Australian energy, resources firms likely to outsource to Philippines

Struggling energy and resources companies in Australia are expected to outsource basic financial functions to Asian countries, including the Philippines, according to a report by the Sydney Morning Herald. The report said outsourcing will be one of the tactics that these Australian companies will employ this year to reduce funding costs and improve liquidity management. The report quoted Lance Kawaguchi, head of the resources and energy group at HSBC’s payments and cash management division, as saying that establishing shared service centers in locations such as Manila had become a common strategy for European and US companies to lower costs further. He said Australian companies are looking at that trend. Kawaguchi told the Sydney Morning Herald that outsourcing provides Australian companies longer term solutions to the current downturn in the country.