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Outsourcing in Malaysia to reach US$3B by 2015

AvantiKumar | March 1, 2013
Knock-on effect will increase local talent to 88,000, says Outsourcing Malaysia, which is also planning to make outsourcing a 'Career-of-Choice' sector.

Outsourcing Malaysia Chairman David Wong sharing his views on the industry

Photo - Outsourcing Malaysia's Chairman David Wong.

Malaysia's outsourcing sector is expected to surpass RM7.1 billion (US$2.29 billion) by 2015 from its current revenue of RM5 billion (US$1.61 billion), according to Outsourcing Malaysia (OM), which is an initiative under the National ICT Association of Malaysia, PIKOM.

"This represents a compound annual growth rate [CAGR] of 12.6 percent," said Outsourcing Malaysia (OM chairman, David Wong, during a Chinese New Year media lunch. "The 2015 projection of the local outsourcing industry is optimistically achievable based on the current track record and initiatives planned."

"OM has put into place a comprehensive three-year plan that encompasses six key strategic thrusts that will shape the initiatives." said Wong. "With support from the national ICT agency Multimedia Development Corporation [MDeC] and the Performance Management Delivery Unit [PEMANDU], OM is confident that our initiatives will be a significant boost to escalate the outsourcing industry's growth towards the 2015 market revenue and talent pool growth projections."

He said OM already was working closely with MDeC and PEMANDU (a unit under the Prime Minister's department) to drive the National Key Economic Area (NKEA) Business Service by focusing on:

-Entry Point Projects (EPP2) 'Building Globally Competitive Outsourcers' and
- EPP3 'Positioning Malaysia as a world class Data Centre Hub.'

Making outsourcing a 'Career-of-Choice'

Along with the expected growth in the outsourcing sector, Wong said there should be a synergistic increase of jobs to 88,000 employees by 2015, from the current 54,000 in 2012.

"This is closely related to our strategy to establish Malaysia as the regional hub for skilled workers in the outsourcing sector," he said." Over the next three years, OM's talent development plans will focus on rebranding the outsourcing industry as a Career-of-Choice sector for graduates and existing professionals alike."

Wong said that Malaysia is ranked third in the AT Kearney's Global Services Locations Index (GSLI) for the Shared Services and Outsourcing sector. OM aims to achieve further recognition by being among the top 10 preferred outsourcing hubs for up to three verticals by the year 2015.

"There is a continual need to upskill Malaysia's outsourcing workers via increased knowledge, industry specific skills and exposure via certification and seminars," he said. "Therefore, OM's three-year plans and initiatives focus heavily around talent growth and development in our aim to make Malaysia the preferred outsourcing country worldwide."

Wong said OM's focus would include the Asia Pacific Outsourcing Summit (APOS) 2013, to be held in collaboration with the International Association of Outsourcing Professionals (IAOP), which will take place in Malaysia for the second time. 

"OM will continue to embark on worldwide missions to promote Malaysia as an ideal outsourcing nation, with a significant number of such missions planned over the next three years; with continued emphasis in creating access to sufficient funds and capital for our members to expand their business in the near future," he added.

 

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