From banks to retailers, a growing number of Australian businesses are expanding offshore workforces as they seek to cut costs, access skilled workers, and adapt to a changing global business environment.
Woolworths recently announced it was offshoring some jobs to Asia to remain competitive, affecting corporate roles in finance, HR, and IT. This follows similar moves by Telstra, National Australia Bank (NAB), and Officeworks.
Drivers Behind the Shift
Helena Li, a senior lecturer at the University of Technology Sydney Business School, explains that while businesses have long moved functions like call centres offshore, recent decisions reflect the growth of highly-educated workforces in emerging Asian economies. These countries have invested heavily in education, creating a deep supply of skilled workers at low cost.
Vikas Kumar, a professor of international business at the University of Sydney, notes that this trend is different from traditional offshoring. The "corporate brain" of Australian companies is now being globalised, with higher-level positions moving abroad. The primary driver is access to skills and capability, not just cost. Companies are establishing their own offshore hubs in locations like Bengaluru to access specialised talent at scale, particularly in technology and AI.
Offshore Hubs
Bengaluru, India's leading technology hub, hosts thousands of employees for Australian companies. Commonwealth Bank employs over 6,500 staff there, while ANZ employs 9,000 in Bengaluru and 2,000 in Manila (28% of its workforce). NAB employs roughly 2,000 workers in Vietnam and thousands more in India, accounting for 17% of its total workforce.
AI Is Changing the Equation
Rapid adoption of artificial intelligence is reshaping the global workforce. Some countries are moving faster than Australia to develop AI-related skills. While Australia has a highly-skilled workforce, emerging economies have made AI capability a national priority. AI has also created demand for workers who can critically oversee and review AI-generated outputs. Experts call for better education pathways to develop skills that can keep Australia competitive, including critical thinking, human-centered skills, and communication.
A Call to Use Global Talent Responsibly
Kumar says Australia could build the skills it needs domestically, but this requires greater investment in AI training across universities, TAFEs, and the corporate sector. While it's impractical to suggest businesses refrain from using global talent, they should do so responsibly by continuing to invest in Australian graduates and developing local technology roles. This may involve higher costs in the interim but could deliver more sustainable outcomes and have a spin-off effect on the entire economy.
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