The Changing Face of the Virtual Assistant Industry

The Virtual Assistant (VA) industry has come a long way and changed a lot in recent years, particularly with the rise of remote work and work-from-home setups. With more businesses operating virtually, the demand for VAs has skyrocketed, changing how we think about employment and opening up new opportunities and challenges for everyone involved.

I’m going to explore how the VA industry is evolving, the pros and cons of hiring VAs locally versus internationally, and whether a local VA is really just another contractor.  Is our terminology changing too?

We’ll also explore how VAs are becoming more mainstream, even in larger corporations.

What Exactly Is the VA Industry?

Before we dive into how things have changed, let’s clarify what we’re talking about. Virtual assistants (VAs) are remote professionals who provide business support services from their own location – whether that’s their home, a co-working space, or an office like ours at Virtual Done Well.

The VA industry encompasses the entire ecosystem: independent VAs working directly with clients, VA agencies that match businesses with skilled assistants, online platforms like Upwork and OnlineJobs.ph, and the millions of businesses worldwide that rely on these services.

VAs handle the tasks that keep businesses running but don’t necessarily need someone physically present.

The most common services include administrative support (managing emails, scheduling, data entry), customer service (responding to inquiries, processing orders), bookkeeping (invoicing, expense tracking, basic accounting), digital marketing (social media management, content creation, email campaigns), and increasingly, specialized technical work (website maintenance, graphic design, market research).

A good VA essentially becomes an extension of your team – they just happen to be working from Manila, Delhi, Davao (where Virtual Done Well headquarters are situated), or wherever they’re based. The industry has grown from simple task outsourcing into a sophisticated global workforce solution, with VAs now handling everything from basic admin to complex project management and strategic business support.

The Rise of Remote Working and Its Impact on the VA Industry

Initially, VAs were the go-to support option for digital nomads and startup entrepreneurs. Over the past few years, businesses have undergone a fundamental shift in how they think about work location and team structure. Companies discovered they could reduce overhead costs significantly while accessing talent anywhere in the world. Technology improvements made remote collaboration seamless, and businesses realized that many roles simply didn’t require physical presence in an office.

This evolution naturally expanded the VA industry, as businesses started prioritizing specialized skills over geographic proximity. Why limit yourself to local talent when you can find the perfect specialist halfway across the globe?

According to recent data, the global VA market reached $6.37 billion in 2024 and is growing at a 28.3% annual rate. It’s expected to hit $15.88 billion by 2028. There are now 40 million VAs worldwide, with demand surging 35% in 2024 alone.

We really started to see a more blended workforce emerge that challenged our traditional approach to staffing. The old model of everyone in the same office from 9 to 5 gave way to flexible arrangements that actually improved productivity. Australian businesses have adapted particularly well, with 97% of organizations now offering flexible work arrangements and 36.3% of Australians working remotely.

VAs have always handled everything from admin tasks and customer support to digital marketing and niche consulting. But their role has expanded significantly. They’re now integral team members who participate in strategic planning, manage complex projects, and even lead other remote workers.

Their flexibility and scalability have always made VAs attractive for startups and established businesses, but the VA industry has become essential infrastructure for modern business operations, helping companies of all sizes operate efficiently across time zones and borders.

From Startups to Mainstream: The Growing Popularity of VAs

VAs a decade ago were almost exclusively supporting startups and entrepreneurs looking to get the most bang for their buck without hiring full-time staff. These smaller businesses and solo entrepreneurs loved the idea of outsourcing admin and support tasks, allowing them to focus on growing their businesses. VAs offered the agility and flexibility needed to scale up quickly.

But things have changed. VAs are now becoming mainstream, with larger companies starting to see their value. While VAs are still more common in smaller firms, big corporations are beginning to use them more and more. Today, 70% of medium to large enterprises utilize virtual assistants, with 49% of companies over 1,000 employees actively employing VAs.

At Virtual Done Well, we’ve seen increased demand for VAs from the corporate sector. Particularly in areas such as accounts and customer service. The shift is dramatic – 69% of Fortune 500 companies have now integrated Microsoft 365 Copilot, showing enterprise-level commitment to AI-enhanced virtual assistance.

Corporate Adoption of VAs: Roles and Applications

Larger organizations are starting to use VAs in a range of roles. Here are some areas where VAs are making their mark:

1. Administrative Support: VAs help with scheduling, email management, travel arrangements, and other admin tasks, freeing up executives and teams to focus on bigger picture stuff. A VA is perfect for the role of Personal Assistant or Executive Assistant.
2. Customer Service: Many companies outsource customer support to VAs who handle inquiries, solve issues, and provide information to customers. They often work in multiple languages and across different time zones. This is probably a more traditional use of VAs that we’re familiar with in large telco call centres, often based in India or the Philippines.
3. Digital Marketing: VAs skilled in social media, content creation, and SEO are now helping larger businesses boost their online presence and reach target audiences more effectively. Research shows that 40% of digital marketing agencies now use VAs for campaign management.
4. Data Entry and Management: VAs manage data, conduct research, and keep databases up-to-date, ensuring accurate information. Companies report 40% reduction in processing time with dedicated VA support.
5. Project Management: Experienced VAs can be seen overseeing projects, coordinating tasks, and managing timelines, providing valuable support to project managers and teams.
6. Specialized Roles: Some organizations are hiring VAs with niche skills, like graphic design, software development, or legal research, to meet specific project needs.

Employing VAs in these roles helps big as well as small companies stay agile and responsive in a fast-changing business environment. Outsourcing certain functions lets them cut costs, boost efficiency, and access a wider range of talent.

Hiring a VA: Local vs. International

When it comes to hiring a VA, businesses often weigh the pros and cons of hiring locally versus internationally. Each option has its own set of advantages and disadvantages.

Pros of Hiring a Local VA:

1. Cultural and Language Familiarity: Local VAs know the cultural nuances and language, so communication is a breeze.
2. Time Zone Alignment: Working in the same time zone means real-time collaboration and quicker responses.
3. Legal and Regulatory Compliance: Hiring locally simplifies legal and tax issues, so you’re compliant with local laws.

Cons of Hiring a Local VA:

1. More Expensive: Australian VAs charge $35-50/hour for general admin work, and $50-200/hour for specialized services.
2. Smaller Talent Pool: The talent pool is smaller, especially for niche skills, so less choice.

Pros of Hiring an International VA:

1. Cost Effective: Philippines VAs charge $5-8/hour, Indian VAs charge $2-5/hour, that’s 70-83% savings.
2. Diverse Skill Sets: Access to a global talent pool means you can find VAs with specialized skills that may not be available locally.
3. 24/7 Availability: VAs in different time zones can provide round the clock support, so you can operate 24/7.

Cons of Hiring an International VA:

1. Cultural and Language Barriers: Cultural and language differences can cause misunderstandings.
2. Time Zone Differences: Coordinating work across different time zones can be tricky and cause delays.
3. Legal and Security Issues: Navigating international laws and ensuring data security is more complex when hiring overseas.

Are Local VAs Just Contractors?

A common question is whether hiring a local VA is just like hiring a contractor. While there are similarities, some key differences exist.

Both VAs and contractors offer specialized services on a contract basis, or more commonly now, a fixed salary arrangement, perhaps through an offshore office or local agency like Virtual Done Well. But this may be without some of the perks of local/traditional employment.

The real difference comes down to integration and relationship. My experience has shown that successful VA relationships go far beyond transactional contracting. VAs become genuine team members who understand your business culture, processes, and goals. They’re not just completing tasks – they’re contributing to your business growth.

Legal and tax considerations also differ depending on the VA’s work location and employment model. The dedicated monthly model has become most popular at 53.5% market share, providing consistency and relationship development that simple contractor arrangements often lack.

So Where is the VA Industry Headed?

The VA industry is changing fast, driven by the rise of remote work and the growing demand for flexible, cost-effective solutions. What started as a trend among startups and entrepreneurs is now becoming mainstream, with larger businesses jumping on board.

Market projections show the industry reaching $19.5 billion by 2025 and $55.4 billion by 2035. The healthcare sector alone is growing at 33.24% annually, while 18% of healthcare institutions already use VAs for administrative support.

But I think it’s all wrapped up in the changing face of our workplaces and work culture. I’ve always disliked the term VA as I don’t think it really encompasses what a VA/client relationship can or should be.

My VAs are just part of my team like anyone else. An integral and very important part of the team, who have tasks and responsibilities, and degrees of autonomy and authority just like anyone else.

I think of them just as team members who are working remotely, like many of us do. They just live in another country, have much better language skills than me and some unique skills that I will never master.

The industry terminology is already evolving to reflect this reality. We’re seeing new titles like Digital Operations Specialist, Virtual Business Partner, and Remote Administrative Professional. Professional associations like the International Virtual Assistants Association (IVAA) and the Society of Virtual Assistants are establishing standards and certifications that elevate the profession.

For Australian businesses considering VAs, the opportunity is clear. With 83% of Australian companies planning to hire international remote employees within the next 12-18 months, and businesses reporting up to 78% cost savings with 35% productivity improvements, the question isn’t whether to hire VAs, but how to do it right.

Whether you choose a local VA for cultural alignment or an international VA for cost efficiency, the key is finding the right match for your business needs. Companies like Virtual Done Well specialize in making those matches, offering office-based VAs from the Philippines starting at $725 USD monthly with no lock-in contracts.

The future of work is here, and VAs are an integral part of it. They’re not just assistants anymore – they’re team members, partners, and essential contributors to business success. The businesses that recognize this and adapt accordingly will be the ones that thrive in our increasingly digital, distributed world.