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Thursday, 31 July 2014 | MYT 12:00 AM

Outsourcing sector sees 27% jump in overseas revenue

KUALA LUMPUR: Malaysia’s outsourcing sector saw a 27% jump in overseas revenue in financial year 2013 to RM1.59mil from RM1.25mil in 2012, due to outsourcing opportunities and projects.

Outsourcing Malaysia (OM) chairman David Wong said the 27% increase in just one year, was significant for the country’s outsourcing industry, which was still relatively small compared with those of other regional peers.

He said in a statement yesterday that the various initiatives by the Government on the Economic Transformation Programme (ETP) and industry-wide efforts, were the drivers behind the positive earnings growth for Malaysia’s outsourcing industry.

“However, there is still much room for improvement. Of the RM1.59bil in overseas revenue, only 25% was generated by local outsourcing players, and the rest by their foreign shared services players based in Malaysia,” he added.

Wong said there were still many local outsourcing players who only focused on business from the local market, rather than their global counterparts (established and operating in Malaysia), who were more keen to attract and secure foreign outsourcing business.

He said this was where OM was able to come in to assist small and medium businesses like local outsourcing companies by helping them move up the value chain to improve global attractiveness and overseas income from in-bound outsourcing projects.

Outsourcing is one of the Entry Point Projects under the Business Services National Key Economic Areas of the ETP, which focuses on areas of business such as business process outsourcing, IT process outsourcing and knowledge process outsourcing.

OM is an initiative of the outsourcing industry and a chapter of Pikom, Malaysia’s national ICT industry association. – Bernama

Tags / Keywords: Stocks , Earnings , Corporate News , OM

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