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Thursday, September 17, 1998

Demand for consultants on the upswing 

 
With corporate strategy changing with the increased access to information technology, closer conduits to the customer have been made, so the role of the consultant has also developed, according to The Sydney Morning Herald.

Earlier, consultants were armed with methodologies which bespoke applications for corporations. The arrival of enterprise resource management applications saw many of those players transform themselves into project managers, and prompted the emergence of new players attuned to the new demands.

The managing partner of Andersen Consulting, Graham Henry, believes that the development of the consulting business owes everything to the technology itself. ``Because of the way technology develops it is simply impossible to have those skills in house on a permanent basis. It is getting more and more difficult for organisations to successfully execute technology projects," he said. So consultants are brought in.

Jeremy Asher, PA Consulting group chief executive, on a recent visit toAustralia said: "What has started to happen is that the scale of IT systems implementation is now so large that it is dominating the consulting process in quite a few firms. The dividing line between the two is becoming blurred." Demand for all brands of consulting continues to rise. Industry analyst the Gartner Group believes that consulting is the second fastest growing strand of the professional services market, tipping a 29 per cent annual growth compared to an overall professional services rise of 20 per cent a year. It believes consulting is worth more than $500 million a year.But the varied nature of the sector is clearly reflected in its list of the top ten consultants which is strongly skewed towards computer vendors. The list comprises Unisys, Andersen Consulting, DMR, Computer Power Group, Price Waterhouse, Hewlett-Packard, Fujitsu, IBM GSA, BHP IT and Hitachi Data Services.

IDC estimated that in 1997 consulting accounted for 11 per cent of the $4 billion professional services market, althoughit believes by 2002 it will dip to a 10 per cent share of the $10 billion overall market. That still represents growth from a $440 million business last year to a $1 billion industry in less than five years.

Australian Government seeks to end junior wages

An end to junior pay rates would devastate youth job prospects, employers fear following the Australian Government's announcement of an inquiry into abolishing the lower wage scales.

The Retail Traders Association, which employs 420,000 people on junior rates, said the number of juniors would be halved.

The Australian Chamber of Commerce and Industry (ACCI) said the retail industry, "which employs 90 per cent of the people on junior rates, would suffer the most damage".

"This is a very important issue. The effect of ending age-based award rates would be devastating to the employment of young people and if we are concerned about employment we must retain them," said Reg Hamilton, manager of labour relations for the ACCI.

A full bench ofthe Industrial Relations Commission, headed by Justice Paul Munro, has convened an inquiry into replacing junior pay rates with alternatives which do not discriminate on the basis of age. The inquiry is the result of a request from the Minister for Workplace Relations, Reith, who agreed to support an inquiry as part of a deal he negotiated with the Australian Democrats two years ago to have the Federal Government's industrial relations legislation passed in the Senate.

The Democrats baulked at Reith's plan to maintain junior rates of pay indefinitely and exempt them from age discrimination provisions but agreed to a compromise under which the rates would continue, pending a report from the commission by next June.

A general exemption for junior pay rates from non-discrimination requirements of the Government's Workplace Relations Act is due to run out in June 2000, although the commission may include junior rates in awards after that on a case-by-case basis.

Junior pay rates vary from industry toindustry but are set at a percentage of adult minimum award pay rates on a sliding scale, depending on age. A typical pay rate in the retail industry is for 16-year-olds to receive 70 per cent of the adult rate, rising to 80 per cent at 18, 90 per cent at 19 and 100 per cent at 20.

Unions argue that junior rates should be abolished so that employers recognise the importance of training juniors and pay for training time spent away from work. An ACTU assistant secretary, Mr Tim Pallas, said unions did not support discrimination on the basis of age. "It works both ways," Mr Pallas said.

"Young people who are adequately skilled to be paid adult wages are held down by an artificially deflating device, while it discriminates against older people who are unskilled because they automatically command a higher rate. "Pay rates should be based on skills, responsibility and experience." The commission's inquiry will also investigate the consequences for youth unemployment and types of rates in different industries.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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