Outsourcing companies in Australia: the main types and how to compare them

Outsourcing companies in Australia fall into five types: call centres and BPO providers, offshore staffing companies, Employer of Record providers, offshore recruiters and freelance platforms. The biggest differences are who manages the work and whether the person works only for you. For someone who joins your team, choose offshore staffing or recruitment. For a hands-off process, choose a BPO.

This guide explains how each type works, what you pay for, and the questions that separate a good provider from a risky one.

1. Call centres and BPO providers

A business process outsourcing (BPO) company takes over a whole process, such as customer support, claims processing or transaction handling, and runs it with its own team and managers. You buy an outcome or a number of hours, not a particular person.

BPOs suit high, predictable volumes and 24/7 cover. The trade-off is control: agents are often shared across clients, may change often and work from the provider's processes rather than yours. Pricing is usually per hour, per seat or per transaction. We compare the two models in more detail in BPO vs offshore staffing.

2. Offshore staffing companies

An offshore staffing company recruits a full-time person who works only for your business, in your systems and your hours, and then employs them in their country. You direct the work like any other team member. Some providers also manage the person day to day for an extra monthly fee.

This suits roles where knowledge builds up over time: bookkeeping, payroll, property management, customer service and executive support. You pay the team member's monthly salary plus the provider's fee, which is usually a monthly service fee, a one-off recruitment fee, or both.

3. Employer of Record providers

An Employer of Record (EOR) becomes the legal employer of someone you have already found. It runs their payroll, leave, contracts and local compliance, and you manage the work. Global EOR platforms cover dozens of countries, and some offshore staffing companies offer the same service for their own countries.

An EOR doesn't find, screen or train anyone. It suits businesses that already know who they want to hire, or that have recruited the person themselves. If you are comparing employment options, our guide to who employs your offshore staff explains the choices.

4. Offshore recruiters

An offshore recruiter finds, tests and shortlists candidates for a one-off fee, and you choose who to hire. After that you can employ the person directly or pay a provider to employ them for you. It suits businesses that are comfortable managing offshore staff and want a lower ongoing cost. See how this works on our recruitment outsourcing page.

5. Freelance platforms

Freelance marketplaces let you hire someone by the hour or by the project. They work well for short jobs such as a website fix, a logo or clearing a data-entry backlog. They are harder to rely on for daily work: freelancers often juggle several clients, and you take on the screening, contracts and replacements yourself.

How the five types compare

What to ask any outsourcing company before you sign

• Who is the legal employer, and in which country? You should get a clear answer and an Australian contract with an Australian company.

• Will the person work only for my business? Shared staff are cheaper, but they rarely learn your business properly.

• What exactly is in the fee? Ask about recruitment, payroll, leave, equipment, IT security and any annual increases.

• What happens if the hire doesn't work out? Look for a written replacement guarantee and how long it lasts.

• How do they screen candidates? Skills tests for your actual tasks matter more than CV keywords.

• How is my data protected? Ask about managed devices, access controls and what happens to logins when someone leaves.

• What is the minimum term and notice period? A long lock-in with no guarantee is a warning sign.

Our longer checklist on choosing an offshoring company goes through each of these in more depth.

Where Elephant Teams fits

Elephant Teams is an offshore staffing company based in Melbourne. We recruit full-time professionals in Sri Lanka and the Philippines for any role, and you choose how much we handle. With Ready for You, we recruit for $5,999 + GST once, then you employ the person or we employ them for $350 a month. With Managed for You, we recruit, employ and manage them for $1,000 a month with no recruitment fee. Either way, you pay the team member's salary on top. You can see every option on our services page.

Frequently asked questions

Is outsourcing the same as offshoring?

Not quite. Outsourcing means a third party does the work or supplies the person. Offshoring means the work is done in another country. Offshore staffing is both: a provider supplies the person, and they work from overseas.

Which type of outsourcing company is cheapest?

Freelancers usually have the lowest hourly rate, and BPOs can be cheapest at very high volumes. For a full-time role, offshore staffing or recruitment usually gives the lowest cost per hour of dedicated work, because you pay a salary rather than a margin on every hour.

Can I outsource just one role?

Yes. Most small businesses start with one role, such as a bookkeeper or a virtual assistant, and add more once the first hire is settled.