Rise and rise of outsourcing
Life and superannuation industries' are outsourcing 20 per cent more than they did two years ago, according to a new study.
And it appears the strong growth will continue with forecasts suggesting 10 per cent growth a year.
The study, conducted by Life and Superannuation Outsourcing Services (LSOS) and PVE Actuarial Services, found that each of the 21 Australian life and superannu-ation companies participating in the survey said that they had outsourced work over the last year.
The major area
Life and superannuation industries' are outsourcing 20 per cent more than they did two years ago, according to a new study.
And it appears the strong growth will continue with forecasts suggesting 10 per cent growth a year.
The study, conducted by Life and Superannuation Outsourcing Services (LSOS) and PVE Actuarial Services, found that each of the 21 Australian life and superannu-ation companies participating in the survey said that they had outsourced work over the last year.
The major areas currently being outsourced include staff recruitment (71.4 per cent), actuarial services (66.7 percent), market research (66.7 per cent), prod-uct design (33.3 per cent) and underwriting (33.3 per cent).
LSOS managing director Chris Medin says the key reason why companies outsource work is because of skills shortages.
However, other critical factors include the need to execute one-off projects, to gain external views and to keep costs under control.
According to the companies surveyed, new areas where the need for outsourcing will develop include taxation, distribution, information technology, legal, pro-ject management and administration.
"Our research shows senior and line managers in life, superannuation and funds management companies are facing the difficult problems of continuous budget cuts and frozen staff levels, compounded by inherited legacy products, regulatory changes and the constant pressure to lift productivity," Medin says.
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