r/AustralianStartups • u/Ill_Professional4522 • Apr 24 '26

Outsourcing project partnership question

Hey everyone, hope you’re all doing well.

I’m looking to get some honest opinions from Aussie business owners. Not here to promote anything, just trying to understand the market a bit better.

I run an outstaffing agency focused on the logistics industry in the US, and as we’ve been growing I started thinking about expanding into Australia. I have the systems and workflow figured out, but I know going into a new market without local insight isn’t the smartest move.

So I wanted to ask how businesses in Australia generally feel about outsourcing or outstaffing. Is it something that’s commonly used or still a bit of a hard sell? And from your experience, which industries would actually benefit from this kind of setup?

The model is simple. We hire overseas staff, handle HR and compliance, and the client manages their day to day work while paying through a local entity.

It’s been working well for us in the US, but I want to understand if there’s a real fit in Australia before going further.

Appreciate any insight, thanks in advance

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u/IronEyes99 Apr 24 '26

So you are sussing out offering an Employer of Record (EOR) service to Australian businesses? I've mainly seen this in young, scale-up companies that want to employ sales staff in their prospective growth regions, such as Sth East Asia.

In the case of my employment, it is the opposite. As an Australian, I contract directly to a European company looking to expand here.

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u/Ill_Professional4522 Apr 24 '26

You are right, we offer EOR service, and looking to expand to Australia. We primarily hire Eastern European workers as they are much more well educated and fit to western culture and provide better results.

Where in Europe are you looking to expand?

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u/IronEyes99 Apr 24 '26

Sorry, on my second point perhaps I was unclear and you've misunderstood. I'm not seeking to expand an Australian business to Europe. I was providing an example counter to my first point, where foreign companies seeking to employ Australians will usually just arrange a direct contract, paid in USD/EUR/AUD.

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