When Australia’s largest telecommunications company announces it’s outsourcing hundreds of jobs, this represents a significant wake-up call for businesses everywhere.
Telstra recently revealed plans to cut up to 650 roles, with significant work being transferred to India-based technology firms. Rather than a sign of struggle, this represents a strategic pivot that signals where the global business landscape is headed.
If you’re a business owner wondering whether outsourcing is right for you, Telstra’s move provides three critical lessons worth exploring.
Big Corporations Are Going All-In on Outsourcing
For years, outsourcing was seen as a cost-cutting tactic reserved for desperate companies or tech giants with complex operations. Not anymore.
Telstra’s decision to partner with India-based outsourcing firms (for 440 roles) and expand its joint ventures (affecting 209 additional positions) demonstrates that outsourcing is now a core strategic tool for even the most established corporations.
Why Are Major Companies Embracing Outsourcing?
The reasons mirror what smart small and medium-sized businesses have discovered:
- Operational efficiency: Reducing complexity in service delivery
- Cost competitiveness: Maintaining margins in competitive markets
- Access to global talent: Tapping into specialized skills wherever they exist
- Scalability: Growing teams without proportional overhead increases
- Technology integration: Leveraging AI and automation alongside human expertise
Telstra explicitly stated these changes support their “Connected Future 30” strategy – a five-year plan to integrate artificial intelligence and streamline operations.
What does this tell us? Outsourcing is about staying competitive, not desperation.
Why More Companies Are Choosing the Philippines and Colombia
While Telstra chose India for its outsourcing needs, businesses today have more options than ever. Two locations stand out as superior alternatives for many companies: the Philippines and Colombia.
The Philippines: Asia-Pacific’s Outsourcing Powerhouse
The Philippines has become the world’s leading destination for customer service, back-office operations, and skilled professional services. Here’s why:
1. Exceptional English Proficiency. With English as an official language and American cultural influence dating back decades, Filipino professionals communicate with native-level clarity – critical for customer-facing roles.
2. Cultural Alignment with Western Markets. Filipino work culture emphasizes hospitality, relationship-building, and service excellence. Teams integrate seamlessly with US, Australian, and European companies.
3. Time Zone Advantages. The Philippines operates in GMT+8, providing overlap with Australian business hours and the ability to offer 24/7 coverage when paired with US and other Western teams.
4. Strong Technical and Professional Skills. From software development to accounting, graphic design to digital marketing, the Philippines produces highly educated professionals across diverse fields.
5. Cost-Effectiveness Without Compromising Quality. Businesses typically save 60-70% on labor costs compared to hiring domestically, while maintaining and often exceeding quality standards.
Colombia: Latin America’s Rising Star for Nearshore Outsourcing
For businesses focused on the Americas market, Colombia presents a compelling alternative with its own unique strengths:
1. Nearshore Convenience. Colombian cities operate in time zones closely aligned with the US East Coast (EST/EDT), enabling real-time collaboration during standard business hours.
2. Growing Bilingual Workforce. Colombia’s emphasis on English education has created a robust talent pool of bilingual professionals, particularly in major cities like Bogotá, Medellín, and Barranquilla.
3. Cultural Proximity. Shared business values, communication styles, and work ethics make Colombian teams feel like natural extensions of North American companies.
4. Competitive Pricing. While slightly higher than some Asian markets, Colombia’s costs remain dramatically lower than US hiring, with the added benefit of minimal time zone friction.
5. Tech-Savvy Talent Pool. Colombia’s thriving startup ecosystem and government investment in technology education have produced skilled developers, designers, and digital specialists.
Don’t Wait Until You’re Forced to Outsource
There’s an important lesson in Telstra’s timing. When companies implement outsourcing during periods of restructuring, it often becomes associated with cost-cutting. Your business has the opportunity to approach it differently – as a proactive growth strategy from the start.
What to Avoid: The Reactive Approach
When companies wait until they’re forced to cut costs, outsourcing becomes:
- A rushed decision with inadequate planning
- A morale blow to existing teams
- A PR challenge that frames it as “job cuts” rather than strategic evolution
- A scramble to find the right partners under time pressure
The Smarter Path: The Proactive Approach
Forward-thinking businesses use outsourcing to:
- Scale faster: Add team capacity without the overhead of office space, benefits, and equipment
- Test new markets: Launch customer support or sales in new regions with minimal risk
- Build resilience: Create geographic redundancy so business continues regardless of local disruptions
- Focus on core competencies: Free up leadership and senior staff to focus on strategy while offshore teams handle operational excellence
- Stay competitive from day one: Match or beat competitors’ pricing while maintaining healthy margins
The Best Companies Are Building Teams Across Borders
Telstra’s announcement reveals an important truth about modern business: the future centers on smart resource allocation rather than replacing entire teams.
The most successful companies are building hybrid workforce models:
- Strategic, leadership, and client-facing roles remain local
- Scalable, operational, and specialized functions move offshore
- Technology bridges the gap, making geography irrelevant for collaboration
This approach has already become the standard operating model for competitive businesses across industries.
What This Means for Your Business
Whether you’re a 10-person startup or a 500-employee enterprise, the lesson is the same: geographical boundaries no longer limit your access to talent.
You can:
- Hire a customer service team in the Philippines that works while you sleep
- Build a development team in Colombia that collaborates with you in real-time
- Scale operations without the traditional constraints of local hiring markets
- Maintain quality and culture while dramatically reducing costs
How to Get Started Without the Risk
If Telstra’s strategic shift has you thinking about outsourcing, here’s what actually works based on real outcomes:
1. Diagnose the Position Before You Post It
Don’t start by writing a job description. Start by asking: What problem does this role solve? What does success look like at 30, 60, and 90 days? How does it fit into existing workflows? Companies that clarify this upfront hire 38% faster and see 65% lower early attrition.
2. Start with High-Leverage Roles, Not Entry-Level
The biggest mistake? Outsourcing tasks instead of capability. Look for roles where leadership time is being consumed by operational work. Executive assistants handling strategic support, finance operations specialists, and revenue operations managers consistently outperform entry-level hires because they own outcomes, not just tasks.
3. Front-Load Cultural Integration
Time-to-productivity drops from 7.8 weeks to 4.2 weeks when you structure onboarding around cultural context, not just technical tasks. Explicitly define: How do you prefer to receive updates? When should they escalate versus decide? What does “urgent” actually mean? Without this, talented people hesitate instead of perform.
4. Verify Compliance Structure Before You Sign
78% of teams switching providers arrived with hidden compliance issues. If you’re hiring “contractors” who follow your SOPs and work fixed hours, they’re likely employees under local law. Ask potential partners: Are you ISO 27001 certified? How do you handle tax withholding? Can you show me audit trails? The right partner protects you from liability you didn’t know existed.
5. Build Recognition Into Your Operating Rhythm
High-performing teams average 12+ recognition moments per month. Recognition shows remote employees their work connects to business goals. Without it, engagement drops, and job searching begins. Make it systematic, not occasional.
You’re Either Building Global Teams or Falling Behind
Telstra’s decision to outsource 650 roles signals where global business is headed. Major corporations are restructuring around hybrid, geographically distributed teams because the model delivers results.
The real question facing business leaders today is simple: Will you embrace outsourcing proactively as a growth tool, or reactively when competitive pressure forces your hand?
The Philippines and Colombia offer world-class talent, cultural compatibility, and cost advantages that make them ideal partners for businesses ready to embrace the future of work.
If Australia’s largest telco can do it, what’s stopping you?
Ready to explore how outsourcing can transform your business?
Learn more about building high-performing offshore teams in the Philippines and Colombia, without the complexity and risk of doing it alone. 🔗 Book a free consultation: https://bit.ly/TalkToFilta
