Outsourcing in Malaysia: Scaling New Heights (Includes Company Profiles)

Transcription

1 Brochure More information from Outsourcing in Malaysia: Scaling New Heights (Includes Company Profiles) Description: Malaysia has emerged as one of the leading destinations for outsourcing with five Malaysian companies included in the Global Services 100 list. Backed by world class infrastructure and supportive government bodies, the country has seen an influx of global outsourcing giants like HSBC, Standard Chartered Bank, DHL, Shell, IBM, HP, EDS and CSC, in the recent past. The Malaysian economy is backed by a democratic government with its centralized financial planning placed across five years. The focus of the last two plans (eighth and ninth) has been on the outsourcing industry. The Malaysian outsourcing industry has seen an increase in the ICT spend in the Ninth Malaysian Plan (9MP) as compared to the previous one. The Malaysian economy, due to its government led initiatives in the IT sector and its export relations with neighboring Asia Pacific countries, has reached an inflection point which is conducive for the growth of the IT-BPO industry. Revenues from the Malaysian IT/ITeS outsourcing industry are expected to touch $1.1 billion in The industry is expected to grow at a CAGR of 15% to reach $1.9 billion by Currently, IT outsourcing services in Malaysia has a greater share of the overall outsourcing market, followed by BPO services; while knowledge services outsourcing, still in its nascent stage, has a smaller share. Malaysia has been recognized as one of the preferred destinations for outsourcing, however it faces some challenges. One of the major challenges for the Malaysian outsourcing industry is to overcome constraints with regards to scalability. The total number of employees in the industry is roughly comparable to the number of new hires by a leading Indian IT outsourcing service provider. Employee costs are 15% to 20% higher when compared to other popular destinations like India. One of the key concerns for the outsourcing industry in Malaysia is the need to move up the value chain to offer high value services as opposed to highly commoditized services in IT or BPO. Outsourcing Malaysia (OM) and ValueNotes publication Outsourcing Malaysia: Scaling New Heights, provides an in-depth analysis of the service provider landscape in Malaysia. The report brings out the key strengths and challenges faced by the country's service providers. The report also highlights the growth drivers and provides the key trends and insights for opportunities in the Malaysian outsourcing industry. This report will help - Companies planning to setup outsourcing operations in Malaysia - Companies looking to start captive operations in Asia - Service providers around the globe, especially in Malaysia, neighboring Asian countries and the Middle East to understand the Malaysian outsourcing landscape - Consultants and investors looking to invest in the Malaysian outsourcing industry The report is based on secondary information as well as extensive interviews with a number of Malaysian outsourcing service providers. Contents: 1. Executive Summary 2. Malaysian Economy and Outsourcing 2.1 Malaysian Economy Evolution GDP Growth Trade Relations Planning Commission Malaysian Economy and Outsourcing 2.2 Government support for IT-BPO PIKOM Multimedia Development Corporation MDeC (MSC) Outsourcing Malaysia (OM)

2 2.2.4 Malaysia as an outsourcing destination 3. Outsourcing Industry Structure 3.1 Evolution 3.2 Industry structure Service provider types 4 Service Provider Landscape 4.1 Market size 4.2 Market by type of service provider 4.3 ITO services 4.4 BPO services 4.5 Knowledge services 4.6 Lack of scale hampers delivery capability 4.7 Services capability 4.8 Markets and Client mix 4.9 Billing Rates 4.10 Leading players 4.11 Leveraging Strengths to Overcome Challenges 5 Outsourcing Drivers and Restraints 5.1 Market Drivers 5.2 Government Support and Incentives Institutions and Associations increase awareness Infrastructure enables easy and quick scale up Incentives make Malaysia a competitive destination 5.3 The Malaysian economy as an outsourcing driver De-risking drives outsourcing to Malaysia in the BFS sector Oil and Gas Logistics 5.4 Demographic and socio-cultural factors Language advantage Location advantage Socio-cultural factors Developed world business experience at competitive costs 5.5 Outsourcing cost comparison 5.6 Issues and challenges Manpower Issues Lack of funding for local companies Clarity of vision for policy making Recent changes in government support for IT-BPO industry 6 Trends and Insights 6.1 Future outlook IT Outsourcing - slow but steady growth BPO - buoyant growth KPO - rapid growth 6.2 Strengthening position in Asia and MEA markets 6.3 Service emphasis 6.4 Outsourcing by domestic companies 6.5 Strengthen position as SSO 6.6 Consolidate and collaborate to compete 6.7 Finding niche focus 7 OM Member Directory 8 Research Methodology 8.1 Data Collection 8.2 Data Analysis 9 About Outsourcing Malaysia 10 About ValueNotes

3 10.1 Research Publications 10.2 Recent Custom Projects List of Exhibits Exhibit 1: Evolution of Malaysian Economy Exhibit 2: GDP and growth rate Exhibit 3: Share of various sectors to GDP (2008) Exhibit 4: Top export destinations for Malaysia Exhibit 5: Cybercities and Cyber centre Exhibit 6: OM objectives Exhibit 7: Initiatives by industry associations Exhibit 8: Ranking grid Exhibit 9: Evolution of the Malaysian outsourcing industry Exhibit 10: Service capabilities Exhibit 11: Origin of Malaysian outsourcing companies Exhibit 12: Scale of operation by country of origin Exhibit 13: Type of service by country of origin Exhibit 14: Types of service providers Exhibit 15: Number of players - captives and third party Exhibit 16: Number of players by type of service Exhibit 17: Malaysian outsourcing industry growing at CAGR of 15% Exhibit 18: Revenues share of captives and third party Exhibit 19: Employee share of captives and third party Exhibit 20: Revenue share by services Exhibit 21: Employee share by services Exhibit 22: Revenue share of captives and third party in ITO Exhibit 23: Employee share of captives and third party in ITO Exhibit 24: Revenue share of captives and third party in BPO Exhibit 25: Employee share of captives and third party in BPO Exhibit 26: Revenue share of knowledge service providers Exhibit 27: Employee share of knowledge service providers Exhibit 28: Delivery capability in various services Exhibit 29: Services Exhibit 30: ITO service provider capability Exhibit 31: Number of players offering services in ITO Exhibit 32: BPO services providers Exhibit 33: Number of players offering services in BPO Exhibit 34: Knowledge service providers Exhibit 35: Service emphasis - Multi-service Exhibit 36: Market segmentation by geography Exhibit 37: Clients and markets of some Malaysian service providers Exhibit 38: Share of Domestic to international clients Exhibit 39: Billing rates Exhibit 40: Leading players Exhibit 41: BPOs - Opportunities and challenges Exhibit 42: ITO - Opportunities and challenges Exhibit 43: Knowledge services - Opportunities and challenges Exhibit 44: Outsourcing drivers Exhibit 45: Cost of business in Malaysia Exhibit 46: Government Incentives Exhibit 47: BFS: Market drivers and services outsourced Exhibit 48: Oil and Gas: Outsourcing market drivers and services Exhibit 49: Logistics: Outsourcing market drivers and services Exhibit 50: Language capabilities of some Malaysian service providers Exhibit 51: Strategic positioning Exhibit 52: Ease of doing business in Malaysia (2008) Exhibit 53: Relative costs and maturity of infrastructure Exhibit 54: Relative costs and maturity of employees Exhibit 55: Comparison of top players from Malaysia and other locations Exhibit 56: Malaysian IT employee salaries expensive than Asian competitors Exhibit 57: Scalability constraint for Malaysian outsourcing industry Exhibit 58: IT outsourcing to grow at CAGR of 10%

4 Exhibit 59: BPO to grow at CAGR of 20% Exhibit 60: KPOs to grow at CAGR of 20% Exhibit 61: Outsourcing contracts in Malaysia Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and send to Research and Markets, Guinness Centre, Taylors Lane, Dublin 8, Ireland.

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