Malaysia is ranked the world’s third best global services location for eight years in a row.
The rank was based on the latest AT Kearney Global Services Location Index 2004-2011 report, said Michael Warren, director of Multimedia Development Corp (MDeC) global sourcing cluster division.
“At present, there are over 232 shared services companies in Malaysia, providing various shared services and outsourcing activities such as IT outsourcing and knowledge process outsourcing,” he said at the Shared Sevices and Outsourcing Conference 2012.
“Last year, we captured 30 new investments in shared services and outsourcing sector with a potential investment of over $100 million and the creation of about 7,000 jobs for the next three years.
“We should be able to attract more new investments this year,” Warren said.
MDeC’s focus is to position Malaysia as a high-value and premium destination for shared services.
“We want Malaysia to be the choice destination for knowledge processed outsourcing in shared services, which requires strong application of advanced analytical and technical skills, as well as a high degree of proprietary domain expertise that is evidently our blue ocean,” he said.
Warren added that the biggest misconception was that Malaysia was competing against India and the Philippines for shared services and business processed outsourcing investments.
“There is no way that we can compete in low-value shared services based on cost arbitrage, volumes, and economies of scale with a population of 27 million, compared with the one billion in India and the 95.8 million in the Philippines,” he said.
MDeC has strategically partnered with investPenang to proactively place initiatives to shape and position Penang as a key location for shared services and outsourcing in the country.
Warren said that to date, there were 148 Multimedia Super Corridor-status companies that had set up operations in Penang.
“Although only nine companies AMD, DELL Global Business Centre, Intel, Motorola Technology, Resoft Synergy, Jabil, Echo Broadband, Penang Seagate, and CompuMed Health Logistics are involved in shared services activities, they collectively generate significant percentage of the total revenue of all the MSC status companies in 2011,” he said.
“About 5,000 jobs were created by these nine companies.”