Published: 2025

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Building technology solutions in-house is expensive for Australian businesses. Outsourcing technology and development to providers with offshore talent such as the Philippines, supported by Australian staff, offers significant savings and expertise. This article compares in-house and outsourced costs, includes a worked example, and lists example services to outsource.

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Why Outsource Technology and Development?

Outsourcing provides:

• Cost Savings: Lower rates than Australian salaries.
• Expertise: Access to specialists in React, AWS, or mobile apps, and filling Australian skill gap shortages.
• Scalability: Adjust team size easily up or down within a month.
• Focus: Free time for strategy and growth.

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Cost Comparison: In-House vs. Outsourced

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In-House Development

For a three-person team (developer, designer, project manager):

• Salaries: $120,000 (developer), $100,000 (designer), $110,000 (manager) = $330,000/year.
• Overheads: Office, equipment ($20,000/employee) = $60,000.
• Benefits: Superannuation, leave ($15,000/employee) = $45,000.
• Hiring: Recruitment ($5,000/employee) = $15,000.
• Total Annual Cost: $450,000 ($37,500/month).

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Outsourced Development

A provider with Philippines talent and Australian support offers a full-stack team for $12,000/month, covering all roles and infrastructure.

• Total Annual Cost: $12,000 x 12 = $144,000.

Savings: $450,000 - $144,000 = $306,000/year.

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Worked Example: Building a CRM

Mark’s Sydney logistics company needs a custom CRM. He compares options for a six-month project:

In-House

• Team: Developer ($10,000/month), designer ($8,333/month), manager ($9,167/month).
• Overheads/Benefits: $11,250/month.
• Total Monthly Cost: $38,750.
• Six-Month Cost: $232,500.
• Challenges: Hiring delays (two months), HR management.

Outsourced

• Team: A provider with Philippines talent and Australian oversight delivers for $12,000/month.
• Six-Month Cost: $72,000.
• Benefits: Starts in a week, delivers in six months, integrates with existing systems.

Savings: $232,500 - $72,000 = $160,500, plus 20 hours/week saved ($24,000 at $200/hour).

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Example Services to Outsource

Outsourcing can cover:

• Fractional CTO: Strategic tech leadership without a full-time hire.
• Web App Development: Building SaaS platforms or e-commerce sites.
• Mobile/Native App Development: Creating iOS/Android apps.
• External System Development: Customer-facing tools (e.g., booking systems).
• Internal System Development: Optimising processes (e.g., inventory management).
• Design Services: UI/UX for apps or websites.
• System Integration/Data Consolidation: Connecting tools like CRM and ERP.

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Conclusion

Outsourcing technology to providers with Philippines talent and Australian support saves Australian businesses significant costs while delivering quality. From Fractional CTOs to app development, outsourcing streamlines operations. Compare costs and partner with a provider to transform your business.

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