Off-Shore Outsourcing: Reap The Benefits But Avoid The Perils

Outsourcing business functions to lower cost countries is no longer optional for many businesses - it is a commercial imperative to stay competitive. But there are many pitfalls for the unwary.

The upsurge in outsourcing to other countries shows no signs of abating. In fact, the recent media frenzy over 'off-shoring' is evidence the practice is growing rapidly and is now creeping into new business areas like human resources, finance and legal services

Late last year, Qantas chief, Alan Joyce, made headlines for his alleged plans to restructure Qantas and locate its engineering and maintenance operations in Asia. And, earlier this year, three of the four major retail banks (Westpac, NAB and ANZ) were reported to be off-shoring jobs to Asia. The Sydney Morning Herald reported that ANZ is planning to off-shore at least 1000 roles ranging "from analysts and 'collections associates' (debt collectors) to a health and wellbeing consultant..." to the Philippines.