Over half (51 per cent) of all Australian businesses will look offshore for suppliers and customers within the next 12 months as the cost of doing business grows.

Research by Money Transfer Comparison found that as the cost of doing business in Australia increases, businesses could be forced offshore to seek resources or customers for their success or survival.

Russell Gous, Money Transfer Comparison spokesperson, said there are a number of benefits to outsourcing, such as saving on labour and supplier costs, entering less competitive markets, and increasing a business’s customer base.

“Businesses are proactive in finding solutions to maintain their competitive edge and financial security. Outsourcing could be a short or long-term solution for businesses mitigating increasing costs, as well as solving the skills shortage.”

Already, one third of Australian businesses have reduced spending on non-essentials and are making cost-saving adjustments for their business, according to a survey of 202 independent business owners and decision makers.

The categories in which Australian businesses would look at sourcing cheaper overseas products and services include software at 38 per cent, and IT hardware at 31 per cent. Manufacturing and labour were also significant proportions businesses would consider outsourcing at 30 and 29 per cent respectively.

“The data provides a comprehensive picture of how Australian SMEs will lean on offshore outsourcing to mitigate some local challenges. The significant trend points towards the need for outsourcing within the next 12 months, and the preference towards the tech industry reflects Australia’s shortage of skills in this area,” said Gous.

This article was first published by C&I Retailing

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