Malaysia’s BPO market is forecast to maintain a 3.1 percent compounded annual growth rate (CAGR) over the 2019-2024 period, supported by the government’s active role in promoting the country’s outsourcing sector, says GlobalData.
GlobalData forecasts BPO services market size in Malaysia to grow from $1.3 billion in 2019 to $1.5 billion in 2024.
The report said government’s commitment to improve digital connectivity, particularly through its National Fiberization and Connectivity Plan (NFCP) and strengthen its 4G services despite the economic uncertainty amidst the pandemic will support the country’s BPO sector in the coming years.
Nidhi Gupta, technology analyst at GlobalData, says: “The broadband infrastructure in the country will place Malaysia as the top business continuity destination for outsourced business processes and helps BPO service providers in the country to make a smooth transition to remote working model.”
The efforts of the Malaysia Digital Economy Corporation (MDEC) in providing university students and young professionals with training on digital skills is also helping the country’s BPO sector by adding more skilled resources to the industry.
MDEC’s Global Online Workforce initiative especially aims to create a community of skilled, digital savvy freelance workers who can serve in the BPO sector.
Meanwhile, digital transformation initiatives by BPO companies such as the use of artificial intelligence to provide omni-channel customer services, implementation of data analytics and use of robotic process automation to deliver higher value processes for clients are enabling continuous improvement in the industry.
Vertical-specific BPO currently represents the largest service category by value in the country’s overall BPO market.
Human resource BPO segment will see its value increase at fastest CAGR of 5.8 percent over the 2019-2024 period and in the process set to overtake vertical-specific BPO as the largest service category.
Large enterprises are expected to provide fastest growth opportunities to Malaysia’s BPO market through the forecast period.