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OUTSOURCING CONUNDRUM 2020
Pre COVID 19
There had been a global upsurge in outsourcing, as a means to cut costs and increase profit margins. It
gained grounds as an effective tool to expand and grow. Start-ups, big and small businesses have been
taking advantage of outsourcing to supplement and fill the in-house gaps.
The major Australian companies that have been relying on Outsourcing are:
1. Wesfarmers
2. Woolworths
3. Westpac
4. Rio Tinto
5. Telstra
6. Trans urban
7. BHP
8. Brambles
9. Amcor
10.Qantas
11.Commonwealth Bank of Australia
12.Optus
Post COVID -19 Scenario Forecasts and Facts
The unemployment rate is likely to rise up to 15% and could take up to 9 years to
recover.
Chart 1: Australia may face its worst unemployment rate since Depression :
Chart 2: Unemployment rises quickly in recessions, but takes a long time to come down:
Chart 3: The IMF predicts the Australian economy will
face its worst year since the Great Depression
Based on the above Charts, Post COVID-19 scenario of Outsourcing and its impact on the economy can be summed up as follows:
Conclusion
In addition to the above, not undermining the associated hidden costs of security
risks, loss of control, reduced quality control to risk of public backlash with
outsourcing, local hire is the way to move forward, for sustainable growth. Economic
growth and Business growth are correlated. Australian businesses could consider
sustainable growth as the key goal instead of profit maximization. More so,
outsourcing will eventually lead to the businesses downfall, due to the lack of local
demand. Australian Government must reconsider their outsourcing policy to support
local employment more effectively. Most businesses, amidst COVID crises, have
requested the pay cut of their employees by 10% to 20%, which the employees
readily agreed to, understanding that there was no choice. With wages no longer
being sticky, it is ideal to shift back to the local employment and boost the economy
with sustainable-self-reliant growth.

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Outsourcing conundrum

  • 1.
  • 2. OUTSOURCING CONUNDRUM 2020 Pre COVID 19 There had been a global upsurge in outsourcing, as a means to cut costs and increase profit margins. It gained grounds as an effective tool to expand and grow. Start-ups, big and small businesses have been taking advantage of outsourcing to supplement and fill the in-house gaps. The major Australian companies that have been relying on Outsourcing are: 1. Wesfarmers 2. Woolworths 3. Westpac 4. Rio Tinto 5. Telstra 6. Trans urban 7. BHP 8. Brambles 9. Amcor 10.Qantas 11.Commonwealth Bank of Australia 12.Optus
  • 3. Post COVID -19 Scenario Forecasts and Facts The unemployment rate is likely to rise up to 15% and could take up to 9 years to recover. Chart 1: Australia may face its worst unemployment rate since Depression :
  • 4. Chart 2: Unemployment rises quickly in recessions, but takes a long time to come down:
  • 5. Chart 3: The IMF predicts the Australian economy will face its worst year since the Great Depression
  • 6. Based on the above Charts, Post COVID-19 scenario of Outsourcing and its impact on the economy can be summed up as follows:
  • 7.
  • 8. Conclusion In addition to the above, not undermining the associated hidden costs of security risks, loss of control, reduced quality control to risk of public backlash with outsourcing, local hire is the way to move forward, for sustainable growth. Economic growth and Business growth are correlated. Australian businesses could consider sustainable growth as the key goal instead of profit maximization. More so, outsourcing will eventually lead to the businesses downfall, due to the lack of local demand. Australian Government must reconsider their outsourcing policy to support local employment more effectively. Most businesses, amidst COVID crises, have requested the pay cut of their employees by 10% to 20%, which the employees readily agreed to, understanding that there was no choice. With wages no longer being sticky, it is ideal to shift back to the local employment and boost the economy with sustainable-self-reliant growth.