Melbourne, Australia (PRWEB) February 20, 2013
The Office Administrative Services industry has performed modestly over the past five years, being subject to the vagaries of business sentiment but benefiting from the increased trend towards outsourcing. According to IBISWorld industry analyst Naren Sivasailam, “the industry's largest sources of revenue – the payroll and bookkeeping segments – have been the primary beneficiaries of the outsourcing boom that has been driving industry growth over the past five years”.
The Office Administrative Services industry is heavily dependent on business sentiment and spending as it determines the extent to which organisations choose to externalise their non-core activities to a specialist service provider. “The depths of the global financial crisis led to a decline in demand for the industry's services, but this was offset by recognition that the efficiencies afforded by outsourcing are more profitable in the long term”, says Sivasailam. Demand was also aided by growth in technology that made it cheaper and improved accessibility for clients, thus furthering the industry's competitive advantage relative to in-house administration. In the five years through 2012-13, industry revenue is estimated to increase by an annualised 0.5% to total $2.59 billion. Just one company – Automatic Data Processing Limited – holds a significant share of the industry.
The future of the industry looks promising. The resurgence of business sentiment is expected to be complemented by an increase in labour participation, thus providing a larger pool of potential clients for industry players. A key driver of growth will be the continued growth in business process outsourcing, particularly as organisations decide to focus on their core operations and externalise laborious and time-consuming administrative services to create efficiencies. The benefits of this model have well and truly entered the mainstream consciousness of the country's business community and will continue to increase into the future. Growth in technology and increased automation will boost industry profit, while simultaneously attracting new participants that will be looking to capitalise on new segments and opportunities.
For more information, visit IBISWorld’s Office Administrative Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes companies that provide a range of everyday office administrative services such as clerical, billing and record-keeping, and payroll services on a contract or fee basis. These companies support the operation of a business but do not provide operating staff to carry out the complete operations of an organisation.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.