Taking outsourcing to the next level
AUSTIN (Texas): Malaysia’s international initiative to take its shared services and outsourcing (SSO) industry to a higher level was launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi here yesterday.
Using the World Congress on Information Technology (WCIT) 2006 as the platform to launch Outsourcing Malaysia, he said shared services had become a critical element in today’s business world and was the major concern of most multinational companies.
A consortium has been formed through a collaborative government-industry approach, with Multimedia Development Corporation (MDeC), the Association of the Computer and Multimedia Industry of Malaysia (PIKOM) as well as Malaysia Debt Ventures (MDV) as institutional partners.
WARM WELCOME: Abdullah being greeted by Minister of Science, Technology and Innovation Datuk Seri Dr Jamaluddin Jarjis upon arrival at the Austin Signature Airport on Wednesday. –Bernamapic
“I believe that Malaysia can truly shine in the SSO industry because Malaysia offers cutting-edge sophistication at a fraction of the cost – comparable with the lowest overall cost in the Asian region,” he said.
The fastest growing segment of the SSO industry that is reaching almost US$1tril (RM3.6tril) is the outsourcing of business operations offshore, especially to countries where the cost of operations is lower.
“As such, Malaysia’s unique package of commercial and lifestyle options will provide the global industry with overall cost savings, as well as quality
services that are second to none,” he said.
Abdullah said Malaysia had what it need to succeed in the SSO industry because of its political stability, safe and secure location, sound infrastructure, low-cost of living, high quality of life, skilled human capital, small staff attrition rates, low wage inflation, and the lowest telecommunications cost.
The Prime Minister said seven urban and regional areas had been developed for this with four more being planned.
In terms of human resources, companies had at their disposal a well-educated workforce with multiple skills and multiple language proficiencies, including English.
Malaysia, which had since the last decade been developing the SSO industry, had achieved notable successes.
Currently, many multinational firms such as HSBC, DHL, BMW and various American companies such as EDS, ACS and IBM have established operations in Malaysia, with many more in the pipeline.
“Malaysia continues to give emphasis to developing knowledge-workers to help transform the country to becoming a knowledge-based economy,”Abdullah added.
-The Star