beyond pt 0 23/1

they expect to meet increasing demand from Asia. They see e-commerce
as removing a constraint to allow Australia to take advantage of its
relatively inexpensive professionals and its time-zone complementarity
with Asia.
The free flow of information in the professional services sector and relaxation of
barriers to competition will enable cross-jurisdictional provision of services. Many
large Australian professional service firms are already globalised (particularly
accounting and business services), and we are now seeing the beginnings of
globalisation of Australian law firms. This trend is likely to accelerate at an
increasing rate in the medium term. Those organisations which are able to take
advantage of a global market while at the same time protecting existing revenue
will see increasing returns and reduced costs, while those who cannot, will face
significant threats to their existing business.
Survey Response: Duncan Giles, Blake Dawson Waldron,
IRG member, 20 July 1999
Just as e-commerce allows overseas firms to establish in Australia, so it
allows Australian firms to undertake work overseas. The net effect is
dependent on the extent to which the Australian business services sector
can compete in an increasingly global market.
It is important, however, to bear in mind that some barriers to trade in
this area are likely to remain. Many of the business services sector
functions are based around legislation or guidelines that are unique for
each country (e.g. law, accounting, surveying). Some functions such as
advertising and graphic design require an understanding of the local
environment and culture to be successful.
Perhaps the greatest influence the business services sector has on
Australia’s trade performance is as an input to other businesses.
A business services sector that uses e-commerce efficiently to deliver high
quality services to Australian industry will undoubtedly assist Australian
industry compete on world markets.
Key points
The main advantages of e-commerce to the business services sector are in
accelerating knowledge transfer and improving the quality of data transfer. Cost
savings to the sector can be realised from improvement in the efficiency of internal
processes as well as savings in the cost and time of delivery of products to clients,
while greater use of e-commerce will stimulate disintermediation in this sector.
E-commerce will also allow greater flexibility in the types and range of products that
are presented to customers.
When looking at quantitative analysis of the sector it seems reasonable to factor in:
– modest savings in retail margins in the sector (i.e. reduced costs through greater
disintermediation);
– direct labour savings;
– time saving as an efficiency gain for industries that use business services as well
as households; and
– reduction in sector inputs such as paper; machinery and equipment, and
financial and business services.
119