The Australian Technology Industry

The Australian technology industry has greatly benefited from a number of important developments in information technology in recent years. These include adoption of a data-centred approach, developing information technology infrastructure, adoption of a more open information architecture, and the incorporation of enterprise virtualization into business strategy. However, many of these developments have been slower to catch on in Australia compared to other countries. This is primarily due to a lack of information technology infrastructure in Australia, which forces smaller organizations to look to technology outside of the country. In this article, I will outline some of the key reasons why Australia lags behind other countries when it comes to information technology implementation.

Labor force – The Australian economy is one of the youngest in the world, with an average age of just over 50. This is attributed to a large body of skilled workers that are leaving the workforce in large numbers to take advantage of better paid opportunities in other regions of the world. Many of these workers have been able to secure employment in multinational companies located in other parts of the world, despite the difficulty of relocating to another country. In addition, the current aging of the population means the labor force will soon be comprised of older, retired persons, rather than younger, energetic workers. These factors contribute to a weak labor force that is less likely to avail themselves of cost effective alternatives such as computerised data centres.

Lack of experience – The Australian information technology industry is also currently experiencing a net loss of some of its most experienced professionals. The rapid expansion of the Information Technology industry in Australia resulted in the rapid influx of highly skilled professionals from overseas, but this influx didn’t have a corresponding increase in the number of experienced professionals in training. This has led some of the smaller corporations to contract out some of their Information Technology function to cheaper entities, such as offshore outsourcing companies. These companies are capable of providing the necessary skills in a shorter period of time, at a cheaper cost of course. As the need for Information Technology knowledge grows, more professionals will be needed to fill these positions.

Limited foreign language skills – Although the population of Australia is one million people, it only has around half that number of native English speakers. Because the country is predominantly an English speaking country, many businesses find that having someone fluent in English is a very important part of being able to communicate effectively with clients and other employees. Because of this, many businesses choose to hire foreign based translator and language experts to provide for this gap in the communication process.

Limited competition – Despite the many similarities between the United States and Australia when it comes to technology and business, there are many notable differences between the economies. For example, while many US companies focus on researching and manufacturing the most cutting edge products, many of the best performing companies in Australia are those focused on developing solutions to specific problems. This is in direct contrast to the situation in the United States where competition is fierce and entire industries have been forced to merge and/or be taken over by larger corporations. For Australian businesses, because of their focus on innovation and development of new solutions, they are not as susceptible to mergers and acquisitions. The result of this has allowed smaller technology companies to become more successful and build significant market shares.

Low cost of doing business – The Australian economy is considered one of the most efficient in the world. One of the main reasons why is that the country’s economy is quite diversified, which is a key factor in the country’s ability to achieve economic growth. Because of this, there are many companies in Australia that have low overhead and high rates of productivity and profit. Due to the abundance of cheap labor, low taxes and relative stability, many companies have reduced their operating costs, which has allowed them to reinvest in new technologies and products.

Low cost of living – One of the reasons why Australia has been able to maintain its growth rate despite so many other economies around the world is the very low cost of doing business in the country. One of the most important factors that help the economy maintain its growth rate is the ease of doing business in Australia. In fact, it is cheaper to do business in Australia than it is anywhere else in the world. In fact, the exchange rate between the Australian dollar and the United States dollar is quite similar. Australia’s strong economic growth has also helped it attain the lowest unemployment rate among the developed countries in the world. This has further strengthened the case for Australia becoming an even more attractive location for businesses to locate and grow.

The above factors are just a few of the many that make Australia such an attractive place for technology companies to establish their operations. With the right kind of assistance, these companies can easily overcome the many challenges that they face in trying to penetrate the growing and expanding domestic market. However, just like any other company, only those who take the effort to look into the available opportunities will be able to capture the true potential of the country’s economic growth and potential as a technological nation. This will then lead to the continued rise of Australia’s economy, its power in international markets, and the number of technology companies that take advantage of its low cost of living, easy accessibility to the necessary infrastructure, and the overall conducive environment for doing business.