A highly educated population and a tech-savvy workforce hold promise for Australia emerging as one of the prime destinations for the BPO industry. Earlier the Indian industry had resounded with the announcements of a string of companies making way to its shore. Now the Australia outsourcing industry is in news often.
However, Indian lands have lost their sheen and the West appears to be looking farther West. The Australia outsourcing industry has captured attention with its low operating costs and the state-of-the-art infrastructure.
While China, Ireland and Philippines have been some of the other major players in this industry, Australia has sprinted ahead to ink its name as a prominent location for business process outsourcing. The country has sufficient liquid capital of its own as well as a well-experienced labor force. Australia is now a major source of high-value skills, which gives it an extra edge over the competition.
According to figures from the Australian Information Industry Association, more than 70 % of the country’s workforce is engaged in knowledge and service sectors. Half of the productivity growth in Australia is due to the communications industry.
The cultural harmony and political stability of the country have also been prime factors accelerating its ascent in the outsourcing world. The major BPO players in the country are currently operating in areas of equity market support, credit research services, and actuarial and insurance services. Apart from this, the outsourcing sector also covers retail banking, data warehousing, data mining, and CRM.
Financial services boost offshoring prospects
Australia is also a leading player in the financial service sector, which requires matured and strategic processes in place. The Australian government is also highlighting the country’s talent in the BPO sector.
Reports say that Invest Australia, the country’s national inward investment agency has attracted 289 successful investment projects worth $41.7 billion, which in turn created 21000 jobs and revenue of $8.1 billion in export earnings.
Invest Australia has 16 offices across the globe to aid global investment opportunities. The country boasts of a highly adaptive infrastructure making it the preferred BPO destination for many industries.
Some of the reputed financial players in the country include JPMorgan, Fidelity Investments, American Express, and Morgan Stanley. The critical role played by prominent financial services and IT operations in addition to a thriving corp of economic enterprises in Australia makes it an outstanding and reliable BPO destination.
Cost of services is a restrictive factor
When the cost of labor is considered, Australia may not be the best location. When compared to other countries like India, the cost of labor and infrastructure is high. However, in the present scenario, cost is not the sole factor that drives outsourcing.
Cultural differences, country risk, language and communications, geopolitical risk, infrastructure, and security of virtual and physical assets have also become the key considerations in choosing a service provider. It is anticipated that gradually these aspects will override the cost factor.
The Australia outsourcing industry has now emerged as a key player with low-risk and excellent infrastructure. All these factors along with the multilingual capability of the workforce will thrust the country forward to be a hotbed of outsourcing activity in the years to come.