Superannuation industry

Outsourcing in the superannuation industry (in The multi-billion dollar industries of the future)
http://www.smartcompany.com.au/Premium-Articles/Industry-Trends/20080604-The-multi-billion-dollar-industries-of-the-future.html
Extract: The continued swelling of Australia’s $1 trillion superannuation is already changing the face of the Australian economy and will continue to do so for the foreseeable future. It is also creating numerous opportunities through the outsourcing of transaction and investment services.

Some of the sub-industries that will grow in the coming years from outsourcing by the superannuation sector include investment managers, industry analysts, product creators, relationship management experts, financial planners, IT suppliers and asset managers. The relatively mature nature of the Australian retirement savings industry gives local companies the chance to export their services to markets where retirement savings systems are still under development. Big investment banks such as Macquarie have already helped established Australia’s reputation in the global financial services sector – it’s up to SMEs to leverage this advantage.

IBISWorld forecasts that this industry will grow at an average annual rate of 4.8% during the five year period to 2012-13. The biggest driver to industry revenue will continue to be the local superannuation funds industry, which will continue to exhibit an increase in assets largely due to compulsory superannuation contributions.

The anticipated rise in individuals' retirement at age 60 and above resulting from the removal of the tax at the end benefit stage is expected to further strengthen the demand for superannuation products and provide incentive to increase voluntary contributions in the five years to 2012-13.

External influences will also affect this sector, with the sup-prime crisis increasing the wholesale cost of funding. With increased globalisation in the finance industry, institutions are able to source funds from domestic and international sources. As such, the increased cost of wholesale funds in addition to a tightening bias towards interest rates by the RBA is likely to see variable loan repayments increase.