With the global and national economy facing various external pressures, the Global Business Services (GBS) industry is likely to buck the trend and register stronger growth in 2017.
Some of the projected growth is underpinned by various factors, such as the increasing pressure on global companies to reduce cost and the attractive incentives and infrastructure within the local GBS sector. Not to mention the strong Dollar and various geo-political developments that could potentially see companies relocate existing GBS operations to Malaysia.
According to the chairman of Outsourcing Malaysia (OM), Cheah Kok Hoong, the various policies and strategies that have been put in place over the years creates long-term value for the GBS sector.
In 2014, the GBS sector was worth US$670 billion (bn), with Asia Pacific having the largest market share at 36% (US$240bn). It is predicted that Malaysia’s GBS sector will see a compounded annual growth rate of 10% to 15% for the next five years.
“We have been working together with Malaysia Digital Economy Corporation (MDEC) and other partners in developing a comprehensive BGS ecosystem with strong emphasis on supporting the needs of buyers, end-users and service providers.
We will continue to employ new ideas and means to disrupt the status quo – shifting from a low-cost value proposition to high-value based service provider and we are beginning to see the fruits of our labour, which will be more evident in 2017,” says Cheah.
This year, OM will continue to develop a high-value based GBS sector in attracting foreign investments. Other initiatives include the opening of OM’s satellite office in Iskandar Malaysia to support the growth of the fledgling GBS sector in the region.