Malaysia ranks 3rd in global offshoring destinations
KUALA LUMPUR: A.T Kearney has ranked Malaysia in third place after India and China in the 2014 Global Services Location Index (GSLI) for offshoring destination of choice.
Although Malaysia was hindered by relatively smaller labour pool, it had competitive advantages in terms of political stability and multilingual environment, it said in a statement.
A.T Kearney Malaysia Partner and managing director, Joon Ooi said India had financial attractiveness that was hard to beat and both India and China have a much larger qualified labour pool.
"However Malaysia, outranks both countries in terms of ease of doing business and is financially more attractive than China.
"It makes the country the offshoring destination of choice for companies with mid-sized demand and a lower risk appetite." he said.
GSLI measures underlying fundamentals of 51 countries based on metrics organised into three major categories namely financial attractiveness, people skills and availability, and business environment.
The GSLI brings rigour to companies’ location decisions in the globalised services labour market, in particular back office functions, such as information technology and business process outsourcing.
Meanwhile, A.T Kearney's other key findings showed that Asia continues to dominate GSLI ranking, with six countries in the index’s top 10.
Southeast Asia displayed a strong performance with Malaysia (3rd), Indonesia (5th), Thailand (6th), Philippines (7th) and Vietnam (12th) in the top 15 of the ranking.
A.T Kearney is a global management consulting firm that focuses on strategic and operational issues facing businesses, governments and institutions worldwide with offices in more than 40 countries.-- Bernama