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Outsourcing Australia

Posted by graham on September 18th, 2013 in Insourcing Industry

In countries like Australia companies are finding ways to cut costs and have turned to outsourcing which is beneficial to companies, especially those which have functions that prove to be costly. Back-office jobs which include call centers, information processing, accounting, and legal work is now mostly being done out of the country. One of the top selected countries for these outsourced functions is the Philippines where the industry is booming with no signs of slowing down.

While it is true that in most economies unemployment is still a continuing and growing issue, companies claim that outsourcing and offshoring are still beneficial to the economy and not just businesses. While jobs are lost in Australia, companies can now invest in the higher-skilled jobs that will aid future growth.

Low Rates

The Outsourcing industry in the Philippines is estimated to be worth more than $13 billion a year, employing more than 750,000 people. Most of these employees have the right credentials and attitude and most importantly they are qualified and efficient when it comes to doing the work that they are tasked with. Part of the advantages of having the workforce located in the Philippines or other countries that cater to outsourcing functions is the fact that the costs would be slashed by nearly half of what it would have cost in the host country.

High-Skill Roles

While most functions of a company can be outsourced to the right provider, there are certain tasks that would not be able to be outsourced. The positions left behind, however, would be able to advance the company’s standing in the industry as they continue to focus on the more fundamental and important functions that can be improved further.

Outsourcing through time

Throughout history, replacing workers had been a trend especially when it comes to technological advancements.

An example of such an event would be those who worked as milkmen and wheelwrights in the past, both of those roles have been improved and automated in present times. If you compare the past and the present in terms of workforce, however, it is noticeable that despite the advancement and automation, the end result is an increase of employment instead of a decrease. The proof of this could be seen in Australia where the number of jobs available have grown 2% a year on average for decades.

In Australia the productivity measures are expected to rise. According to analysts, Offshoring would be a needed factor that will drive growth in earnings per share.