Media Clippings

MALAYSIA – A RISING STAR IN OUTSOURCING

In a recent media conference organised by Teledirect Telecommerce Sdn Bhd (Teledirect), Senior Vice President of Multimedia Development Corporation (MDC), Dato’ Narayanan Kanan and CEO of Teledirect, Laurent Junique offered insights into the potential and challenges faced by Malaysia to be a global outsourcing hub.

According to Junique, companies are choosing to invest in outsourcing dollars because of the accessibility to a reliable infrastructure that ensures effective and efficient business operations at a lower cost, with greater flexibility. By outsourcing transactional and administrative functions, organisations are able to focus on their core business operations and reduce operating costs.

Ranked third in A.T Kearney’s 2004 “Offshore Location Attractiveness Index: Making Offshore Decisions”, behind strongholds such as India and China, Malaysia has proven to be an attractive destination for shared services and outsourcing. A recent benchmark study by Deloitte Consulting also placed Malaysia as a ‘clear favourite’ for outsourcing and offshoring activities in the region, ahead of China, India and Singapore.

In 2003 ,Teledirect “felt conditions were right to start offering regional and global contact centre support out of Malaysia” and made Kuala Lumpur its regional operations hub.

MDC expects Malaysia’s outsourcing sector to grow at a rate of more than 8% between 2003 and 2006.

Although attracting investors to operate in Malaysia’s outsourcing industry was cited as the country’s main challenge to become a leading global outsourcing hub, MDC acknowledges that Malaysia is gaining recognition as a young and fast growing outsourcing hub.

“It is always a win-win situation to both investors and Malaysia because investors can build up the skills of their workers and help boost the industry and economy. At the same time, they increase their profits,” said Narayanan.

Junique and Narayanan echoed that Malaysia’s strengths should be tapped and leveraged upon.

“Malaysia has the competitive edge as we hold a unique position not only in Asia but the world. Teledirect is able to provide linguistic support in up to 14 languages though their telephone sales representatives (TSRs) by operating out of Malaysia. Modern infrastructure, an attractive business environment through the MSC, strong government support and low cost of operations places the spotlight on Malaysia,” said Junique.

MDC’s Programme Director of Shared Services and Outsourcing, Rob Cayzer who was also present said branding is one of the key strategies in wooing investors. Corporations can help boost the country’s image by attracting influx of investment into the country.

In line with Teledirect’s business focus in ‘Sales Acceleration’ and recent achievement of its MSC status, the company believes that this will strengthen its position and potential to help companies achieve more sales faster. Teledirect acquires between 30 000 – 40 000 new customers in Malaysia and between 60 000 – 70 000 new customers in the region on behalf of their clients every month.

Businesses which have capitalised on Teledirect’s services include companies in the financial, information technology and telecommunications sector.

Today, the company has a network of 7 contact centres in Singapore, Malaysia, Taiwan, Thailand, Hong Kong, Philippines and India.

Teledirect operates more than 900 workstations, 370 of which are located in their fastest growing contact centre, Kuala Lumpur. The company plans to build another contact centre which will house 250 - 300 people in the next two years.