Outsourcing Malaysia (OM), an initiative under PIKOM, today shared that the outsourcing industry in Malaysia is set to double in growth by 2017 with a Compound Annual Growth Rate (CAGR) of 15 per cent from its current 2012 revenue of USD1.7 billion.
OM announced its second industry report titled ‘Malaysia’s Global Services Outlook’ in conjunction with the four day international Asia-Pacific Outsourcing Summit (APOS) in Iskandar, Johor. The research findings by leading B2B market researcher Valuenotes, was commissioned by OM to provide the SWOT (Strength, Weakness, Opportunity, Threat) insights of the industry in Malaysia.
|Outsourcing Malaysia unveils the 'Malaysia's Global Services Outlook' research in APOS2013|
David Wong, Chairman of Outsourcing Malaysia (OM) shares that one of the major insights is the key advantage that Malaysia has, being ranked 12th worldwide by the World Bank for the ‘Ease of Doing Business’ category. This ranking is also the highest amongst all countries that are considered ‘outsourcing countries.’ “A simple illustration of this is that a potential investor can start doing business in Malaysia in a mere 6 days, while it takes an average of 36 days to do the same in other APAC countries,” he explains.
The research findings also reveal the urgency for Malaysia to move away from playing the numbers game in outsourcing and from the entry-level outsourcing sector. Wong explains, “The largest Malaysian outsourcing company only manages to employ 5,0000 people as compared to over 100,000 employees in some of the larger firms in India and China. This illustrates the average size of outsourcing centers in Malaysia - which limits our capability in taking on volume-driven type of outsourcing project.”
Pi PR Consultancy Sdn Bhd