How Outsourcing Supports Australia’s Growing Engineering Projects

Australia’s engineering and construction sectors are thriving. With an expanding population and significant investment in infrastructure, projects are growing in both size and complexity. Yet, the industry faces challenges: labor shortages, rising costs, and tight deadlines frequently disrupt project timelines and budgets. Outsourcing emerges as a strategic solution to these challenges. By leveraging global talent, companies can maintain efficiency, reduce costs, and focus on their core competencies.

In the September 2024 quarter, total construction work done rose by 1.6% to $73.3 billion, with engineering work increasing by 2.6% to $34.7 billion, highlighting the sector’s growth trajectory. However, this growth has come with significant cost increases; between 2020-21 and 2022-23, total expenses in the construction industry rose by $119 billion (29.9%), largely driven by rising labor and material costs.

The Growing Demand for Engineering Expertise in Australia

Infrastructure projects are driving Australia’s engineering boom. From urban transportation to renewable energy initiatives, the demand for skilled professionals is at an all-time high. However, sourcing talent locally is becoming increasingly difficult. Key areas of demand include:

• Civil Engineering: Expertise in designing, building, and maintaining infrastructure.
• Mechanical and Electrical Engineering: Crucial for industrial and urban development projects.
• CAD Operations: Essential for drafting and design, especially for complex projects.

As local talent pools struggle to meet these demands, outsourcing offers access to a broader spectrum of expertise. According to Deloitte’s Global Outsourcing Survey 2024, organizations are increasingly leveraging outsourcing to source specialized skills and capabilities, focusing on technology modernization and digital transformation (Deloitte).

What is Engineering Outsourcing?

Engineering outsourcing involves delegating specific functions, tasks, or roles to external teams, often located offshore. This approach helps businesses overcome recruitment hurdles and allocate resources more efficiently.

Here are the commonly outsourced roles  with salary comparison:

Quantity Surveyors

Experts in managing budgets, material costs, and project expenditures, ensuring projects stay financially viable.

Philippine Annual Salary:	AUD 18,577
Australia Annual Salary:	AUD 101,400

CAD Operators

Professionals responsible for drafting precise designs and adhering to engineering standards, crucial for technical accuracy.

Philippine Annual Salary:	AUD 14,673
Australia Annual Salary:	AUD 78,000

Estimators

Specialists in preparing accurate cost estimates and realistic timelines, supporting effective project planning.

Philippine Annual Salary:	AUD 16,625
Australia Annual Salary:	AUD 91,000

Project Managers

Coordinators who bridge communication between teams, ensuring all project phases are executed on schedule.

Philippine Annual Salary:	AUD 28,336
Australia Annual Salary:	AUD 117,000

Civil Engineers

Professionals focused on the design, construction, and maintenance of infrastructure projects such as bridges and roads.

Philippine Annual Salary:	AUD 20,529
Australia Annual Salary:	AUD 143,000

Mechanical Engineers

Experts in developing mechanical systems and processes, contributing to industrial advancements.

Philippine Annual Salary:	AUD 19,748
Australia Annual Salary:	AUD 136,500

Electrical Engineers

Specialists in designing, implementing, and maintaining electrical systems for projects.

Philippine Annual Salary:	AUD 18,967
Australia Annual Salary:	AUD 130,000

3D Modelers

Creators of digital simulations that aid in visualizing complex designs and structures before construction.

Philippine Annual Salary:	AUD 18,577
Australia Annual Salary:	AUD 84,500

Document Controllers

Custodians of important project documentation, ensuring version control and accessibility.

Philippine Annual Salary:	AUD 13,502
Australia Annual Salary:	AUD 71,500

Procurement Officers

Professionals who manage the purchasing process, ensuring timely delivery of materials within budget constraints.

Philippine Annual Salary:	AUD 18,577
Australia Annual Salary:	AUD 88,400

The Philippines has emerged as a preferred outsourcing destination, offering a highly skilled workforce at competitive rates. With its strong focus on education and technical skills, the country remains a leader in engineering outsourcing globally.

Benefits of Outsourcing for Engineering Projects

Outsourcing delivers several advantages that directly address the challenges faced by the engineering sector in Australia:

1. Cost Savings

Labor and operational expenses in offshore markets, such as the Philippines, are up to 70% lower than in Australia. This allows companies to allocate savings to other areas, such as innovation or scaling operations. Learn more through this case study on Spotship’s offshoring savings.

2. Access to Skilled Talent

Outsourcing opens doors to a vast talent pool of engineers and technical experts. Companies can hire specialized professionals without bearing the high costs of local recruitment.

3. Scalability and Flexibility

Projects often experience fluctuating demands. Outsourcing enables businesses to scale their workforce up or down based on project requirements, ensuring optimal resource utilization.

4. Focus on Core Operations

By outsourcing routine or transactional tasks, in-house teams can concentrate on strategic initiatives, such as client relationships or innovation.

How Penbrothers Makes Outsourcing Work

Penbrothers offers a streamlined outsourcing process designed to deliver maximum value:

• Consultation: Our consultative approach begins with understanding your unique business needs and objectives. This ensures that the solutions we provide are perfectly aligned with your goals.
• Talent Selection: We employ a comprehensive 30-day vetting and scouting process, leveraging our extensive network to find highly qualified professionals tailored to your specific project requirements.
• Onboarding: With our hypercare onboarding process, we ensure seamless integration of offshore team members into existing workflows, enabling productivity from day one.
• Performance Management: Our continuous performance management framework includes regular assessments and feedback loops, maintaining high standards of quality and efficiency.

Our commitment to aligning with company culture ensures cohesive collaboration between local and offshore teams, fostering a productive and harmonious working relationship.

Take the First Step

Engineering outsourcing is not just a cost-saving measure; it’s a strategic approach to addressing Australia’s growing infrastructure demands. By tapping into global talent pools, companies can overcome labor shortages, reduce costs, and deliver projects on time and within budget.

Penbrothers stands ready to help your business navigate these opportunities. With our proven processes and commitment to excellence, we ensure your outsourcing journey is smooth and successful.

Ready to elevate your engineering projects?

Schedule a consultation with Penbrothers today and discover how outsourcing can be your competitive edge in Australia’s dynamic market.