An interesting article where the banks, insurance companies, telcos, and IT organisations are now outsourcing a lot of the back-end functions. See the article below.
http://www.smh.com.au/business/offshoring-high-price-of-low-cost-20120127-1qlot.html
I agree with Jeff Kennett in the article where Australians are pricing themselves out of the market. In a way it is good that the Outsourcing is happening now...as if it is left too late and wages get out of control the impact later on will be greater. Particularly, if there is not as much as mining revenue to soften the blow.
Whilst, this will be painful...it will be good to nip this in the bud.
Before people jump on me...I work in IT and I can see at the coal face that is hard for companies to make a buck on professional services. The labour costs here in Australia are now among the highest.
For example an average IT project manager makes a about $130k which is about 85k pound sterling or 106k euros. The same positions in the UK are about 55-60k sterling or 70-80k euros. So something needs to change if we are to maintain our continued prosperity.
My view is that the Lower North Shore, Nothern Beaches, and parts of the Eastern suburbs of Sydney are going to have higher than normal unemployment rates shortly. Potentially, this is also going to impact rents. Funnily enough the Western suburbs is going strength to strength.
http://www.smh.com.au/business/offshoring-high-price-of-low-cost-20120127-1qlot.html
I agree with Jeff Kennett in the article where Australians are pricing themselves out of the market. In a way it is good that the Outsourcing is happening now...as if it is left too late and wages get out of control the impact later on will be greater. Particularly, if there is not as much as mining revenue to soften the blow.
Whilst, this will be painful...it will be good to nip this in the bud.
Before people jump on me...I work in IT and I can see at the coal face that is hard for companies to make a buck on professional services. The labour costs here in Australia are now among the highest.
For example an average IT project manager makes a about $130k which is about 85k pound sterling or 106k euros. The same positions in the UK are about 55-60k sterling or 70-80k euros. So something needs to change if we are to maintain our continued prosperity.
My view is that the Lower North Shore, Nothern Beaches, and parts of the Eastern suburbs of Sydney are going to have higher than normal unemployment rates shortly. Potentially, this is also going to impact rents. Funnily enough the Western suburbs is going strength to strength.