Thriving the outsourcing industry in APAC: Malaysia the focal point?

By Cat Yong

The National ICT Association of Malaysia (PIKOM) chapter initiative, Outsourcing Malaysia (OM), has announced Malaysia would host the next Asia Pacific Outsourcing Summit (APOS), from 21-24 October, 2013, in Iskandar Malaysia, with i2M Ventures Sdn Bhd coming onboard as a host sponsor.

OM Chairman David Wong highlighted that Malaysia has experienced significant growth in recent years, despite a global economic downturn which has seen other global outsourcing hubs like India affected negatively. “There are around 300 outsourcing players in Malaysia, and the local outsourcing industry has seen 12% growth compared to a regional average of 9%,” Wong pointed out.

Outsourcing Malaysia hopes to maintain this momentum, especially due to programmes like Entry Point Project 2 (EPP2) being spearheaded and driven by parties like MDeC, OM, PIKOM, MAMPU, Pemandu, Khazanah Nasional and more. EPP2 is aimed at developing globally-competitive outsourcers.

APOS in Iskandar 
This would be the first time that APOS is held in Iskandar Malaysia and i2M’s Managing Director, Zulfiqar Zainuddin stated, “The APOS Summit will be the perfect platform to share the key upcoming projects we have been working on for Iskandar Malaysia. This event will place Iskandar Malaysia in the limelight as a major potential hub for the region’s outsourcing market.”

A wholly-owned subsidiary of the government’s investment vehicle, Khazanah Nasional, i2M itself focuses on the strategic investment promotion initiatives for the business services/shared services and outsourcing sector of Nusajaya, Iskandar Malaysia.

Iskandar Malaysia is widely viewed as the next Cyberjaya, an outsourcing hub that had attracted world-class companies to set up shop in that location. But while Cyberjaya focused on multimedia and IT companies, Iskandar has identified finance and logistics as the two verticals that they would provide strategic incentives for.

Wong had opined, “Iskandar will be successful, no doubt about it.”

APOS in APAC via OM
The APOS Summit is being organised by OM and in partnership with the International Association of Outsourcing Professionals (IAOP). Besides i2M, MSC Cyberport, Accenture, KPMG, VADS, and the Malaysian Data Center Alliance (MDCA) are some of the other sponsors of the summit.

OM will also be IAOP’s key partner in bringing the APOS Summits to other countries in APAC for the next 5 years.

Debi Hamill, CEO of IAOP had said,”Asia Pacific is emerging as a lucrative market for outsourcing, both globally and domestically, so staying informed has never been so important.”

Wong added, “As ASEAN countries go borderless in 2015, trade in the region is set to increase and this is an opportunity for the outsourcing industry to accelerate economic growth, social progress and cultural development through possible joint ventures, partnerships or merger & acquisitions.”

The APOS Summit at Iskandar is expected to attract over 400 delegates, with 30 percent of the delegates from around the world.  There will be plenary sessions and education tracks focused on trends, disruptions and predictions, technology innovations and more.”

The local outsourcing industry in 2012 had contributed about RM700 billion or 1% to the nation’s overall GDP