Outsourcing picks up in Malaysia

KUALA LUMPUR, Malaysia--More organizations are choosing to outsource, a trend that will see the local IT outsourcing market grow to almost $350 million in 2008, IDC predicts.
The market research firm said outsourcing by Malaysian companies will rise at a compound annual growth rate of 27.2 percent over the next five years.
"The willingness to pay for outsourcing services is high, especially among players in the banking, insurance, manufacturing, health care and government sectors," Katherine Chan, IDC Malaysia's analyst for services research, said at a press briefing on Thursday.
Last year alone, several large IT outsourcing deals were signed, mainly by banks and transportation companies such as Maybank and Malaysian Airlines (MAS).
Chan attributes this huge interest to organizations requiring access to a more reliable infrastructure that can ensure smoother business operations at lower costs and with greater flexibility.
Since the signing of the first large deal in Malaysia, between Electronic Data Systems (EDS) and Bumiputra Commerce Bank Berhad (BCB) in late 2002, many vendors have been actively pursing similar business opportunities.
But while there seemed to be equal interest in outsourcing from other industries--in particular, government--no contracts have yet been awarded.
Chan stressed that outsourcing requires a lengthy negotiation phase, with a lot of time and effort expended on working out the terms and conditions of a case contract. This is especially true of government deals, she said. Furthermore, the integration of old and new workflows could cause initial business disruption, she added.
"During the transition period, the scope and time line may come under pressure from adjustments to requirements and (from) challenges in change management. And finally, the cultural differences between the agency and outsourcing services providers will likely create tension in the work environment," she explained.
Nevertheless, based on key observations, Chan said the Malaysian government is exploring the possibility of outsourcing its IT infrastructure.
IDC segments IT outsourcing into five major markets: information systems outsourcing, application management, network and desktop outsourcing, application service providers and system infrastructure service providers.
She noted that information systems outsourcing contributed 44 percent to Malaysia's total IT outsourcing market, which was mostly generated from the megadeals signed by BCB, Maybank and MAS.
"There are still organizations that prefer to opt for maintenance and technical support (rather) than to outsource, for reasons such as information confidentiality or concerns over security and losing control over the maintenance and management of applications," Chan said.
Still, some bigger companies are now seriously looking to outsource their desktop and network management to a service provider. Such organizations, Chan said, insist that their service provider owns and manages all its information infrastructure and operations.

first step for our final project

Please be noticed that the due of the research data is on Thursday American time and on Friday French time and the due of script is on Saturday American time and on Sunday French time!!!

Seeing as we have these new page links tot he left side of our Wetpaint website i suggest we use that as a way to organize old material we post on the main page. Once it becomes old we can simply make a page for it, that way the information is still available for us to see but it will not clog up the main homepage.

Team Pesek first meeting!!

Congratulation!!!!

We have finished the first step of our big final project. We choosed "Malaysia" as our outsourcing country and we gonna have our first meeing at American time 12am and French time 9am.

Look forward to disscussing this project with you!!!

Erica

I wanted to wish Osman a very happy birthday, it is already the 23rd in France.

Joyeux anniversaire!!

Hey everyone,

Going along with Awah's idea, those of you that had an introduction of yourselves on out wetpaint page, i put your information into your own page. You can see and access the link on the left hand side of the page, feel free to add, edit, or put into it anything you want.

UCR Part 1

Erica took some pictures of UCR so you can see our campus. It is just a few pictures but it is a beginning. It is a really good idea so i decide to post it on our blog.
I think that we are going to take more pictures in order to show you UCR.

We should use this blog as our Journal

Hi all,

Our Professor, Dr. Pence, wants us to keep at journal of our work. Basically writing what we have done the past week, the processes, difficulties, and solutions to problem.

This blogs is perhaps the easiest way to keep this journal. 

(all can login and write posts using our teampesek@gmail.com login and the usual password).

Audun

Our final big project!!!!

Hi friends,

We are so glad that our french members briefly introduce themselves this week and let's move to the next step.

As we know we have a big final project due in the first week of March, so we think it's about the time for all of us to commence doing it. In the big final project we have to develop a training module and consider those training and being trained people would have problems or share something betweent their different culture and language. Thus according to Team Pesek in UCR discussion, we think the first step for us to do is to choose the module countries we gonna do. Firstly, we can suppose the expat manager is from U.K. Second, the three countries we suggested that the outsourcing takes place are Malaysia, Indonesia and Philippines, so we need our teammates from french to vote which one would be our module. Please vote the three countries we suggested before Thursday 19 Feb.,2009 or if you want to recommend any other country, you can also write it down.

Thanks,
Team Pesek in UCR

Pictures

Hey Everyone,

As we saw in class today we have a lot to do regarding the organization of our team, lots of potentials to address. I hope our teammates across the Atlantic will all be with us soon. For those that have added its great to see you on there. I encourage those that do not have a picture up on their profile to put one up, it would be nice to be able to put a face to the name as we will be working with each other.

I would also like to use your personal pictures to update our group picture (right now i only have a '?' on the French side...i will update that we post more pictures!

wow~~so exciting!!!

All my dear teammates,

Do you see that?? more and more french memebers join our Pesek site!!!haha~~~so exciting, I can't wait to work with them!!!!

Btw...good luck for all of us in the mid-term week tho!!!

Erica

Assignment

Hey all,

I have completed and posted Part 1 of Assignment 4 for everyone to see. I think we captured what our team is about and talks about all aspects of what we have done so far in the short time we'll been given. Check it out when you get a chance!

-Vinesh

Hey guys so we are in week 6 of our school term and it's time for the real fun/interesting tasks to begin. Obviously we have been progressively learning about world cultures until this point but i wouldn't say that anyone of has still knows much.
Meeting our teammates from France will hopefully help us in this regard and we, in turn can hopefully offer them valuable information about the US and how business and general life is conducted here.
Other than that it will be loads of fun completing this project as it is not a method of study we have used in the past.
-Vinesh

Hi all,

Wanted to welcome all new members to Team Pesek. We have a large group so we have a lot of people to get to know, something i am looking forward too!