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BLOG: Outsourcing needs a fresh approach to work

Mohit Sharma (via AFR) | July 16, 2013
There’s nothing new in offshoring; it’s been operating in one form or another for centuries. But new strategies have to be created.

These organisations are also generating employment opportunities in Australia, which are directly and indirectly employed at these emerging economies.

Currently the majority of Australian human capital, those workers who are trained and educated in Australia, get exported to destinations like Europe and the US, as there are no attractive opportunities for them in Australia. For example, there is only one major financial institution (Suncorp) in Queensland and the Northern Territory to provide limited opportunities. The government needs to formulate and design strategies to generate attractive opportunities to restrict brain drain. Outsourcing vendors should be given incentives to set up operations in Australia for high-end processes to serve onshore and offshore markets.

Of most importance is creating awareness in educational institutions regarding outsourcing concepts and related curriculum. Outsourcing is changing business and operating models around the globe and should not be opposed, or considered as negative, as it will result in a jobs loss.

We should look at the positives: that it generates wealth for the stakeholders of organisations offshoring. Australia, a low population country, needs to use its human resources best by offshoring low-end jobs to move itself up the value chain.

Even outsourcing vendors such as IBM are rationalising their onshore staff and moving jobs offshore from Australia. IBM is now one of the top three largest employers in India. Outsourcing would increase, and jobs would be lost whether the Australian economy grows or slows down. We have to work on strategies to create new employment opportunities and move up the value chain.


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