Australian businesses are looking beyond their borders for growth. Rather than struggle with local talent shortages or high costs, companies can scale more rapidly by tapping into global expertise through business IT outsourcing. In fact, Statista projects that Australia’s IT outsourcing market will grow by about 8.41% per year from 2025 to 2029, reaching roughly up to US$21.26 billion . This remarkable growth reflects Australian organisations increasingly hiring web developers, mobile app developers, Python developers and other specialists offshore to accelerate projects.

In this article, we’ll discuss the benefits of IT outsourcing, and how it can help companies focus on their core goals and innovate faster.

IT outsourcing covers a range of models and arrangements. At its core, it means contracting an external provider to deliver IT services or staff, rather than building everything in-house. This can take several forms:

Each model has pros and cons, but all seek the same goal: help your business achieve more with outside help. Importantly, with business IT outsourcing you remain in control of requirements and quality, while the provider supplies the talent and operational support needed.

In practice, companies that outsource their technology functions often see advantages across multiple areas. Here are some key benefits of IT outsourcing:

In practice, an Australian business that strategically hires offshore talent can lower costs and tap global expertise, while freeing their core staff to innovate. Together these advantages fuel growth, which is why outsourcing has become an integral part of many companies’ expansion plans.

Building an offshore team allows businesses to scale more dynamically than by hiring only local staff. Here are two case studies where offshoring led to an increase in their operational capabilities while staying cost-efficient.

PingCo, a telecommunications and software development company, struggled to meet the growing global demand for its cloud automation solutions. The company faced a limited talent pool in Australia and a lengthy recruitment process. To accelerate expansion while maintaining service quality, Twoconnect implemented an offshoring solution that sourced key roles to support PingCo’s growth.

Through offshoring, along with Twoconnect’s expertise, PingCo reduced ticket resolution times by 70%, achieved cost savings of up to 70%, and accelerated its ability to support a growing global client base.

Smart Central, a Sydney-based childcare management software provider, faced a surge in demand that outpaced its in-house capacity. To keep up without overextending its local team or costs, Twoconnect implemented a tailored offshoring strategy to support growth while maintaining high product and service standards.

With the right roles in place offshore, Smart Central significantly improved time to market, scaled its development pipeline, and achieved 150% revenue growth—without compromising on quality or stretching internal resources.

When planning an offshore IT team, certain roles lend themselves particularly well to outsourcing. Below is a summary of common categories and roles that Australian companies often fill with remote staff:

Creating an offshore IT team requires careful planning, clear goals, and the right support. This roadmap breaks down the key steps to help you get started:

Start by assessing your objectives. What are the projects or challenges you want to tackle? Then, identify tasks that could be handled by remote teams. Make a list of the roles and skills you need. Are you looking to hire web developers in general, or do you need someone with a specific skill set—like a Python developer? Clear goals and defined requirements will shape the rest of your hiring process.

Refer to the outsourcing models mentioned earlier and check which best suits your needs. For businesses that want a more structured, high-quality approach, is ideal. It ensures your offshore team is fully supported, aligned with your culture, and accountable for deliverables.

Not all outsourcing providers are the same. To fully experience the benefits of IT outsourcing, companies need to choose an offshore partner, such as Twoconnect, that has expertise with your needs. Confirm that the provider has proven experience in your industry or technology stack. You may also ask for references or case studies to make sure that you are choosing the right offshoring partner.

Simply hiring an offshore team isn’t enough; you must integrate them into your workflow. This means establishing clear communication and processes from day one. Here’s an example of what you might do:

Finally, think beyond the first project. The most successful companies don’t just outsource once. They build enduring relationships with their offshore teams. Invest time in team-building and mentorship. Organise video meet-ups, workshops, or even on-site visits if possible. Recognise and reward good performance to motivate your remote employees and reduce turnover. Provide training and upskilling for your offshore staff so they grow with your company’s needs.

IT outsourcing is a strategic move that enables businesses to move faster, innovate better, and scale smarter. With outsourcing, businesses gain the agility to respond to market changes, access niche skill sets, and focus on driving innovation without being slowed down by talent shortages or high local hiring costs.

As the competition for top tech talent continues to intensify, strategic outsourcing provides a clear advantage for businesses ready to grow beyond borders. Start identifying the roles your business can outsource today and take the next step towards scaling smarter. Connect with us to get started.