SYMPHONY House Bhd has yesterday signed a joint venture agreement with Singapore-based BCS Information System Pte Ltd (BCSIS) to provide cheques processing services to banks operating in Malaysia.
“We hope the joint venture will contribute a revenue of RM20mil to the group by next year,’’ Symphony group chief executive Datuk Azman Yahya said.
He said the joint venture unit, Symphony BCSIS Sdn Bhd, had already secured one banking customer and was poised to expand its clientele base given the good opportunities for growth in business outsourcing from financial institutions.
“The growth rate (for the joint venture company) depends on the how quickly banks would move towards outsourcing their non-core activities,’’ Azman said.
BCSIS chairman Wong Nang Jang said about 70% of all cheque clearing services by banks operating in Singapore were outsourced to third party players.
Azman estimated the market for such outsourcing jobs in Malaysia to be worth around RM150mil to RM200mil annually.
“So far, only two banks have outsourced their cheque clearing activities while the third one is with us,’’ he said.
Azman said the joint venture with a BCSIS fitted well with Symphony's business strategy to evolve into a leading business processing outsourcing solutions provider.
“This would complement the services provided by our associate company, Vsource (M) Sdn Bhd, and our managed services division,’’ he said.
Azman said that the group was planning to list Vsource on the Bursa Malaysia Mesdaq market in the third quarter of this year. Vsource's total outsourcing contracts, which provide recurring income for the group, is estimated at RM80mil a year.
Symphony group’s corporate managed services division was the main income generator last year while information technology (IT) services accounted for about 30% of total revenue. “We expect IT services to contribute 70% to current year revenue, but we still expect corporate services to grow at a double double-digit rate,’’ Azman said.
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