KUALA LUMPUR, 6 MARCH 2009 Malaysia is to host a summit conference for the outsourcing industry in May, says the International Association of Outsourcing Professionals (IAOP).
Speaking in Kuala Lumpur, US-based IAOP chairman Michael F. Corbett says that the Asia Pacific Outsourcing Summit, which will be held at the Kuala Lumpur Convention Centre, 12 -13 May, 2009, would also include additional activities from week commencing 10 Sunday May. We expect to attract more than 500 top-level industry outsourcing professionals as the main delegation to discuss Asia's role in the new economy.
The US-based International Association of Outsourcing Professionals (IAOP), with 41,000 corporate, professional, and associate members worldwide, aims to help transform the world of business through outsourcing. Client-side members are, on average, responsible for US$60 million per year of outsourcing spending with some overseeing outsourcing programmes in the billions of dollars.
Outsourcing in Malaysia still bright
Malaysian ICT association (PIKOM) chairman David Wong Nan Fay says there is strong support for the outsourcing industry from government agency, MDeC. "In addition, the outsourcing industry in Malaysia is still looking at positive growth of 15-20 per cent, even during the downturn, in comparison to overall ICT growth of about 5 per cent. The outsourcing sector is still hiring. Government stimulus has mentioned re-skilling of graduates to ICT."
Wong said that outsourcing remained one of the most promising sectors. There is no talk of retrenchments in this sector and the ministry of human resources is allocating funds for retraining and re-skilling of fresh graduates and unemployed people for business process outsourcers. By 2012, there are expected to be 300,000 nationwide outsourcing jobs in Malaysia.
IAOP global survey
IAOP's Corbett said that it surveyed its 41,000 customer and associate members around the world. "We asked our members how the global economy is affecting their decisions. About two-thirds said the downturn was affecting them. Ten per cent said the turmoil was actually helping their business."
"In US, the economy shrank by one per cent in the final quarter of 2008, he said. I understand the economy in Malaysia is still growing. The survey showed that members should be pushing down on volumes and pricing by as much as 15 per cent in some cases but there would be overall growth in the size of the business undertaken."
"The other point is that the real issue is that of the lack of certainty," he said. "In previous downturns, reasonable revenue forecasts, within one to two percent, were possible."
Asia Pacific's role in outsourcing
IAOP Malaysian Chapter chairman and Outsourcing Malaysia (OM) marketing and branding head, Bobby Varanasi said Malaysia is in the top ten outsourcing provider nations. However, this year would bring to the table a lot of challenges during the economic downturn. During the summit we would be looking at promoting outsourcing as a profession.
The objective of the forthcoming three-day event in May is to understand what is happening in outsourcing in Asia. In addition, how emerging nations need to understand the evolving global dynamics of this market.
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