Tech Providers Scaling Back in Australia: Contact Centres Left with Skeleton Operations
Over the past decade, Australia has become an attractive market for global tech providers selling into the contact centre space. With a focus on cloud solutions, AI integration and enhanced customer experience capabilities, international tech firms have capitalised on the country’s robust and growing demand for modernising contact centre operations.
However, recent shifts in global strategy are leading some of these tech giants to scale back their operations in Australia, leaving contact centres scrambling to adapt. Management and marketing was first to go, but now this trend has heightened and while long-term partners are seen as a positive if they are truly local with larger operations, the idea around support only including a handful of people has left many contact centre leaders concerned.
Selling Quotas Met, Focus Shifts
Australia’s contact centre industry, valued at billions annually, has long been a target for international tech companies. Providers like Genesys, NICE and even global players like
AWS and Microsoft have invested heavily in capturing market share, offering cutting-edge cloud-based Contact Centre as a Service (CCaaS) platforms. These platforms integrate artificial intelligence, customer analytics and omnichannel capabilities, appealing to Australian enterprises looking to optimise customer service.
The challenge has been that after meeting aggressive sales quotas, many of these tech providers are now pulling back. With revenue targets achieved and initial market saturation reached, they are scaling down their direct involvement, opting for skeleton operations instead of full- fledged support teams. This shift is driven in part by the high costs of maintaining large teams and infrastructure in a geographically isolated market like Australia, where sustaining extensive local operations is seen as economically inefficient once the primary sales push is completed.
The Impact on Australian Contact Centres
The consequences of these cutbacks are being felt across Australia’s contact centre industry. Companies that have integrated global tech solutions into their customer service workflows now find themselves relying on limited support. Skeleton operations often mean fewer in-country support staff, longer wait times for troubleshooting and a diminished local presence for product updates or strategic guidance.
This shift raises concerns about the future viability of these solutions in Australia, especially for companies that heavily depend on the continuous evolution of their contact centre technology. Australian businesses may face significant challenges in maintaining their systems without adequate local support, leading to potential disruptions in customer service operations.
Additionally, the reliance on international providers, without local teams in place, creates vulnerabilities. Should a tech provider decide to further reduce their presence or fully exit the market, Australian contact centres could find themselves scrambling to replace core systems at a high cost and under tight time constraints.
Local Providers Unable to Fill the Gap
The withdrawal of major global tech players is also exposing a gap in the Australian market—local tech providers lack the resources and capabilities to fill the void. While Australia has a robust tech ecosystem, few local companies can match the scale and innovation of global giants like AWS or Genesys. As a result, businesses may find themselves trapped in a tech dependency, reliant on global providers who no longer prioritise the region.
Smaller Australian tech firms may step in to offer niche solutions, but they often lack the comprehensive product suites and global expertise that international firms provide. This could lead to a fragmented market where contact centres must piece together multiple providers to achieve the same level of service integration they once had.
Skeleton Operations: A Strategic Decision
For global tech companies, this strategic withdrawal is not unique to Australia. It reflects a broader trend of scaling down localised operations in favour of a more centralised global support model. With the rise of remote work and cloud-based systems, many tech providers no longer see the need for large in-country teams to support their products. Instead, they are shifting to a model where remote teams, often based in lower-cost regions, handle support and operations.
The Future May Lead To Change In Buying Decisions
As tech providers pull back, Australian contact centres are faced with two paths forward: adapt or remain dependent on reduced support. Adapting may mean investing in training internal teams to manage and troubleshoot
systems independently or exploring hybrid solutions that combine local and international tech offerings. However, this comes with its own set of challenges, including increased operational complexity and higher costs.
For many, the alternative is remaining tied to global providers, but with fewer resources on the ground to help. This creates a precarious situation, where contact centres may struggle to maintain service levels and innovate at the pace needed to stay competitive in a fast-evolving industry.
Closing the Loopholes Legislation: By Fran Southward
What do you need to know ?
Over the past year, the Closing Loopholes Legislation has brought about some of the most significant changes to employment and industrial laws in Australia in decades. These sweeping reforms address fundamental aspects of the employer-employee relationship and could substantially impact workforce arrangements, costs and strategic planning for many organisations.
This reform program includes several changes that have received significant media coverage including the introduction of family and domestic violence protections in late 2023, changes to
the definition of employment, changes to casual employment and the pathways available to transition to full-time and part-time employment, and the right to disconnect, which came into effect August 2024.
Definition of Employee and Employer
These amendments introduce an interpretive principle for determining whether an individual is an ‘employee’ (as compared to an independent contractor), or a person is an ‘employer’ (as compared to a principal) for the purposes of the Fair Work Act 2009.
The changes in relation to this consideration, means there is a fairer test applied to determine this, and that the practical reality of the working relationship will be considered, as well as the written terms of any contract governing that relationship.
The Right to Disconnect
The ‘right to disconnect’ has now taken effect for most employees, noting that for employees of small businesses (businesses with less than 15 employees), this will take effect on 26th August 2025. The new regulation stipulates that employees are entitled to decline contact from their employer outside of working hours, provided their refusal is not deemed unreasonable. This ‘right to disconnect’ is a recognised workplace right, meaning employees should not face any negative consequences or adverse actions for refusing to take work-related calls or respond to work-related emails during their unpaid personal time, unless the refusal is considered unreasonable.
This shift in policy underscores a major shift in work-life boundaries and places new responsibilities on organisations to manage employee contact effectively.
What is ‘unreasonable’ I hear you ask? There are some circumstances where an employee’s refusal to monitor, read or respond to contact will be unreasonable. If the contact or attempted contact is required by law, it would be considered unreasonable for the employee to refuse. If the contact or attempted contact is not required by law, certain matters must be considered when deciding whether the employee’s refusal is unreasonable.
When will an employee’s refusal be unreasonable
An employee’s refusal to monitor, read or respond to contact or attempted contact will be unreasonable if the contact or attempted contact is required by law.
If the contact or attempted contact is not required by law, considerations to determine whether the employee’s refusal is unreasonable would include understanding the reason for the contact and how it was made, particularly considering how much disruption it causes for the employee. Whether the employee receives any compensation within their employment contract to be available to work when the contact is made, or to work outside their ordinary hours. The role held by the employee and their level of responsibility, along with the employee’s personal circumstances including family or caring responsibilities.
There is an exemption from the right to disconnect from contact that is required under a law of the Commonwealth, State or Territory (e.g. some emergency services).
Tips for Discussing Workplace Changes
Open and regular communication is key to maintaining a work environment where everyone has a clear understanding of the expectations surrounding any new policies or legislative requirements. This can also help prevent any potential workplace issues from emerging.
Managers need to understand the workplace changes that will affect their employees and any of the practices currently in place. Organisations have an obligation to ensure changes are discussed, understood, and contextualised for their own environment. Whether you are a large organisation with your own HR department, or a smaller organisation with less formal support structures in place, the requirements and your liability remain the same.
Those with casual staff as part of their operating structure need to be on the front foot when it comes to the casual conversion pathway. This update has added further changes to the requirements for permanent transition options and it is important that when making workforce resource decisions you are aware of future obligations in relation to the workforce mix you are opting for.
If you currently engage independent contractors and you are not across the changes to the workforce definitions specifically regarding what constitutes an employee vs an independent contractor, it is important that you revisit this and ensure you are meeting your obligations under the Fair Work Act.
The right to disconnect is something that all non-small businesses need to be across. Organisations need to ensure they are training managers in relation to the obligations under the right to disconnect, and the importance of ensuring regular and open communication with team members about deadlines, workload expectations and working arrangements.
This should also involve reviewing employment contracts and policies to ensure they clearly outline expected working hours and the possibility of out-of-hours work. It’s important to discuss and set expectations around out-of-hours contact in a way that suits both the workplace and the employee’s role as both are responsible for ensuring an understanding when it comes to these changed regulations. Ideally, these conversations should take place before any out-of-hours contact occurs.
When someone might be expected to monitor, read or respond to contact.
Different roles within your organisation will have potentially different obligations when it comes to this so its important that you have thought about this in relation to roles and the responsibilities of these roles. A technical systems manager might need to take a call about a critical outage however they would not necessarily need to monitor emails. Your role as a manager is to think through what this means for the roles you are leading, then discuss and document these requirements.
Pay and conditions that may relate to out-of-hours contact
It is important to check the relevant award, enterprise agreement or employment contract for any entitlements that may apply.
Review cycle
This discussion should be had formally, and potentially conducted at the annual review process conducted within your organisation. Additionally, when employees shift into new roles this should be discussed to ensure understanding.
Internal policies, procedures and documentation
You should review your existing internal policies, procedures and documentation to ensure it includes any expectations regarding out of hours contact. This would include position descriptions.