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An Expert's View about Outsourcing in Australia

Posted on: 19 Apr 2010

Australia already has plenty of iconic commodities exports, writes Ian Murray, so it’s time the service sector made its mark

opinion World-class service Australia already has plenty of iconic commodities exports, writes Ian Murray, so it?s time the service sector made its mark eople argue that the future of would be nice to have.? This is important where experience in many aspects is world?s Australian export growth is in to the services sector and our two biggest best practice, and mining services, which Pservices. That?s probably true, but it earners?education and training?and in recent years has developed substantially is also true of a lot of mature economies. inbound tourism. If commodities prices alongside the mining boom. Services represent about 22 percent of all decline, a lower dollar is likely to result and To stimulate the sector, it?s often argued export earnings, probably well understated. these two big contributors to the services that services needs its own export scheme It?s easy to record the volume and value sector will do better. If anyone can afford to and specialised training programs. To some of export sales of manufacturing, as run international conferences, Australia will extent this is true, but with # percent of the customs monitors all consignments, while be more attractive as a location. Export Market Development Grants Scheme agriculture and minerals reporting are both Second, the credit crisis; the aftermath already going to services, there isn?t a strictly controlled. But the services sector is of a crisis usually heralds the rebirth in strong argument for another program. And so broad and the players so many, it?s very regulation. This is what happened after while some aspects of exporting services difficult to measure accurately. the ?Asian Meltdown?, and it will happen are different to exporting products, much In terms of how we fare in exporting again. With a well-regulated finance and remains the same, especially the big-ticket services, a study undertaken by the Business investment sector, Australia is well placed items like working with a different culture, to capitalise on what has negotiating with a partner and managing occurred throughout risk and money. As a result, training ?There is considerable the world. In areas such exporters in these services remains very scope for services as banking, financial much the same. planning and insurance, One way of moving forward is to exporTs To increase? we have a competitive build relationships with associations that Council of Australia in 2007, Underserviced: advantage. Linked with a lower dollar, now represent various players in the services Why Australia?s Services Economy Deserves is the time to strike. sector. These organisations are good at More Attention, reported the Australia?s The longer term is a bit different. In his representing their industry, but not all that share of the global services markets declined Review of Export Policy and Programs, David experienced at exporting. Working with from 1.54 percent in 1996 to 1.15 percent Mortimer argued, ?the large proportion of them in the development and delivery of in 2005, at a time when the market was the Australian economy that is comprised of programs that demystify the export process growing at 10 percent a year. Clearly we services suggests that there is considerable is not a bad place to start. From there, a can do better. The question is ?how?? and scope for services exports to increase?. We range of activities can begin to flow, the ?is now the time?? need to reduce our reliance on the two focus of which would be to encourage Now is probably not a bad time. First the big earners and spread the net wider by more of their members to export and drive dollar; the press have asked what impact focusing our attention on developing other business growth. the falling Aussie dollar will have on exports. sectors, particularly those sectors where we My stock answer is: ?A falling dollar is have or can get a competitive advantage. ? IAN MURRAY welcome, but what?s even more welcome Again, financial services come to mind, as Executive Director from an exporter point of view is stability, does sport and its affiliations, including Australian Institute of Export and a dollar that?s sits at around the mid- training, psychology, physiology, dietary seventy cents mark for two or three years and architecture. And, of course, agriculture 10 december/january.09
Posted: 19 April 2010

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