outsourcing issue #14

8/8/2019 Outsourcing Issue #14

http://slidepdf.com/reader/full/outsourcing-issue-14 1/48

RM12, S$8, US$8KDN NO: PP14967/02/2009 (021381) MICA (P) 140/07/2009

PREMIER MAGAZINE ON BUSINESS AND TECHNOLOGY SERVICES INDUSTRY

I S S N 1 9 8 5 - 1 0 0 6

www.the-outsourcing.com>> ISSUE #14, 2009

As Badlisham

sees itMDeC CEO pulls no punches

as he measures the depth ofMalaysian ICT industry

Managingcustomerexperience

Vision of future:Post-economicoutsourcing

Are captive armsof corporationsfading away?Makingglobalisationwork: Do thecommunicationsright!



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CONTENTS

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8

12

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POKA YOKE! No, it’s not the latest Anime or Manga serialsrom the Land o the Rising Sun. In act, it’s a catchphrase.

A good one at that, regular columnist Dr Arlyne Diamondtells us.

It simply means: “Do it right the frst time”.She stresses that multi-tasking culture is not as great

s it’s made out to be. And that it sometimes createsnnecessary problems as we end up doing too many thingst sub-par standards.

t the same time, Poka Yoke! is not about attaininger ection either. Per ection is, o course, always beenmoving target. Instead, the Japanese slogan is just a

simple mantra to do a task better by summoning optimumocus. So be sure take to heart this simple advice in our

anagement segment.

In our Cover Story interview, Malaysia’s Multimediaevelopment Corporation CEO Dato’ Badlisham Ghazali,t his candid best, provides his rank opinions on theountry’s ICT scene.

While it’s heartening to see the mushrooming o locally-rown companies in the ICT landscape in the past years,e senses that there are much more e orts to be done and

essons to be learnt or more Malaysian frms to competen the global scene.

e also believes that by partnering with oreignounterparts, local companies will gain expertise aster, androduce ICT services and solutions at a rapid pace. Aptly,e says: “Our boys need to evolve and learn intricacies o artnership to move orward.”

eanwhile, our new columnist Jerry E. Durant, theounder o The International Institute or Outsource

anagement, takes a peek at the post-economic recoveryandscape and how it subsequently a ects the servicesndustry.

To ully understand and appreciate the uture sourcingperations, he compels us to examine the issue rom both

buyer and supplier perspectives.e says that buyers o sourcing services will need to

eep both costs and risk low as their companies seek fscalstability during this rough times.

eanwhile, or the providers, especially the onesstruggling with global promotion, setting sights on the near shore seems appropriate endeavour, he reckons.

e was also quick to point out that history, as we haveseen rom recent happenings, is unprecedented and only

hand ul saw it coming and had reacted in the right

way. – Sritharan Vellasamy

Managing Editor/Publisher:Sritharan Vellasamy

Consultant:Sundra Surian

editorial [email protected]

Sub Editor: Simon VellaArt Director: Steven ChooGraphic artist: Shafe OsmanContributors: Tamyne Menon,Dorothy Llew, Mohd ArshadCoordinator: James Wee

sales [email protected]

Vikraman VisnoResh Nathen

contact [email protected]

WORDlabs MEDIA (001645509-W)

27-1, Metro Centre, Jalan 3/146,Bandar Tasik Selatan,7000 Kuala Lumpur;

Phone: +603 90564770, 90580971;Fax: +603 90564771, 90580972

Editor’s note

the eam

[email protected]

R M 1 2 , S $ 8 , U S $ 8

K D N N O : P P 1 4 96 7 / 0 2 / 2 0 0 9 ( 0 2 1 3 8 1

) M I CA ( P ) 1 4 0 / 0 7 / 2 0 0 9

P R E M I E R MA GA Z I N E O N B U S I N E S S A N D T E C H N O L O G Y S E R V I C E S I N D U S T R Y

I S S N 1 9 8 5 - 1 0 0 6

w w w. t h e -o u t so u rc i ng .co m

> > I S S U E # 1 4 , 2 0 0 9

A s B a d l i s h a m

s e e s i t M D e C C E O p u l l s n o p u n c h e s

a s h e m e a s u r e s t h e d e p t h o f

M a l a y s i a n I C T i n d u s t r y

Ma na g i n g c u s t o m e r e x p e r i e n c e

V i s i o n o f f u t u r e:

P o s t- e c o n o m i c

o u t s o u r c i n g

A r e ca p t i v e a r m s

o f c o r p o ra t i o n s

fa d i n g a wa y ?

Ma k i n g g l o ba l i sa t i o n w o r k: D o t h e c o m m u n i ca t i o n s

r i g h t !


http://slidepdf.com/reader/full/outsourcing-issue-14 8/486 | Outsourcing | September-October 2009

Outsourcing | news bits

Malaysia’s MultiMedia d -v opm n Corpor on (Md C)

nno nc h c r RM7.75m on n v rom on-

n b n hn o h MsC M Gr

iCt s .i CeO B h m Gh z no

h wh c r n cr ng h mon h- ong Gis o

on RM106,000 (us$30,185), hv n ho no b j g b

on g r .th h r p n o r -m go or h Gis o h p

o r m n m z n rpr(sMe ) con r b o h co n r ’

conom on n on b ,”

B h m, h c o ng c r mono h Gis.“a Md C’ n v r g r

ow r h p ng sMe , con rh b roc o o r conom ,

iCt r n or o v , cr b r pro c nr ch g ob m r .”

th v n w 30 MsC M comp n o r ng co - v-

ng on iCt pro c n rv c or sMe , ch -comm rc , mob

m r ng n m r m o c -hom o c (sOHO) o on .

a o o 804 b n w rg n r hro gho h ro how,h b w n J 20 n a g 20,r ng h pro n w r no v n or wh nco r g ng ocsMe o mov p h v ch nb v r g ng on iCt r g c

r n or, Md C m n.

“W r h pp how h c m-p gn progr n h r

how h h r n or p orm o m M nsMe grow h n ppor n w b -n oppor n n h m r

c or r h r conom c

grow h n h co n r ,” v cpr n o Md C’ n r -v opm n v on, s o B hrMoh m sh m n.

th Gr iCt s , h nconj nc on w h N on iCt Mon h, w ppor b hsc nc , t chno og n innov -

on M n r , sm n M min r d v opm n Corpor -

on, M n d b V n r nt om M

Malaysia’s sHaRed rv c no o rc ng (ssO) c or, wh ch grow ng bo 30% p r nn m,h h po n o h RM6.4 b -

on b 2012. sc nc , t chno ogn innov on M n r d

dr M x m John Ong (pix,above) .

H h M m d v -opm n Corpor on (MdeC), n

g nc n r h m n r , w n nco r g ng h x-

p n on o h ssO c or n hco n r .

“to , MdeC h w rh MsC M o 184comp n nvo v n h ssO

c or, o wh ch 166 o h m r nc v op r on.

“in 2007, h oc ssO c or cco n or RM5.3 b on o MsC

M ’ r v n n cr32,500 job . th c or’ p r or-m nc or 2008, wh ch b ng

, xp c o ncrr h r,” h .

EvEry day, business jou n l he linesn in ust epo ts like e m king one

thing cle – outsou cing is now essenti lto business success.

In tu n, this t emen ous g owth inoutsou cing h s c use businesseswo l wi e to ecognise th t the

lso h e n explo ing em n fooutsou cing p ofession ls who c neffecti el le these initi ti es f ombeginning to en .

as the glob l-st n settingo g nis tion, the Inte n tion l

associ tion of Outsou cing P ofession ls(IaOP) wo ks with bu e s, selle s, n

iso s wo l wi e to e elop thesep ofession ls.

T e Ce t e Outsou c n P ofess on l(COP) M ste Cl ss cou se sets thest ge fo COP c n i tes who spi e to

consult t ll le els of thei o g nis tionsn to le thei o g nis tions’

outsou cing p og mmes.COP M ste Cl ss is n integ l

p t of COP P og mme. It p o i esoutsou cing p ofession ls – whethethe wo k s custome s, p o i e s, o

iso s – with n intensi e le ningexpe ience on the st te-of-the- ten -to-en p ocess fo outsou cingsuccess. The cl ss sets the st gefo pu suit of the COP esign tion,

ecognition b se on expe ienti lve c t on n v l t on of ppl c b l tof the Outsou cing P ofession lSt n s c oss ctu l sou cingeng gements.

The cl ss is o g nise with foute ching components – co e content,g oup iscussions n cti ities, expe t

insight, n ppl ing the content. The cou se is esigne to eng gep ticip nts n connect with th eep im le ning p efe ences: au ito ,

visu l, n Kinesthetic. The COP M ste Cl ss cu iculum

comp ises 10 st n c tego ies, 49spec c st n s, n 92 elements of the st n s. The cl ss, sche ule foOct 8-11 in M l si , will be con ucteb IaOP autho ise Glob l T ine , Bobb

v n si, CEO of M t zel Consulting.

To egiste fo M l si ’s COP M steCl ss e ent ple se em il:• OM n MSC M l s membe s:

l [email protected] g.m oicto @pikom.o g.m

• Non-membe s n ll ot e s:bobb @m t zel.com

COP Ma r Cla com o Malay a

Gr a iCt sal a ucc ,ay MD C Malay a’ ssO

c or o ouch

RM6.4 y 2012

“All MDeC’s initiatives are geared toward

helpingSMEs,considered the bedrock of our economy,utilise ICT

as a key differentiator to add value,create better

products and reach global markets.”



BaNk islaM Malaysia B rh p n onv RM100 m on on it m no on p nn ng ov r p r o o v

r .J ro n th j , h b n ’ Ch R O c r,

h n g o h nv m nwo r m n g m n m b ngp n p c .

B n i m M B rh co bo-r w h sas M o c p on

h r’ Rin g nc so-

on o r h r r ng h n h

b n ’ r m n g m n r m wor .sas n n p n n v n or n h

b n n g nc m r op r ngw h b n n c o w r n

rv c .th j h mp m n ng h r

m n g m n m no m n h b nw n b o h n r pr n .

th b n w w r o h r w

c ng n p ng ch m n p cwo n b h b n o pr c o

n pr v n v m r o m n m r , th j .

th sas R M n g m n s mo B n i m M B rh w bcomp n wo ph w h h r n

con ph r n J n r n apr2010 r p c v .

th r ph w h cr

n m rr wh h

con ph w h op r on

r .“th r ph h r or , o mp -

m n h r m r n n r h wc n om c v r o r r por o B nN g r . an h con ph wo b h

v opm n o cr r m n g m nn r por , o h w c n o m ch mor

gr n r n o o r cr r ,” h .

September-October 2009 | Outsourcing | 7

news bits | Outsourcing

tHailaNd Has set aN mb o rgo b com on o h wor ’ op hr

co n r or o o rc ng b 2013, b ng 4-b on-b h (us$118 m on) n rn orm ng n o o rc ng oc on,h Bangkok Post r por .

th co n r ’ po n o c p r op-por n n r c v n rn onit o o rc ng n on h h

r v ng n r o orm h th it O o rc ng a oc on, or titO,

oc on ch rm n s v n k n m .th oc on compr o 10p on r ng n rn on o o rc ngcomp n .

accor ng o r c n , “G ob s r-v c loc on in x 2009” b at k rn ,th n r n n mb r o r wor w or

oc ng o o rc ng c v , nc ng it rv c n ppor , con c c n r n

3COM COrPOraTiON h s beenselecte s Telekom M l si Bh ’s(TM) m n ge Custome P emiseEquipment (CPE) p tne .Le e ging 3Com’s multi-se ice

oute (MSr) pl tfo m, it s i TMwoul be ble to p ov e ex ble

n cost-effecti e se ices to itscustome s.

In st tement, 3Com s i them n ge se ices f om TM woulbe eli e e th ough 3Com’s p tneSolsis (M) S n Bh . de elopewith n open chitectu e, the MSr

oute s will lso integ te ente p ise-cl ss open sou ce pplic tionsinclu ing netwo k m n gement

n secu it . “Ou open netwo k chitectu e gi es TM the bilit

to p o ision new se ices withcompetiti e p icing while not h ingto comp omise on pe fo m nce,” s iM cus L i, Count M n ge , 3ComM l si .

The nnouncement buil s on theexisting el tionship between 3Com

n TM fo the eli e of se icessuch s IP-en ble vi tu l P i teNetwo ks n Met o Et e net to TM’sgo e nment, ente p ise n sm ll-

n me ium-size custome s.

Call CeNtRe GiaNt t t ch con no b h grow ng b n proc

o o rc ng comp n n Ph pp n w hh nch o wo n w n h M

C n r B n d r c , w r por .On o h r v ng orc b h n h

xp n on h con o on o t ch’G ob B n s rv c (GBs).

a h rg BPO o on prov r nh co n r , t t ch mp o ho n ,n m n g m on o c om r n r c-

on ch r. th comp n c rr n r n oz n oc on cro h Ph pp n .

G ob , t t ch rv ro n 100 c nw h pprox m 48,000 mp o n17 co n r .

tha la d look oou ourc g, up titO

b c -o c ppor , o ow ng in , Ch nn M , wh ch h v r n h ophr po nc 2004.

C rr n , h r no orm g r o

how h c o it o o rc ng n th nb ro gh m gg r ng o 800m on b h o 1.5 b on b h (us$23.6-us$44.25 m on), w h n v r g proj cv o 300 m on b h (us$8.87 m on),

h n w p p r r por .W h n h n x wo r , h m r

ho r ch 4-5 b on b h (us$118-us$148 m on), h n w p p r r por .

“th n ’ r b n h ghn v n goo r o rc w h n

r n b n nv ronm n , b h r n o boo con nc n

w r n mong h rg m r .“th oc on (titO) w nch

w b por oon o c rch nb n m ch ng b ng hor v oc p o n ro c ch m mb r nc ngb n m ch ng,” k n m wq o ng.

ba k i lam o p dRM100m o it olu o

t l komMalay apar r 3Comfor ma ag d

rv c

t l t ch’ bPO fac l Maka




CHiNa, aiMiNG tO RiVal in n o o rc ng n on, h

nch m r o h p ocb n prov ng b c -o c

rv c , ccor ng o n w po cr m wor nno nc r c n .

Ch n b n w r o oprov mor cr o o o rc ng

rv c rm , p c n 20 cgn b B j ng “b ”

or h n r .th w r p b h on

h P op ’ B n o Ch n w b(www.pbc.gov.cn).

in r nc rm w r or ro v op mor po c o h o o rc ng b n n

hor w r rg o woro g n b h

n o h mon h o h p h r oc rm .

B j ng wo nco r-g n p b c o r ng b

o o rc ng rm . i o con om c b n o g n o h

c n g v h m b n bcon r c ng b c -o c op r on

ch c c n r o h r -p rrv c prov r .th m n w jo n -

b h c n r b n , hM n r o Comm rc , h Ch nB n ng R g or Comm on,

h Ch n s c r R g orComm on, h Ch n in r ncR g or Comm on n hs a m n r on o For gnexch ng .

sRi laNka’s lOW COsts h v h p o b r n mong h op 20 g ob

o o rc ng n on or n orm on

chno og n b n proc o o rc ng(it/BPO), sr l n n n r bo n m n .

th sr l n a oc on o so w rn s rv c Comp n (slassCOM) q o

rv b con ng rm at k rn p c ng h n n 16 h po on mongit n BPO n on , p rom 29 h

po on n 2007. sr l n on o h wco n r o h v m v mprov m n nat k rn ’ G ob s rv c loc on in x(Gsli) r n ng o h op 50 co n r or o o rc ng g ob , .

“th r por h sr l n h b npromo n h r n b ow cocomp r o h r o h n on ,”

slassCOM .th comb n on o h gh p op ,vo r b b n nv ronm n n ow

co n b in , Ch n n M ob n h op hr o , .

sr La ka mprov ou ourc g ra k g

• ThE CONTraCT lue of Chin ’soutsou cing in ust mounteto US$2.59 b ll on n t e st lf of 2009, n nc e se of 32.5%comp e with the s me pe io l st

e .• T e e we e ove 1,400 newlinco po te outsou cingente p ses n t e st lf of 2009,

n s m n s 297,000 people joine the in ust u ing the s mepe io .

• alt ou ove se s em n fooutsou cing se ices sh nk in thest lf of t s e , C n ’s softw e

expo ts n outsou cing in ust stillm int ine pi g owth.• in o e to elp t t nsfo m f om

m nuf ctu ing b se to se icehub, Chin ims to ouble theexpo t lue of the outsou cing

n ust w t n ve e s st t n2010.• C n lso pl ns to elp 1,000Chinese outsou cing comp niesg ow into me ium to l ge sizeente p ses w t n t s ve- epe io .

• in t on, loc l ove nments tiffe ent le els will p o i e incenti esto the outsou cing in ust , which is

eg e s n effecti e pp o ch toshift thei economic st uctu e f oml bou -intensi e in ust ies to hi-tech

n se ice-o iente in ust ies.• W en comp e w t t e in ncounte p ts, Chinese outsou cingcomp nies e still sm lle insc le n l ck the expe ience nc p cit to eli e complic teoutsou c n se v ces. howeve , smo e n mo e US n Eu ope ncomp nies st t to outsou ce theibus ness to C nese ms, C nis expecte outp ce In i in theoutsou c n n ust n t e next veto ten e s.

– Submitted by: MATRADEShanghai

R d G as p Up

Ch a a m

o r val i d aChinese

banks weretold to provide

more credit tooutsourcing

service frms,especially

in 20 citiesdesignated

by Beijing as“bases” for the industry.

Fac & F gur



iNdiaN iNFORMatiONchno og comp n

W pro l n -m n h h r c v

hr - r con r crom J p n’ a N ppon

a rw (aNa).aNa, w h o

209 rcr , h rr n n h wor o

proc r h Bo ng 787dr m n r. i mb r -

ng on r n orm ng g c m r m n g -

m n m o ppor hn w f , n n w h h xp n on o

b n to o’ H n a rpor

w h pcom ng o r hr nw n 2010.

W pro w v r m -r m n g m n m

o aNa h w h ppro c v m n g hp r c c . th mw r ng h n r g orcomp nc , pr c p r

m n b r n h pm n g nv n or v .th n w M r M n-

g m n m w bb n c b , f x bp orm.

th m n n’ g v n n n-c .

10 | Outsourcing | September-October 2009


iBM CORP. said it Hasgn v n- r

con r c o prov n-orm on chno og

rv c o a r nr n Q n a rw

l .th comp n

no c o n ncrm .Q n corporrv c n chno -

og x c v m n g r d v H r por

h h p r n r-h p wo r n orm on or .

“Q n b v h p r n r h p w hiBM w g v cc o iBM’ c ,

r ng h, xp r , n h oon chno og v b n h g ob

m r p c ,” h .“W r con n iBM w v r

gn c n b n oo r b n .” Q n-

wo g ncc o iBM’ p

r rch, n c nb n op m onc p b .

th xp c jobo h v b n

mm b a r -n n on , b H

h n h ph o o rc ng w

no p r bo cov ng ; r h r w

bo b ng b o p n o c nxp r h c nno b g n r n-

ho .th r n h r por h mor

h n 1000 it job n h p 12 r ,m n r o o o rc ng r-r ng m n .

T-SySTEMS aNNOUNCEd th tit pl ns to bu SaP aG’s exte n lhosting business fo n un isclosesum.

Ne t e SaP no deutsc e Telekom eve le n nc l te msof the g eement, which the hopeto conclu e next month pen ing

pp o l b ntit ust egul to s. The e l oes not inclu e the s le

of xe ssets. it t nsfe s bout 90Eu ope n custome s f om SaP to

T-S stems. The 90 e not the s meset of 90 custome s using SaP’sst uggling softw e- s- -se ice ErPoffe ing, Business B design.

T-S stems, s stems integ ton pplic tions m n gement

p o i e , l e p tne s with SaPs se ice p o i e . acco ing to

joint p ess ele se, SaP custome s,nclu n S ell, MaN, n L n e,oute SaP pplic tions o e the

T-S stems netwo k in Ge m n .

“i m ple se t t ou ce t ehosting p tne , T-S stems, willt ke on eli e ing exte n l hostingse ices fo SaP hosting custome s,”s Wolf n K ps, sen o v cep esi ent of SaP m n ge se ices,in st tement. “E en though the ewill be t nsition to new p o i e , I

m con ent t t custome s w ll nthe g u l t nsition to T-S stems tobe smooth n e m n ge ble sothe m continue to execute thei IT

gen s.”

aCCENTUrE SigNEd multi e e lsto p ov e compute suppo t n Webse ices to two Eu ope n comp nies.

T e h m lton, Be mu -b se accentu e, will p o i e outsou cingse ices to Luottokunt , cp ment se ice comp n b se inF nl n , fo ve e s. accentu e lsosigne se en- e cont ct with theGe m n-b se consume p o uctsm ke henkel ag & Co.

in t e U.S., henkel s knownfo b n s like Soft Sc ub cle ningp o ucts, Pu ex l un p o ucts,di l so p n right Gu eo o nt.

accentu e i not isclose the te msof eithe e l.

NeW teleCOM liCeNsee e dBt com h w r us$400 m -

on it pp c on n n r r c ro o rc ng con r c o t ch M h n r .th con r c pr ov r 10- r p r o .

t ch M h n r w m n g n orm -on chno og pp c on n n r -r c r n or e dB t com’

propo ro o n 15 com rv c

r n in , h comp n n n-m m n .

e dB t com jo n v n rb w n em r t comm n c onCorp. n M mb -b d n m xB w Gro p.

i h c n o prov mob -phon n o h r comm n c on

rv c n 15 o in ’ 22 com rv cr .

b g blu Fly gKa garoo d al

n ppo A r ay k w pro d al

t ch Mah dra ag Us$400m d al

t-sy m oap up sAP’

ho g u

Acc ur up euro d al



Outsourcing in Malaysia:Scaling new heightsOutsourcing Malaysia & ValueNotes Publication, August 2009

Report US$500 | Report & Vendor Profles US$750



Outsourcing | cover story


http://slidepdf.com/reader/full/outsourcing-issue-14 15/48September-October 2009 | Outsourcing | 13

cover story | Outsourcing

Looking rom the industryp p c v , msC mala -

a’ b ac v c

c p 13 a a v -c a b mala ap a a

iCt pac .i pa – a m l a

d v l p C p a (md C)’C ex c v o c da ’Ba l a g azal p – b b a iCt c wc w l bal c l-

a .Ba l a a : “t a , w a

w a l cal c lv c c pa ’ xpa l cal a l bal , ac

a . v bl v l p c a

msC mala a a v .” a , md C wa ll w la c

a al iCt a v – m l -a s p C (msC) 1996.

md C a v pl a- a c p a a c pa

v v a a a va l ,wl -ba c .

i 2003, Ba l a a b a msC msC mala a

a l cal iCt c pa b a p a w l ball .

“W v v l p iCt c w c a plac a l v l , v lv

v , aw c - c c pac ,” aBa l a , w wa d c

CEO of MDeC pulls no punches as he measures the depth of the localICT industry with Outsourcing magazine’s Sritharan Vellasamy

A Badli ham i

h wl -Pac a mala a aC g al ma a hPt c l s l g p p

app md C 2006.Ba l a a : “t al l a l p mala a a al bal iCt b a pla

wl c .”t a al b msC

mala a s a c pa ’ aa 2,400, a aj a mala a c pa . t

b w v all - x 13 a a , av a all

p l mala a it q pal a ll , a .Ba l a call : “A ca

a , w a it c ca c , i ca ’ lp b

c a pa c paw b l a al ,

cl , a l a a l w c pa – l

it q p ac cl .”

d p c a -b pac ,Ba l a wa q c a al cal v c c pa av

ll a l a a a pl ca cc l bal it a . “i l a ’ c p v

l cal f w c p a l v l. W wa mala -

a c pa b , b w a b abl

v l p a i a l bi b l v v w ca ,’’

a , i a’ c

la wa f b c a a c al n. r.

na a a a m .

“i a l 20- a b w a w. tl , la c

c p mala a c pa , a a l bal . t a , i

p c wac pa w l .”

i , a p p la l w , i a’ la it c pa

w fc 22 c a -v l p c i a, C a,A al a, u k , Ca a aa Japa .

“t c cl w av . m a a

l a l a a a a a w .

t ac v ca b v ,” a Ba l a .

mala a c pa l a a w cal c

, a . “t l a a al b . ba l – a b .”

“t l al c pa p l a a wa p p a cal p c l .i p , ca ’ allal . t c l b

cc c pl l w ,” a iBm,

m c a . “ov a av pa , alb

l c v l , w c pa ap cc c a p j c .”i mala a, p a

Today,we are

witnessing many local technology

servicescompanies’ expandingon the

local and global front, thisfact is hard to

ignore.

We want Malaysiancompanies tothink big, but thetruth is we may not be able todevelop an Infosys

immediately but I believe over timewe can do it.



av c l app c a l, la Ba l a .

“o b v lv a l acac pa p v

wa .”

B al pa w c pa , b l va l cal c pa w ll a

xp a , a p c iCt -v c a l q c l .

h c , md C al a a c a a w c pa

c v cl a l bal l v l, Ba l a cl

w v al a l .“i ’ ll a l a a , p ap c

a l w p c a p - a av a c l

p c v l v l c l a a l c l ,”

a .“i p , al

b ca vwa l bal v -

. A a ca al a , md Cc l l c . W c l

(l cal c pa ) a b a – ’ l

p a v .”Cl a l Ba l a , b -

l b pac ap p c v a a p a a

c l cal va l .“t a a b l

l . L ’ j l

c l cal va p .t b ca Ba l a a. t w b c pa v

wa ,” a a - - ac l .“hP a a 70 a

a , wa , c , v c p – w v lv

a l c c a a - q p , wav a al

a a . n aa a ac pap a bb p c . W a

w? t b ca a lblaz w c p a l c -

ca a c .”mala a b b

abl p lv w p-p a , Ba l a .“i p , w a all

xp b v l -. t a ’ w lac

w c p ca b c a .”

h a : “t a wc a msC mala a s a

c pa a c -c a w

l a c pa a av ll. W av al

a v a p av a f - a acc w

c pa p a a ac p v .

“W av al b xp a , b i calp b c a mala a

p p

lv w ba c v a w

xp . t p zzl . P apmala a al a a

q v a p c .”mala a v w

c w lw a c v al

pp iCt abl l -

cal a - p c pa c v , a a a v l p p a .m p a a

md C, w c aa a c m sc c , t c l &i va (mosti).

Ba l a a : “o paw a al a p v c -

a p l cal v cc pa a

a c al a v l p alpp .”h w v , a

a c l l cal c pa . “C a acc a , c l , b p v

pp w .”h a a v

a b q l msC mala aca l p v acc a p-p l cal p ac a x . “t p

a w , a a

Outsourcing | cover story


“As acatalyst

agent, MDeCcould only do so much.We could get them (local companies)to hug

and kiss but to get married – it’sentirely their

prerogative.”

Local companies should also consider the partnership models as a way to prosper and

scale up ef ciently.Today’s technology

biggies did not see successescompletely on

their own.



cover story | Outsourcing

va . W ca p c p p p a

ac .”A b c all mala -a iCt l al

p l. C pa w C a a pa c la i a, w ca pla

b a b c a a a v a ,

c ’ al p l all c pa .

s q a aal la a c -q w c l cal

.“t ’ a b ap w c a cppl l cal v ,”

Ba l a c c .h w v , a l cal aca-

a w a ac w ll q .

“i a ’ a a , w v ,

b l j c ll a va .”

h xpla : “t c l al va a a

f fc l c a llab - a . W app c a

a va .C a llab a

a p c .“s a c a c -

c l v w ca p apl a a 5- a p p c v .

W l al a a j capp ac a b p ab .”

t w ll a c p a w . h a l cal

aca a, a c av a c c

b p v c ap a c llab a c p

w a - c ppl a a ’ c q al fca-

.h a : “ra a c pla - a llab a a a c

q a a i h L a a

, a j c ap-p ac c l p v b wa a l .”

“Contrary to some

accusations,our intention

is not tocoddlethem, but to provideenoughopportunitiesfor growth.”



Outsourcing | InsIghts

BYAdi ya B a a

CEOs and sEniOr m geme te ccou t ble to the t kehol -

e o the co e f c l umbeo the o g t o . O e o the co e

c l me u e retu oEqu ty o rOE.

The lemm th t e o m -geme t ce y o g t o

how to e mle ly teg te the

Ma a i c mx i c

not m y o g t o woulbe po t o to p ov e c e ble

we to how well they m gethe cu tome expe e ce th t keepthem com g b ck l o b gmo e cu tome w th them.

Coul the e be t uctu e w yo mp ov g the retu o Equ ty,rOE by m g g the cu tome expe e ce?

The we to th t que t o w ll

f c l object ve to eem glyt g ble ct v t e uch m -

g g the cu tome expe e ce tll touch po t o “mome t o

t uth”.Fo ome o g t o the

p e e e pp o ch eem to be t eo o comp om e betweemeet g the mo thly umbe hop g th t the cu tome e v ce t w ll keep the cu tome h ppy.



InsIghts | Outsourcing

to cu tome be o e the lo p y-me t te. Tho e cu tome whoh ve ot e ulte get te

omet me c ll cu tome c e tolo ge o m l compl t. se o m geme t pl ce g e t empho ze o compl t .

The collect o te m ow ce lemm : they o ’t m ke p o c-

t ve c ll the ome o the cu tom-

e w ll e up pote t l e ult-e but they o c ll out the thecu tome w ll lo ge compl t .

Wh le e e t e c bege e te to m ke t w -w o both the collect o te m thecu tome , the u me t l que t oth t m geme t h to k t th

t ge , e we ctu lly m g gthe cu tome expe e ce o ly om

collect o pe pect ve o e wem g g the expe e ce omthe t me the lo ppl c t o w

ece ve ?a lo-b e pp o ch c

o ly le to co te c e om cu tome ’ pe pect ve le g

to emot o l e g geme t omthe b . it woul l o eg t vely

mp ct the co t o ope t o eve tu lly rOE.

XYZ I a cCu tome ete t o b g p oblemexpe e ce by m geme t m y comp e .

Typ c l u pect cto mo g tothe e the pp op te m e

wh ch le o e by the lete m o cu tome ot ecl gthe t ue he lth p mete

g g up w th the te t to flecl m.

Th c l co ce o o -g t o m y t me le tothe e g o p oce e th t ppe bu e uc t c to ge u e cu tome

who m y w t to fle cl m. Theeg t ve mp ct o cu tome expe -

e ce h p l mp ct the co to cu tome cqu t o , cu tome

uppo t, cu tome ete t o eve tu lly rOE.

nee le to y the emot o l e -g geme t o ely m g le v gthe fel w e ope o the ov to o g t o .

ConClusIonO g t o th t co c ou ly

e g p oce e to m ge the cu -tome expe e ce ot ju t the t ct o c e p u t blebe eft th ough mo e t uctu e

p e ct ble p oce o mp ov-g retu o Equ ty, rOE.Whe u t y t p me

ph e, the e c e c e o otm g g cu tome expe e cem y be g o e the ce o

em - upply m m tch. How-eve , le e t me uch owthe lo g-te m u t b l ty o theco cept become mo e ev e t.

Wh le tu t vely m y m g-e e ble to el te to the co cepto m g g the cu tome expe -e ce the v lue t w ll b gto the o g t o , ve y ew e

ble to y tem t c lly wo k towove com g the co t t o the ex t g y tem p oce e eleg t m e te to ettle

o comp om e o t eo .Th the oppo tu ty o o-

v to o g t o to t ke the le up t ge e t e che pl ye .

Aditya Bhalla is a Consultant with QAI Innovation Practice. He is a Six SigmaMaster Black Belt, and MATRIZ Level 3 certified. He can be contacted at [email protected]

equ e eepe ve t g t o tothe e e t eleme t o rOE.

DrIvers of roeThe gu e how the e e t el-eme t th t h ve mp ct o

mp ov g rOE.

The th ee co e e o ocu o mp ov g rOE e:

• Increase revenues• Reduce cost of goods sold• Improve the sales ef ciency

Fo o g t o wo k g om g g the cu tome expe e ce,the c t c l tep woul be to c e te the

ve to y o te l p oce e m p them to e ch o the eleme tl te the fgu e.

MAppIng CustoMereXperIenCe to roeDrIversstu e o cu tome beh v ou h ve h ghl ghte o e te e t g

po bly tu t ve me o :

“Cu tome buy o emot o ju t y o log c”.G ve the bove ght the

m x m, “H ppy Employee leto H ppy Cu tome ” g mo e

mpo t ce emot o h ve ve yt o g hum me o th t ve y

o te get m e out m y p ocee g p oce mp oveme t

t t ve .The oppo tu ty o o g t o

th t e eek g to mp ove rOEw ll be to e g p oce e th t getthe cu tome emot o lly e g gew th the b . sou e ote c? Letu co e ome ex mple om

e e t u t e :

ABC Ba kCollect o ep tme t o the B km ke p e-empt ve em e c ll

Studies oncustomer

behaviour have highlighted one

interesting and possibly intuitivedimension:‘Customers

buy onemotion and justify on logic’.



Outsourcing | perspective



ByJe. D


perspective | Outsourcing

What the World wi k ik , c n mic c n g , is

g sp cu i n. I s s quimys i us y wi w n x c

u n un k s p c . ev n s wsi wi c n nn unc m n s

c v y in F nc n J p n s ug u w s i w i ing signs. as su

n s b ss “p s ”v n n m nsi i n

si u i n wi k p c . t isg is u in nsi by g p

b w n ng g m n n iv yin buy n supp y c in s i s

v n s.

a c n nc in B ijing iny 2008 I p ic s m m j

v n s w u c g bc n mi s n s u cing p s-

si n. t s p ic i ns w b sn n s king p c in cu nci s,

imb nc n g n s pg w p ns in pu c s in ngib s vic s. Un un y

s p ic i ns b c m u ncu min in u p ic i n inb augus n N v mb 2008.Wi c subs qu n p ic i n,issu s b u m n n s u csupp y c mp si i n w m .M ny s bs v i ns m in

u n w s ing is vms v s c y u ing

p s - c n mic c v y p i .t u y un s n n pp ci- u u s u cing p i ns

w mus x min is m b buy n supp i p sp c iv .

Buyer’s Futuret c n g m c s uc i nwi v m ny W s n c mp ni sin i n s m w c ics . In ivi u s w w u v

wis b n s ving s s ngs ip x mp s wi s ugg

k p up wi mu i u u i s

p - m The vision of future operations

c b

d ,m d

q w d b f

mk m

.




y v in i . W i s u cingp j c m n g m n s n v b n s ng ibu in buying c mp ni s i wib c m v n m s in p s - c n mic

c v y p i . a n i n p j cn s vic sp ci c ik y wi

uc i n in ski n s c ins .

t c mp ns , i ms wi s m s ing n s vic v

g m n s (Sla) n puni iv m su s. r is-ing m g s -m n s c n n y m k

si u i n bi mb , c mp ni swi b king s n-g supp i c n i s.W i n w u xp cm in s in ti 1supp i s pp si m yp v b u .

C s p in n p -i n siz m y p v

b ss c iv . r i-nc up n i i n

m s c i nswi giv w y b ings vic c s m

s m ns m in in-ing c n . C ng s inbuy s ng n s vicc mp si i n wi su in s i s in u s u cs vic m n . I is xp c Ito

m n , sp ci y m n g s vicn g cy pp ic i n m n g m n wi

inc s s wi BPo p i ns. Kn w gp c ss u s u cing is xp c m in

w v s u g y uc i n in in-n v i n sci nc s s in imm is - m p s - c v y p i .

reinventing sourcingsupplierst m s c n wn u n s ugus m ny v u b ss ns. hig n

is is is i n nc in i s. S ss g b c n mi s cimb nc ipp s un wwi v s ing c s. C mp ni s np p s c ing in unp ic b n

s m im s i i n w ys. ou sp ns isp y cus n s - m su viv n

i s ckn w g ng- m c ng s mus b v c m . Fu c nfic s

v v un misun s n ing, nn c nging, buy c mmuni y n m su s n b s n v ving

c n i i ns.as s u cing supp i s c i ic s - x-

min i n is in . P s succ ss s n insu , n f s s

p m nc is n in ic i n ng- m n . M s

n b m ngs

f ws in s u cing is in m k ing n s s.t v -c nging m k

m n s visibi i y pp -p i buy gi ns n

p vi s uniqu i n i y.C mp ni s w pp ik

i c mp i i n mu sp s succ ss u n p is

unning v y isk signi c n is p-

p in m n n p ssib yi u .N u s u cing in-

us y n ys P i F sc mm n m s c n y(aug, 2009) “dNa

n In us y Kn w gwi ump Sc ” n I ik wis supp

is n i n. In 2008 I p p s c mp ni s, king su viv c n micc isis, i w s ss n i c b -

i ns ug c ns i i ns, m g s ncquisi i ns w u s v s b s

c n inu vi bi i y. exc p in c s m g m g s suc s edS/hP m i gmy vic w n g y ign .

I ibu is c up c s.t s is g n ck sc n

p i n vi bi i y, us c using ck p n i c iv n ss b inging

n g nis i n g wi n .t s c n is n unwi ingn ss c ng(my c mp ny vs. u c mp ny i u )

s w y u p uc ivi y np bi i y n g nis i n. t s wc n i i ns f c s c s c mings

u s u cing s c sp ci y ing ti 3 n s m ti 2 p s.

reinvention anD Discoverya is n s in ms c n my c s

n ck n i n c nging m “busin ss s usu ” s m ing mp iv . Buy s n mp siz

m i i n n puni iv i ns ip vi w n un s n ing. Un s n ing

w y p y n w n gi s ymus pu n ny ng g m n w s u c n .

t supp i s v m c nging

in i xis nc s ccug y u n pp uni y. S m vm s p g b busin ssun s n ing n is i n

up ic ing s m n s ’s succ ss p in in im s n insu i succ ss.I mus b c y un s

iv y is i c y p n n up n g nis i n (vi bi i y).

as s m w u s y y u b y isy u mp , s is in n s ng n

g nis i n. I y u k w y g s u cp vi s xis i w s bi i y sc mp ni s b nc v pm n

g nis i n wi iv y.l king p vi s m un w

y n is i s vic ing (w ics un s ik m s i c mp i i n) bu

w p s n i p i n v u quick y ng g in k y iscussi ns

b u w k pp uni i s. W n w s s im ny us is ic c ims

b u w p vi s vic s i c y v u n s c i n si m

g n ss i ns b u c s n ims vings?

a s wi w I c “b inmu i n”, wing p m ny

n c ing p f c s s u y u busin ss. Buy s vi w b in

mu i n wi s v i n n n u n s c mp ni s w k im un s n i busin ss n

simp y c mm n s vic s u i ns.

supplier’s Futuret is n suc ing s busin ss s usu

i ’ j b m …W w m f

d m b wd d d

d f df m b

d m ?”

Although predicting the future has become commonplace it hasn’t always been done in a responsible and accurate fashion.




supp i s s c mp ni s vi su viv . ti 1 c mp ni s w

v nj y y p min ncn g m g s wi n w c

c ng cu ing c s s ns king busin ss m mi - i sup-p y s u c s. ev n s su un ingsupp i sc unc in y, gi nins bi i y n c n inu ck

n i n n p is v pm nwi p gu v n g s

g s c mp ni s.t mix n s, c n inum n s c mp i iv p icing

by buy s n g n si c p iv i ns ips wi b win ti 2 g nis i ns.

Sm ti 3 c mp ni s wi c n-inu s ugg s supp y xc s

buy m n s n wi c n inuisk c nc ns n y sp ci y n

p mi g nis i ns wi nj y sus in b f w busin ss.

ov supp i s wi n c s i p i n n inv s

in ms v s. C mp ni s wv k in n inv s m n wi

s ugg g in in s buying pub ic. Inc s in sin u s u c vi bi i y wi m in

ig n is buy s. t isinc s in s is i c su v i u p n i m ngs

s u c p vi s, mis us c usby p min n i u s u ing

c n mic wn u n, n v in-c sing cus n iv y c ims nc n i s n n c p i n /

g nis i n s ng .

Moving aheaDa ug p ic ing u u sb c m c mm np c i sn’

w ys b n n in sp nsibn ccu s i n. his y s

w v s n m c n v n s isunp c n n n y w s wi c ming n sp n pp p i-

y. I b i v p ic i ns m b u vic n c i ns

ccu n ss n p ic-

i ns ms v s. t s m x np ic iv n ysis s v s s u

c ng n p i n, n isn’w ys c ys u ing

n m busin ss c n inu nc .I g s wi u s ying buy s s u cing s vic s wi n

k p b c s s n isk w s i c mp ni s s k sc s bi i y. In

ing s s g nis i ns muscus n p j c /p c ss c n .

W i c n c u n s vic vg m n s wi c n inu , y wi

s v s n p i n gui nss xp i n puni iv b sis.Supp i s n ss ss i

c busin ss. l king n ss ms b m pp p i c mp ni s w s ugg ing wig b p m i n n ying b s m ing y n .In n s -inv s m n nging

m sc m n g m n bui ing

is bs u y ss n i w n ingwi isk v buy s. N n w n s

b n c iving n is vic p vi w w s m nc p b iv ing w w sp mis .

li s m ny su p is s nunning s un g b n p is

qui s ski , i ig nc n n-i n c nging c n i i ns. Y u

c n b c in p ic i ns y wi b ss ns m w.

Jerry Durant serves as ChairmanEmeritus (founder) for The International Institute for Outsource Management, atrade organisation dedicated to theassessment, development, and guid-ance of outsource service providers inthe ITO, BPO, Call Centre and KPOdomain areas.

h B ’ e …l f m

d d

b q k ,

d d

d .



Outsourcing | feature

Over the past twO d c d ,inc ing numb o com ni

c o n glob l ou ou cingo lign b ck o c unc ion i

bu in di c ion nd ducco . In o icl in i

i , l n d ou ou cingo i o igin o inno i yo inking bou ic , n o -g ni ion l mod l nd im o dbu in c ic .

t m n g m n nd o g ni-ion l c ng occu d du ing iod o con inuou nd id c -

nologic l c ng coincid di i o ig ly com i i

glob l m k . t con g no c u l d o ld id g o

o ou ou cing. In i l iclin i , umm i

ly nd cu n con ibu ion o mo infu n i l m n g m nicl nd ou ou cing c

.

early InfluencersDu ing 1970 nd 1980 , p D uck , tom p , w l po -

ll nd o o o c ngd c i d i c ic lly uc u do g ni ion , nd omo d lc n li d, mo f xibl , nd -

on i o g ni ion uc u dound m o kno l dg o k-

.acco ding o D uck , kould b ocu o o g ni ion l

uc u , no di i ion o o g ni ion by unc ion – ic

il d in li d c d nG n l Mo o , Dupon , nd o cl ic l com ni ig lyin g d m . t ug o g ni-

ion includ d lmo y gin lu c in om oduc-

ion nd d li y o m i loug oduc ion oc

o l , d li y, nd - l

O igi & hi oo o o i g This is the third and nal article in a series by Dr Wendell Jones aboutthe history and rise of outsourcing as a global mega-trend of this century

ic . Co o ng m u d by x n o ic lin g ion o d nd b ck d

long lu c in.D uck u gu d

y o g ni ion mu build m n g m n o c ng in o i

y uc u , o n i i l gno m ll iz n c y d n g

o n indu i l m. economi o c l no long con d d n go oduc ion o oduc .

w coun o mo qu li y,f xibili y, gili y, nd bili y o

Constant change meant that companies needed

new and different organisational models.



feature | Outsourcing

BPO isoutpacing ITOthis decade

because many executives

recognise that their back of ces are

not managed

effectively and have nodesire to invest

in back of ce innovations.

I … W xp h

m g v wi b om

mo p m gi gi - pp i

io hip .




m di con um d m nd .Con n c ng m n com-

ni n d d n nd di n o -g ni ion l mod l . p l c u d

id ly nd ug Us m n g c ng ill l y b i m,

nd com ni mu con n lyinno o u i .

po ll m d c ou ou cing, lli nc , nd ngi-n ing logic l on o

o coming o l g , in g dm un bl o ond

idly o com i i c ng .t o , l ck o gili y mo-

i d com ni o look o lli-nc , do n izing, - ngin ing,nd ou ou cing o olu ion .

w n n d i o duc cond inc m n g m n con ol

o lloc ion o ou c , po ll ou ou cing ion l

on . Bu n o ld-clkill nd inno ion n d d,

com ni look o lli nc ndo coll bo i l ion i

com l m n xi ing c bili-i nd com n o o g o

n d d kill nd c bili i .w n in n l k oo

lo nd un on i , m u no ngin ing, ic n il

inking nd dic lly o g ni -ing bu in oc , ducingm n g m n l y , nd ub i u -ing in o m ion c nology o l bou . po ll m i d inc d com i ion imulou ou cing o nd di d k ,

d igning nd - ngin ing in-n l oc o mo f xibili y

nd on , nd c inglli nc o cc n kill nd

inno ion.an im o n i in ou ou c-

ing inking c n b c d o Harvard Business Review icl i -

n in 1990 by J m B y n Quinn,t om Doo l y nd p nny p qu .t y d c ib d co o ion coll c ion o ic o id

lu . e n in m nu c u ing m ,

y no d, mo o k in ic - y unc ion , uc

c , logi ic , m in n nc ,d ign, Is, ccoun ing, nd l– ccoun ing o 75% o o l coin mo Us indu i . to ink in

m o ic , y gu d, i oconc n on c i i i c mo o lu . v lu i

dd d in yl , im g , du bili y, l m in n nc , muc

in c u l b ic ion o oduc .In d o n ly ing m k

, y u g d m n g o

n ly ng o iccom on n o i bu in l -i o com i o nd ou ou c

non-co unc ion .Ou ou cing mi o g ni -

ion o d o mo n ion o co c i i i o id com i-

i d n g . and ou ou cing,y gu , c n duc iz nd

l y o o g ni ion, llo ingx cu i o ocu on ob ining,

d lo ing, nd mo i ing o l o c lu . I l o

m n g m n o ocu n ion ongy, coo din ion, nd

c bili i inc com i-i n .

po ll m d c ou ou cing, lli nc , nd ngi-n ing logic l on o

o coming o l g , in g dm un bl o ond

idly o com i i c ng .h gu d i c y duc

o k mo i ion, d i o omo ion m k o l oid

c i ici m o u i o nd o m n g in i c y, nd

o m king mi k ifo k ini i i . al oug l g

o g ni ion m y o k ll o i i , dic bl k , po ll

con nd d i ion l do o m li ion o ul nd c -

b i o o n in o m ionfo . t o , l ck o gili ymo i d com ni o look o l-

li nc , do n izing, ngin ing,nd ou ou cing o olu ion .

current and futuredIrectIOnsBpO i ou cing ItO i d c db c u m ny x cu i cogni

i b ck o c no m n-g d c i ly nd no d i o

in in b ck o c inno ion .On im i m k

o BpO i lik ly o g o o ld id by10-20% y om Us$140 billionin 2005 o o n i lly Us$350 billionby nd o i d c d , nd

oc ou ou c d ill b ocu -m n , b ck o c dmini ion,c ll c n , n nc nd ccoun ing,cu om cing o ion , nd

m n g m n .w c n x c u u ou ou cingilu n cli n com ni do

no l n o , con c o , nd/o m n g i l ion i c-

i ly. w c n x c m n g- ll l l ill b com mo

d m n ging cli n - u li l ion i nd m king

con c ing o oduc nd icmo ci n , m ny mo g inou ou cing x i nc , nd b m n g d l ion i ould l d

o mo o i i x i nc .I i ologu o

u u , ou ou cing i o ynd glob l ItO nd BpO lik lyo con inu i cc l d g o

in o n x d c d nd muc o i c n u y.

Dr Wendell Jones is a Professor of Man-agement and a former senior executiveat Compaq, NASDAQ, and McDonnell Douglas. He is recognised as a leadingoutsourcing practitioner, advisor and thought leader. He is the co-author of “Outsourcing Information Technology Systems & Services” – recognised as one of the best outsourcing references.The book was recently released in aChinese edition.

ev o g i iom b i hm g m o

h g i o iv ,

o i h ig o m

iz v g o

industrial frm.

Even in manu-facturing

rms, they noted that most workers are

in service-typefunctions

such as research, logistics, mainte- nance,design, IS,

accounting and law.



O utsourcing Malaysia (OM) is an initiativeof the outsourcing industry and a chapterof PIKOM – the National ICT Association.

he prime objective of this organisation is tonhance global visibility of Malaysian ervice

provider capabilities to the global buyers. OMocuses on enabling both buyers and providers ofervices to work together on addressing service

eeds, within the aegis of global best-practicesnd competencies.Of ciated by the Prime Minister in 2006,

OM aims to represent 80% of all Malaysianutsourcing providers by 2012. Highlights of the

bene ts our members are enjoying are:

Industry RepresentationOM represents the local outsourcing industryo the Govt and private sector both locally andverseas. OM is backed by the support of its two

nstitutional partners, i.e. MDeC and MDV, andonsulted by a large number of organisationsuch as MDeC, MATRADE, PSDC, Malaysian

Central Bank, etc.

Trade Promotions• Marketing the capabilities of Malaysianndustry to local and global buyers throughvarious trade events, while generating businesseads for members.

• Providing business-networking opportunitiesor members through networking sessions,nbound and outbound trade missions andndustry meets.

Industry In ormation•

•

JoinoutsourcingMalaysia

ontact: OM Secretariat

oc , eo amansara

No 15 Jalan 16/11,

6350 Petaling Jaya

Selangor, Malaysia.Tel: + : +e-mail: [email protected]

For more information, please visit our website at: www.outsourcingmalaysia.org.my

• Access to OM’s Thought Leadership contentvia Member’s Login on its website.

Business Exposure• Providing members with tremendous business

xposure and visibility through the complimentaryisting via OM website and overseas campaigns;

• OM as the direct contact point for global

buyers.• Af liations with global outsourcing focuspublication such as the Black Book of OutsourcingGlobal Vendor Directory, Forbes etc.

Priority, Subsidies & DiscountsOM Members are given priority in OM-organised

vents in terms of reservations, subsidies anddiscounts. Members are provided subsidieson Overseas Campaigns and other CapacityDevelopment Programmes. Discounts andcomplimentary priorities are allocated forparticipations of seminars, conferences, cocktails,ndustry talks, surveys, and media promotions.

Capacity DevelopmentProgrammesOM is responsible in introducing the InternationalAssociation of Outsourcing Professionals (IAOP)Certi ed Outsourcing Professionals (COP) andMaster Class programmes; and working alongsidewith MDeC on their K-Workers Development Institute(KDI) programmes designed to develop the humanesources of the industry.

Global Membership and A fliationGlobal Membership• Sourcing Interest Group (SIG)• AOP through partnership with MDeC.

Global A fliationsThrough PIKOM’s partnership and membership:• ASOCIO • NASSCOM • WITSA

ADFEATURE




s pArt o its nng e devel

n e nal ca ab l esC Malay a s a u

e and n c njuncnal iC M n h, MsCab l y Devel men(CDp gan ed anh wca e a he MsCn va n Cen e n

.n h-l ng h wca e

July 30 h, 2009, andn mak ng Malay ane awa e he it e

k hey ace n day’

c nnec ed w ld and he eal cand c -e ec ve e ha can be

aken manage he e k .t e h wca e b ugh ke e -n m lead ng MsC Malay a-

s a u ecu y f m and ndu yc n ul an add e delega e

n a ange it ecu y ela edc . p c an al benef ed

m ne w k ng un e ve lunch and h ugh a gu ded u

he h wca e ha ac l a edkn wledge ha ng and n ma-

n d em na n ab u cu engl bal be ac ce , he la eme h d l gy and eme g ng end

I s c i isks o l

MSC Mala sia S owcas ais s awa n ssof t ol of info mation s c it in b sin sss cc ss d ing conomic c isis

L : r j … g scomp ni s o

pply p incipl so In o m ionS c i y riskM n g m n

ow d o m sh v l o

in o m ions c i y sol ions.

K nd

w

s .



“The IT SeCurITy S owcas p ovid dS c M t ic T c nolog wit a val abloppo t nit to p s nt o b oad

ang of l ct onic and digital s c ita dwa and sol tions to t MSC

Mala sia comm nit . T IT S c ittalks a ang d b MSC Mala sia CDPd w att nd s t at S c M t ic isk n to ac ; w il t faciliti s availablat t Innovation C nt p ovid d swit t inf ast ct w n d d tod monst at o Softwa Lic nsingP ot ction, 2 Facto s A t ntication andOn Tim Passwo d S c it sol tions.S c M t ic is t ankf l to MSC Mala siafo all t s ppo t t contin to givo ind st .”

– Edward LawBusiness Development Director

SecureMetric Technology Sdn Bhd

f om h Sid lin s


feature | Outsourcing

n it secu y.in a keyn e e en a n led

“secu ng Y u o gan a n … ee,” M le2 reg nal D ec

A a pac fc, ANZ & A ca AmanBha ha ed w h a endee he

even e ha c m an e need ake m lemen a und ecu y

a ch ec u e.Bha a d he f e wa

he c m any unde and wha wa eally ec ng h ugh it

ecu y. th can en be d lledm he c m any’ value -n and c uld be a c mm men

qual y cu me e v ce, he ab l y cu m e duc and e v ce

cu me , del ve mehe value added benef .W h h unde and ng, he

c m any can ake he ec nd e den y ng he c cal bu ne

unc n ha mu ec and unde and he c n equence

he e unc n a l. W h he c calbu ne unc n den fed, he

h d e den y he e u ceha u he e unc n whe he he e a e ec c echn l g e ,

channel c mmun ca n ande nnel am ng he .

Kn w ng he e u ce ha need be ec ed, he u h e -

wa d und it ecu y den yvulne ab l e and h ea . And hen

u e h n ma n n he f h e , a e he k ha he c m any

ace and devel and acce ablek n. once unde and

he k ha ace , he x h ewa d und it ecu y devel -

ng and m lemen ng c n l m ga e h e k ac ha a ebey nd acce able l m . th w ll

all w he c m any e abl h it ecu y u e.

Ma n a n ng h u e heeven h e . Bha u ge c m an e

c nduc ecu y aud and e en u e he c n nu ng n eg y it ecu y.Bha ended h alk by ha ng

h w wa ble ach eve allha he had ju adv ed “ ee”h ugh fnanc al e mbu emen

m CDp and h ugh he g v-e nmen al and va e ndu y

und .in an he keyn e add e

del ve ed by Ca . raj Kuma mMac m techn l gy, a endeewe e n duced he way nwh ch hey can an m he it de a men m c cen e n

u ce ve roi h ughg ea e al gnmen it ecu yw h bu ne g al .

raj u ged c m an e a lync le in ma n secu-y r k Managemen wa d

mea u e he value n ma necu y lu n . He n u hahe roi he e lu n c me

m he educ n n ex ec ed lm ecu y nc den and h ugh

u u e c educ n.raj wen n ex la n he

me h d ha it manage can u e e m a c -benef analy

and h w h n ma n can beu ed de e m ne and ju y he

bu ne v ab l y n ma necu y lu n .eedback m a endee he

it secu y sh wca e h wed ham e han 72% e nden

el ha he even w ll hel he gan a n ach eve he nece a y

“qu ck w n ” hey need ve c mehe cu en ec n m c ua n.

Al ng w h nume u he e-en a n , he it secu y sh wca e

wa al a la m MsC Malay-a s a u c m an e h wca e

he n ma n ecu y duc .7 c m an e a c a ed n he

h wca e e en ng 15 duc he 1500 v wh came he

MsC Malay a inn va n Cen e.“MDeC n duced CDp a a

devel men al g amme e-a e Malay an iCt gan a n

he challenge an nc ea -ngly demand ng and c m e ve

gl bal ma ke . CDp g amme de gned hel iCt gan a-

n max m e he en al byenabl ng hem cu n he c ec m e enc e and c n equen lymax m e he c m e ve ad-van age.

“th ugh CDp, c m an e a en duced a ce -d ven a -

ach n he del ve y ducand e v ce , hu e a ng hem

he nex ha e g w h,” a dMDeC Head Ca ab l y Devel -men De a men D Ka l Ng.

K l Ng … H do CDD d ing hop ning sp ch.



ByAVa i a


Outsourcing | InsIghts

CommuniCating e eCtively w hr r d x r s k h d rs s

p r p r s cc ss b s - s. th ’s p r b c s

p s, h b c , cr b h rs h hr d r . P s p s, hh r h d, c r b h rs h

c r b s bs ’ss cc ss.

Maki ba i a i w kD mm i a i i !

InternAl coMMunIcAtIonsWh c c w h rs k h d rs ( c d r r-

s ’s p s, r h C-s h r s), c s , p h d

p c s d w h s fb s pr c c s:

B r c c r : S r h s r -p

ph s . th , c c . m s

s cc ss b s rs h p r d c br f sb h pr r ss h s w sd-h c pr c c c s.

R s s p c c : Whr s s r c c , b d ’

r d p s h c cr , hc c b w rs h c -

c . Wh c c w hr p s, r s h r xp c

h h w r b h w h b s -



InsIghts | Outsourcing

w c h r r ;d ’ h d w . th ’ r

j s b wh ’s p r h fr b s h Wi m (Wh ’s

i r m ).r p rs s s h pr r

bj c : y r pr c p c c p c s

r r s k h d rs s br h r r w h k-

; ’s h p h d rs d hp r c h h

c p d h w h w p rs - b h d d. i s d r

p rs d r p s, “ p d r” – d r w h

h c p wh ’s w r sp c dd r s d – sp k h d s p c s. tr s d

p c c s s k .B h s : o c rs , w p s r b s -

h b s h . B r s s hp s r-c p

c s r r p -s. i s d, c c h wh

r p ss b c s – b hp s d d h w

d h d .C sc d ss s: a w r p p b p r c -

c r ss hr s ’s r s k h d rs.

th Ceo, HR rs, rs, d b s ss

h ds r dc d d s r h j b c c w h r

p s.

externAlcoMMunIcAtIonsn ss p r h

r s ’s r s k -h d rs r s x rs k h d rs. th r r

w p pr b--p s r r

c p ’s x r- r s:

h p rc p h r

p b c d hxp r c s

r c s rs.C r , -

c s -rs’ xp r c ss cr c

r ’s s cc ss.B

h p rc p h r

p b c s cr -c , s w ,

s p b c p r-c p h s

p w r c s rs’

b d c s s

s w s p c pr ss r d s c r s s.i h p b c r , b s -

, s rc d sh rh c b c r- r w rds.

a d h c s r sph r , h rh s r c b s b ck sh

s c p s h h -b s d s r c s, s s c s rsh xp r c d s r c ss s

ss c d w h sh r c r s(c c r s, s b ). S

rpr s s h b sc b ck c s r- c sh r

p r s s r s h c s r db ck. B r h

d s r c s r w.y r b s r c s

p r s s h – r kh b s – sw r. i s r c s b -

s w r b r c c d r s s’ x r d c s,

w d k b w h h h r cc p c .

th ’s e-l ’s ph s ph , d h s p d w . i r 2004, h

d r ch d sh rs rc p pr r r

s b ck- fc pr c ss s. i k pw h h c p ’s “h s s hb s p c ” s c , h c pd sc s s h d s s sh rpr r s c s rs b r

h c p h r pp c s,d s h h p p

d s d h h r p-

p c pr c ss d d s c .acc rd e-l ’s Ch

Pr c o fc r, 87% h r s -’s c s rs ch s h sh r

p , r h s r pr c ss pr d s. “th r s s r pr -

r s pp r h d h wh k h r xp h

‘wh , wh r , d wh ’ c s -rs, h r c r b w h .”

e c c c r q r ss r c r k -

d d b r , wh h s r ddr ss h

c c r s r d x rs k h d rs. th r w rd r -

h c c p r h r h s h r

d x r s k h d rs w h ppr p h rw rd, r h r

h c sp r h d b ck.

Atul Vashistha is Chairman of neoIT,a leading management consultancy since 1999, focused on independent,objective and actionable advice toenterprises that seek to transformtheir organisations by capitalising onservices globalisation.

If viba i a i

w bmm i a d a i a i ’

aa di , iw d ik yb m wi a

i v f a p a .

Effectivecommu-

nication requires strongcommitment from key

management and adeliberate,well thought out strategy to addressthe concernsof internal

and external stake- holders.

r i mp a i a - a p ia ya iv m f

y mp y .




OutsOurcing Malaysia (OM),

h p e o PiKOM, the n o ict a o o o M , e e -ve ed he f -eve omp ehe ve

d o he o ’ o od ed: “O o

M : s new He h ”.i ch m D v d Wo n

F d he epo me d we b e o o o p ov de

o k ow whe e he d e veo he ob d pe d he

oppo e h e v b e he e me .

Wo dded: “Be de , po ee w o f d h o be ve ood epo o de hem o

he e o ve .”the epo p ov de de ed o ve do d pe o

w h e e d , h dh e e o he o d .

the e e h w jo de kew h V eno e D b e, e d-

p ov de o b e e e ed e e h o o b ed

P e, i d .the epo e h he ze o

he M o o d e m ed us$1.1 b o o he

e 2009, w h cagr o 15% ove he ex fve e . the e deeve e om it e v e , b -e p o e o o e v e

d k ow ed e e v e . W h hed ow cagr o 15%,

he M o o d expe ed o e h eve e f e

o us$1.9 b o he ex o

e .Wo e ed h M he d e b hed ed b

ood o o de o dhe epo w p ov de mpo

h e d he o d -.

He d: “i be eve he o f m e b hed ood o o

o o o e, b he d pe o h h ompe ve e v o me ,

we m o e o o e .“O he o he h d he h

o h h ow h po e , Mh he dv e d oppo

o eve b e h e o hep e we o d m ke o e vee e ve .”

c e , it O o (itO)e v e M em he

b k o he o o m ke 50%, o owed b B e P o eO o (BPO) e v e 32%wh e K ow ed e se v e O o -

(KPO) e v e em o 2%.

“O e o he ke o e o heo o d M

o move p he v e h o o e h h v e e v e oppo ed oh h ommod ed e v e it o BPO,” d a Je hm , cEOo V eno e .

OM’ He d o re e h, Dleo , d k o ze b e

d o e k ow ed e e -v e m p ove o be h d p

fi s - v comp h nsiv po

on M’si n o so cing l ndsc p

e m o ed b mo

b e .leo dded: “Wh he oh o do o e b e e h emeo p b e o p ov de h o h

q o o k ow ed e e v ep b e , wh h be e ed

h o h o po e q o . Oh p oo o e w h h h v e

e v e p ope M o movep he v e h p d .”

the epo o e omme dM o o omp e

o eve e o he o domem ke w h p b e e ,e ee , m de

d m o e v e o de ve e v e ob d o p b -

d poo o o d f ep o e o o e o he owdem d o f e d o

e v e .leo o e ed h itO w

o e o be o e o M ’o e e h d e o he ood -

e d eve o e poo .He dded: “Pe h p , F e da o , E ee d leo o o d be o he

me o ome.”

The Outsourcing Malaysia and Val-ueNotes joint-report is available or

purchase at OM o fce. Further enquiries please call 03-7955-2922 or email to in [email protected] (Victor Low or Lisa Lee)

Wong ... M l ysi h s l dy s blish d i sc dibili y s good o so cing d s in ion.

Leong … Lack of a sizeable industry in o eringknowl dg s vic s m y p ov o b h ndic p.

a n ... M l ysi m s mov p hv l ch in.

I believethe country

is frmly established as a good location tooutsource,

but in the landscapeof a highly competitiveenvironment,we must

not rest onour laurels.- Wong




ByN j K n

With the global r c ss onary n-v ronm n r sul ng n g n dpr ssur o cu cos s and ma n a nprof ab l y, mos bus n ss s avb n ac ng roubl d m s. As world s com ng o rms w w d spr ad mpac o fnanc alcr s s, v ry company across ndus-

r s s r mm ng s non-cor andd scr onary cos s.

Larg corpora ons suc as C -group, UBS and D ll ar ncr as nglyb com ng cos -consc ous, and avsold ou r cap v arms.

Favoured optioNS nc m Am r can expr ss andC group s abl s d cap v c n r s

wo d cad s ago, s v ral globalg an s av mad d s na ons sucas ind a, P l pp n s, Malays a ando rs r back o c ub. tcap v mov m n ur r ga n dmom n um a r 2002 w n cospr ssur s ncr as d and o s or-

ng b cam acc p d as mor o ama ns r am ac v y.t s spur n cap v ac v-y was dr v n by ncr as ng

s ns v y owards iP, da a s cur yand confd n al y. Mor ov r, manylarg corpora ons a ad b n

s ng o s or wa rs ook plung n a b gg r way. Som

s gn fcan cap v BPOs ar l s d n x b on n x pag .

sale oF captivesW curr n global fnanc alcr s s, compan s ar wary aboucon nu ng w r cap v c n rop ra ons. Som o corpora sar s n pull ng ou o r w ll-

s abl s d cap v c n r s. Ov r las coupl o y ars, s v ral larg

cap v c n r s av pull d ou o r BPO bus n ss.

• British Airways and GE boths ar d a cap v c n r a was la r spun o as a rd par y prov d r.• Deutsche Bank sold its captiveBPO arm o hCL t c nolog s.• More recently, Citigroup sold itscaptive arm, CGSL to TCS for $505m.• Dell sold one of its two call centres

o t l p r ormanc a Fr nc ou -sourc ng s rv c prov d r or P p200million (US$4 million)• UBS and American Express arer por dly look ng o walk ou o

r cap v c n r s.

a m

f nf ng w y?

With the current global fnancial, m n w y b

n n ng w h h n n . s m f h

n ng f h w - b h

n .




Mos corpora s ar und r r -m ndous nanc al pr ssur ov r

las coupl o mon s. A salg v s company no only acc ss

o l qu d unds bu also r l v s o ncr as ng burd n o runn ng an

o s or cap v op ra on.Cap v s ar ac d w s m lar

probl ms o a r on, r s ng wagcos s, c., and mov ng work o rdpar y v ndors lps r duc s. Moso larg rd par y s rv c prov d-

rs oday av d v lop d capab l so andl s andard proc ss s and

r ar s v ral cr d bl v ndorsava labl . h nc , corpor a s can

ocus on r cor bus n ss.Fur r, b yond a c r a n s z ,

conom cs o cap v c n r sar no avorabl . Cos s ruc ur so cap v s ar yp cally g r (almost 30 to 40%) as compared to

rd par y s rv c prov d rs. W curr n l qu d y crunc n

mark , a rac v valua ons w lldr v compan s o s ll o r cap v c n r s.

On r ason o r a n a cap vop ra on ow v r s o pro c con-fd n al n orma on and proc ss s,so s l k ly a som ac v sw ll r ma n n- ous , w l manyo o r proc ss s w ll go

Most of the largethird party service

providers today havedeveloped capabilitiesto handle standard

processes and there are several crediblevendors available.

Hence, corportatescan focus on their core business.

rd par y way. Mos compan s n bank ng and fnanc al s c or,

w c av b n und r r m ndousfnanc al pr ssur ar fnd ng s asan a rac v op on!

Neeraja Kandala is the Principal Analyst, Legal Services at ValueNotes,a leading research provider focused onthe outsourcing industry.

o h f y ,

g n

h f h Bpo b n .

Company Industry Details of services offered by the back of ce support arm ABN Amro Banking IT and back of ce operations AC Bernstein Financial Services Back of ce and research support American Express Banking IT and transaction processingBank of America Banking Transaction processingCredit Suisse Banking Research servicesGoldman Sachs Financial Services Asset management, investment banking, equity research,

treasury operationsHSBC Banking Electronic data processing, voice based services,

cash managementJP Morgan Banking Research & analytics, transaction processing,

investment managementLloyds TSB Banking Back of ce operationsMorgan Stanley Banking Transactions processing, research supportNomura Financial Services Research supportStandard Chartered Banking IT, HR processes, F&A UBS Banking IT support functions, back of ce and research and

analytics work

Source: ValueNotes Research

Some signifcant captive BPOs



Outsourcing | survey

Despite the amount b d

rc g cr g r r c ,

r c dy gg e r CFo d r Cio r r q y b

q y r r v (Roi) r

rc g rr g ,w c r c b d y r

b y w r grx d r .

o 263 CFo d Cio c cr

B x r g , Fr c ,G r y, n rd c c -

r , sw z r d d uK rv y d by it rc-

g c C g z , v r d

q y c

c r b rc-g r b . o w v r d,

19% r “v ry c fd ” r c c .t d v-

r g rc g dc g yw r

r us$5 us$100c y r g e r

b , w r y 30%d g v r us$50 c

y r.B uK

12% r -rc g c r c 2008

2007 cc rd g n o rc g

a c d C g z ’r rc d r

r dx c Roi r

rc g vw fr y r.

B CFo y g v c r c

d c b c v d -

c v g – cb r by d g

, CFo cb ck r rc g,78% c “ c r v

r y” b c d q y r r.

t g- d g rg - b w CFo d

Cio c dy

Differences in ommu at o tyl a d att tudtowa d wa d a k y a to ma ag hould add

juggl g th d o th th ma g at o thMalay a wo kpla , G Y (ag d 18-29), G X (ag d30-47), a d baby boom (ag d 48-65), a o d g to thlatest ndings from an international workplace survey.

The survey, by workforce solutions rm Kelly Services,nds that Gen Y is increasingly using instant messaging as

a way o ommu at o w th oll agu a d o-wo kas they have been immersed in technology and the digitalworld from an early age.

However, all age groups overwhelmingly prefer face-to-face communication at the workplace. When receiving

wa d a d bo u ,Malay a p mo ta yrewards over non-cash

t m u h a t m /dayo wo k a d t a gopportunities.

The Kelly GlobalWorkforce Index obtainedthe views of nearly 100,000p opl 34 ou t

lud g almo t 2,000 Malaysia. Kelly Services

V P d t a d cou t yG al Ma ag , M l ano ma , a d g at o ald a b

harnessed positively andwh p op ly ma ag d,can also be a source of growth for the organisation.

The survey also found that 50% of Malaysianpo d t ay th d b tw G Y, G X

and baby boomers make the workplace more productive,while 33% say they interfere with productivity and 9% saythey make no difference.

no ma a d t mpo ta t that mploy ogth k y d b tw th g at o that a beffectively managed in order to achieve a harmoniousbalance and a productive work environment.

As the rst wave of Baby Boomers begins to retire,th w ll b a tal t ho tag a g at o X a d Y are left to ll the positions of Baby Boomers. To meet theo go g d ma d o k ll d mploy , mploy dto turn to the next generation of young workers.

planneD 2010 d g w r by a p c fc

r r x c d cr by 4.4% – g -

g b r g ,cc rd g w r rc

by G r r.h rdw r d g

r d , b cr d w r d-g w k c v r w r v r

it b dg r x c d d c by 3.1%, v r-

g .B w a r d m y

2009, G r r rv y d 323it g r a r ,s g r , m y , C ,i d d h g K g,

r w r dw d rv y.i r v r

it b dg , G r r r -

r ‘u r s rv y a y :s w r B B dg , a /p c fc, 2009-2010’ d

i d g-gr v w w rb dg c 26.9%,

w d by s g r(25.%), m y (24.1%)

d C (23.1%).t r r d

“ v r , a r , s g -r , i d d C v

r - v w rd g k 2010.

h w v r, m y dh g K g r b

r c r b dg ”.

t w r gw g rc g

r d d c g cr d g

c r r -

It i impo tant fo mploto recognise the diferencesb tw n th g n ation ino d to achi a ha moniobalanc .

Comm nication , wa dc itical to managing

generational diferences

• Gen X believe they understand the generationald b tt tha G Y o baby boom

• Baby boomers are the most pessimistic aboutthe productivity bene ts owing from diverseag g oup th wo kpla

• More than half (52%) say they have experiencedintergenerational con icts in their workplace.

• There is acknowledgement across the spectrumthat ag - lat d d do mpa t th waypeople go about their work, and 80% say theyadapt th ommu at o tyl d al g w thcolleagues from a different generation.

Other key ndings of the survey

Hik in APAC oftwa

e o CFOt ggl tom a

o t o cing rOI



survey | Outsourcing

outsouRCinG joBs r w d -r d d w y g, cc rd g w o rc g pr -

s ry s rv y c d c d by i r a c

o rc g pr (iaop) w 95% r d g

c y r - d c r

g - v g r y x-fg r r g .m y rg rg r- rc g d r w

r 100 y c d c r y , w r r

w rk, r b us$51,000y, w r r by

iaop’ adv c cy & o r cC . i c c w

h C i (hCi), c c d c d r

rv y r a g r goc b r 2008 d r d

b r d c vr rc g r w rk-g rg c r ,

r v d r d dv r r d w r d. m r 350 d v dr d d.

t r r r v d v bw g b r

rc g r , c - v by d

g , c r r r ,r c r c v d

r r rc .t ry r r w fc r - r “C r r m -g r o rc g pr -” v k d k , b d rg

r f rc g r - d c r w cy w rk.

“t rv y d , c yw c b d w r r r -

rc by iaop, r v d frc r d c g c r

rc g w d v ryr r ,” d iaop

C r m c C rb .“pr r- v

v r b y r g r g c d r c d

v r g -r c r c y’

r ,” d. “a d v d - dv c r , y

b d r x r c dc b rr r b g r g r b

d y d r b g c d v .”

O t o cing jobw ll pa ing: IAOP

g (CRm), w dby fc c , c -

b r d r rr rc g (eRp)

w r r c v y.F r r r c r -

w r d g, c r y g w g

rc g r dd c g cr ,

w d by r g , dgr d b

g c .G r r d

“ d- r r gr cr g y w r

r c d -r r c v ry d b ckc gy, g r ,

d b r r cr d r ”.

“s w r - - - rv c(s s) d g c

b r g d w a -p c c c r

rv y d, v r d by v r cd w r g ,”

r r d.h w v r, g r , b

r w rg gc r c r b

cc s s d .t r s s b g r h gK g, i d , s g r

d C – g d x b r d d v dc r .

acc rd g r rr G r r, w r b d-

g r x c d crg rg

a p c fc r g wc b c rv vw r it b dg

2010.

p nding in 2010

S e n i o r e x e c u t i v e s

a p p e a r t o b e m a k i n g ou t s ou r c i n g

d e c i s i o n s b a s e d

o n s h o t - t e r m c o s t c u t t i n g , bu t

ou t s ou r c i n g ’ s i m p a c t

s t r e t c h e s w e l l b e y o n d

t h e i n i t i a l l a b ou r , s k i l l s

a n d c o s t a d v a n t a g e s .

c r ck d r d-g r d v rc g

c r c d w d r b ’d r d g b f ; 37%

d y w r y w r Cio’b y c c b

b ck b .“s r x c v r bk g rc g d c b d

- r c c g, b rc g’c r c w b y d

b r, k d c dv g ,” ys v G , C g z ’ g gd r c r r uK d ir d.

“o rc r d w rk w Cio, CFo d r r d c

c b dg d y r c v , r v -g r g

c v b d d .”



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Outsourcing | management

Poka Yoke is the J p n p rr “d r g r m ”. i

l v p r b c u i m nll ng cl n , r nd , nd c ldr n l w d wn, pu r y w r

r nd r nd cu n wy r d ng.

all n i w r r d ngn ng, n ng n r, nd

l ng rd pl c . W l v n nr c n n x rn l mul nnd d m nd r mul - ng ll m . i’v w c d my c mpu r

guy (w c rg r m ) w rn pr bl m i pr n m,

w l m m urfng n rn nd l ng r cl nn p n . My cl n ng l dy n p n ll m nd u

m ng , nd v n cc n lly

br ng .Mul - ng l u ru ngb u , rc ng x x r rr nd n

w y m ng, nly v p d v d b ng rr bly

l . N nly d pr cludP Y , bu l cr mucunn c ry r . s r m up r rm w r n w d w n w

r r - r .P Y d n m n v ng b p r c ll m . t n d b p r c ( n d r v ng r

xc ll nc ) n r urc un-n c ry r . P Y m nd n’ d m d cr j b, d n’ ru

r ug ju g d n , nd byll m n , d n’ cl y ur y m b c u y u d n’ w n

b r p n bl r pr bl mc d w c ll ng u – “s p,

w v pr bl m n l n .”try ng b p r c ll m l m ng. i v r nd w

r u ry ny ng n w, n-clud ng v n ry ng l rn n w

w ng c , b c u r w n’ d p r c ly m m .t br g , l n d nd w nd r ulw m n w n’ l rn w m, pl y

nn , d r pr j c w r c ld,r w l u u w uull m up nd g l . s

b p r c – nd u l d r ul l .sp ng p r c n, my fr

nc un r w cul ur

ByDr arLyDi o d

S y Pok Yok !s ng p r ccurr d w n M – c ll gu m n nd ll w c n-

ul n – d m w r w r pr p m cr v y r n ng

n s ng p r . W d c d d r rcw cr v y w m n g d n w r pl c nd i pr p d wr w n p n- nd d n rv w

qu nn r l rn r m Ceond r C l v l x cu v w

y m n g r cr v y.W n M w qu nn r , w rr f d nd d, “bu y

w n’ n w r g n w r”. i w l r m xpl n

r w n “r g ” n w r bu qu n w r r m d

g x cu v b ng n rv w d r r wn b rv n ndc n qu .i w dur ng p r d m

i l rn d s ng p r nc l c ldr n w r xp c d

m m r m r l b ng ug .t r r , r w nly n r g

n w r. o r rul , l d gn d v p pl b v p r c ly

ll m nclud d y w rn ll w d c w bubbl gum r

r y’d d p n r ,l v ng m . (i n w, rul b n m nd d nc .)

Dur ng my r rc i l rn d rg n n r ng cr v y,l m d n wn m

w r ll w d – l ng yn v r r c d cu m r. t

rg n n cr d pp r unr ry ng n w ng . G gl

n fn x mpl . t y v l b mul r c u l pr c

n w lg r m c n b r d uw u ur ng ny ng b ng u d by cu m r . G gl r

v un – l ng n r nv r nm n r duc r nd

pr v d pp r un r cr v y.C n y u b cr v w n y u

n d b p r c ? C n y u b r -r w n y u v b p r c ?

S r ss k sus p rforwors hw do whw rs r ss-fr .



management | Outsourcing

s , r m n d b p r cbr ng w g nx y. i

ug r w r n nv blp r n l ng v r y ur uld r

ll m ju w ng r y u m m , y u c uld b pun d,r d cul d, r rw m d l

n r r. Bu , ’ YoU w l ngv r y ur wn uld r. s , n c

y ur m nd n w pl c nc –nd w n pp n y u r n

l ng r c ngru n – n l ng r n cuw w y u r d ng.

im g n y ur l yb rdw n ll l n . Y u v r y m,d n’ y u? N w m g n y ur b w l n nd l ng v r y ur uld r. W ju pp n d

y ur r y m? i br .i y u v v r b n c c d n

p r , y u’d n w mp r nc cu nd c ngru nc . i y u r

r l nd ud nc y ll ng y u, y u c n’ l y ur l p y n n m, y u n d

cu n nd. im g n t g r W d r r pr g l r

w r d r c d by cr m ng n .im g n m n n d v ur l p r m n B rry B nd w rd r c d by n b ng nd y ll ng

p m. h ’d n v r b bl b ll w b g n.

exc ll nc n r ndbr ng w p v xc m n

nd c nc n r n. W n ng bmy wn r c rd, run l g ly r

d y n y rd y, p vnd p bl g l. i d n’ m r

w w c ng nd d ng b r – n p r c ly – g l.

t w l qu l y m v m n nbu n w c cu n c n nu-

u mpr v m n ud d ng l g ly b r d y

n y rd y. s x gm nb u p r c n – v n ug

d p u – ’ r lly b uc n nu u mpr v m n , cu ng,l ng w y d b r.

Y , l m n g ng r d p pl nd pr c c d

p rly. i ’ rd P Y p pl nv lv d d n’ w pu

r , n ll g nc , r n v nd ng r g fr m .

s P -Y g l d b r – b n cu , v ur

xc ll nc v r p r c n, nd nrd r nc ur g udn w r pl c , w mu lnc ur g xp r m n n, m -ng m w l pr c c ng, nd

l ng ru nd y.W mu r duc r

g ng n r ubl . exc ll nc un. P r c n r ul. P

Y !

Dr ArLyne Diamond is an Organi-sational Development and HumanResource Consultant with over 30 years experience. She can be contacted at [email protected]

C you bcr iv whyou d ob p rf c

ll i s?

All toooften

I seeworkersdoing onething,thinking

another, and looking

a third place.



Outsourcing | happenings

With its tagline “R r

it or gr r Wor d” – c o orv c d rdw r o u o v -dor – B B sd B d r ou

k r it r po bo r .

t rou ub d , B BProp r sd B d, bu wo

w d c r – C b rj dg m r , s a m – b d o

r rc c ur . t du u cw o c d b D uk Dr M x muO k , M ’ M r o sc -

c , t c o o d i ov o .“t B B gr D C r

w r d w o o u r d ddr -

r p bo om o ‘P op ,P d Pro ’. B B ’

r k v ro mco c ou ppro c co ruc-

o d op r o o our d c -r ,” d D o’ Pr b t r j ,

CeO o B B group.

Pr b dd d: “Our f p d -

c r C b rj , cu c d m r ur w kpr c c . i bu w r o

d rd d comp c m d.t r o d c r m

m c c , c r c dcompu r m r d d or m x mum r c c wm mum v ro m mp c .”

accord o m, B Bv d ov r RM50 m o

bu d gr D c r dxp c mou o cr

co u o mprov bu do m v ro mr d r qu r m .

D c r v o bcr c d b v ro m or

r co ump o do x d r c co r bu oo r ou m o . i co om dr v b ob rpr

compu , d c r v b -

Malaysia’s MultiMedia d v opm nCorpor on (Md C) h p f nw h n n z of RM75 m on o

oc MsC- comp nco-pro c n m on n g m w hfor gn p r n r .

th n w MsC M Cr vCon n C n r (MaC3) Co-Pro c on

Fund was expected to nance about 15proj c ov r h n x wo r , Md Cchief executive of cer Datuk BadlishamGh z .

He said the targeted 15 projectswo h v h po n of mp o ng600 creative workers in variousc p c hro gho h ng h

of h proj c .“d p n ng on h p rform nc of

h comp n h wo h v h rco-pro c on f n hro gh hm ch n m, w hop o grow h f n

z n h f r hro gh v r o mo ,n no o r on r c gov rnm n

f n ng m ch n m ,” h .

MD C lloc t RM75m to romot m t o , m

B B y t kgr r o b l tyto rt

com d p b ou ourc

r co d v oo o c-c r bu row d bc c .

“e p c w c o o r duc so w r s rv c (s s)

d C oud Compu pu upd m d or op c d d c r

r ruc ur – mor d mor bu - r ook or ou ourc

p r r w o o o prov d it ou ourc r ruc ur rv c buo w o c p m r duc r c rbo oo pr , w ou d

or c p ou d m c r o bu d d c r o

d rd rom cr c .” d Pr b .t comp o r o o rv c rom d c r r -

rom w b o o d c rm m . B B d op o “ r -up” wo o r d c r Ku m h -t c P rk

d t m t m s a m.

Out d v w

… B B y’k wd t c tr Cyb rj y .



happenings | Outsourcing

iBM ReCently ou c d cr o o w co u or-

o d d c d o m rkor dv c d bu c d

bu op m o .iBM Bu a c d Op-m o s rv c w dr w o

comp ’ d p xp r v r cdu r , r rc , m m cd orm o m m o

p c bo mprov p dd qu o bu d c o

w b r u d r d co -qu c d bu ou com o o d c o .a urv o bu x cu v

pub d ud b iBM’ i -u or Bu V u r v

o wo bu d r do ’v cc o orm o

d r or o .W or o c u -

pr c d d cru , pr ur d

the inteRnatiOnal a -oc o o Ou ourc Pro-

o (iaOP) ou c d u c o w g ob

t c o o i du r C p r or ou ourc pro o

ocu d o r o wor d’ d or ovo v d ob c o -

o du r .s m c, su M cro -m , i c. d Pr c w r-

ou Coop r (PWC) rmo wor d- d

or o v jo dw iaOP o orm l d r-

p t m w dr v d r c o d r o

w c p r. t oc o ow k dd o or-

o rom rou d wor d o jo c p r’

ex cu v adv or Comm(eaC).

“t c o o du r b c v d d o rv c ou ourc-

or w ov r 30 r .a du r co u o

ob d r p d m ur , u o ou ourc

bu r d m rkb r mor mpor

v r,” d iaOP C r-m M c Corb . “W ’rxc d o v d r

d o dv c d c o ojo w iaOP o u c c p r.”

“t purpo o g obt c o o i du r C p r

o prov d commo o-rum or c o o du rcu om r , prov d r , dv -

or d c d m o rd r bou v r oup c o ou ourc d

o or c c ,” d Ks rm , c p r c rm

d rv c d v r d r c or,s m c Corpor o . “tc p r w ddr r-

d d o c o odu r or o cro

orm o ou ourc ,w r orm o c -

o o , bu proc or k ow d m m .”

“t r oppor-u o mov b o d

dom c bou d r o U.s. d v r pow r o c o o i du r

o ook or pr c c b ob comp ,”

d P u g or, p r r o Pr c w r ou Coop r llP.“t c o o i du r o o w du r bord r o cr orum

or du r xp r o r w o d p du rw b b c or com-p p r c p .”

add o orm o o c p r c b ob d

b co c Ju hu o :Ju .hu o @ou ourc pro-

o .or or K s rm: K _s rm @s m c.

com

T ru …‘Our cl tu d r t dt y’r o r t

com t t vv ro m t.’

iBMl u cw co ultor t o

v r- r k m r or rror,d r r ook or w w

o j c c r d pr d c b - o r d c o m k . t

urv o ow d ouo bu d r m k m jor d c o w m or u ru d

orm o .“Our c u d r d ’r

op r comp v v -ro m w r mor v r b or , dd o o b ,

v o b r . t r qu rom b o d r d oo o o ‘ d r po d,’” d

P t ru , Cou r l d r, g obBu s rv c , iBM M .

“t dr v d o p dbu d c o , u d r d

co qu c o d c od pr d c ou com w mor

c r – or , mov o wv o rpr c .”

t m rk r u c o w rv c b iBM g ob

Bu s rv c c w orm d 2002 o ow cqu o o

Pr c w r ou Coop r Co u -.

Corb tt … ‘a t du tryco t u to lob l dr dly m tur , t u of out ourc bu

tr t y d m rk tbl r mor m ort t

t v r.’

L u c of glob l T c olo y i du tryC t r for out ourc



Outsourcing | happenings

ev t s r



OUTSOURCINGTHE Premier Magazine on Business and Technology Services Industry

“PROVIDINGTHE RIGHT STAGE

FOR OUTSOURCINGSERVICES PROVIDERS

AND SEEKERS”

A quality production of Word Labs Media

CONTACT US:

phone: +603-90564770; fax: +603-90564771;

e-mail: [email protected]; website: www.the-outsourcing.com



Outsourcing | light takes

UNIONS Say prISON o fc s ntitl dto m k o nsiv comm nts bout th i boss outsid o wo k hou s nd should notb n lis d o doing so.

Six ison o fc s in aust li h vb n th t n d with th s ck o ostingd og to comm nts bout N w SouthW l s Co ctiv S vic s Commission ron Woodh m on F c book g titl d“Sugg stions to h l Big ron s v wcl ms”, aussi m di wid l o t d.

Th g w s s t u in Octob l st wh n ison o fc s d cid d to v nt

th i ng ov Gov nm nt l ns toiv tis two o th st t ’s isons – on

t p kl nd noth t C ssnock in th

Hunt V ll , public S vic associ tions ok sm n St w t Littl w s quot d ss ing.

Th gov nm nt h s sinc b ndon dl ns to s ll o C ssnock j il in M .

In a il th o fc s who s t u thg , dubb d th F c book Fiv , w

issu d with l tt s om th D tm nto Co ctiv S vic s th t ning to

t min t th i m lo m nt.Th pSa s ond d b fling n li-

c tion with th NSW Indust i l r l tionsCommission (IrC) to h n un i dismiss l lic tion o th wo k sb o th w o m ll f d.

“I su os i th w s id c toc th would b consid d quit

o nsiv ,” Littl w s quot d s s ingin Th aust li n n ws o thcomm nts m d bout Commission Woodh m nd oth s nio Co ctivS vic s o fci ls on th F c book g .

“W conc n d bout wh t o ls but wh t w ’ s ing is i th s ing it t hou s in th iv c o

th i hom s, w ll th t’s ll wh itshould b l t. Non o th s comm ntsw ut di ctl to th o l who w

subj ct o th comm nts. r ll , w t ing to s how it should constitut

misconduct.”Th pSa m d its submission to th

IrC nd th m tt is continuing tss tim .

pLayBOy MODeL anissHolm s w nts to know whh ccount w s sudd nlt k n o F c book nd whth soci l n two king sitis k ing h ictu s nd

using to g nt h cc ssto th m.

“I ou’ going to kiboshm , giv m b ck th stu th tb longs to m ,” Holm s, 28,told th To onto Sun c ntl .

But F c book h d s id Hol-m s viol t d its t ms nd conditions ndth t sh w s tu d b c us “nudit nds xu ll x licit cont nt is not llow d”on th sit .

a F c book s nt tiv s n m d

M iss w ot to Holm s in n-m il on aug 21, th d t

h son l o il nd ng w d ctiv t d.“pl s not th t nudit nd

oth s xu ll x licit cont nt isnot llow d on th sit ,” w otM iss , who didn’t ovidh l st n m in th -m ils.Holm s h d 3,000 i nds on h

son l ofl g nd 8,400o l h d sign d u to h ng . Sh s id th loss o cont cts

h s g tl d m g d h mod lling ndcting c .

Sh lso w nts F c book to tu n toh th 300 ictu s o mil , i nds ndmod lling wo k sh h d ost d.

“I have learnt silence fromthe talkative, tolerationfrom the intolerant,

and kindness from theunkind; yet strange, I

am ungrateful to theseteachers.”

– Kahlil Gibran

(Lebanese American poet)

“The test of couragecomes when we are inthe minority. The test of tolerance comes when we

are in the majority.” – Ralph W. Sockman

(American writer)

Food for ou

“To be stupid, sel sh, and have good health are three requirementsfor happiness, though if

stupidity is lacking, all is lost.”

– Gustave Flaubert(French writer)

“We allow our ignoranceto prevail upon us and

make us think we can survive alone, alone in patches, alone in groups, alone in races, even alone in genders.”

– Maya Angelou(American poet)

“Strange as it seems, no amount of learning cancure stupidity, and higher education positively forti es it.”

– Stephen Vizinczey(Hungarian writer)

au un on d f nd‘F c boo F v ’

“I suppose if they were said face toface they would

be considered quite offensive.”

too o o nd :P yboy mod

outsourcing issue #14

Documents