Outsourcing Malaysia, Setia Haruman and i2M in pact to boost outsourcing industry

By Digital News Asia October 20, 2014

To create a ‘collective pooling of organisational and sectorial competencies’
Announced at summit that included Outsourcing Malaysia Excellence Awards

Outsourcing Malaysia, Setia Haruman and i2M in pact to boost outsourcing industry

OUTSOURCING Malaysia, Setia Haruman Sdn Bhd and i2M Ventures Sdn Bhd (i2M) have formed an ‘institutional partnership’ to help grow the outsourcing ecosystem in the country.

The Institutional Partnership would create a collective pooling of organisational and sectorial competencies which would help to establish an “inter-dependent and matrix support environment,” Outsourcing Malaysia said in a statement.

Outsourcing Malaysia is an initiative under the National ICT Association or Pikom, while Setia Haruman is the master developer of the Cyberjaya smart city.

i2M is a wholly-owned subsidiary of Khazanah Nasional Bhd, established to focus on the development of strategic investment promotion initiatives for the Business Services/ Shared Services and Outsourcing sector in the city of Nusajaya in the Iskandar Malaysia development hub in the southern Malaysian state of Johor.

“Outsourcing Malaysia … aims to leverage the access and reach of its institutional partners, while offering tangible value and returns to such partners as deemed appropriate from their own business and representational standpoint,” said chairman David Wong.

“Collectively, the ability to cross-populate value creation and enhancements in today's … borderless environment creates a significant opportunity for Malaysia,” he added.

Wong said the outsourcing industry in Malaysia is approximately US$1.9 billion and expected to hit US$3.4 billion by the year 2017 at a compound annual growth rate (CAGR) of 15% in revenue terms.

The market size of the industry is approximately US$5 billion based on reports from approximately 300 companies in Malaysia, he claimed.

“Besides, the industry currently employs 65,000 workers and is expected to achieve 88,000 by 2017. With the formation of this partnership, I am confident the targets are within reach,” Wong added.

The partnership was announced at the Smart Sourcing Summit 2014, which included 4th Outsourcing Malaysia Excellence Awards.

The awards recognise the best practices in the outsourcing industry and aims to further the cause of outsourcing as a key strategic driver for value creation, Outsourcing Malaysia said.

The winners are: