The 2009 Asia-Pacific
Outsourcing Summit
Conference & Exposition
May 12-13, 2009
Kuala Lumpur Convention Center
Kuala Lumpur, Malaysia

The 2009 Asia-Pacific
Outsourcing Summit
Rob Cayzer, Director – Business and
Market Development, MDeC Malaysia
Rob has worked in
ICT, outsourcing, communications and digital
media field for over 22 years specialising in
economic
development, marketing, strategy, MIS
management to software engineering.
He was creator and implementer of MSC
Malaysia’s Shared Services and Outsourcing
(SSO) programme and founding co-chairman of
Outsourcing Malaysia

Content
1. Global Crisis and Sourcing
2. The Six Piston Engine
3. Playground for Giants
4. Question Time: Demand vs Supply
5. Job Migration vs Job Creation
6. Space for Local Players?
7. SEA: A market for demand or supply?
8. Call to Action

Global Crisis and Sourcing

Global Crisis and Sourcing
Outsourcing Players are outperforming the market

Global Crisis and Sourcing
CSC, IBM: c.200% market performance
NASSOM projects creation of 200,000 jobs this year

Global Crisis and Sourcing
Outsourcing outperforming most technology players

Global Crisis and Sourcing
Google, an exception

*Outsourcing Market est
The V6 Engine
•GDP: USD 1,300 bil •GDP: USD 1,500 bil
•Market: USD 13 bil •Market: USD 15 bil
•Supply: 130 mil ppl •Supply: 150 mil ppl
•GDP: USD 3,300 bil •GDP: 500 bil
•Market: USD 55 bil •Market: USD 10 bil
•Supply: 159 mil ppl •Population: 260 mii
•GDP: USD 4,200 bil •GDP: USD 773 bil
•Market*: USD 250 bil •Market: USD 20 bil

South East Asia

Indonesia: “Illinois” of SEA
Key cities:
•Jakarta ·Surabaya
•Bali ·Bandung
250 mil people

Indonesia
Jakarta
Population: 23 mil
Industries: Finance, Manuf, Energy, Gov
Education: 250 IHLs, 500,000 uni grads pa
IHL medium is English
Graduate Salary: USD 3,000 pa
Surabaya: Port City
Population: 7 mil
Industries: Transportation, Distribution
Education: 250 IHLs, 200,000 uni grads pa
Graduate Salary: USD 2,000 pa

Indonesia
Bandung: Education city
Population: 7 mil (fastest growing city)
Industries: Tourism, Edu, Creative, Tech
Education: 16+ Unis, 50 IHLs, 250k grads
Graduate Salary: USD 2,000 pa
Medan: Cosmopolitan City
Population: 3 mil, multi-ethnic
Industries: Petro-gas, Agriculture
Education: 80 IHLs
Graduate Salary: USD 2,000 pa

Malaysia: “Texas” of SEA
Key cities:
•Klang Valley ·Penang
•Johor
25 mil people

Malaysia
Klang Valley: Truly Asia
Population: 7 mil, Asian culture melting pot
Industries: Manuf, Energy, Tech, Fin, Gov
Education: 250 IHLs, 100,000+ uni grad pa
Graduate Salary: USD 6,600 pa
Majority of demand and supply of services
Penang: Technology Hub
Population: 1.5 mil
Industries: Manuf, Tech, Distribution
Education: 30 IHLs, USM country’s largest
Graduate Salary: USD 4,000 pa

Malaysia
Johor: ala Philadelphia
Population: 3.5 mil
Industries: Ag, Manuf, Tourism, Logistics
Education: 10+ IHLs, to be joined by
international standard Unis from US / Eu
Graduate Salary: USD 4,000 pa
Emerging:
Finance, Media, Health, Edu

Singapore: “NY” of SEA
4.5 mil people

Singapore
Industries: Manuf, Finance, Logistics
Education: 150+ IHLs, 30,000+ uni grad pa
Graduate Salary: USD 16,000 pa
Home (HQ) to many MNCs and capital
intensive, high-technology industry

Thailand
Key cities:
•Bangkok

Bangkok
Population: 12+ mil, 44% of national GDP
Industries: Tourism, Manuf, Finance
Education: 100+ IHLs, 350,000 grad pa
Graduate Salary: USD 6,000 pa
GDP/capital: USD 20,000
Over 1,700 MNCs located in Bangkok
“Business as usual”

Philippines: The other LA
Key cities:
•Manila Cebu
96 mil people

Philippines
Metro Manila:
Population: 20 mil
Industries: Electronics, Outsource, Mining
Education: 550 IHLs, 350,000+ uni grad pa
Graduate Salary: USD 4,000 pa
Cebu: The Sea Port
Population: 3 mil, fastest growing city
Industries: Manuf, Outsourcing
Education: 40 IHLs
Graduate Salary: USD 2,000 pa

Vietnam: a Mini-China
Key cities:
•Ho Chi Min Hanoi
84 mil people

Vietnam
Ho Chi Min: Commercial capital
Population: 10 mil, 20% of national
GDP, some chinese speakers
Industries: Manuf, 66% from FDI, Tourism
Education: 80 IHLs, 100,000+ uni grad pa
Graduate Salary: USD 1,200 pa
Hanoi: Centre of Culture
Population: 3 mil, highest HDI in Vietnam
Industries: similar to Ho Chi Min
Education: 2/3 of scientists
Graduate Salary: USD 1,500 pa

SEA: “Playground” for Giants
• Traditional supply centre for multinationals in
traditional sectors
• Late 1990’s: Shared services and outsourcing
growth centres from MNCs
• Early 2000s: Some landmark outsourcing deals
inked by outsourcing players
• Late 2000s: Secondary growth from large
outsourcing players
The future:
SEA as demand or supply base?

Question
Is offshoring and outsourcing
still a major
global economic driver
for job creation?

Question: Demand vs Supply
2005 assumption

IT-BPO Analysis 2009
• “Access to talent is likely to become
more decisive as workforce
demographics indicate a shortfall in the
long-term, in all major developed
countries”
• Infosys: minimal growth for the next 18
months, at least
• Resilient markets: Healthcare, BRIC

Job Migration vs Job Creation
• Job creation: Maturing states
• Job migration: More matured states

Space for SEA Players?
• American, Indian firms lead globally
• Malaysia players come a distant third
• Philippines, as it is for rest of SEA, still
largely an MNC base
• Growth strategy:
consolidate demand or supply

Top Demand Consolidators

SEA: A Service Consumer
SEA is:
•net service importer
•Major services
consumer
SEA needs:
•Competitive service
providers for their
market

SEA: A Service Supplier
• Countries across SEA produces:
– High levels and high quantities of human
capital
– Cost competitive
– Indigenously able to serve 80% of the global
population
• SEA needs: to enable “MODE-4” for high-
yield outsourcing talent

Call to Action #1
• Shared Services and Outsourcing enables
enterprises to rapidly become competitive
Benchmark and adopt competitive
shared services and outsourcing.
Consider a Chief Sourcing Officer

Call to Action #2
• SEA has talent, modern societies in the
cusp of services delivery transformation
Go to the Next Level via COP certification
and accelerate the transformation

Call to Action #3
• South East Asia Proposition is Powerful.
But the Brand is not (YET)
Fly the Flag and complete
the “V6 Engine”