Fiji’s Outsourcing Services Journey

Fiji’s outsourcing services (OS) sector has transformed into a globally competitive industry in just five years. In 2019, the OS sector employed approximately 2,500 people. By 2023, employment had grown to over 5,000 people, 70 per cent of whom are women. On average, salaries are 56 per cent more than the minimum wage. MDF estimates that the sector could account for up to two per cent of GDP1 and is set to expand by at least 5,000 workers over the next ten years.

Fiji’s economy, particularly the tourism sector, was severely affected by COVID-19. However, the pandemic’s impact was felt earlier in major OS destinations like India and the Philippines than in Pacific Island Countries, creating an opportunity for the Fijian OS industry. Around the world, firms wanted to diversify their outsourcing options in response to uncertainty in established OS destinations. Fiji’s nascent OS providers were well positioned to capitalise on these changing market dynamics, acquire new clients and break into new markets. A pool of recently unemployed tourism workers with appropriate language skills and cultural affinity also became available to the OS industry.

Australia’s Market Development Facility (MDF) began working in Fiji’s OS sector in 2019. This study documents how the sector has changed over that time. It draws upon interviews conducted in October and November 2023 with more than 40 industry stakeholders in Fiji—including OS firms, government agencies and other industry organisations—and monitoring and evaluation data collected by MDF.