SOURCE: Frost & Sullivan

May 04, 2006 16:21 ET

'Outsourcing Malaysia' Initiative Launched in Conjunction With Study That Identifies Malaysia as Prime Growth Area for SSO

Frost & Sullivan Polls Malaysia as Top Five Market for Energy, Finance and Logistics

AUSTIN, TX -- (MARKET WIRE) -- May 4, 2006 -- The Asia Pacific region and Malaysia in particular are poised to dramatically grow over the next decade as premier Global locations for Shared Services and Outsourcing (SSO), according to a study released today by Frost & Sullivan, a global growth consulting company.

The study, released today for the first time in the United States as part of the World Congress on Information Technology 2006, examines Global SSO activities and analyzes the concepts of vertical-based sourcing and vertical "Centers of Excellence."

Frost & Sullivan released the study in conjunction with the announcement of Outsourcing Malaysia, an initiative of the Association of the Computer and Multimedia Industry of Malaysia (PIKOM), Multimedia Development Corporation (MDC) and Malaysia Debt Ventures (MDV). Its members comprise a group of local outsourcing providers spanning IT and IT-enabled services.

Outsourcing Malaysia will focus on business development, branding and marketing, policies and human resources and capabilities development for SSO companies across Malaysia.

"All eyes are on Asia Pacific as a premier location for offshoring activities," said Aroop Zutshi, president of Frost & Sullivan. "Malaysia has and will continue to be a prime location for offshoring in this region.

"Its increasing prominence as a choice SSO hotbed has been in no small part due to its engaging government policies and efforts such as Outsourcing Malaysia in offering a world-class environment and attractive incentives through the Multimedia Super Corridor."

The study surveyed more than 300 of the Global Fortune 500 companies across seven verticals to understand the factors influencing their SSO decisions.

The past decade has seen dramatic growth in SSO adoption driven primarily by cost benefits, and business transformation and reengineering activities. The need to focus on core business activities to remain competitive has been the underlying thrust for the fast maturing SSO operations of these global companies.

The study estimated the global SSO market to be worth US$647.5 billion in 2004 and US$758.1 billion in 2005.

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