Offshoring in Australia gains momentum

Australia appears to be behind the US in terms of offshoring and even behind Europe. But now, apparently, momentum is gaining, according to a new report.

"The substantial cost savings offered by going offshore - between 25 and 60 per cent - meant that it was now necessary for Australian companies to consider a global sourcing strategy or risk losing businesss." It is said, in addition, that "Australia could not afford to take a protectionist stance on offshoring if it wanted to attract investment locally."

This might be a chance for countries like Malaysia or the Philippines to capture the demand from Australia. Both vy for a top position in the global offshoring market, however, India is still the preferred choice for many organisations. But this might change over the years, since the growth in India also leads to other challenges in that country as well.

(By Asia Business Consulting)