Skills shortage prompts Aussie company to build Bali offshoring HQ

Stan Beer
Tuesday, 19 June 2007 14:21

IT People - Enterprise

Australian owned software development company Mitrais has announced plans to build a new headquarters in Bali to cater for what it says is significant growth in projects outsourced by Australian companies because of a growing skills shortage.

Mitrais CEO, David Magson said the decision to build new headquarters to house the developers presently working in Bali was based on the growth predicted in the Australian market for outsourced software development services.

Sixty six percent of Mitrais’ business comes from software development projects undertaken for Australian companies and the balance from Indonesia.

According to Mr Magson, a growing Australian based IT skills shortage is creating opportunities for Australian owned technology services with near-shore offices like Mitrais.

“IDC estimates that 90 percent of outsourcing and operations related services are going offshore, presently amounting to $54 million a year with a compound annual growth rate of three percent.

“Our clients in Australia highlight the shortages and difficulties of keeping staff. One client sums it up as a revolving door –people join, stay for a year and leave, taking their knowledge with them. This is the case with Java, C# and .NET skills, especially the latter. There are also some shortages in particular regions, such as Progress skills in Queensland,” Mr. Magson said.

“We have the appropriately skilled staff, well developed project methodologies and a significant cost advantage,” Mr. Magson said.

For fixed price software development Mitrais offers savings of between 65 and 79 percent over Australian developers, according to the company. Even time and materials projects attract savings of between 41 and 61 percent over Australian contractors.

Mitrais has also engaged two ex-pat English language teachers both of whom have extensive skills teaching English as a second language in various Asian countries.

Construction will begin next year of the first of three buildings, each of 2000 square metres and capable of accommodating 150 staff.