Australian developer to build outsourcing HQ in Bali

Near-shore solution for skills shortage

Australian owned software development company Mitrais has announced plans to build new headquarters in Bali to cater for significant growth outsourced projects by local companies.

The headquarters will be on a 4,400 square metres of land located near Ngurah Rai International Airport, and close to Sanur and Kuta beaches and the city of Denpasar.

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.

He said 66 per cent of the company's business comes from software development projects undertaken for Australian companies and the balance is from Indonesia.

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

Driving this trend is a shortage of skills in Australia.

"One client sums it up as a revolving door, people join, stay for a year and leave, taking their knowledge with them," Magson said.

"This is the case with Java, C# and .NET skills, especially the latter. There are also some shortages in particular regions, such as Queensland."

For fixed price software development, Magson estimates savings up to 79 percent over Australian developers.

"Even time and materials projects attract savings of between 41 and 61 percent over Australian contractors," he added.

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

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