According to a report published in The Australian Financial Review, it appears up to 150 jobs within Brambles (ASX: BXB) 'finance function' may be outsourced to provider Genpact, which has low-cost hubs located in India, Romania and Mexico. The company has explained the rationale for outsourcing is to utilise Genpact's information technology systems rather than trying to implement the systems within Brambles current IT setup.
Brambles' move comes just weeks after car manufacturer Ford announced it was closing down its Australian factories. Many other firms have also been looking to offshore job roles in an attempt to cut costs. QBE Insurance (ASX: QBE) is expected to increasingly utilise its Asian base for back office functions, while ANZ (ASX: ANZ), Telstra (ASX: TLS) and Qantas (ASX: QAN) have also begun to utilise offshore workers at the expense of Australian workers for a number of tasks.
Foolish takeaway
With revenue growth hard to come by, companies are continuing to try and squeeze out efficiency gains through tight cost management. This can only go so far, so investors who can identify companies that can actually grow revenues in a lacklustre economic environment have a better chance of outperforming the market.
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Motley Fool contributor Tim McArthur owns shares in QBE Insurance.
