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Australian blue chip companies are more likely than their overseas counterparts to send technology work to cheaper offshore locations such as India, according to a survey. Technology chiefs from Qantas, Fosters, Westpac, Holden and Wesfarmers Insurance were among 19 local participants in the Capgemini study.Chief information officers from 490 large commercial and public entities worldwide participated in the survey and included LOreal, Mars, Michelin, Allianz, ArcelorMittal, Bayer, Air France, Sanofi-Aventis and Shering Plough.
According to Capgemini, 19 per cent of outsourcing undertaken by Australian companies was sent offshore, compared with 14 per cent by their international cohorts.
"When technology outsourcing happens in Australia, the chance of it having an offshore element is much higher than overseas organisations," Capgemini Australia business managing director Deepak Nangia said.
Australias geographic and time-zone proximity to relatively low-cost offshore bases was key to the adoption of offshoring.
Mr Nangia said there were fewer barriers to reaching out to mainland Asia as an offshore centre compared with European countries or the US.
Offshoring was especially evident in the financial services sector, in which outfits such as Tata Consultancy Services, Mahindra Satyam, HCL, Wipro and Infosys had a large presence.
Commonwealth Bank, Westpac, ANZ Bank and National Australia Bank relied on Indian outsourcers for technology services and Mr Nangia said the tendency to outsource and offshore would increase because most local firms still had large internal IT departments.
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