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AU Companies Turn to Outsourcing for Growth

by: Sarah Joson

Thursday, May 31, 2012 | Outsourcing News |

As the effects of the recent economic downturn continue to plague Australia, top business executives shift focus on innovation, streamlining business processes, and upgrade of IT functions to drive growth.

A research from leading market consultancy firm IDC states that the ability of companies to keep up with the latest technological trends in the market is crucial in today’s fast-paced business environment. IDC Australia’s Senior Market Analyst Raj Mudaliar said another strong point that business leaders should look into is customer support to reinforce retention, centricity, and client base to keep the business going.

IT outsourcing services market in Australia projected to reach $9.5B by 2016

He adds that the IT outsourcing (ITO) services market in Australia was valued at $7.3 billion in 2011 and accounted for majority of the entire IT services market. It is also projected to reach $9.5 billion by 2016 with a compound annual growth rate (CAGR) of 5.4 percent for 2012-2016.

On the other hand, Mudaliar said the infrastructure services outsourcing (ISO) market was propelled by long-term cost saving goals, simplified IT infrastructure, as well as access to the latest technological advancements and talent pool with technical skills.

Other factors that are seen to affect Australia’s business environment are the looming economic challenges in Europe as well as the recession in the US and its effects on China which is the largest trading partner of Australia.

The IDC study also shows that the increase in labor and operational costs, tapping new customers, and penetrating new markets are the main concerns of Australian businesses in 2012-2013. Moreover, IDC shares that the concerns of CIOs for 2012 are consistent with their report which are lower costs of infrastructure, partnerships, and stricter IT environment.


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