Australian professional services businesses well placed to enter Asian market, but must act quickly
Australian legal firms and management consultancies have been identified as two industries well placed to tap into opportunities in Asian markets.
According to the ‘Growing Knowledge Economies’ report, Australia is well placed to thrive in Asia’s knowledge economies, but competition is intensifying.
The research calls on Australian firms looking to branch out into Asia to act quickly, and shift strategy and mindset to compete with the increasingly crowded marketplace.
Key findings of the report include:
- When choosing Asian markets, Australian firms should take advantage of newly signed free trade agreements, such as KAFTA (Korea) and JAEPA (Japan) and long standing ones such as SAFTA (Singapore),
- Australian firms can best capture Asian bound business by working with Australian clients that are themselves expanding, or already established in Asia,
- Australian firms operating in countries with strong government relations with Australia will enjoy better facilitation of their operations.
The research is based on interviews conducted by Asialink business researchers of 30 senior executives of 16 Australian law firms and 18 management consulting firms, with operations in four key Asian markets: Singapore, Indonesia, Korea and Japan.
“With rapid economic growth and burgeoning middle classes, quality services are in high demand throughout Asia,” the CEO of Asialink Business, Mukund Narayanamurti, says.
“Our research indicated that ‘fly-in fly-out’ models are often no longer effective. What’s needed is a long-term, strategic mindset and a significant increase in investment, both to establish a physical presence in Asia and to build business relationships.”
Research from the report was presented at the Australian Services Roundtable.
Alina Bain, CEO of the Australian Services Roundtable says that, while circumstances differ in each market, on the whole the opportunities are promising. “Australian professional services firms often do face multiple challenges relating to local culture and regulations, attracting and retaining talent and understanding and getting your brand recognised.”
‘Growing Knowledge Economies’ was produced by Asialink Business, commissioned by Austrade and supported by the Department of Industry, Innovation and Science.
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