The Global Business Services (GBS) industry is expected to register stronger growth in 2017 despite the prevailing weakness in the global and national economy. The projected growth is attributed to increasing pressure on global companies to reduce cost, attractive incentives and infrastructure within the local GBS sector, the strong US dollar and various geopolitical developments.
The GBS industry was worth US$670bn in 2014 with the Asia Pacific region having the largest market share, at 36% or US$240bn. Malaysia’s GBS sector is expected to see a compounded annual growth rate of 10-15% for the next five years, said Outsourcing Malaysia in a report published in 2015.
“In 2016 alone, more than 6,000 skilled jobs were created for a total of 85.000 jobs, surpassing the target set by 2017,” said Outsourcing Malaysia chairman Cheah Kok Hoong. He added that the government’s various policies and strategies put in place over the years created long-term value for the GBS sector.
“We face stiff competition from countries on a linear grid such as India and the Philippines. Outsourcing Malaysia together with the Malaysia Digital Economy Corporation (MDEC) and other partners have worked towards developing a comprehensive GBS ecosystem with strong emphasis on supporting the needs of buyers, end-users and service providers.
“We will continue to employ new ideas and means to disrupt the status quo, shifting from a ‘low-cost’ value proposition to a high-value-based service provider. We are beginning to see the fruits of our efforts. This will be more evident in 2017, giving us an edge despite the many challenges and stiff competition coming from other countries.
“A high-value-based model consists of knowledge, talent pool, top class technology-enabled infrastructure and a comprehensive legal framework on intellectual properties,” Cheah explained. “It will also include access to comprehensive knowledge base, risk mitigation strategies, rapid re-engineering of key business processes and access to specific talent resources.
“The talent ecosystem plays an important role in delivering high value to clients by filling the gaps in talent employability for the industry. Outsourcing Malaysia will focus on training and up-skilling the workforce on IT, human resources and finance. We look forward to forging strategic partnerships and collaboration with various agencies, public and private partnerships,” he said.
Among its Outsourcing Malaysia’s resources is the opening of a satellite office in Iskandar Malaysia in collaboration with i2M Ventures Sdn Bhd to support the fledgling GBS sector in the region.