Defying Gravity: The Impact of Offshoring on the Australian Economy

Surprising results identified within a survey have uncovered an interesting insight with regard to the perception of offshoring back office functions.

Offshoring as an Accepted Practice

What was once considered a controversial practice, not in line Australia’s best economic interests, is now seen as having a minimal effect on the economy.

This finding is in line with another industry report based upon the American market which stated that offshoring actually creates roles.

The survey, conducted with more than 100 small, large and medium businesses identified that over 65% felt that the practice did not negatively impact on the economy.

No negative impact on the Australian economy
Made a negative impact on the Australian economy

Offshoring is slowly being accepted by more businesses

The continued cost and regulation pressures on Australian businesses impacting their ability to grow and scale can be mitigated through the adoption of offshore teams.

The report identified that businesses can scale capacity and capability quickly through offshore teams without increasing their cost bases significantly.

With more and more businesses operating globally, adopting offshore teams allows for businesses to have teams operating 24/7, something generally not able to be achieved locally.

The role of Offshoring in the Australian economy

Ultimately, the growth of businesses locally is critical for the Australian economy to flourish, and as wage levels continue to rise, more and more businesses will offshore to offset these costs.

Until more effort is exerted in making the local business environment more cost effective, the use of offshoring and automation will continue to impact local hiring.

More and more businesses are opening up to the possibilities offshoring brings. For further reading on the perceptions of offshoring, download our report on the State of Offshoring in Australia today.

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