INSOURCES BLOG

The benefits of outsourcing admin and compliance work

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The Australian VET industry consists of a great variety of providers. Many small and medium organisations have a high degree of technical specialisation and service niche markets. These small and medium sized RTOs generally have professionals with many years of industry and vocational experience and passion for delivering high quality training and assessment. Now these RTOs are experiencing a substantial increase in compliance costs.

The current VET compliance framework represents a complex administrative burden and for some RTOs, the weight of such activities affects the admin-teaching balance. The cost of the systems and resources required to handle registration and compliance could exceed what the training produces and turn your valuable RTO into an unworkable business.

Today's regulatory approach focuses on paper-based evidence, which requires intense record keeping, and this increases the amount of administrative work. The administrative processes need to be dynamic so they can adapt quickly to changes in regulations and standards. This is far removed from previous audit processes that were classroom or workplace based. 

Compliance costs include fixed costs (admin infrastructure) and variable costs (record keeping and management of "training transactions"). In some cases, the volume of training delivered does not justify investment in setting up and maintaining computer-based Student Management Systems, a Document Management System, or paying a full-time professional to manage a broad scope of compliance work from academic staff competencies and currency management, assessment validation and moderations, to reviewing and updating policies and procedures.

A current trend is to outsource the compliance requirements. One of the reasons why this model is working is the ability for the consultant to share the fixed costs between different clients.

Consultants can help RTOs manage HR, student administration, Quality Management Systems, training resources, marketing, etc.

Insources Education offers different outsourcing approaches to meet the needs of different RTOs, from a project-based model (registrations, re-registrations, amendments to scope, installation of new systems, trainers’ professional development) to completely outsourcing the RTO's admin work.

We can help make your RTO more efficient and a 100 per cent compliant. Contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. to arrange a free consultation meeting.

Are you ready for the VET Quality Framework (VQF)?

  • Have you conducted an internal audit recently?
  • Are you validating and moderating your assessments periodically?
  • Are you reviewing your Training and Assessment Strategies and consulting with the industry periodically?
  • Do your trainers participate in relevant professional development activities periodically?
  • Are your policies and procedures reviewed periodically?
  • Does your organisation use the feedback gathered from students to improve its system?
  • Do you have a Business Plan?

THE BENEFITS OF OUTSOURCING WITH INSOURCES

  • Focus on Core Activities. In times of rapid growth, the back-office operations of a company will also increase. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made your company successful. Outsourcing those activities will allow refocusing on those business activities that are important (training) without sacrificing quality or service in the back-office.
  • Cost and Efficiency Savings. Back-office and compliance functions are complicated and if the size of your company is preventing you from performing them consistently and at a reasonable cost, then outsourcing will give you an advantage. 
  • Reduced Overheads. Outsourcing particular back-office functions, that have high overhead costs, will increase cost-efficiency and they can be moved easily. 
  • Operational Control. If you feel compliance costs are running out of control, consider outsourcing. In addition, your company will benefit from the experience, knowledge and skills that Insources Education will bring to your company. 
  • Staffing Flexibility. Outsourcing allows for the demands of seasonal and cyclical operations to be done when you need them, without you having the fixed costs required for a strong admin-compliance system. 
  • Continuity and Risk Management. High employee turnover adds uncertainty and inconsistency to your operations. Outsourcing provides a level of continuity to your company while reducing the risk that a substandard level of operation would bring to your company.
  • Develop Internal Staff. Outsourcing will bring people with the skills you need into your company. Your people can work alongside us to acquire the new skill set.

Insources Education can help you. Contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or call 02 8324 7462 / 03 8692 0004.

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  • Phone: 1300 208 774
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