International outsourcing involves complexity and risks not found in typical domestic outsourcing. These risks are cultural, political, financial, technological, managerial and legal. Ultimately, these multiple international risks show up in the process of drafting, negotiating and enforcing the contract. Freedom of contract varies according to the governing laws and attacking the legal issues requires initiatives from the beginning.
Although information technology did not occupy the place it deserved in party platforms during Australia’s September 1998 election, IT was brought to the public forefront by industry bodies. Australia is currently at a critical juncture of its multi-billion-dollar outsourcing industry, and the general concensus is that reform is needed.
As the outsourcing industry heads into the final year of the century, growth will be driven by a blending of the traditional and newer segments of the industry, according to Donna Crane, vice president, marketing, Systems and Computer Technology Corp. (SCT).