Emerging countries with a strong knowledge base are trying to improve their economical growth through KPO firms. The increased demand for lower cost destinations from global markets has favored the development of the Malaysia Knowledge Process Outsourcing sector.
The expansion rate of Asian markets will increase in the coming years, which will provide abundant economic opportunities. Studies show that the Shared Services and Outsourcing (SSO) sector has a total investment of 17% in Malaysia, which comes to about RM 0.5 Billion.
The Malaysia Knowledge Process Outsourcing is yet to attain a leading position in the outsourcing space provided by global markets. Surveys say that KPOs have more profit margins than Information Technology. MSC Malaysia, which is the Malaysian government’s ICT initiative, has achieved a substantial position in KPO and has been on a trajectory of positive growth.
The success of this enterprise has been based on integrated solutions such as finance, accounting, oil and gas, and other sectors. The demand for transformation has resulted in the identification of new areas of social media and technology.
The global markets are on the lookout for companies that provide exact solutions to clients rather than those service providers with a series of offerings. The Malaysia Knowledge Process Outsourcing is committed to targeting such markets, thereby achieving global recognition.
Talent issues need to be addressed by outsourcing companies from Malaysia as well. The Global Service Location Index by AT Kearney has placed Malaysia as the third outsourcing destination after India and China. With expert skills, talents and technological potentials, Malaysian KPO industries are prepared to compete with their counterparts all over the globe.
The increase in revenue from global markets had compelled more than 100 companies to start shared service centers in Malaysia. Attrition rates have been brought down for maintaining strong and long-term relationships with client companies. The Malaysia Knowledge Process Outsourcing companies are trying to find innovative ways for employee training in order to deliver quality services related to knowledge base operations and accounting.
Constraints for Malaysia Knowledge Process Outsourcing
Global markets focus on the advantages of financial services and energy sectors from Malaysia Knowledge Process Outsourcing companies. The services offered by the KPO sector include finance, business, market intelligence, legal, patent research, IP, pharma and many others. The countries with a large workforce of engineers, science graduates and doctors can create tough competition for Malaysian KPOs.
Proper access to global markets will enable the flow of demand, which is ensured by strategic management processes. The scope of vertical services can also be tapped for the development of knowledge process outsourcing. The numerous opportunities that emerge in subsequent years can be utilized effectively with advanced technological support and planning.