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Rising costs and global uncertainty reshape outsourcing industry

April 22, 2026 12:54 pm

The outsourcing industry faces both pressure and opportunity as global uncertainty reshapes investment, with small and medium businesses likely to be most affected.

Outsource Fiji Executive Director Josefa Wivou says instability is shifting opportunities toward the Asia-Pacific, including Fiji.

He says the country is increasingly seen as a “safe bet” for companies relocating shared services, including Middle Eastern firms expanding into the region.

Wivou adds that rising operational costs remain a major challenge, with 30 to 40 percent of expenses in some operations tied to maintaining power and fuel demands.

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“One of the main impacts we have to keep in mind is that all of these operators have to be online 24/7, servicing clients globally. We are fortunate that almost 85 percent of our portfolio is sourced from Australia and New Zealand.”

Wivou adds that the industry is preparing a formal submission to the government, highlighting risks and the need for stronger support.

Outsource Fiji President Chandan Ohri says ongoing uncertainty is forcing organisations to prioritise efficiency and cost-saving strategies.

“With tariffs and fuel surcharge costs increasing, businesses in Australia and New Zealand are under pressure to find ways to offset these impacts. Many are now looking at Fiji for its comparative cost advantage.”

Industry members have also raised concerns about energy sustainability, particularly the risk of fuel shortages affecting backup power systems required for continuous operation.