Photo - Rishesingar Ramasamy, Director, ITO Global Delivery Malaysia, HP Enterprise Services.
Technology solutions giant HP is confident it will reap benefits from the expected Asia Pacific growth of the IT outsourcing (ITO) sector during 2013, citing its emphasis on human talent as one of its attributes.
In a recent interview in Kuala Lumpur, HP Enterprise Services director, ITO global delivery Malaysia, Rishesingar Ramasamy, said the strong growth of the centre in Malaysia included a focus on best in class delivery standards learnt from operations in more mature markets. "Among many advantages that companies using ITO services is they can focus on their core skills while expanding their business into new markets."
"Many businesses in Malaysia are maturing into a position where they can benefit from the ITO sector, while case studies from mature markets in Europe and the US show the pitfalls to avoid," he said. "The ITO journey helps customers focus on their business while we focus on their IT needs."
"The delicate economy, especially in Europe and other parts of the world, will probably enhance rather than hinder the opportunities for ITO providers during 2013," said Ramasamy. "In fact, research shows that the IT services market is poised for robust growth in the Asia Pacific region. Research and industry estimates indicate that the worldwide ITO market will grow by a 5.8 percent compound annual growth rate (CAGR) through 2016. Specifically for Malaysia, Gartner forecasts that the IT services market here will grow at a CAGR of 9.5 percent in 2013."
"However, with this growth, some fundamental changes are occurring, such as the shifting of the traditional ITO model to one that is an outcome-based model (one based on performance and not just number of people deployed)," he said. "One thing that remains constant though is the necessity of an effective global delivery model for successful outsourcing agreements."
"We are at an inflection point where the delivery and consumption of, as well as the business model for technology, are all being redefined," said Ramasamy. "To this end, IT outsourcing (ITO) plays an important role by offering significant benefits that businesses stand to gain from."
Being a partner not a vendor
"Many of the local medium enterprises are not quite ready to take the plunge into using ITO services," he said. "The principle hurdle is cultural: many firms are family-owned and run and it is a difficult and sometimes long journey for them to let go and focus on their core skills. However, some of the pioneer firms have already started to expand onto the global stage."
"However, recent local examples include a regional transportation firm, as well as companies in the telco, transportation, retail and financial services sectors," said Ramasamy. "At HP, our positioning as partners rather than as a vendor also imparts confidence to such companies: that they can take away the risk of managing non-core business operations and trying to meet IT skills required to run complex IT processes."
"Another significant value add from HP is that we are able to offer maturity, depth and global reach at a faster pace than other ITO firms," he said. "Lessons learned from our customers around the world means we can share expertise and knowledge."
"Companies in Asia are well advanced on the journey to learning how and what to outsource and can benefit from HP's footprint, talent and depth of skills," said Ramasamy. "The key approach we bring to our centres is the focus on attracting, developing and retaining our people. Like most other companies, our principle challenge is talent. We came into Malaysia for the talent in common with many other big players."
"While we are fully supportive of the positive drive to develop talent by the Malaysian government, we also see it as our responsibility to grow that talent pool - as it is one of the hurdles to the local ICT industry - and to also provide an enriched daily work-life balance so that our talent stays with us and continues to grow," he said. "Local agencies such as TalentCorp and the Ministry of Higher Education and others are working with industry to foster the local pool."
"Many of the professionals attached to the Malaysia centre have been with us for five to 10 years," said Ramasamy. "Local enterprises that are growing into the global market can fast track with more confidence when they see HP's global talent and experience pool."
"Other time zone and cost advantages of being in Malaysia, in common with other centres such as India, Philippines, and Costa Rica, means that we have a global unified team to support our customers," he added.
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