30th July 2007

Malaysia climbs the preffered outsourcing location ladder

posted by Glen Stidolph in Outsourcing, Malaysia |

Malaysia has been ranked as the fifth most preferred locations in the world for shared services and outsourcing (SSO), an improvement from its sixth placing last year, according to a study conducted by global consulting company Frost & Sullivan.

“Over here, we see concerted efforts by the Government to attract the attention of global Fortune 500 companies,” said Frost & Sullivan’s vice-president, information and communications technology practice, Nitin Bhat.

“While the Government may make certain efforts, it ultimately (depends on) the service providers, whether they are local or multinational,” he said when commenting on Malaysia’s prospects of climbing up the rankings at a presentation in Kuala Lumpur yesterday.

In the study, India maintained its top ranking, followed by China, Ireland and Singapore which also retained their second, third and fourth positions respectively.

Nitin added that in addition to Malaysia’s good quality infrastructure, if all the other relevant elements work together, there is a chance for the country to move up in the rankings, especially with the small margin between the countries ranked third and fourth.

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There are currently 2 responses to “Malaysia climbs the preffered outsourcing location ladder”

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  1. 1 On July 30th, 2007, Cliff said:

    I’m not suprised by the top 2 countries in the survey on global competitivenes, and its great to see that Malaysia is now postioned at number 5,(I’m an expat living in Kuala Lumpur and not suprised by this at all) but what does suprise me is that first world economies such as Ireland and Singapore and not countries such as the Philippines are 3rd and forth. I see so much media attention on the workforce in first world economies losing their jobs to ’slave labour’ and ’sweatshops’ in Asia, when in actual fact forward looking, fast thinking and innovative first world economies with salary structures and overheads on par with the US are winning a very significant amount of the Oustsource contracts. Something else that both Singapore and Ireland have in common, is that they have no punitive import duties to protect ‘key’ industrial sectors unlike the US and some other industrialised nations where workers are extremely quick to attack their governments for allowing companies to embrace outsourcing, but are individualy incredibly slow to adapt to the changing face of the workplace,

  2. 2 On August 10th, 2007, Marco Robinson said:

    I like Cliff am also intrigued by Ireland’s and Singapore’s high ranking.

    Outsourcing really is a global business and not an Asian one. It is all about where the BEST SOURCE of the project really is and if you asked any company where they would prefer to take their outsourcing, they would not necessarily say the cheapest, they would say the one that can perform the task with the most efficiency, professionalism and return on investment, that stays true to the company’s values and mission.

    That is what it’s all about and that is what outsourcing companies have to get accross to prospective clients.

    Then outsourcing truly is a global business that offers tremendous resource to any company.

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