Establishment of Office in Support of Iskandar Puteri’s Positioning as Business Service Hub for the Global Business Services Industry.
Outsourcing Malaysia (OM), a chapter of the National ICT Association of Malaysia (PIKOM), launched its southern office in Iskandar Malaysia in tandem with the rapid growth of the Global Business Service GBS and Shared Services & Outsourcing (SSO) industry in Iskandar Puteri, Iskandar Malaysia.
The office, part of OM’s initiative to establish world-class GBS eco-systems across Malaysia which will facilitate the growth of the local industry while enticing the world to Malaysian shores. Moreover, the Malaysian Investment Development Authority (MIDA) and i2M Ventures Sdn. Bhd, a wholly owned subsidiary of Khazanah Nasional Berhad are among OM’s strategic partners responsible for the development of strategic investment promotion initiatives for the GBS and SSO sector in Iskandar Puteri.
“Given its strategic location as the World’s Best Nearshore to Singapore, its lower cost base, the availability of a highly skilled, multi-lingual talent pool and the many incentives provided by the government, the GBS ISKANDAR initiative based in Iskandar Puteri is steady to grow. It will become the ideal business services hub for Multinational Companies (MNCs) and Regional Headquarters (RHQs) for companies especially those based in Singapore,” shared OM Chairman, Cheah Kok Hoong.
OM’s office is also part of its commitment to support industry members who have established operations in Iskandar Puteri via the GBS ISKANDAR initiative. As part of its activities with GBS ISKANDAR, OM will work closely with the government and GBS companies in developing key areas such industry knowledge, talent pool, technology, legal frameworks on intellectual properties and more.
GBS ISKANDAR is poised to strengthen Malaysia’s competitive ability to capture a larger share of the growing global business services market pie, which is expected to reach RM6.5 billion by 2020. To date, GBS ISKANDAR has created over 2,800 professional jobs within the GBS sector while successfully attracting over RM1.4 billion (USD315 million) in committed investments.
Upon congratulating OM for its southern office, Dato’ Azman Mahmud, Chief Executive Officer of Malaysian Investment Development Authority (MIDA) said, “MIDA, being a permanent member of the GBS ISKANDAR Steering Committee, welcomes the presence of Outsourcing Malaysia towards our common goal of building a world-class business environment in Malaysia.
“Being one of the drivers to position Malaysia as a global hub for high-value outsourcing, OM adds to our on-going efforts in creating high-value and knowledge-based jobs for Malaysia. OM’s presence here will further catalyze the growth of Iskandar Puteri as a thriving business services hub in the region.” he added
The local GBS sector is expected to see a compounded annual growth rate (“CAGR”) of 10%-15% for the next three years[i]. In 2016 alone, more than 6,000 skilled jobs were created for 85,000 jobs – surpassing the target set for jobs to be created by 2017.
[i] Outsourcing Malaysia’s GBS Business Services Outlook Report – Buyers’ Perspective 2015