ConnectOS eyes $69Mn revenue as Australian firms offshore more
- ConnectOS expects A$100 million (about $69Mn) in revenue this financial year.
- That is up from A$80 million (about $55Mn).
- ConnectOS has more than 2,500 outsourcing employees, mostly in the Philippines.
- The firm serves more than 350 customers, including 20+ accounting firms.
MELBOURNE, AUSTRALIA — Melbourne-based outsourcing firm ConnectOS expects revenue to reach A$100 million (about $69 million) this financial year, up from A$80 million (about $55 million).
The growth comes as clients seek lower-cost developers, accountants and customer service staff, most of whom the firm employs in the Philippines.
Bigger clients, bigger teams
“We are getting bigger-profile clients on board, and the ones we’ve already got are continuing to build out and grow their capability offshore,” founder and chief executive Steve Evans told the Australian Financial Review.
ConnectOS now has more than 2,500 outsourcing employees and about 140 support staff serving more than 350 customers.
Those customers include more than 20 accounting firms, student placement and testing company IDP, Chemist Warehouse, Fantastic Furniture and Totalmobile.
About a third of the cost
Evans said an offshore worker typically costs about one-third as much as an onshore hire once payroll taxes, superannuation and equipment are counted.
“Some of the higher demand technology roles probably sit at around half the saving because there’s high demand equally in the Philippines as there is in Australia,” he said.
Most clients use offshore staff to augment their Australian teams where they need extra support, Evans said.
“Quite often we find clients that are struggling to find skills that they need in Australia quickly,” he said.
“So they’ll tend to turn to offshoring as a way to augment and support their current models and teams,” he added.
The firm supplies accounting, finance and technology specialists as well as marketing and customer service staff.
ConnectOS pays its Philippine staff market rates plus extra benefits to keep them in what Evans called a competitive labor market.
An accounting push
In May, ConnectOS became the official outsourcing partner of the National Tax & Accountants’ Association, which represents more than 10,000 member firms and 45,000 professionals.
“A lot of their member firms are now saying they need extra capacity,” Evans said.
Demand for outsourced services has also drawn interest from consulting firms including Accenture, PwC, Deloitte and EY, the AFR reported.
The appeal for those firms is a steady stream of predictable income in an uncertain consulting market, according to the newspaper.
For Australian firms, ConnectOS’s growth shows offshore outsourcing reaching accounting and technology roles, not only customer service.
Buyers should cost an onshore hire in full, including superannuation and equipment, before comparing staff leasing quotes, and can start with the top BPO companies in Australia.
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