2026 will likely be remembered as the watershed moment when “offshoring” transitioned from a back-office tactic to a boardroom imperative. The Australian and global business landscape is currently being reshaped by the succession of strategic shifts. While KPMG Australia and Crown Resorts dropped their announcements in February, they are accelerating a trend cemented by EY (Ernst & Young) in 2025:
- KPMG Australia confirmed the offshoring of approximately 200 Executive Assistant roles to the Philippines. This move effectively cuts 75% of its local administrative support.
- Crown Resorts, under the ownership of private equity giant Blackstone, announced the migration of its finance functions offshore to return to profitability.
- EY (Ernst & Young) in the US initiated a similar strategic pivot, replacing onshore executive assistants with offshore talent.
These are not isolated incidents of distress. They are calculated structural corrections. When Blackstone, arguably the world’s most astute asset manager, moves Crown’s finance team offshore to secure a $142m profit turnaround, they are validating a model that prioritises operational agility over geographical proximity.
The mathematics of the move cannot be ignored. As reported, a local Executive Assistant in Australia commands a salary of roughly $87,000 AUD. The equivalent role in a mature offshore hub like the Philippines costs approximately $15,000 – $25,000 AUD. For a firm the size of KPMG, this represents a potential annual saving of over $17 million.
However, for the astute business leader, the headline is not the cost saving. The headline is that the quality of offshore delivery has now risen to a level where it can replace “high-touch” roles like Executive Assistants and Finance Managers. This signals the end of the “sweatshop” era of outsourcing and the beginning of the Strategic Integrated Partnership era.
The New Economic Model: Onshore vs. Offshore + AI
The following comparison illustrates why firms like Crown and KPMG are making this shift. It is no longer just about wage arbitrage; it is about total operational capability.
| Metric | Traditional Onshore Hire (Australia) | USource Offshore + AI Model |
|---|---|---|
| Total Annual Cost | $90,000 – $120,000 AUD | $25,000 – $35,000 AUD |
| Time to Hire | 4 – 8 Weeks | 48 – 72 Hours |
| Availability | Standard Business Hours | 24/7 or Time-Zone Aligned |
| Tech & AI Proficiency | Varies by Candidate | Native / Process-Driven |
| Management Overhead | High (HR, Payroll, L&D) | Low (Managed by ODC) |
The Destination of Choice: Why the Philippines?
While India remains a powerhouse for IT and code, the Philippines has undeniably cemented itself as the premier destination for corporate shared services, customer experience (CX), and high-level administrative support.
The “Big Four” accounting firms and global banks are not moving to the Philippines solely for price. They are moving for cultural and linguistic affinity. The Philippines boasts a 97% literacy rate and a workforce that is not only fluent in English but culturally attuned to Western business nuances, specifically US, UK, and Australian norms.
The “Tier-1” Evolution
Ten years ago, businesses offshored data entry. Today, they are offshoring roles for:
- Business Analysts with AI oversight
- Multi-disciplinary and hybrid roles
- Legal & compliance workflow processing
- Expanded digital marketing outsourcing
This evolution is driven by a maturing workforce. The Filipino talent pool now consists of professionals who have spent 15+ years working for global giants like JP Morgan, Google, and Canva. They are no longer “learning the ropes” but are experts in Western compliance and agile project management.
The AI Multiplier: The Era of the “Super-Worker”
Perhaps the most critical, yet under-reported, factor in this 2026 migration is the role of Artificial Intelligence. Critics of offshoring often cite the “efficiency gap” or the idea that one onshore worker is worth two offshore workers. In 2026, AI has inverted this equation.
We are now witnessing the rise of the AI-Augmented Offshore Team. By equipping an offshore professional (whose base cost is significantly lower) with premium AI tools such as Gemini, ChatGPT Team, Microsoft Copilot, or Midjourney, businesses are creating “super-workers” at a fraction of the cost of a standard local hire.
The New Economic Equation
Consider the scenario of a Digital Marketing Manager:
- Onshore Hire: $120,000 AUD/year. Limited by human speed.
- Offshore Hire (via USource): $30,000 AUD/year + $1,000 AUD/year AI Tooling.
The offshore worker, trained in prompt engineering and AI workflows, can produce content, analyse data, and generate reports at 3x the speed of the unassisted onshore worker.
The “Big Four” understand this. They are not just swapping a human for a human. They are building AI-first workforces in cost-efficient geographies. This allows them to run 24/7 operations where the offshore team creates the “first draft” or “heavy lift” using AI, and the onshore partners focus purely on high-level strategy and client relationships.
The Problem with “Old” Outsourcing (BPOs and Freelancers)
If the benefits are so clear, why do many SMEs (Small to Medium Enterprises) struggle to replicate the success of Crown or EY? The failure usually lies in the model they choose.
The Traditional BPO
Traditional Business Process Outsourcing (BPO) works on a volume model. You sign a contract for 50 seats, you send tasks into a “black box,” and you get results back. You have little say in who is doing the work, how they are doing it, or what culture they are working in. This works for call centres, but it fails miserably for integrated roles like Executive Assistants or Marketing teams.
The Freelancer Marketplace
Alternatively, businesses turn to freelance marketplaces. This is essentially gambling. You might find a gem, but you retain no IP protection, no continuity, and if that freelancer disappears, your operation stalls. There is no management layer, no quality assurance, and zero integration with your company culture.
The Solution: The Operational Delivery Centre (ODC)
This is where USource and the concept of an Operational Delivery Centre (ODC) diverge from the pack. An ODC is not a vendor. It is an extension of your own office. It is a dedicated facility (or virtual equivalent) where the staff work exclusively for you, within your systems, under your processes, but are legally employed and housed by the provider.
How USource Redefines the Model
- True Integration (The “Slack” Test): At USource, a team member is not an external contractor. They have a
@yourcompany.comemail address. They sit in your Slack or Microsoft Teams channels. They attend your Monday morning stand-ups. To your clients and internal staff, they are indistinguishable from a colleague working from home in Sydney or Melbourne. - Distributed Teams, Centrally Managed: USource operates as an operational delivery centre that builds distributed teams. This means you get the flexibility of remote talent, accessing the best skills across the Philippines rather than just those within commuting distance of a Manila office, backed by central governance. USource handles the HR, the payroll, the compliance, and the IT security, leaving you to manage the output.
- Platform Agnostic Architecture: Unlike BPOs that force you to use their ticketing systems, an ODC plugs into your tech stack. Whether you use Asana, Salesforce, Xero, or HubSpot, the USource team integrates directly. This eliminates the data silos that often kill outsourcing projects.
- The “Try-Before-You-Scale” Approach: Large BPOs often demand long-term contracts and high minimum seat counts. USource’s model is built for agility, catering to the SME and Mid-Market need for scalability. You can start with a single highly skilled Executive Assistant or a small Digital Team, prove the concept, and then scale.
Strategic Implementation: How to Build Your “Crown” Model
The news regarding Crown Resorts and KPMG serves as a blueprint. They did not outsource everything at once. They identified specific, high-friction functions that were ripe for migration. For businesses looking to emulate this efficiency, the path forward involves three steps:
- Phase 1: The “Executive Assistant” Pilot. As KPMG has demonstrated, the EA role is the perfect “beachhead” for offshoring. It requires communication, organisation, and tech-savviness. Hire a dedicated USource Virtual Assistant to offload calendar management and email triage.
- Phase 2: Finance and Admin (The “Blackstone” Move). Once trust is established, follow Crown’s lead. Move Accounts Payable, Accounts Receivable, and Payroll processing to the offshore team. USource builds teams with accounting, financial, accounts-based experienced to support your existing onshore team.
- Phase 3: The Digital Growth Engine. Finally, stop hiring generalist local marketing juniors. Build a specialised offshore pod: a graphic designer, a video editor, and a content writer. For the price of one local junior, you have a full production studio operating in a time zone that allows for “overnight” delivery.
The Window of Opportunity
The moves by EY, KPMG, and Crown Resorts are not anomalies. They are leading indicators. We are witnessing a fundamental decoupling of “work” from “location.”
In the past, offshoring was a defensive move to survive by cutting costs. In 2026, with the integration of Generative AI and the Operational Delivery Centre model provided by USource, it is an offensive move. It is a way to acquire talent, speed, and capability that is simply unaffordable or unavailable locally.
The question for business leaders is no longer “Can I afford to outsource?”
The question is “Can I afford to compete against rivals who are already running AI-augmented, 24/7 offshore operations?”
Frequently Asked Questions
Is my company data safe with an offshore team?
Yes, provided you use an Operational Delivery Centre (ODC) like USource rather than a freelancer marketplace. An ODC enforces enterprise-grade security protocols, including endpoint protection, data access controls, and strict NDAs. Staff work within your secure cloud environments (e.g., your company Office 365 or Google Workspace), meaning data never physically leaves your control.
How does an ODC differ from a traditional BPO?
A BPO is task-oriented; you send a ticket, they do the job. An ODC is people-oriented; you build a team that is culturally and operationally integrated with your business. In an ODC model, the staff report to you, use your email domain, and attend your meetings, while the ODC provider handles HR, payroll, and facilities.
Can I interview the staff before hiring them?
While you can, USource advocates for a better approach: The Free Trial. Interviews are often rehearsed, but a trial allows you to see the candidate’s actual performance on your real-world tasks. This “hands-on” assessment removes the guesswork, drastically reduces the risk of a bad hire, and ensures the candidate is a cultural and operational fit before making any final commitments.
Will language or accent be a barrier?
The Philippines is the third-largest English-speaking nation in the world. The business dialect is US/International English. For client-facing roles, USource screens specifically for “neutral” accents and high proficiency in written English to guarantee seamless communication with your local team and customers.
How do I manage a team I can’t physically see?
Management by outcome, not observation. We encourage clients to use standard digital collaboration tools like Slack, Teams, and Asana. Additionally, USource provides operational oversight and regular check-ins to certify your remote team is engaged, productive, and meeting their KPIs.