BCA paper says effects of outsourcing positive for Aust

15/7/04:

The trend towards offshoring IT and other services would have largely positive implications for Australia's economy, according to a new report by the Business Council of Australia (BCA).

The BCA position paper, released Wednesday, said offshoring was simply the latest phase of the globalisation process, which had already benefited Australia greatly.

BCA president Hugh Morgan said concerns over job losses would inevitably be raised, but Australia could not ignore the benefits of outsourcing from low-cost providers.

"While we should not discount the costs involved with adjusting to these changes, we cannot afford to turn our back on offshoring as a new source of opportunity and competitiveness for Australian-based businesses," he said.

The paper said outsourcing was unlikely to lower Australian wages in the long-term, with evidence from the past 20 years suggesting that global competition has increased skill levels.

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