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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
Performance of Business Operation in Transition Economies:
A Case study between China and Malaysia
Shahzad Ghafoor
Lecturer , COMSATS Institute of Information Technology. Lahore, Pakistan.
Tahira Umair
Lecturer , COMSATS Institute of Information Technology. Lahore, Pakistan.
Leslie Chadwick
Professor, Affiliation: University of Bradford School of Management
Uzair Farooq Khan
Lecturer , Affiliation: COMSATS Institute of Information Technology. Lahore, Pakistan.
Abstract
This research paper analyses the efficiency and effectiveness of business operations that
have shifted from the West to the Asian Giants. Most of the Multinational Companies have
contracted most of their non core functions to service provider from developing countries
because of the fact that there is low cost labor recently. This research focuses on comparing
and analyzing the three important aspects (Country infrastructure, Human expertise and
resources and Cultural issues) of elements that motivate MNCs for offshore BPO. In
addition, an evaluation of the impact of emergence of Malaysia in BPO market on China
also discussed.
Key words: China, Malaysia, Business, Performance, Efficiency
Introduction
Country Profiles Comparison and ICT Figures
According to The World fact Book: In terms of size both these countries contrast each
other, China has a total population of around 1.33 billion, which was 52.6 times bigger than
in Malaysia, and the total area is almost 30 times is bigger than Malaysia, but Malaysia
GDP per capital is nearly 2.6 times higher than in China. China held an 11.9% annual
economic growth compared to 6.3% in Malaysia, but its service industry has been growing
with average 9.7% according to MITI (Malaysia Ministry of international trade and
industry). Moreover, it is more reasonable to focus on the similarity of economic growth
and other important resources such as country infrastructure, cultural issues and human
expertise and resources they possess.
ICT as one of the most important factor that enables BPO practices take place, the
following figures shall give readers a clear picture of the ICT development in both China
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