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Of the twenty largest economies in the world, Australia has the third highest cost of doing business according to the International Monetary Fund (IMF) estimates. For goods and services costing US$100 to produce, Australia is 60% more expensive with the same goods and services costing US$161 to produce.

It is no surprise to many of us who have traveled around the world, that Australia is expensive, but there is more and more data to suggest that we need to change our outlook to remain competitive.  We need to reduce the costs of the our goods and services. Outsourcing is becoming more and more popular.  When you consider the same goods and services are half price or below in many of the developing nations, businesses have an imperative to consider off-site staffing.

Australia is an expensive place to live so we are not suggesting cutting the wages of our Australian staff.  The solution is to increase their productivity and focus our Australian staff on the key value added activities.  We need to take this period of prosperity and invest in our workforce to ensure that they have the skills and knowledge necessary to become the worker of the future.

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