High costs drive more jobs offshore

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From the AFR:

Australia and New Zealand Banking Group is considering offshoring almost 600 jobs from call centres in Victoria, as part of a proposal to meet a cost cutting target.

A leaked internal memo drafted by the head of ANZ’s call centre, Sue Jeffrey, proposes shifting the 590 call centre jobs to the Philippines and New Zealand, The Herald Sun reported.

And earlier:

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IBM wouldn’t confirm or deny a ­Fairfax Media report that up to 1500 jobs in Australia will be shifted to IBM’s new centre in Auckland, and to destinations in Asia.

However, in a post on a discussion board called Alliance@IBM, which hosts comments and questions from IBM workers trying to find out details about future job cuts, one person said 1000 Australian staff had been laid off and 300 jobs would go on June 28.

…Transfield Services is in the middle of moving about 80 finance and human resources roles overseas as part of a cost-cutting drive. Recruiters from the Philippines recently visited QBE executives and have to find between 2000 and 3000 staff for back office roles from its global offices.

Brambles will move about 15 per cent of its 1000-strong finance staff to outsourcer Genpact by the end of the year.

…Perpetual is preparing to offshore about 85 finance and HR roles to Indian companies. The funds management group is cutting costs and outsourced 120 technology functions to Fujitsu early in 2013.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.