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Australian ICT Services Market in the Eyes of a Chinese BPO
Longhaus, March 2009, Pages: 9
The two most attractive offshoring locations for ITO and BPO, according to global consulting firm AT Kearney, are India and China. However, this regional trend does not hold in the Australian ICT services market. Although Chinese services firms have obtained around 4.4% share of the global services outsourcing marketi, Longhaus’ recent study indicates a close-to-nil presence in Australia. While the growing deal count for Chinese BPO firms in North America should offset doubt surrounding technical and language skills, it seems that Australian businesses are yet-to-be convinced by the cheaper and qualitative Made-in-China BPO service. Since 2007 Longhaus has produced a series of reports on the current status of local ICT services providers and offshore professional service firms. The findings of this report are derived from both primary research including past reports, and surveys, media analysis, and a comprehensive review of secondary research resources including outsourcing industry reports. Longhaus assessed the opportunity that the use of Chinese services firms offered as an alternative strategy to Australian businesses seeking BPO services.
With much of the country’s ICT hardware and software infrastructure developed in international markets Australia has emerged as a leading ICT services consumer and major market in the Asia Pacific region. In 2009 Longhaus profiled the supply and demand sides of the AUD$12-16 billion Australian ICT services market which today is shared by entrenched global companies, local services companies, and offshore Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) firms. Among them, the Indian services hydra is rising by moving onshore, yet Chinese BPO firms are as yet nowhere to be seen in the local picture. As well as the cost-effectiveness of key BPO service categories such as financial services, application development and maintenance, and document handling services Australian businesses should consider the potential opportunity Chinese firms present when selecting a BPO service provider. This study provides a unique perspective on the eco-system of the Australian ICT services market through an in-depth comparative analysis across global companies, local service companies, Indian and Chinese BPO firms in terms of market position and service cost-effectiveness.
- Neusoft Group