Quicklink to Industry Survey on outsourcing activities of Australian organisations conducting life, superannuation and funds management business.

Quicklink to "How to make the outsourcing decision" arcticle from Investor's Advisor.

FIRST THE GLOBAL TRENDS

The 1998 Dunn & Bradstreet Barometer of Global Outsourcing reports that:

• Spending will increase by another 27% this year alone
• Similar studies project the U.S. market to top $US 300 Billion by the year 200
• Growth rates around the world are even faster than those in the U.S.

And just look at the list of benefits you gain by outsourcing work or even entire functions:

• Existing work is not disrupted or derailed
• Avoids conflicting priorities of internal resources
• Frees senior & line management to concentrate on strategic issues
• Keeps productivity objectives on track in periods of frozen staff levels
• Removes the need to advertise, interview & train a permanent resource
• Reduces the payroll - no recurring costs of permanent staffing
• Replaces permanent staffing issues - annual leave, payroll tax, training, workers compensation insurance, superannuation, sick leave and avoids redundancies & retrenchments!
• Gives an immediate kick-start to a project, no lead up training - "hits the road running"
• Maintains control of the project (and its timetable) in house
• Offers a fresh and objective approach to the project
• Ensures complete focus stays on the project
• Opens a window to new views, outlooks, opinions and ideas from qualified and experienced specialists who know the market
• Provides services on an "as-you-need-them" basis
• Guarantees "after-sale" support

The 1999 Outsourcing World Summit, held in Las Vegas identified:

• Clearly Outsourcing 's growth is nothing short of phenomenal
• As the amount of outsourcing explodes, so do the reasons for it
• Outsourcing has become a powerful strategic tool for increasing speed to market
• Focusing on internal resources on the highest value-creating activities
• Improving the quality and information flow around key business processes
• Addressing a growing skill and labour shortage.

It can now be stated with certainty that outsourcing success is key to economic success.

THE AUSTRALIAN PERSPECTIVE

".... Outsourcing is not really new......... What managers are doing is displacing the risk..." Stephen Long-AFR 16/04/1998

"... a new outsourcing era is taking off… Financial Services lag behind the sectors of engineering, labour and manufacturing when it comes to outsourcing. But they are rapidly catching up..…." Sonia Syvert-AFR 16/04/1998

There is no doubt that Australian business has accepted Outsourcing as an effective management tool and that the practice is being adopted increasingly in all spheres of industry.

Two separate surveys conducted by the PA consulting Group and by Citibank last year confirmed that on a national scale, we are embracing Outsourcing services.

In April 1998 the Australian Financial Review published a Special Report that included some of the findings of these two Outsourcing surveys.

Apart from indicating that the financial services sector is catching up to the other sectors, no specific comment or observations were made about the Life & Superannuation Industries in the AFR Report.

OUR INDUSTRY

In February and March 1999, PVE Actuarial Services and LSOS conducted jointly, the first study and survey into outsourcing activities by organisations conducting Life, Superannuation and Funds Management business, which confirmed that industry outsourcing activities mirror the Australian and global trends. For details please go to Industry Survey.