How outsourcing can help transform NDIS plan management in Australia

The NDIS has become one of Australia’s largest and most complex social reforms - supporting more than 700,000 participants and costing around $44 billion AUD annually. While the scheme has delivered life-changing outcomes, its rapid growth has created significant operational challenges for providers - particularly in plan management.

Plan managers play a critical role in helping participants navigate budgets, process invoices and maintain compliance. But recent studies show that up to 40% of their time is consumed by administrative work*, while more than half of NDIS providers reported operating at a loss in 2023-24. Rising compliance demands, workforce shortages and rate stagnation are straining the sector, with many leaders questioning how to balance efficiency, quality and sustainability.

One emerging strategy is outsourcing to offshore teams in the Philippines. More than a cost-cutting tactic, outsourcing certain plan management functions - from claims processing to IT support - can give providers breathing room to focus on participant outcomes, while maintaining compliance and financial sustainability.

Why plan management is under pressure

• Growth at scale: The NDIS has witnessed rapid expansion - to over 661,000 participants in 2023–24 and with expenses around $41.85 billion AUD. Projections suggest this could increase to over 1 million participants and $92.7 billion AUD in spending by 2033–34. This frenetic pace has far outstripped provider capacity. Many plan management teams face bottlenecks - processing tens of millions of payment requests annually - which leads to delays and administrative overload.

• Compliance and oversight: On the regulatory side, the National Disability Insurance Agency (NDIA) is investing heavily in compliance with more than $495 million being allocated from 2021 - 22 to 2028 - 29 to strengthen anti-fraud and non-compliance measures. In addition to this, the budget for boosting fraud detection and compliance enforcement was increased by $175.4 million AUD over four years. This reflects a tightened audit environment where even minor errors can result in payment delays, clawbacks or reputational damage.

• Financial stress: Financial pressures are mounting. A provider benchmarking report from StewartBrown found that over 55% of NDIS providers operated at a financial loss in 2023–24. This pressure is testing the sector’s sustainability and funding is not keeping pace with rising administrative complexity.

• Workforce challenges: Like many other industries, sourcing qualified finance and administrative staff remains an uphill battle. This labour crunch affects crucial admin roles - like invoicing, claims processing and compliance - which in turn delays service and raises error risks. As a result, smaller providers in particular, are struggling to both fill and retain key roles.  

Faced with rising demand, tightening compliance, financial strain and workforce shortages, NDIS plan managers need new ways to create capacity and stability - and outsourcing has emerged as one of the key strategic levers to relieve pressure without compromising participant outcomes.

Outsourcing as a strategic lever

For NDIS plan managers, outsourcing is no longer just about cost reduction. When designed thoughtfully, it can act as a strategic lever that addresses systemic pressures while strengthening operational resilience. Outsourcing can help: 

• Relieve the administrative burden: back-office workloads -  from invoice processing to reconciliations and compliance reporting - consume a significant amount of a plan manager’s time. By shifting these tasks to an offshore team, providers can free their local staff to focus on higher-value, participant-facing work. 
• Improve compliance and accuracy: as NDIA audits and oversight increase, accuracy is critical. Outsourced specialists trained in healthcare billing, financial controls and modern digital platforms bring the rigour needed to minimise errors.
• Stabilise operations and build continuity: local workforce shortages and high turnover make it difficult to maintain stable delivery. Outsourcing provides access to a larger, sustainable talent pool, reducing dependency on limited local hiring markets.
• Create financial headroom to reinvest in services: with up to 70% cost savings compared to hiring locally, outsourcing can relieve financial strain on providers. These savings can then be reinvested into direct participant services, innovation, or scaling frontline capacity.
  
  

Most importantly, outsourcing does not mean handing over control - modern delivery models allow providers to maintain oversight while external partners handle repeatable, process-driven tasks.

What roles and functions make sense to outsource?

Outsourcing to the Philippines allows NDIS providers to access skilled talent across a wide range of functions while keeping costs sustainable and operations efficient. Below are some of the most common functions to outsource:

• Claims and invoicing: plan managers process thousands of claims monthly, each bound by NDIA rules. High volumes increase the risk of costly errors. Outsourcing helps speed up processing and improves accuracy.
• Financial reconciliation and reporting: reconciliations and reports are compliance-critical but time-consuming. Offshore specialists can handle the detail-heavy work, giving local teams more capacity for governance and decision-making.
• Data and IT security: with NDIA tightening oversight, safeguarding participant data is essential. Outsourcing IT and security functions provides access to enterprise-grade protections without heavy internal investment.
• Administrative support: routine admin tasks like data entry, scheduling and inquiries pull staff away from participants. Delegating these functions offshore frees local teams to focus on client care and outcomes.
• Compliance officers: ongoing audits and NDIA oversight require dedicated compliance capacity. Outsourcing compliance officer roles allows providers to gain access to trained professionals who ensure records, reporting and processes meet regulatory standards without overburdening internal staff.

Three things to consider when outsourcing plan management

Before outsourcing, NDIS providers should look beyond cost savings and assess the foundations that ensure quality, safety and continuity:

• Data protection: ensure your partner meets Australian privacy standards, NDIA compliance, and global benchmarks (e.g. GDPR). Look for enterprise-grade security, encryption and vetted staff.

• Cultural fit: participant-facing roles require empathy as much as skill. Choose a partner that handpicks talent for cultural alignment, not just technical ability.

• Change management: transitioning processes offshore requires planning. Opt for providers with structured onboarding, flexible delivery models and strong governance frameworks.

The right outsourcing provider can deliver all three - combining robust security, culturally aligned teams and structured change management -  so NDIS plan managers can focus on participant outcomes with confidence.

Looking ahead: what does the future hold for plan managers

As the NDIS matures, the question for plan managers is not whether to seek efficiency gains, but how to do so without compromising participant outcomes. Outsourcing, alongside automation, workforce planning and process redesign, is one strategic lever that providers can pull to stay sustainable in an increasingly competitive and challenging landscape. 

By exploring outsourcing models, NDIS leaders can unlock new capacity - not just to manage the scheme’s growing administrative load, but to refocus their people and resources on what matters most: delivering better participant experiences. 

Outsourcing is not a silver bullet, but when paired with strong governance, the right delivery model and a clear focus on compliance, it can help providers reclaim time, reduce risk and create space for sustainable growth. 

Providers like Sourcewiser are demonstrating how modern outsourcing approaches - with curated talent, flexible pricing and a retention-focused culture - can be designed to complement NDIS operations rather than disrupt them. Download our free guide to explore the top tasks you can outsource, the benefits to expect and a quick self-assessment to see if your organisation is ready to take the leap.