ConnectOS Research Reveals Cybersecurity As Growing Offshoring Function

New ConnectOS research shows cybersecurity offshoring is becoming more important as Australian businesses respond to rising AI, security and compliance demands.

New research suggests cybersecurity offshoring is becoming a more important part of Australia’s offshore workforce. Businesses are increasingly moving specialised technology, security and compliance roles offshore as AI adoption and regulatory demands grow.

The ConnectOS State of Offshoring Report found that offshore work is also becoming more specialised. According to the report, 34% of employers said offshore roles had become more specialised during the past three years. Another 21% said offshore work had become more strategic or knowledge-based.

Customer support remains the most commonly offshored function. However, organisations are also building offshore capability across cybersecurity, technology and engineering, data and analytics, finance, marketing and HR.

Cybersecurity and compliance now account for 21% of the functions employers offshore. The shift reflects broader changes in how businesses structure technology-enabled workforces.

Cybersecurity Offshoring Grows Alongside AI Adoption

As organisations rely more heavily on AI-enabled operations, governance has also become a greater priority.

The research found that 79% of employers had experienced increased compliance expectations during the past three years. However, only 25% described themselves as very confident about their organisation’s current compliance position.

Almost three in 10 employers also remained unsure about which standards applied to their offshore operations.

These findings suggest cybersecurity offshoring requires more than simply moving technical roles overseas. Businesses also need clear governance, compliance controls and security practices that work across distributed teams.

Steve Evans, Founder and CEO of ConnectOS, said many organisations have moved quickly to adopt AI technologies but have underestimated the importance of developing workforce capability alongside them, like cybersecurity and governance.

“AI is accelerating the need for stronger governance. As organisations automate more processes and distribute work across global teams, technology and cybersecurity teams need confidence that security, compliance and workforce practices are evolving safely alongside innovation,” he stresses.

Cybersecurity Offshoring Changes The Workforce Model

The findings point to a new phase of digital transformation for Australian organisations.

Access to AI tools alone may no longer provide a competitive advantage. Businesses also need the people, governance, cybersecurity controls and operating models required to deploy those technologies responsibly at scale.

That challenge becomes more complex when businesses combine onshore and offshore teams. Security leaders need visibility into who can access systems and data, where that access occurs and which compliance requirements apply.

As cybersecurity offshoring expands, organisations will also need to ensure security practices remain consistent across locations and teams.

AI Requires Collaboration Across Business Functions

For Australian technology leaders, the report reinforces that successful AI adoption is no longer solely a technology initiative.

Technology, HR, risk, and executive leadership need to work together. Their shared priorities include building workforce capability, strengthening cybersecurity and governance, and deploying AI securely across integrated onshore and offshore teams.

As AI becomes part of everyday business operations, organisations will need to balance investment in technology with investment in people and security.

Businesses that develop these capabilities together will be better equipped to manage risk while scaling AI and offshore operations.

About The Research

The ConnectOS State of Offshoring Report: Workforce Findings 2026 is based on two surveys conducted in 2026.

The employer survey included 214 organisations using or considering offshore arrangements. Ninety-eight percent of employer respondents were headquartered in Australia.

The employee survey included 495 respondents from businesses using offshore workforce arrangements. Participants represented offshore, hybrid and onshore teams.

About ConnectOS

ConnectOS is a people-first offshoring partner that connects organisations with high-performing offshore teams that deliver world-class outcomes — consistently, securely and at scale.

They provide enterprise-grade security and compliance, end-to-end operational management, and a transparent business model that removes complexity and supports offshoring success.

Their people-first approach, attention to detail, and pursuit of excellence enable them to attract, retain, and empower top-tier talent to deliver high-quality results for organisations across the globe.

As a certified employer of choice with industry-leading ratings and thousands of pre-screened candidates, ConnectOS creates environments where employees thrive and clients unlock sustainable growth and exceptional results.