This includes revenue from information technology (IT), business process outsourcing (BPO) services and knowledge services.

 

PIKOM chairman David Wong Nan Fay said by 2013 the industry is expected to see its revenue increase to US$1.9 billion, recording a compound annual growth rate (CAGR) of 15 per cent over the next five years.

"The government's initiatives for the outsourcing industry, the country's economy and other factors related to the country's population, culture and society are expected to drive the industry," he told a media briefing after launching a research report, "Outsourcing in Malaysia: Scaling New Heights" in Petaling Jaya today.

 

The research was jointly undertaken by PIKOM and India-based ValueNotes Database, a provider of business intelligence and research.

Wong said Malaysia's outsourcing industry has a small share in the US$220 billion global IT and IT-enabled services outsourcing market.

He said BPO services were expected to grow at a CAGR of 15 per cent boosted by more banks, financial firms and companies looking to outsource human resource services.

Wong said presently, the industry was focused on expansion in Asia, Middle East and Africa markets, enhancing service niche areas like Islamic finance and strengthening position in shared service outsourcing.

"To sustain growth in the long run, local players should identify, invest and strategise for capturing niche opportunities rather than blindly follow large successful outsourcing companies in India and Philippines.

"The local companies can leverage on domestic market with capabilities in legal, engineering, manufacturing design and animation services," he said.

Wong said PIKOM also encouraged government-linked companies and large multinational corporations to outsource their non-core activities to widen the outsourcing market scale.

"The non-core activities include maintenance, help desk, ICT equipment, call and data centre," he said. – BERNAMA