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Shared Services & Outsourcing Cluster By CM Voon Head, Client Management & Development, Shared Services & Outsourcing Cluster

CM VOON HEAD - CLIENT MANAGEMENT & DEVELOPMENT SHARED SERVICES & OUTSOURCING CM Voon started his career with the Multimedia Development Corporation (MDeC) in the year 2001 and was instrumental in shaping the agency in its effort to globalize the local ICT industry and setting up world class players in Malaysia. As active mentor, CM Voon’s dedicated career earns the rare distinction of servicing MSC Malaysia, the national ICT initiative that spans up to 6 years. Apart from his stint in MDeC, he has over 20 years of distinguished experience in various fields of ICT, management, business development, event management, corporate affairs, branding, advertising, marketing and others. He has closely worked with prominent government bodies such as MARTRADE and MOSTI locally and the foreign shores of China, Korea, Hong Kong, Indonesia and Thailand. CM Voon was the CEO of Education Management Solutions Sdn Bhd, an MSC-status company and under his leadership, the company was awarded the Pioneer Status with tax exemptions and rapidly rose to become a leading provider of software solutions in the higher education industry. He was also the CEO of ThreeSixty Technologies Sdn Bhd, another MSC-status company where he took on the challenge on leading and evolving the company from a product development focus to a business/marketing focused company. He critically led the company through a period of heightened activity and expansion in Business-to-Business (B2B) and Business-to-Consumer (B2C). In his current role at MDeC, CM Voon is the Head of Client Management & Development Department in the Shared Services and Outsourcing (SSO) Division. He takes on the challenge of grooming and building foreign investments locally with the strong focus on increasing prospective jobs and investments in Malaysia.

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SHARED SERVICES & OUTSOURCING CLUSTERS

Role: To implement and develop growth opportunities across all SSO verticals.

Moving Forward: Move jobs up the value chain and attract new customers in existing product lines.

Role: To provide continuous clientcentric nurturing and provide full support towards all client requirements. Moving Forward: Grow existing installed base and cross-sell / up-sell to enhance reinvestments.

Role: Identify and analyze cluster growth, potentials and growth opportunities.

Role: To grow, nurture and promote local Outsourcers to be globally competitive.

Moving Forward: Develop new sources of growth by creating new product lines.

Moving Forward: Increase revenue and exports of MSC Malaysia companies.

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WHO’S WHO

CM Voon Head, Client Management & Development

Danesh a/l Jothiprahasam Head, Special Project

Stanley Lo Client Manager, Special Project

Atasha Alias Client Manager, Special Project

Muhammad Fariddudin Osman Head, Client Engagement

Caitlyn Tang Client Manager, Client Engagement

Murni Daud Client Manager, Client Engagement

Anfaal Ridhuan Client Manager, Client Engagement

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SSO: TYPES OF SERVICES OUTSOURCING (3RD PARTY)

The concentration of company resources performing like activities, typically spread across the organization, in order to service multiple internal partners at lower cost and with higher service levels, with the common goal of delighting external customers and enhancing corporate value.

Outsourcing is the act of transferring some of an organization’s recurring internal activities and decision rights to outside providers, as set forth in a contract.

Low Value

Mid Value

High Value

SHARED SERVICES (CAPTIVE)

High Value Finance & Accounting Services

Data Centre / Disaster Recovery Centre

Engineering R&D and Product Design

Investment Research & Analysis

Legal Services

Finance & Accountancy

Human Resource Management

Procurement

Transaction Processing

Payroll Processing

Business & Market Research

IT Helpdesk & Technical Support

Supply Chain Management

Customer Contact Centre

Sources: Schulman et al & Greaver

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SSO: DELIVERY MODELS Shared Services (Captive) Description

•

•

In-house 100% subsidiary company to cater exclusively to parent company Have capability to undertake core and complex work

Outsourcing (Third Party) •

•

100% of employees on payroll of service provider Manage low to medium complexity non-core work

Hybrid (Captive + Third Party) •

A mix of both models where the company acts as both captive center and third party outsourcing service provider

Examples in SSO in MSC Malaysia

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Source: KMPG 2013

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MALAYSIA SSO INGREDIENTS PEOPLE

ENVIRONMENT

COST

KL: 87% speak English 60,000 educated overseas every year 6% wage inflation, 7.9% attrition (Source: Mercer) Low cost of high value workers

Low infrastructure costs No hidden costs Low start-up costs Low inflation rates

GOVT. SUPPORT

LOCATION

INFRASTRUCTURE Growing broadband networks and backbones Reliable and abundant power supply World class physical infrastructure Best highway network in Asia

Stable political environment No natural disasters Robust economy Excellent cost of living vs. quality of life

Heart of the emerging markets Strategically within a lower cost region

One-stop agency Private sector oriented setup Customer service Incentive Packages Strategy & mandate

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OVERVIEW OF GLOBAL SSO INDUSTRY Business Process Outsourcing (BPO)

Information Technology Outsourcing (ITO)

• The worldwide BPO services is expected to grow from USD126 billion in 2010 to USD162 billion in 2015. • Since 2000, BPO has grown at CAGR of 6.3%

• The worldwide ITO services is expected to grow from USD225 billion in 2010 to USD281 billion in 2015. • Since 2000, ITO has grown at CAGR of 5.9%.

• Examples of BPO activities • Contact / Call Centre • General Ledger / Accounts Payables & Receivables • Payroll Processing • Customer Relation Management • Supply Chain Management

• Examples of ITO activities • Data Centre • IT Helpdesk • Hosting Services • Digital Forensic • Systems Integration • Software Development • Disaster Recovery

Knowledge Process Outsourcing (KPO) • In 2010, the market size of the global KPO industry was estimated to be USD8.9 billion. • It is predicted to grow at CAGR of 24% from 20102014, reaching a market size of USD 17 billion in 2013-14. • Examples of KPO activities • Engineering & Design Services • Medical Diagnostic Outsourcing • Pharmaceutical R&D • Market & Consulting Research • Data Analysis • Taxation Support • Legal processes & advisory

Sources: Gartner & EvalueServe

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MSC MALAYSIA’s PROGRESS ON SSO MSC Malaysia SSO Companies Growth 2009 – 2013 As at 31st December 2013, MSC Malaysia SSO Companies has accumulated to a total of 289 active companies. 289 233 233

209 209

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168

8

150

185

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145

130 102

93 50

58

71

80

92

2009

2010

2011

2012

2013

Shared Services

Outsourcing

Hybrid

Total Companies 9 9

TOTAL REVENUE

22% Growth

from 2012

LOCAL SALES

TOTAL EXPORT SALES

23%

EXPORT SALES

66% contribution by export sales indicates SSO companies are targeting more on the foreign market.

5.9B

72,730

TOTAL GDP CONTRIBUTION

TOTAL JOBS

RM

8.4B

2%

Growth from 2012

Growth from 2012

11%

Growth from 2012

RM BILLION

RM

12.8B

RM

MSC MALAYSIA’s PROGRESS ON SSO

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Source: MSC Malaysia Annual Industry Report 2013 (Unaudited)

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MSC MALAYSIA’s PROGRESS ON SSO As at 31st December 2013, 56 SSO companies were awarded the MSC Malaysia Status

SSO Companies Awarded in 2013 by Equity Ownership

Equity Ownership

No. of Companies Awarded

Malaysia Owned

21

Foreign Owned

35

Total

56 11

Banking, Financial Services & Insurance

Information & Communications Technology

Energy, Chemical and Resources

Shared Services & Outsourcing Logistics & Transformation

Pharmaceutical & Healthcare

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MSC MALAYSIA’S SSO COMPANIES Energy , Chemical and Resources

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SSO Events for 2013 CIMA Roundtable Talent Pipeline • Held on 15th January, at Pullman Hotel Putrajaya. A closed- door roundtable discussing talent pipeline in Finance Shared Services.

AIESEC Youth to Business Forum • Held on 29th January, at Taylor’s University. Mark Lwin (AIG) and Leo Ariyanakam (Scicom) participated as speakers.

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SSO Events for 2013 Participation in 11th Annual HR Transformation & Service Delivery Summit, Singapore • Held on 20th – 22nd February. Attended by approx. 100 HR delegates to share experience and trends in HR SSO.

SSO Market Outlook 2013 & Appreciation Dinner • Held on 27th February, at Hilton Sentral attended by close to 100 clients and the entire SSO team. 20 recipients were presented the Appreciation Token.

SCORE & Acceleration Workshop • Held on 28th February – 1st March, at Cititel attended by VP, Head of SSO Clusters, SIRs & BMD. Briefing on EPP2 & industry insights from SIRs.

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SSO Events for 2013 MSC New Company Recruit Induction •Held on 6th March, at Bunga Raya auditorium. A joint induction for SSO Cluster and InfoTech Cluster. There were 15 new SSO companies and 11 new InfoTech companies that participated

Official opening of SWIFT’s new office, Bangsar South •Held on 7th March, at SWIFT’s Corporate Service Center. Officiated by Alan Raes (Chief Executive), Francis Vanbever (CFO), Heikki Vandermander (Belgian Embassy Deputy Head) and YBhg Datuk Badlisham Ghazali.

Official opening of BT’s new office, Bangsar South •Held on 11th March, at BT’s new Global Development Centre (GDC). Officiated by Kevin Taylor (President of APAC, Middle East, Africa & Turkey), Howard Watson (MD Architecture & Global IT), Raymond Kyles (Acting UK High Commissioner) and YBhg Datuk Badlisham Ghazali.

Business Analysis ‘Changing the Way Organizations Change’ Seminar •Held on 29th March at KDC. Speaker Praveen Udapa talked on Business Analysis and insights on CBAP and CCBA certifications.

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SSO Events for 2013 MSC Malaysia Golf 2013 • Held on 6th July 2013 at The Mines Golf Resort . 100 participants attended

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MSC SSO Night of Excellence 2013 • Held on 4th December 2013 at Double Tree Hilton, Kuala Lumpur. It was held to give recognition to the top performers in the SSO industry across foreign and local companies. Attracted 133 attendees.

Participated in Shared Services & Outsourcing Conference, Warsaw, Poland • Held on 11th – 13th March. The SSO: Central and European AGM is an event where 100 PAN-CEE Community, Global GBS & process leaders gather to drive measureable top-line value and advance business decision making.

Business Missions to Singapore and Penang • Held on 20th – 22nd March and 25th – 27th March respectively.

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CM VOON HEAD - CLIENT MANAGEMENT & DEVELOPMENT SHARED SERVICES & OUTSOURCING CLUSTER [email protected] +603-8315 3322

© All Rights Reserved. This material is confidential and property of Multimedia Development Corporation Sdn. Bhd. No part of this material should be reproduced or published in any form by any means, nor should the material be disclosed to third parties 18without the written consent of the Multimedia Development Corporation Sdn. Bhd.

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