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Survey finds BPO a mystery to Australian firms

20.12.2005
The majority of Australian businesses in the private and public sector lack the ability to link outsourcing with business growth and instead use outsourcing only as a cost-cutting measure, according to a new survey conducted by business process partnering company United Customer Management Solutions (UCMS).

According to the survey of 134 large Australian companies, titled the 2005 BPO Barometer, only nine percent understood the term business process outsourcing and a further 54 percent indicated cost reduction and finances are the key focus when selecting an outsourcing provider.

John Paddick, CEO of UCMS said Australians are working in an environment of 'business Darwinism' where only the fittest and most sound will survive.

He said this more evident due to Australian businesses only taking a cost cutting approach to outsourcing and not using a sustainable long term approach.

"Unlike mature international business markets in the U.S., Europe and the U.K., Australian private and public sector organizations are continuing to adopt a siloed cost-cutting approach to outsourcing," Paddick said.

"From the results of the 2005 BPO Barometer, it's hard to understand why Australian companies are not across the benefits of turning business process over to firms who specialize in taking the pain out of non-core business process management."