KUALA LUMPUR: The outsourcing industry is expected to be one of the key growth sectors in the economic development of the Iskandar Malaysia region in Nusajaya, Johor.
“We have identified this (industry) as one of the key growth sectors to develop a more knowledge based, services driven economy at Iskandar Malaysia,” says Zulfiqar Zainuddin, managing director at i2M Ventures Sdn Bhd, a fully owned subsidiary of Khazanah Nasional Berhad.
The company has been tasked with the responsibility of attracting and facilitating the growth of corporations in the outsourcing or business services sector within Iskandar Malaysia.
Zulfiqar anticipates a good response from industry players with regards to the development of this sector at Iskandar Malaysia as he believes the nation has a proven track record when it comes to being selected as a choice location for the delivery of shared services and outsourcing.
“If you look at the Economic Transformation Plan, business services has been identified as one of the 12 National Key Economic Areas (NKEAs) and it continues to be one of the main growth sectors for the country,” he adds.
Growing the talent pool
Zulfiqar also sees great potential in harnessing the expertise of overseas Malaysian talent who have now returned to their homeland seeking work.
“We are seeing significant interest in this area. With the right types of jobs and career paths in place, I believe there will be plentiful opportunities for returning Malaysians to come back and serve the country,” he says.
Currently, international consulting firm, Frost & Sullivan has already set up its Global Innovation Centre at Iskandar Malaysia which include centres of excellence for consulting, innovation, finance and digital media.
The company’s presence is expected to generate 830 high value jobs with an average salary of RM7,500 per employee and it has committed to investments amounting to RM6mil over the next seven years. So far, 40 people have already been hired since the centre began its operations in August last year.
On the whole, Malaysia has around 300 industry players within the outsourcing sector to date and charts an industry growth rate of around 12% per annum.
“We hope to be able to continue this momentum,” says David Wong, chairman of Outsourcing Malaysia (OM), an initiative under national ICT association, Pikom. Quoting the findings of India-based research firm, ValueNotes, he adds that the rest of Asia Pacific, in comparison, has been achieving a growth rate of merely 9%.
As part of efforts to stimulate further interest for outsourcing services in Iskandar Malaysia, OM will be holding the Asia Pacific Outsourcing Summit (APOS) there from Oct 21 to 24 at the Traders Hotel.
OM estimates a turnout of around 400 delegates for the event, of which 30% are expected to consist of foreigners.
“Because of (Iskandar Malaysia’s) proximity to Singapore, we hope to attract a significant audience from Singapore,” adds Wong.
He also predicts that there will be a good mix of consumers as well as vendors from the industry at APOS.
A research report by ValueNotes offering an overview on the position of the Malaysian outsourcing industry entitled Malaysian Global Business Services Outlook will be released at APOS.
In addition, winners of the Outsourcing Malaysia Excellence Awards 2013 will also be revealed on the second day of the summit. This year’s awards will feature the new Outsourcing Leader of the Year award to recognise contributions towards the growth of the industry.
APOS, which is being organised for the second time, will be jointly organised by OM and the International Association of Outsourcing Professionals (IAOP) this year. Both organisations have entered a partnership agreement to host APOS for the next five years.
For more information about APOS, visit asiapacificoutsourcingsummit.com/.
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