in need.

For more information on how Flat Planet can empower your business while making a positive impact, visit flatplanet.com.au or email us on info@flatplanet.com.

[1] Digital skills gap costing Australian businesses $9 million per day | RMIT Online