Lim Kok Hin, Vice President and Head of Domestic Business Operations, Canon Singapore
The Asia-Pacific region is poised to outperform the rest of the world, says Lim Kok Hin, Vice President and Head of Domestic Business Operations, Canon Singapore, in this exclusive interview. He outlines three main outsourcing trends in this growing region.
Is it true that companies are moving away from business outsourcing?
On the contrary, as the economy stabilises, businesses are starting to look at outsourcing as a way of reducing costs, taking advantage of skilled workforces, and improving their business processes.
In our experience, we see the trend of business outsourcing gaining momentum both regionally and locally. We are observing increasingly more organisations in Singapore being plagued with issues of labour shortages and productivity, and experiencing the pressure to increase productivity and drive innovation. This observation led us to launch Canon Business Services, our first outsourcing arm in Asia that allows companies to outsource their day-to-day operations such as print operations and document management, to enable them to focus on their core operations for growth and innovation.
As companies look to expand beyond their borders to create global brands, there is a growing need to focus on what really matters. Coupled with labour shortages in the region, and the focus on growth and innovation, we believe that increasingly more companies are turning to business outsourcing as one of the ways to maintain their competitive edge.
Can you point out some of the main outsourcing trends in the region?
The Asia-Pacific region is poised to outperform the rest of the world bolstered by multinational corporations expanding into the region and positive economic conditions. As a result of this growth, the IT outsourcing services sector is expected to grow in tandem.
With an increased focus on business outcome in the region, here are the three main outsourcing trends in the region that we've observed through our customer interactions.
One of the things we're constantly hearing from our customers is the importance of tighter governance to find more efficient ways to handle compliance, legal, and financial risk. Tighter governance is one of the trends that will continue to be enforced that companies will need to adapt to. Earlier this year, we launched Canon Business Services and we understand that each vertical have different certified requirements. For example, the healthcare industry has different certificate requirements compared to the financial industry.
Second, the tight economy has resulted in shifts in outsourcing pricing models. As the uncertain business landscape continues to evolve, outsourcing businesses will be refining with their pricing structures and contract terms. Overseas companies, in particular, will find this particularly challenging as they have to determine if they should streamline on a single service or continue to branch out into a variety of other areas. We are starting to see signs of this trend becoming more common place in 2013.
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