IBSA Environment Scan 2015 Business Services Industry
IBSA Environment Scan 2015 Business Services Industry
IBSA Environment Scan 2015 Business Services Industry
Services Industry
Environment Scan 2015
Predicting change
Contents
1. Executive summary
2. Industry intelligence
21
27
5. Future directions
37
42
48
52
Business Services
CHAP TER 1
Executive
summary
CH AP TER 1
Executive summary
Companies in the Business Services Industry provide professional assistance to other businesses,
such as strategic and technical advice, advertising, recruitment and administrative services.
Since the early 1990s, specialist business services have increasingly been contracted to
undertake activities previously conducted inhouse. This outsourcing has enabled firms across
the economy to lower the cost of ancillary services and better focus on their core activities.
INDUSTRY TRENDS
While the Business Services Industry is
highly fragmented, and it is difficult to
accurately predict how it will fare in the
future overall, the following trends are in
play and will affect most sectors in coming
years and the health and shape of the
industry for which detail is provided in
Chapter 2 under Industry Outlook:
End of the mining boom
Tighter government budgets
Continued offshoring
Mobile technologies
Deeper global engagement, and
Full end to end services.
WORKFORCE
DEVELOPMENT
CHALLENGES
These industry trends along with other
social changes mean that the Business
Services Industry faces a number of
workforce development challenges over
the coming years, for which detail is
provided in Chapter 3.
Predicting change
IMPLICATIONS FOR
SKILLS DEVELOPMENT
CHAP TER 2
Industry
intelligence
CH AP TER 2
Industry intelligence
THE BUSINESS
SERVICES INDUSTRY
Companies in the Business Services
Industry provide professional assistance
to other businesses, such as strategic
and technical advice, advertising
and recruitment and administrative
services. Since the early 1990s,
specialist business services have been
increasingly contracted to undertake
activities previously conducted inhouse.
This outsourcing has enabled firms
across the economy to lower the cost of
ancillary services and better focus on
their core expertise.
An array of businesses can be
classified as business services,
although definitions of the industry
vary. This Escan focusses on six sectors
within the industry that are heavy
users of the vocational education and
training (VET) system:
employment services (permanent and
temporary)
legal services
management consulting
contact centres
data processing and analytics, and
communication and marketing
(primarily advertising, public
relations and market research and
statistical services segments of what
is generally often described as the
marketing industry).
Predicting change
Employment services
Legal services
Management consultants
Market research Advertising
PR
Call centres
Data processsing
0 5 10 15 20 25 30 35
Source: IBISWorld 2014 Industry Reports NZ294 Call Centre Operation in Australia; N7212 Temporary Staff Services in Australia; L7211 Employment Placement Services in Australia;
M6962B Public Relations Services in Australia; M6962A Management Consultants in Australia; M6941 Advertising Agencies in Australia; M6931 Legal Services in Australia; M6950
Market Research and Statistical Services in Australia; J5921 Data Processing and Web Hosting Services in Australia
Note: this and figures following are based on IBISWorld data, however, the wider communications and marketing sector includes strategic marketing, product development, brand development
and management, positioning, logistics and channel management, sales management, customer relations and digital engagement.
1,089
8
7
6
1
0
Perm. employment
Temp. employment
Legal services
Advertising
-2
Public relations
-1
Market research
Management consultants
Data processing
12,725
Call centres
11,717
5
Percent
18,550
11,250
Source: IBISWorld 2014 Industry Reports NZ294 Call Centre Operation in Australia; N7212 Temporary Staff Services
in Australia; L7211 Employment Placement Services in Australia; M6962B Public Relations Services in Australia; M6962A
Management Consultants in Australia; M6941 Advertising Agencies in Australia; M6931 Legal Services in Australia; M6950
Market Research and Statistical Services in Australia; J5921 Data Processing and Web Hosting Services in Australia
Note: this and figures following are based on IBISWorld data, however, the wider communications and marketing sector
includes strategic marketing, product development, brand development and management, positioning, logistics and channel
management, sales management, customer relations and digital engagement.
Business Services
Employment services
The employment services sector
comprises the employment placement
and recruitment services segments,
which account for over three quarters
of the businesses and the temporary
staff services segment. The employment
services sector provides recruitment and
screening of candidates for executive
and general jobs, outsourced human
resource functions encompassing
recruitment, training, administration,
workplace safety and strategy, as well
as contract and labour hire services,
temporary placement services and
placement of apprentices and trainees.
The types of services in demand
in this sector are sensitive to the
economic environment. During periods
of economic weakness employment
agencies provide more general
resum and networking assistance
to applicants, and a greater level
of outplacement services. Improved
economic conditions bring demand
for one on one career coaching and
permanent placements. A greater
number of smaller and specialised
providers have been entering the
industry, including online providers,
leading to increased competition and
constraining profit growth.
As the economy improves and
unemployment remains relatively low,
revenue growth in the employment
Legal services
The legal services sector includes
solicitors and barristers (public and
private) and legal aid services, as well
as notary, conveyancing and patent
services offered by lawyers. The sector
is large and growing. There are 18,550
businesses in Australia offering legal
services.
Many major firms have been looking
overseas for growth opportunities and
a number have merged or formed
alliances with overseas firms. These
firms now have greater access to
international markets, including the
United States and countries in the
rapidly growing Asia Pacific region.
Legal firms have increased outsourcing
and social media use over the past
five years, with specialisation and
online presence becoming increasingly
important. Value has become a
greater priority for clients and rising
demand for value based fee structures,
rather than hourly rates, has become
particularly relevant for small firms.
Management consulting
Management consultants provide
advice and assistance to organisations
on management issues, including
strategic workforce and organisational
planning, financial planning, marketing
and human resources. Since the late
1990s, businesses and governments
have employed an increasing number of
consultants, as outsourcing has become
a typical business practice. Outsourcing
of advisory services and other
sporadically required work has also
become a recognised means of cutting
core costs and stimulating growth. There
are now over 11,000 management
consulting businesses in Australia and
over 37 percent of industry revenue
is currently derived from financial,
business and professional services.
A recent report on the global consulting
industry compares client motivation
for using consulting firms. Roughly
two thirds of all consulting work
is motivated by factors relating to
individuals - specialist skills, help with
implementation, extra hands during
busy periods, - while the remaining
third relates to corporate consulting
such as responding to regulatory
change, independent validation of
decisions, and support in planning and
running large projects. 4
Management consultants providing
data analysis services have been
increasing in demand, as firms aim
to track consumer preferences and
other information to support operating
efficiencies. Clients are also demanding
audit and other accountancy services,
coupled with the deeper analysis of
revenue streams and profitability.
Growth in the Asia Pacific region,
particularly China, is expected to drive
further demand for these services.
Predicting change
Buchner (2013) Five top trends for call centres and the
pricing dilemma
Data processing
and analytics
Data processing encompasses capturing,
digitising and processing data from
various sources. Data processing has
generally expanded in the last five years
in line with increased internet usage and
improved availability of data. Analytics
are used to improve business efficiency.
Many firms struggle to interpret and
process the abundance of data they now
capture and find it easier to outsource
this role to data specialists.
The improvement in IT infrastructure has
increased the reliance on expert data
analysis where, historically it may have
been an inhouse function. Major clients
tend to come from high transaction
sectors such as financial services and
insurance, energy and resources, and
ICT services. The government sector is
also a major client group in areas such as
education, health and medical services.
The trend for businesses to outsource
data processing is expected to
continue, leading to industry expansion.
According to a survey report released
by the International Data Corporation
in 2013, about 80percent of Australian
businesses have either implemented
big data analytics or planned to use
big data analytics in the following 12
months. Emerging technologies will
enable a wider range of analytics,
including reporting, dashboards
and planning, predictive analytics,
recommendations, and new cognitive
Communications
and marketing
The communications and marketing
sector combines three segments.
The largest is advertising agencies,
comprising about 8,000 businesses,
followed by market research and
statistical services, with about 3,000
businesses and then the much smaller
public relations segment with about
400 businesses. Other segments
include strategic marketing, product
development, brand development and
management, positioning, logistics
and channel management, sales
management, customer relations, digital
engagement; these often operate by
having marketers deeply integrated
into their businesses. Australias
communication and marketing sector
is concentrated in New South Wales
and Victoria where clients corporate
and head offices tend to be located,
particularly major clients in the banking
and finance institutions.
All three segments are concerned with
helping businesses understand and
communicate better with their clients.
Advertising agencies have tended to
use broadcasting and print media,
billboards and the internet to promote
a clients products or services. Market
research companies conduct opinion
polls and qualitative and quantitative
Business Services
Over the five years through to 201819, the sector is expected to further
reinvent its services in line with
advertising and media fragmentation.
Revenue in the advertising segment will
steadily increase with greater business
confidence. The market research
segment will also grow steadily as
demand for analytics increases.
Growth in this segment is expected to
be particularly strong in 2016-17 with
the release of the Census data likely
to trigger government and business
demand for research analysis. The PR
segment is likely to grow at the highest
rate over the next five years as public
and private organisations look for
new ways to reach their audience and
influence key people and customers.
WORKFORCE
CHARACTERISTICS AND
EMPLOYMENT TRENDS
Employment growth over the last four
years has been particularly strong in
the sectors that employ high numbers
of professional staff ie management
consulting and legal services,
while employment has declined in
communications and marketing and
Figure 4: Employment level and four year change to May 2014 in Professional Services within the
Business Services Industry (000s)
Legal services
Management consulting
Employment services
Communications and marketing
Contact centres
Data processing
-50 0
50 100 150
000s
Source: ABS, 6291.0.55.003 Labour Force, Australia, Detailed, Quarterly, May 2014, SuperTABLE E06 Employed persons by Industry (ANZSIC group); IBISWorld 2014 Industry
Report, Contact Centres in Australia.
10
Predicting change
Figure 5: Business Services employment by sector and state or territory (000s), 2014
45
40
NSW
35
Vic
30
Qld
000s
25
SA
20
WA
15
5
NT
ACT
s
rv
se
er
iv
e
ts
oy
m
m
in
ist
ra
t
en
co
t
en
pl
em
th
er
ad
an
Em
ag
an
d
M
ar
ke
tin
g
ic
e
vi
ce
g
ns
ul
tin
co
m
m
un
ica
tio
ns
vi
ce
er
ls
ga
Le
Tas
10
Source: ABS, 6291.0.55.003 Labour Force, Australia, Detailed, Quarterly, May 2014, SuperTABLE E06 Employed persons by Industry (ANZSIC group)
Legal employment estimates for States and Territories are likely to be less accurate than those for total Australia as the percentage of employment that relates to the Legal sector in a
particular State or Territory may be different to that for Australia
Figure 6: Persons employed in Business Services Industry by sector by gender (000s), May 2014
140
120
100
000s
80
60
40
Female
20
Male
er
ls
ga
tc
en
em
Le
on
su
l
ta
nt
vi
ce
s
vi
ce
er
en
ts
oy
m
an
ag
pl
Em
an
d
M
ar
ke
tin
g
th
er
ad
m
in
ist
ra
t
iv
e
se
rv
ic
e
co
m
m
un
ica
tio
ns
Source: ABS, 6291.0.55.003 Labour Force, Australia, Detailed, Quarterly, May 2014, SuperTABLE E06 Employed persons by Industry (ANZSIC group)
Business Services
11
PROFESSIONALS
MANAGERS
10
30
15
35
73
31
21
43
30
Bachelor degree or
higher qual
Certificate III or higher
VET qual
No post school qual
Other
Sources: ABS Labour Force; Department of Employment, Employment Projections; ABS Survey of Education and Work.
12
Predicting change
Figure 8: Number of workers with Certificate III or higher VET qualification, 2013,
and projected for 2018, by occupational group (000)
600
500
400
300
200
2013
100
Projected 2018
0
Clerical and
administrative workers
Managers
Professionals
Sources: ABS Labour Force; Department of Employment, Employment Projections; ABS Survey of Education and Work.
ANZSCO
Business Services
Occupation Title (DoE)
Employment size order
May
2011
May
2012
May
2013
May
2014
000
000
000
000
5311
Clerks, General
General Clerks
183.6
196.8
213.3
229.5
5421
Receptionists
Receptionists
168.6
175.1
178.9
166.2
1311
Managers, Advertising
and Sales
122.5
129.7
124
131.4
5121
Managers, Office
Office Managers
128.7
153.3
128.4
127.4
5111
96.9
99.5
113.6
114.6
5911
82.3
86.7
85.5
84.9
2713
Solicitors
Solicitors
59.6
56.6
62.7
66
5412
Clerks, Inquiry
Information Officers
63.1
66.3
66.6
65.9
5321
Keyboard Operators
Keyboard Operators
76.8
69.8
56.9
63.9
5212
Secretaries
Secretaries
73.0
71.4
68.3
60.2
Source ABS, 6291.0.55.003 Labour Force, Australia, Detailed, Quarterly, May 2014, SuperTABLE E08 Employed persons by Occupation (ANZSCO occupation)
Business Services
13
ANZSCO
14
Business Services
Occupation Title (DoE)
Employment size order
May
2011
May
2012
May
2013
May
2014
000
000
000
000
5211
Personal Assistants
Personal Assistants
58.1
56
54.7
58.2
2231
59.7
66.5
57.2
56.9
1112
Managers, General
General Managers
42.9
53.4
51.3
56.4
1335
Managers, Production
Production Managers
53.9
53.6
55.7
54.9
2247
46.4
46.1
55.8
54.7
2251
48.1
47.5
51.8
50
1323
44.4
47.9
48.1
45.7
1000
Managers, nfd
Managers, nfd
15.3
18.4
29.2
39.9
1492
36.9
38.1
36.5
37.5
5513
Clerks, Payroll
Payroll Clerks
35.1
35.4
39.5
34.8
5411
34.7
34.0
30.3
33.8
1336
29.3
32.5
40.3
28.8
2513
27
29.4
26.6
25.2
1324
24.5
27.2
22.2
24
2343
Scientists, Environmental
Environmental Scientists
20.6
24.2
19.5
22.9
2249
17.6
16.2
21.8
20.7
2253
17.9
21.3
19.1
19.3
2212
14.7
17.9
16.2
18.8
2244
16.6
25.6
24.1
18
5122
Managers, Practice
Practice Managers
13.4
17.1
16.7
17.1
5992
11.3
12.3
13.5
12.5
5991
12.1
10
12.7
11.8
5994
12.8
12.2
11.7
10.3
6393
Telemarketers
Telemarketers
10.3
12.4
9.5
10.2
1300
5.1
7.5
9.2
8.2
1321
9.8
5.8
8.1
2711
Barristers
Barristers
7.7
7.0
7.3
7.1
5619
8.1
11.5
7.7
6.9
3126
Safety Inspectors
Safety Inspectors
3.4
4.5
4.7
Predicting change
INDUSTRY AND
WORKFORCE OUTLOOK
Industry outlook
The major challenge faced by this
industry is spending commitments of
companies to purchase services from
business service providers. This, in turn, is
directly tied to the health of the economy.
The general business outlook is somewhat
subdued. The Reserve Bank of Australia
(RBA) predicted that overall, growth is
likely to have strengthened a little in
2014, yet only to a pace that is still a
little below trend.9 Slowing of the mining
boom, which has dominated investment
for several years sees consumers being
hesitant about spending and businesses
reluctant to employ. Further, governments
are cutting back on their spending as they
seek to get their budgets onto a more
sustainable footing, and unemployment is
rising nationally. Nevertheless, according
to the Australian Industry Group (AIG)
CEO survey, the services sector remains
relatively positive. CEOs of almost three
quarters of services expected sales
revenue to have risen in 2014, relative
to 2013, and 41 percent of respondents
plan to hire more employees and 24
percent expect to cut employment. The
top five growth concerns among services
CEOs for 2014 were:
wage pressures 19 percent
customer demand 17 percent
regulatory burdens 16 percent
skill shortages 12 percent, and
flexibility of industrial relations
11 percent.10
Despite the fragmented nature of the
Business Services Industry future trends
expected to affect most sectors and
the health and shape of the Industry
overall include:
End of the mining boom the
economy is in a transition period as
the mining boom which has been
sustaining the economy for several
years slows. In the next few years,
11 ibid
Workforce and
employment outlook
The expectation of a gradual
strengthening of economic growth
should, in time, lead to stronger
Business Services
15
Employment services
The heathcare sector is already the
largest user of employment services due
to the high number of people working
in the sector, and the extensive use of
part time and casual staff. Demand
from this sector is growing quickly.
Employment services workers who also
bring healthcare specialities will be
highly sought after.
Like most other business services,
quality data analysis is becoming
central to success for employment
services. Organisations will be looking
for staff with the capability to conduct
sophisticated workforce forecasting
and planning. There is also a growing
emphasis in the sector on using metrics
to determine the quality of placements.
Staff will increasingly be expected to
have skills in designing, interpreting
and analysing data.
A legislative focus has seen an
increase in demand for employee
relations specialists, as companies
place a higher value on mitigating the
risk and cost of claims. Workplace
health and safety expertise has also
become more important to ensure
Employment
2013-14
Forecast employment
2018-19
Forecast employment
growth 2013-2018
Management consultants
36,063
44,452
23.2%
299,800
341,400
13.8%
Advertising agencies
9,800
10,900
11.2%
Public relations
4,360
4,823
10.6%
Legal services
98,970
106,713
7.8%
Data processing
4,895
5,260
7.4%
25,400
26,400
3.9%
119,500
122,800
2.7%
Contact centres
29,325
29,243
-0.3%
Source: IBISWorld 2014 Industry Reports NZ294 Call Centre Operation in Australia ;N7212 Temporary Staff Services in Australia; L7211 Employment Placement Services in Australia;
M6962B Public Relations Services in Australia; M6962A Management Consultants in Australia ; M6941 Advertising Agencies in Australia M6931 Legal Services in Australia; M6950
Market Research and Statistical Services in Australia.
16
Predicting change
Figure 9: Share of employment growth by occupational group, Nov 2013 Nov 2018 (% of total growth)
3.1%
1.3%
Professionals
8.3%
8.7%
32.3%
10.8%
Managers
Technicians and trades workers
Sales workers
Clerical and administrative workers
15.7%
19.8%
Marketing and
communications
In this sector, digital media is the key
focus for the foreseeable future. Digital
media is no longer a specialisation but is
part of the mainstream communications
mix. Advertising and marketing
professionals with SEO (search engine
optimisation) and SEM (search engine
marketing) skills will be sought to manage
online campaigns.19 Social media
marketing is becoming more mature with
a focus on smarter and more careful
approaches being applied. Roles centred
around social media with names as
diverse as brand and product managers,
digital market researchers and mobile
advertising mangers are emerging.
Visual media will begin to dominate
the market, with the massive growth in
popularity of infographics, and apps
such as Instagram, indicating people
are reading less and watching more.20
17 ibid
19 ibid
22 ibid
23 Hays op cit
Business Services
17
Management consultants
Technology developments are having a
key impact on the management consulting
sector too. Employees in the management
consulting sector need to maintain their
knowledge of recent technology advances
so they can provide up to date advice to
clients. A key component of being part of
this skill and knowledge intensive industry
is the ability to devote considerable
resources to ongoing training.
Service specialisation can build business
for consultants. Growth in the industry
is coming from the entry of small
businesses - less than 20 employees
specialising in niche areas. Specialist
knowledge of developing countries,
especially China, is a strong selling point
for management consulting firms. This
usually requires employees who have
worked in the target country and been
exposed to the local business culture.25
Legal services
Several large legal firms have been
experimenting with legal process
outsourcing (LPO), which involves
sending simple legal work to companies
in low-cost jurisdictions such as India
as a cost saving measure. Much of the
work being outsourced was historically
done by legal clerks, paralegals and
entry-level lawyers. There is concern
this work will reduce and potentially
put further pressure on the already
tight legal graduate market.26 High
competition means strong results and
experience will be key to securing jobs
for new entrants.
Legal firms are looking to social media
tools to accomplish a variety of legal
tasks, including locating and researching
witnesses and interacting with clients. In
Australia, e-conveyancing is expected
to take off in 2015. This will offer legal
Data processing
and analytics
The business analytics field is still
relatively young and developing,
however significant demand for
analytics professionals is being driven
by the increasing pervasiveness of
digital systems having impact on
organisations costs, processes and
customers. Analytics professionals are
being sought to help unlock value by
providing data based insights to a
wide variety of industries from banking,
government, health, transportation,
utilities and insurance, to education.29
These functions may not always be
outsourced to data firms. As computer
technology becomes simpler to use
and the value of analytics becomes
more widely accepted clients, mainly
large corporations and public sector
organisations, are increasingly engaging
data scientists to perform both data
processing and analysis tasks inhouse,
particularly the simpler functions.
Another workforce trend is the
international outsourcing of some
functions to highly skilled, but low
labour cost, countries such as China
and India, to lower the cost of
contracted services to clients.
Data firms need a workforce that can
18
Predicting change
OCCUPATIONS
IN DEMAND
A list of Occupations in Demand is
provided in AppendixB. The list is
collated from industry intelligence
presented in this Escan on the industry,
its employment trends and its workforce.
This list contributes to workforce
development and planning strategies
highlighted in Chapter 3 and also
presents a clear relationship to
training packages.
Occupations and job roles reported
as in demand in the Business Services
Industry at IBSAs Escan 2014 industry
consultations and validation were:
frontline supervisor
organisation and workforce
development specialists
customer service and frontline inquiry
officer
general administration officer
quality and compliance auditor
manager business development
strategy
HR administrator and manager
(including diversity specialist)
OH&S manager
sustainability manager
manager and advisor social media,
and
data, records, knowledge and
information manager.
Business Services
19
CHAP TER 3
Identified
workforce
development
needs
CH AP TER 3
Identified workforce
development needs
HEALTHY CHANGING
WORKPLACES
A number of business services may
need to consider how to improve staff
satisfaction and work life balance to
create happier, healthier workplaces
and to retain talent. Staff turnover is
estimated to cost employers up to
$1 million per annum; reducing churn
by just 5 percent could result in a
saving of $280,000 a year for every
100 people employed.39 Supporting
employees at all levels to achieve work
life balance can pay a handsome
dividend and is central to retaining
and developing people and achieving
service commitments. Allowing a
flexible and adaptable approach
in dealing with family, ageing and
retirement, and maternity and paternity,
while providing opportunities for career
development, is essential to ensuring
the workplace is able to move with
changing needs and expectations.40
Recently, there has been a focus
on depression in the workplace.
Occupations involving high job
demands, low control, time pressure,
39 Hays (2013) Top 10 Talent Trends for 2013
40 LMA (2013) Leadership, Employment and Direction
Survey
22
Predicting change
COST AND
CONVENIENCE
OF TRAINING
Offering training options that are cost
effective and convenient is becoming
more important to employers as the
pace of technology, business innovation
and regulatory change increases,
making some skills and knowledge
quickly redundant. Also, as the rate of
workforce turnover increases, training
investments need to be targeted to yield
productivity returns before employees
move on. ABS data show that
Administrative and Support Services,
which includes business services
sectors such as employment services,
call centres, and other administrative
services, has one of the highest staff
turnover rates, at 27 percent per year.42
Some IBSA stakeholders believe the
value of qualifications is diminishing
because the rate of job change
requires chunks of learning rather
than longer courses. Stakeholders
also highlighted that non-accredited
training can be delivered at a lower
cost and therefore can be more
desirable for employers in this high
change environment. Increased fees or
reduced subsidies, for courses are also
said to have impact on students ability
to pay for their own training.
Consultations indicated employers
want more flexible, lower cost training
options, including:
top up training, aligned to business
needs, particularly in relation to
compliance issues
recognition of prior learning (RPL),
backed by gap training provided on
the job
qualifications delivered within 3
months, and
DIVERSITY DRIVING
INNOVATION
Leading companies around the world
are finding better ways to tap into
underutilised sources such as the female
labour force and older workers, as well
as unemployed people.43 In Australia,
with the introduction of the National
Disability Insurance Scheme beginning
in 2016, many people with disabilities
who have had difficulty accessing the
workforce will be better supported to
do so, creating a new talent pool for
business services.
Organisations increasingly see
diversity as a driver of innovation.
Research now tells us that what makes
a group intelligent and innovative is
the combination of different ages,
skills, disciplines and working and
thinking styles that members bring to
the table. Creating and managing
diversity will therefore become a
core competency for business service
organisations over the next decade.
Employees working within diverse
teams need to be able to identify and
communicate points of connection,
shared goals, priorities, values, which
transcend their differences and enable
them to build relationships and work
together effectively.44
Business Services
23
COMPUTATIONAL
THINKING (CT)
ENVIRONMENTAL
SUSTAINABILITY
24
There is increasing
demand in large businesses
and governments for
individuals who can
coordinate sustainability
practices.
CHAP TER 4
Current
impact of
training
packages
CH AP TER 4
Current impact
of training packages
BUSINESS SERVICES
TRAINING PACKAGE (BSB)
A new suite of qualifications in the
Leadership and Management stream
has been developed, which includes
many of the soft skills industry requires:
two new qualifications in Project
Management, which include a
restructure of the Advanced Diploma
and the introduction of a Graduate
Diploma, to better align the training
package qualifications with the
standards of the major industry
bodies, and
a Graduate Certificate and four
Skill Sets in Diversity are included,
for those wishing to advance their
learning in this area, to assist human
resource professionals and emerging
leaders to successfully innovate using
workforce diversity.
As a result, the Package now has forty
new units of competency, five new
skill sets and seven new qualifications,
which reflect industry and enterprise
skill requirements, as well as local and
international trends.
Continuous improvement in 2015 will look
at the changing Marketing and Advertising
sectors to ensure units of competency and
qualifications meet industrys requirements.
28
qualifications delivered by
enterprise RTOs, and
non-accredited training conducted
inhouse or by external providers.
Attempts to directly correlate tables of
commencement and completion should
be avoided because:
an enrolment is recorded for each
year the course is active multiple
enrolments are recorded when a
course is undertaken over more than
one year, and
completions are not uniformly
reported, ie some jurisdictions only
report completions when they award
a certificate (rather than a Statement
of Attainment) and this is only done
when requested and paid for by the
completing student.
These factors may result in an overreporting of enrolments and underreporting of completions.
Predicting change
Figure 10: Business Services enrolments and annual percentage change, 2010-13
263,328
275,137
222,495
207,683
2010
26.8%
4.5%
-19.1%
2011
2012
2013
Figure 11: Business Services qualifications completed and annual percentage change, 2010-13
96,114
82,367
71,251
65,862
2010
25.1%
16.7%
-25.9%
2011
2012
2013
Source: VOCSTATS <http://www.ncver.edu.au/wps/portal/vetdataportal/data/menu/vocstats/>, extracted on 16/07/2014 2013 completions provided by NCVER on 29/07/2014
will be revised upwards from time to time.
Business Services
29
100,000
80,000
60,000
40,000
2010
2011
20,000
2012
2013
0
Certificate I
Certificate II
Certificate III
Certificate IV
Diploma
or higher
60,000
2011
40,000
2012
20,000
2013
0
Major cities
Inner
regional
Outer
regional
Remote and
very remote
Overseas and
unknown
30
Predicting change
Certificate IV in Frontline
Management (16,315)
Certificate IV in Business (15,085)
Figure 13 shows enrolments in Business
Services qualifications decreased in
2013 for all regions from major cities
to remote locations. Most Business
Services enrolments by a factor of
between two and three, come from
students in major cities.
Figure 14: Business Services enrolments by participants previous highest education, 2010-13
6%
8%
23%
2%
6%
Certificate IV (9%)
Certificate III (15%)
9%
29%
Certificate II (2%)
Certificate I (0%)
15%
Year 12 (29%)
Year 11 or below (23%)
Unknown or misc (6%)
2%
20,000
2011
10,000
2012
2013
0
19 years and
younger
20to 24
years
25 to 29
years
30 to 39
years
40 to 49
years
50 to 59
years
60 years
and over
Business Services
31
35.5%
35.2%
33.9%
% Male
70,504
93,534
99,583
78,428
2010
2011
2012
2013
Female
Male
10%
College/Campus based
18%
Online/remote access
53%
Employment based
Other
19%
Table 3: Percentage of enrolments by Indigenous students in Business Services and all IBSA
qualifications, 2010-13
Business Services
2010
2011
2012
2013
4.2%
3.9%
3.9%
4.3%
4.4%
4.0%
4.0%
4.2%
32
Predicting change
Figure 18: Apprenticeships and traineeships in Business Services qualifications by training contract status
(Commenced, Completed, Cancellations/Withdrawals and In Training), 2010-13
Commenced
Completed
Cancellations/Withdrawals
In Training
90,000
75,000
60,000
45,000
30,000
15,000
0
2010
2011
2012
2013
Source: Apprentice and Trainee Collection from VOCSTATS <http://www.ncver.edu.au/wps/portal/vetdataportal/data/menu/vocstats/> extracted on 7/8//2014.
Notes specific to Apprenticeship and Traineeship statistics: Figures are based on date of effect rather than the date of processing. Due to lags in reporting and processing, the most
recent figures (generally those for the last 7 quarters or 2 years) are estimates and are subject to revision.
Figure 19: Persons employed in IBSA Business Services Clerical and Administrative Worker, Census 2011
Healthcare and social assistance
Public administration and safety
Professional, scientific and technical services
Manufacturing
Education and training
Construction
Wholesale trade
Retail trade
Transport, Postal and Warehousing
Financial and insurance services
0
Source ABS, 2011 Census of Population and Housing, One digit ANZSIC by four digit ANZSCO
Business Services
33
Figure 20: Inquiry Clerks, Call or Contact Centre Workers or Telemarketers highest employing Industries,
2011 Census
Central government administration
Other administrative services
Telecommunications services
Local government administration
Banks
Health and general insurance
State government administration
Tertiary education
Auxilary finance and investment services
Motor vehicle retailing
0
Source: ABS, 2011 Census of Population and Housing, Three digit ANZSIC by four digit ANZSCO
34
CHAP TER 5
Future
directions
CH AP TER 5
Future directions
The Business Services Industry has benefited from long periods of growth and, as the economy
strengthens and outsourcing trends continue, the two year outlook is positive, if a little subdued.
Workforce development
challenge:
Availability and use of large
volumes of customer data
Impacts:
All businesses
Language of analytics
Mathematics, statistics
Computational thinking
IT strategic and operational
Cyber security
Written and verbal communication skills
All businesses
38
Predicting change
Workforce development
challenge:
Impacts:
Changing workplaces,
including focus on healthy
workplaces to retain
workers
All businesses
Critical thinking
Business literacy
Problem solving
Specialised skills within high-value niche areas
All businesses
SUPPORTING
A RESPONSIVE
NATIONAL VET SYSTEM
In supporting industry skilling the
following could be considered for the
national skills system:
Encourage the university sector
and the VET sector to work together
to create better articulation
pathways in Business Services
Industry sectors
All business services depend strongly on the quality of the people they employ, to gain and
retain clients - brand recognition and customer service are critical . . . business services fortunes
are strongly linked to the state of the economy and business confidence.
Business Services
39
Appendices
APPEN D IX A
Methodology
and bibliography
METHODOLOGY AND STAKEHOLDER INPUT
Statistical information for this report was
gathered through a desktop research
process from a range of sources as
indicated in the bibliography.
Further input into this Escan was
gathered from industry stakeholders via
a series of consultation forums held in
2014. Forums were held in Adelaide,
Brisbane, Canberra, Melbourne, Perth,
Sydney, Hobart and Darwin, and a
webinar gathered views from
regional stakeholders.
Survey tools were used at each
forum to gather information from
participants, including advice on
occupations in demand.
This Escan was validated by IBSAs Sector
Advisory Committee in October 2014.
The following organisations have made
valuable contributions to this Escan:
3-AAA Training & Consulting Pty Ltd
Academy IT
ACAE
42
Predicting change
Entropy Enterprises
Enzumo
Advisory Council, NT
B Trained
Baking Industry Training Australia
Evocca College
Evolution
Evolve Training Solutions
Excel Training
Baptist Care
CITT
Betterlink Group
City of Unley
BMC
Communicare Academy
Darwin Festival
DDLS
Goodstart
Centacare
Greencross Vets
Guildhouse
CEO Tasmania
DOME Association
Hargraves Institute
Chamber of Commerce NT
Edutainer
C Y OConnor Institute
Canberra Institute of Technology (CIT)
Captain Cook College
Career Lounge
Cemons Skills Centre
Heritage Bank
Business Services
43
Holmesglen Institute
Polytechnic West
Mentor Education
Print NZ
Hunter TAFE
Illawarra ITeC
Independent Schools Victoria
Industrial Foundation for Accident
Prevention (IFAP)
Insources
Institute for Civic Leadership
Institute of Certified Bookkeepers
Institute of Project Management
Institute of Public Accountants
Insurance Australia Group
Milcom Communication
Montague Consulting
Murray College of Health Education
Music Council of Australia
Musicians Union of Australia
National Association for the Visual Arts
National Corporate Training Pty Ltd
National Training and Solutions
Provider Pty Ltd
Natwide Personnel
RMIT University
New Horizons
News Limited
Salmat
Newskills Limited
Sanity Productions
SAS Group
Screen West
Koolat Safety
Kormilda College
Leap training
NT Writers Centre
Learning Options
Service Skills SA
SKILLED Group Training Services
Skills Strategies International
Skills Tasmania
Optimi Digital
Outpost Consulting
44
Spec Training
Spectrum Organisations
Spirelight Brand Media Management
Predicting change
Business Services
45
BIBLIOGRAPHY
Abetz, E. & Hartsyker, L. (2014) New
employment services model to drive
stronger job outcomes Ministers
media centre, Press Release, 28 July
2014. https://ministers.employment.
gov.au/abetz/new-employmentservices-model-drive-stronger-joboutcomes
ABS (2013) Labour Force, Australia,
Detailed, Quarterly, May 2013. Cat
No 6291.0.55.003. www.abs.gov.au
Australian Industry Group (2013)
National CEOs Survey. http://www.
aigroup.com.au/portal/binary/
com.epicentric.contentmanagement.
servlet.ContentDeliveryServlet/
LIVE_CONTENT/Publications/
Reports/2012/10767_ceo_survey_
report_technology_web.pdf
Australian Industry Group (2014)
CEO Survey Business Prospects
in 2014. http://www.aigroup.
com.au/portal/binary/com.
epicentric.contentmanagement.
servlet.ContentDeliveryServlet/
LIVE_CONTENT/Publications/
Reports/2014/ceo_survey_slowly_
changing_gears%2520FINAL.pdf
46
Predicting change
robertwalters.com.au/career-advice/
salary-survey.html
Source for Consulting (2014) Trends
shaping the consulting industry
over the next 12 months. http://
www.sourceforconsulting.com/
files/file/Strategic%20Planning%20
Programme%202013%20-%20
Part%201_sample_report.pdf
Stephenson, Chris; Valerie Barr (2011).
Defining Computational Thinking for
K-12. CSTA Voice 7 (2): 34
Teasdale, K. (2013) Four challenges
for customer self-service. ICMI call
centre. http://www.callcentre.co.uk/
the-rise-of-customer-self-service-2/
The College of Law (2014) Whats on
the horizon for the legal industry in
2014? Insights. http://www.collaw.
edu.au/insights/whats-horizon-legalindustry-2014/
Business Services
47
APPEN D IX B
ANZSCO
Occupation/
Job Role
Business Services
149211
511112
48
Contact centre
manager
Contact centre
workers
BSB30412
BSB50307
BSB50401
BSB30211
BSB40312
PSPSS00024
Predicting change
ANZSCO
511111
511112
132111
132111
Occupation/
Job Role
Contract or program
project manager
Corporate services
manager
Corporate social
responsibility
manager
BSB41513
BSB51413
BSB60707
BSB51107
Diploma of Management
BSB50207
Diploma of Business
BSB60407
BSB51107
Diploma of Management
BSB50207
Diploma of Business
BSB60407
521212
BSB40110
5412
BSB30412
BSB40507
BSB50407
BSB40812
BSB50311
BSB30412
BSB40507
BSB50407
BSB51107
Diploma of Management
BSB50207
Diploma of Business
BSB60407
BSB41013
BSB50613
BSB60907
BSB51107
Diploma of Management
BSB60407
149212
133512
Frontline supervisor
5121
531111
111211
599411
132311
224711
224712
General
administrative officer
Human resource
administrator and
manager
Management and
organisation analysts
Business Services
49
ANZSCO
224214
224999
131112
551111
225112
224113
225113
111211
131112
13112
131112
131113
Occupation/
Job Role
Manager data
and records
BSB40212
Certificate IV in Business
BSB41707
BSB50207
Diploma of Business
BSB51707
BSB60207
BSB60807
Advanced Diploma
of Record Keeping
BSB51107
Diploma of Management
BSB50207
Diploma of Business
Manager and
analyst market
research and
big data
BSB41307
Certificate IV in Marketing
BSB51207
Diploma of Marketing
BSB60507
Manager business
development and
strategy
BSB51107
Diploma of Management
BSB50207
Diploma of Business
BSB50107
Diploma of Advertising
ICT10
Manager advertising,
sales and public
relations
BSB40107
Certificate IV in Advertising
BSB40610
BSB41307
Certificate IV in Marketing
BSB50107
Diploma of Advertising
BSB51207
Diploma of Marketing
BSB60507
BSB41307
Certificate IV in Marketing
BSB51207
Diploma of Marketing
BSB60507
BSB50407
BSB50207
Diploma of Business
BSB60407
BSB60207
131114
225112
5121
5122
50
Market research
analyst
Predicting change
ANZSCO
Occupation/
Job Role
132311
OH&S manager
BSB51312
BSB60612
BSB30712
BSB41412
BSB51107
Diploma of Management
BSB50407
BSB60407
BSB60207
BSB50407
BSB51107
Diploma of Management
BSB51607
BSB60407
BSB51107
BSB60407
BSB51207
Diploma of Marketing
BSB60507
251312
224712
223111
221213
221214
234312
234399
OH&S Officer
Organisation change
and workforce
development specialist
Quality and
compliance auditor
Sustainability
manager
251311
225113
Strategic Marketer
Business Services
51
APPEN D IX C
Business Services
NCVER data
The following data are reported from the National Centre for Vocational Education and Research
(NCVER) VOCSTATS data warehouse, which includes data from the national annual VET Provider
Collection and the quarterly national Apprentice and Trainee Collection.
52
Predicting change
QUALIFICATIONS WITH
ZERO ENROLMENTS
Qualifications with zero enrolments were
reported to the national collection as
having either publicly funded or feeforservice activity, up to the end of 2013,
by at least one training organisation
or jurisdiction, but did not have any
enrolments in publicly funded training
and fee-for-service VET provided by
public institutions. It is important to note
that significant amounts of training occur
outside the publicly funded VET system.
2010
2011
2012
2013
27,271
29,994
30,488
26,924
9,163
19,614
20,965
12,309
3,331
4,455
5,780
5,184
ADVERTISING
526
422
392
339
436
318
289
152
178
118
114
110
AUDITING
248
345
569
567
4,138
3,953
2,970
1,622
33,105
35,922
31,133
22,629
Business Services
53
2010
2011
2012
2013
16,579
18,857
19,483
13,973
7,317
10,915
14,131
15,085
4,161
6,205
7,835
5,451
219
206
389
171
1,039
1,719
2,523
4,570
64
12
304
79
19
1,154
2,428
2,409
877
8,414
9,638
7,868
3,735
345
304
476
981
1,498
4,286
6,700
5,061
74
33
11
54
11
67
40
1,260
1,608
430
29
12,822
16,608
18,498
16,315
Predicting change
2011
2012
2013
200
117
37
19,013
31,086
30,922
21,533
2,410
3,266
3,581
2,298
2010
79
21
24
20
215
138
155
140
16
15
14
36
4,261
4,678
5,024
4,499
4,319
4,824
5,824
6,401
404
412
523
397
131
103
65
74
687
933
850
602
1,514
1,138
1,008
883
1,289
1,271
1,277
1,198
466
528
813
891
178
199
256
386
Business Services
55
2010
2011
2012
2013
2,580
2,306
2,223
1,998
2,026
2,040
2,055
2,087
598
585
521
494
3,593
3,856
872
4,460
806
4,933
902
1,303
909
1,080
1,209
1,462
7,485
9,850
12,229
9,561
2,847
4,366
5,779
5,859
256
244
309
243
PROJECT MANAGEMENT
3,237
4,151
4,874
3,753
4,614
6,669
7,025
4,819
145
356
460
202
PURCHASING
182
97
129
100
117
162
203
153
56
Predicting change
2010
2011
2012
2013
146
140
79
78
73
69
76
77
27
30
41
28
9,048
9,673
8,667
9,896
11
2010
2011
2012
2013
8,151
10,246
10,865
8,998
2,364
3,455
9,508
4,705
1,123
1,549
2,060
1,200
ADVERTISING
166
125
153
98
173
156
169
87
104
83
59
69
Business Services
57
2010
2011
67
2013
211
2012
302
206
867
990
879
410
8,673
8,430
7,891
5,261
5,185
6,431
7,291
5,992
2,495
2,827
3,797
4,883
1,476
1,747
2,501
1,673
48
30
131
77
309
647
684
652
BUSINESS MANAGEMENT
(SEE ALSO FRONTLINE MANAGEMENT)
BSB41101 Certificate IV in Business Management
41
104
18
139
CUSTOMER CONTACT
BSB20211, BSB20207 Certificate II in Customer Contact
885
957
1,058
448
2,761
3,602
3,418
1,367
137
116
234
440
287
984
1,947
1,378
28
58
Predicting change
2010
2011
2012
2013
461
631
270
3,998
5,918
7,331
5,383
42
18
5,985
10,061
11,434
8,660
1,115
1,723
1,682
1,173
GOVERNANCE
22
10
75
43
37
41
12
17
19
HUMAN RESOURCES
989
1,133
1,215
1,086
1,271
1,402
1,401
1,140
181
187
234
171
61
44
20
33
255
342
238
196
568
623
370
244
Business Services
59
2010
2011
2012
2013
427
419
410
341
154
177
210
206
122
99
109
169
MARKETING
959
749
762
597
850
910
845
686
415
469
306
197
MEDICAL
974
1,105
399
1,363
392
1,416
435
513
115
193
342
294
2,320
2,878
3,813
2,706
949
1,118
1,235
1,066
131
145
128
95
60
Predicting change
2010
2011
2012
2013
1,798
2,265
2,539
1,843
2,075
3,202
3,248
2,286
45
152
231
106
PURCHASING
102
45
88
37
32
49
89
35
34
64
41
38
18
41
27
31
10
13
10
3,138
3,102
2,658
2,475
26
14
Business Services
61
Acknowledgements
The 2015 Environment Scan has been produced with the
assistance of funding provided by the Australian Government
through the Department of Education and Training.
IBSA has produced this Environment Scan as a resource for its stakeholders
without any formofassurance. While IBSA aims to provide high quality content,
it does not guarantee theaccuracyofthisinformation and therefore will not be
liable in any capacity for damages orlossestotheuserthatmay result from the
use of this information.