Malaysia’s Outsourcing Sector to Surpass RM7 Billion by 2015

Local talent pool expected to grow in tandem with outsourcing industry growth to 88,000

KUALA LUMPUR, 26 February 2013 – Outsourcing Malaysia (OM) - an initiative under PIKOM, today shares its latest projection of the local outsourcing sector to grow to a RM7.1 billion industry 2015 from  the current revenue of RM5 billion in 2012.

According to David Wong, Chairman of Outsourcing Malaysia (OM), “This represents a CAGR of 12.6%. 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.” says Wong.

Wong added “With support from MDeC and 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.”

OM works closely with MDec (Multimedia Development Corporation) and PEMANDU, in efforts to drive the National Key Economic Area (NKEA) Business Service by focusing on
i) Entry Point Projects (EPP2) ‘Building Globally Competitive Outsourcers’ and
ii) ii) EPP3 ‘Positioning Malaysia as a world class Data Centre Hub’.

Impact on Local Talent
In tandem with the outsourcing industry’s growth, OM expects a parallel 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. Over the next three (3) 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,” says Wong.

At the moment 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 amongst the top 10 preferred outsourcing hubs for up to three (3) verticals by the year 2015.

“There is a continual need to up skill Malaysia’s outsourcing workers via increased knowledge, industry specific skills and exposure via certification and seminars. Therefore, OM’s three year plans and initiatives focuses heavily around talent growth and development in our aim to make Malaysia the preferred outsourcing country worldwide,” adds Wong.

“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,” ends David.

One of the key events OM will be focusing on is the Asia Pacific Outsourcing Summit (APOS) 2013 in collaboration with the International Association of Outsourcing Professionals (IAOP) which will take place in Malaysia for the 2nd time, whereby over 500 trade delegates from around the world are set to converge in Malaysia.