168/04
9 December 2004
Report Highlights On-shoring Opportunities
A new report released today confirms there is a significant opportunity for Australia to reap the economic rewards of the global trend of offshore outsourcing in IT, Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, said today.
The Australian Information Industries Association's (AIIA) report Status of Offshore Outsourcing in Australia shows it is at least 25 per cent cheaper to run a commercial undertaking in Australia than in many parts of the developed world.
Respondents to the survey also said the Australian industry boasts world class skills and experience and has a significant competitive advantage in higher-level software programming, a significant asset which will help attract business from both North America and Western Europe .
"Government will continue to work with industry to sell this message to the world through Invest Australia and AusTrade, particularly following the Australia-US Free Trade Agreement," Senator Coonan said.
The report's findings are consistent with the KMPG 2004 Competitive Alternatives Study , which ranked Australia as the best place out of 11 developed countries to base software development operations.
"The report shows that multinational software companies are also keen to explore lower cost outsourcing options in regional Australia before looking offshore and this is something that I will seek to discuss with the MultiPLIERS group when we next meet next year," Senator Coonan said.
"This supports the Government's view that the glass is half-full when it comes to outsourcing and that Australia has an attractive case to sell to the world to attract on-shore investment.
" Australia cannot take a protectionist stance on the issue of off-shoring and then expect to be a world leader in attracting investment to our shores. The best approach to the issue of off-shoring is to make Australia an attractive place to invest and bring the work here.
"An AIIA poll on off-shoring released in May this year showed that 83 per cent of companies preferred Australian providers to offshore options.
"The Government is working with industry to ensure that Australian software companies are positioned to take advantage of opportunities to win business, particularly in the provision of high end services."
Media Contact: Jane McMillan 0438 690 305