15th Annual Australasian Shared Services & Outsourcing Week

17th April 2012

Professor Ian Harper

Deloitte Access Economics

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Global economic outlook

Source: IMF World Economic Outlook January 2012 update; Deloitte Access Economics

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Australian GDP growth

Source: Australian Bureau of Statistics; Deloitte Access Economics

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Underpinned by mining boom

Source: ABS, RBA, HSBA

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The ‘Brisbane Line’

North-west of Brisbane Line

20% of employment

53% of investment projects

South-east of Brisbane Line:

80% of employment

47% of investment projects

Source: ABS 6291.0.55.001, Deloitte Access Economics‘ Investment Monitor

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The two-speed economy

Source: ABS

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Industry summary

‗Slow lane‘ industries —

• manufacturing (food, clothing, wood and paper, plastics and

chemicals), tourism and education – impact of the high $A

• retailers of household goods and manufacturers of building

products – slower pace of residential construction

• printing & recording and information services –

changing technologies and tastes

• business services – impact of lower government

spending

• financial services – uncertainty from Eurozone crisis

Fast lane‘ industries —

• mining and engineering construction – mining investment boom

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Labour market stress

Labour is not located where it is needed and/or most

productively employed

• how to bridge the geographic gap?

The skills required are in short supply — to meet the needs

of the ‗fast lane‘ industries and to raise productivity in the

‗slow lane‘ industries

• how to bridge the skills gap?

Your biggest opportunity and your biggest challenge!

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Is FIFO the answer?

Source: Regional Development Australia

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Where’s your next worker?

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• but ‗near-shoring‘ may be more cost-effective than off-shoring in

some circumstances

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• Recently announced US–Australia Bilateral Employment initiative

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• This is where shared services can play a key role

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How we

respond to

labour market

pressures will

determine how

successfully

we manage

the mining

boom.

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