Outsourcing, service providers and minimum wages; a relationship between the UK and Australia

UK service providers offering web design, blog writing and marketing have thousands of UK businesses at their finger tips, a great target audience; an endless supply of leads.

The question is; did minimum wage come play any role in deciding on a target audience, or was it just the fact that your business is based in the UK?

The example below is based on the relationship between UK and Australian businesses. The same theme could be applied to businesses operating in Sheffield and offering outsourcing services toLondon, focusing on average wage instead, instead of minimum wage.

It highlights two points:

• Australian businesses should be outsourcing to the UK.
• UK service providers should be offering their services to Australian businesses as part of their plan for marketing and growth.

Why focus on minimum wage?

Any two places where there is a difference in minimum wage, or average wage, will present a similar opportunity.

Minimum wage plays a strong role in determining what businesses are willing to pay for services. A relationship between what a freelancer expects to earn in comparison to minimum wage will also apply.

We work with and target Australian businesses and here is why…

Our team offer great value for money to UK businesses, but the value for money is more significant for our Australian clients.

The minimum wage in the UK for those 21 and over is £6.19 per hour.

The minimum wage in the Australia, is $15.96 per hour (£10.44).

The UK minimum wage is currently 40.71% less than that ofAustralia.

Who should care?

Service providers

Assuming your services are of equal quality to that of an Australian, and are priced similarly (a percentage above minimum wage) outsourcing to your business, could save Australian businesses 40.71%.

That sounds like a proposition that they can’t refuse; right!?

Australian businesses

Finding great companies for outsourcing purposes isn’t easy; reducing costs is even harder.

If you haven’t been outsourcing to the UK, then you are missing out on savings that could be the equivalent of 40.71%.

Here is where the opportunity becomes viable:

• Australians will not have to experience the bad weather.
• UK service providers do not have to pay nearly £1,000 in flight costs to meet their client.