Posted on May 14, 2013 by Bhauvik Tripathi in Software Development
Outsourcing has affected many countries around the world whether it is through the loss of jobs or the gaining of jobs. Both ways, everyone is affected in some manner and so are their respective economies, but through effective planning, the negative impact of IT outsourcing in Australia has been minimal. As a result, it has been a positive influence on all parties involved.
It is said that IT outsourcing is becoming more stable in Australia. In the past, firms did not have an understanding as to what could be outsourced. This is not the case now. There are risks involved and these risks have been realised and so have the positive economical influences. If an Australian company lands a huge outsourcing deal, then that means more money going into the Australian economy. But one should keep in mind that IT outsourcing is not an effort to get large amounts of work for cheap labour. It is to increase efficiency, but not at slave wages.
In the not so distant past, Australia’s federal court made three significant decisions that could have had a huge impact on businesses that have been outsourcing some of their work in an effort to improve efficiency and reduce labour costs. Despite the increasing stability in IT outsourcing, the Australian government feelsthat there needs to be certain rules placed upon those outsourcing in order to get increased efficiency at reduced labour costs. The predicted result of these rules may either slow down or bring an end to using outsourcing as a means of reducing labour costs while increasing efficiency. This should have little impact on IT outsourcing in Australia since IT outsourcing relies more on supplier relationships abroad than seeking out labour in other countries.
Then too, you have to take into consideration that Australia’s outsourcing operations benefit the worldwide economy. By 2010, it is projected that Australia will spend $7 billion dollars on IT outsourcing. So far in 2007, Australia has spent $6.37 billion on IT outsourcing operations, which means that money has positively impacted the global economy. Still, despite these huge figures, IT outsourcing has saved firms substantial amounts of money in supplies and other materials needed to operate their business.
So as you can see, Outsourcing in Australia has its positive points and impacts on its economy. Through the improved planning and awareness of the risks associated with IT outsourcing, Australia has found a cost-efficient way of getting the things they need when they need them and without becoming subject to the government rules placed upon industries using outsourcing in a negative way, such as improving efficiency by reducing labour costs. With the IT industry growing in Australia and around the world, outsourcing not only benefits Australia, but it also benefits the global economy making the demand for such jobs to grow at incredible rates. In a world that is technologically dependent, it is very important that countries work hand-in-hand and provide each other with the necessary resources to ensure worldwide functionality.