The post-pandemic world of work has undergone a seismic shift, forcing businesses worldwide to pivot. Remote work is one of the most dominant trends to emerge. According to Forbes, 12.7% of full-time employees currently work from home, while 28.2% work a hybrid model (both home and in-office working). However, the traditional in-office model isn’t dead yet. Currently, 59.1% of employees still work in-office, a testament to the model’s efficacy.
Amid this background, Australian workers have received a stark warning. Iqbal Singh, a multi-millionaire investor and an influential voice in the business realm, has cautioned Australian professionals about the emerging threat of outsourcing. Singh suggests that roles often criticized as “lazy jobs” due to their WFH nature could be effectively outsourced. “Support staff, IT, finance, mortgages, all of those can be supported because of a lower-cost and at the same time English-speaking workforce,” Singh explained to News.com.au.
Singh’s advice to Australian workers is unambiguous: “Aussie workers should get back to the office if they want to avoid the chop.” His perspective is not just about work culture but is also rooted in economics. He pointed out that roles filled by Indian workers could cost just 10 to 15 percent of an Australian worker’s wage “with more efficiency as well as at lower cost.”
This warning gains relevance against the backdrop of Australia’s economic landscape. The country’s inflation rate, which has reduced to 5.4%, is still far from the Reserve Bank’s target range. In such times, Singh emphasizes, efficiency becomes paramount. “It becomes of paramount importance in these environments to become more efficient, to make the supply chain more efficient, and at the same time relying on those jobs which can be completely outsourced in a very cost-effective manner,” he stated.
Despite the changing economic indicators, Australian employers haven’t substantially altered their perspective on remote work. According to a recent survey by the law firm Herbert Smith Freehills, nearly 38% of Australia’s large employers are considering wage cuts for remote workers in the coming years.
Simultaneously, there’s a growing trend that’s impossible to ignore: the surge in Indian investment in Australia, which has skyrocketed by 210% since 2019, reaching an impressive $35 billion. This financial commitment is parallelled by a rising influx of Indian immigrants, particularly the younger generation of students and professionals.
Singh believes that the increase in Indian migration, coupled with significant investment from Indian financiers in critical industries, could lead to substantial collaborations between the two countries. He specifically highlighted potential opportunities in sectors like education, healthcare, clean energy, financial services, AI, real estate, agriculture, food processing, and critical minerals.
“Investors also have their eye on western Sydney, which is still under-represented and requires much-needed infrastructure,” Singh noted. This interest was underlined during the CapTech2023 conference in Sydney, where Indian financial heads met with leaders from Western Sydney International Airport and local councils.
The burgeoning relationship between Australia and India is also bolstered by new policies. The Australia-India Migration and Mobility Partnership Agreement and the Mechanism for Mutual Recognition of Qualifications are key developments. These agreements, as Singh notes, are “very important” for fostering closer ties between the two nations.
As the work landscape continues to evolve, Singh’s warning comes at a critical juncture for Australian workers and businesses. Balancing the comforts of WFH with the economic realities and global workforce dynamics is becoming increasingly important in this interconnected world.
