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What are the impacts of outsourcing on employment in Australia today?

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seerboldly | Student, Grade 10 | Salutatorian

Posted July 27, 2013 at 9:06 AM via web

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What are the impacts of outsourcing on employment in Australia today?

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literaturenerd | High School Teacher | (Level 2) Educator Emeritus

Posted July 27, 2013 at 6:45 PM (Answer #1)

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According to an article published in The Sydney Morning Herald (on May 1, 2013), a very high percentage of Australian corporations are outsourcing their technical infrastructure. As of May 1, the article stated that 75% of Australian companies outsource their applications and 85% outsource their infrastructure. Additionally, studies show that the amount of outsourcing these companies engage in will increase as approximately 40% are looking to increase the amount of business they send overseas.

In an article published by ABC News (July 11, 2013), Australian unemployment has reached its highest percentage since 2009. Today, the unemployment rate is 5.7%. The percentage of Australians currently seeking employment is 65.3%.

While no exact reasons are given between the increased unemployment rate and outsourcing, one could assume that the loss of jobs to outsourcing has impacted the Australian work force. Inferring that the outsourcing impacts the work force, one can only assume that the unemployment rate will continue to increase. Given that only 22% of public sector and 29% of private sector companies and businesses will not outsource, the high number that will outsource can only increase the unemployment rate.

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