Aust tops for software development

Communications, IT and the Arts Minister, Daryl Williams, has trumpeted a KPMG study which alleged Australia was the best place in the developed world to base software development operations.

Australia was ranked first in software design, web and multimedia operations based on low business costs, according to the 2004 Competitive Alternatives Study conducted by KPMG.

Australia's total annual operating costs in advanced software development came out the lowest at US$10.7 million, closely followed by Canada at US$11 million. Overall, Australia was ranked the second-cheapest place to do business, compared to 10 other countries including the US and the UK.

Australia was also ranked second, trailing Canada, as a location for research and development. One important factor was the Australian Government's favourable R&D tax concessions.

Commenting on the findings, Williams took the opportunity to pan the Opposition.

“Unlike Labor, which wants to resurrect old world industrial relations systems and old world protectionist walls in response to offshore outsourcing, the Australian Government is making Australia's ICT industry the best and most competitive in the world,” said Williams in a statement.

“Two key reasons for Australia's top ranking are Australia's low taxes and low cost, flexible IT workforce,” he said. “This number one ranking confirms that Australia's ICT industry is in pole position to win sought-after ICT jobs in the competitive offshore outsourcing market,” Williams said in the statement.

“Together with highly skilled, multilingual workers, a world class IT infrastructure and a stable government, Australia has emerged as an attractive low risk business environment for software development operations,” he said.