Strategic Analysis , Suncorp, global economy
For too long, most financial service companies in Australia maintained their back-office activities within the domestic borders more than their kind companies from the Western nations. Despite the presence of shared-service centers being a common phenomenon in the Australia, most local companies in the financial sector prioritized less outsourcing of their key service to external providers in the previous decades. Characteristically, the trend in the Australian financial sector has been identified by subduing competition by oligopolistic markets and an ever growing economy presenting a receptive business environment for most service providers (Drummond, 2012). Nonetheless, a second wave of outsourcing equated to the philosophical bursting of the dam-walls, has locked the financial firms owing to the deteriorating environmental growth, rising costs of meeting operations within the local market and coping with the globalization influence. Outsourcing presents a strategic decision of the corporate leaders in the financial sector, reflecting on the influence on the firm's operations and the impact of the key trends of the information age -
globalization and digitization- against the success possibilities.
In today's global economy, offshore hub centers have gradually revolutionized the global market by presenting a set of low cost operations combined with exemplary expertise. This has reshaped the rules of operating in the Australian financial sector with stiff competition from other financial institutions around the rim of Indian Ocean growing in popularity of delivering improved financial services at globally competitive costs. Consequently, with cost minimization and improving service delivery topping the list of priorities, aligning the company to offshore service center has caught the strategic team of Suncorp Group with a significant decision to settle.
[...] Retrieved June from http://www.insurancenews.com.au/corporate/suncorp-explores-furtheroffshoring-to-india Jean-Marc, L., & Gibson, W. (2010). The future is Already here it is just unevenly Distributed. Retrieved June from http://www.outsourcingunit.org/publications/Collaborating_to_Innovate.pdf Jimenez, K. (2007, October 19). Suncorp takes a shine to India. Retrieved June from http://www.theaustralian.com.au/news/suncorp-takes-a-shine-to-india/story-e6frg6n61111114679195 McCarthy, J. (2011, September 13). Suncorp Weighs-up Offshore Jobs Shift. Retrieved June from http://www.couriermail.com.au/business/union-warns-suncorp-may-send-jobsoffshore/story-e6freqmx-1226135199727 Murdoch, S. [...]
[...] Additionally, offshoring back-office functions involve the shedding of the huge costs associated with the labor costs contributing to overall operational costs. For instance, offshoring jobs to India and Philippines call centers involves a 25-30% cost savings based on wages and overheads (Howard, 2013). Further, offshoring presents a forward-looking opportunity to maintain its economic strength by replacing its traditional back-office functions with expertise services, running more effectively and efficiently, to reduce the operating costs while taking the advantage of new innovations in mobility, cloud and big data analytics (Hill, 2013). [...]
[...] (2012). Web-Based and Traditional Outsourcing. CRC Press. Somasundaram, N., Bendeich, M., & Driskill, M. (August 24). Australia's Suncorp Profit Falls Hints at Capital Return. Retrieved June from http://www.insurancejournal.com/news/international/2011/08/24/212105.htm Suneja, K. (2012, January 30). WNS, Genpact bag $300-m contract from Australian co. Retrieved June from http://www.financialexpress.com/news/wns-genpact-bag-300mcontract-from-australian-co/905265 Tay, L. [...]
[...] Strategic Analysis of Suncorp Strategic Analysis of Suncorp Introduction For too long, most financial service companies in Australia maintained their back-office activities within the domestic borders more than their kind companies from the Western nations. Despite the presence of shared-service centers being a common phenomenon in the Australia, most local companies in the financial sector prioritized less outsourcing of their key service to external providers in the previous decades. Characteristically, the trend in the Australian financial sector has been identified by subduing competition by oligopolistic markets and an ever growing economy presenting a receptive business environment for most service providers (Drummond, 2012). [...]
[...] Kluwer Law International. Hill, A. (2013, May 22). How Clever Organizations are Influencing New IT Service Delivery Models for Business Advantage. Retrieved June from http://www.sharedservicesweek.com.au/AgendaDay.aspx?tp_day=35907 Howard, R. (2013, March 5). Impact of offshoring jobs from Australian financial institutions. Retrieved June from http://theconversation.com/impact-of-offshoring-jobs-fromaustralian-financial-institutions-12484 Insurance News. (2011, June 20). Suncorp Explores Further Offshoring to India . [...]
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