As the Philippines market matures, we’re seeing that the offshore labour model continues to challenge Australian accountants in terms of actual productivity benefits. The dominant offshore model is still the offshore outsourcing model, where the risk and responsibility is fully transferred to an overseas provider. But at the moment, we’re seeing massive competition amongst the offshore labour providers, and the …
Philippines – A race to the bottom for “per seat” costs
We recently saw a Philippines labour service provider advertise for a “seat fee” of sub Aus$200. This is certainly setting the scene for a race to the bottom for “per seat” costs. The current race is reminiscent of any overcrowded market. People smell cash, and a lot of new entrants come into the market. Prices are forced down to early …