THE LOCAL business process outsourcing (BPO) sector will do well to set its sights on Australia, where most companies are only starting to consider subcontracting services abroad as a way to cut on costs and become more efficient.

According to Sydney-based BPO firm Salmat, the addressable market in Australia for BPOs is vast compared to other developed markets like the United States and Europe.

?Outsourcing in Australia is still very low so there?s a huge potential to really grow,? Salmat CEO Grant Harrod said.

Many companies in Australia are now considering outsourcing services, especially with the country experiencing a shortage of skilled workers due to its small population, he added.

?The working population in Australia is, I think, just around nine million people, which is really small,? Harrod told reporters in a briefing. ?The greatest challenge to growth is labor. Skilled people have become a scarce commodity.?

He was speaking at the launch of Salmat?s newest facility in Fort Bonifacio, Taguig City. The new site currently employs about 240 people and has a capacity for 100 more.

For its part, Salmat planned to grow its operations in the Philippines by threefold over the next three to five years, Harrod said.

?Salmat is committed to growing its operation in the Philippines. We have plenty of experience in this market and have proven our ability to deliver the best solutions to our customers,? he said.