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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

JUNE 2011<br />

VOL 3, NO 2<br />

The figure 5 presents Number of staff employed in surveyed firms ‘ranges from 10- 500, it<br />

divided into 3 categories: 1) 1-50 employees 2) 50-100 and 3) 100-500. The results show<br />

that there are 10 Malaysia companies fall into group 1, 2 fall into group 2 and 2 into group<br />

2. It is also very different from the results of Chinese firms, where there are 8 firms fall into<br />

group 2, 6 fall into group 3 and only 2 into group 1. This figure indicates that firms who are<br />

participated in the survey are quite diversified.<br />

Conclusion<br />

This research has attempted to study and compare the current status china and Malaysia<br />

BPO leading service providers. Several important characteristics have emerged as research<br />

goes on.<br />

Firstly, there are two main sources of BPO providers: new (small companies that<br />

specialized in specific BPO projects) and transitional firms (big companies), the new firms<br />

are often creative and very much depended on its advanced information system (ICT) while<br />

transitional firms are quite traditional operated very much reply on its experience and<br />

strategic alliance strategy. With china’s entry into WTO, Chinese BPO providers are forced<br />

to improve its effectiveness of communication with clients outside and timely co-ordination<br />

due to the greater completion and higher customer requirements. Less advanced<br />

infrastructure also restricted its expansion of service variety. More customized service<br />

needed to synergized with MNCs for providing value-added services. Meanwhile, the<br />

government’s role to make China a best destination for offshore BPO business becomes<br />

ever critical, many researches have been done in this field found out the country business<br />

environment and its related factors is the major concern for MNCs making offshore<br />

outsourcing. Therefore, the overall macro-level environment evaluation is the most<br />

important aspect for any offshore outsourcing.<br />

This study examined the important elements based on practical model “Country selection<br />

model” (Terdiman and Berg, 2001). Three components; infrastructure, resources and<br />

culture are three aspects have been evaluated from the perspective of offshore service<br />

providers both from China and Malaysia. The main conclusion can be drawn from the<br />

findings, based on the combination of questionnaire survey and interview is, Malaysia is a<br />

rising star in global BPO industry. Its strong government support in ICT and the active<br />

promotion government agency MSC very much contributed to the success. Stable political<br />

status and rational economic business environment made Malaysia a new leader in BPO<br />

industry. Despite its only 22 million people and some drawback such as piracy and cultural<br />

issues, it will certainly challenge India and China domination of global BPO market due to<br />

its strong global exposure workforce that can possess strong English and regional language<br />

skills. Well-developed infrastructure, low wage inflation, a stable government, attractive<br />

business environment, strong government support, and a workforce with good language<br />

skills (Kelly, 2005) are all favorable factors that pull MNCs consideration to outsource. An<br />

interesting answer from the manager at the Multimedia Development Corporation (MDC)<br />

Flagship Strategy and Planning Unit, Rob Cayzer: Question: With rapid and constant<br />

growth of China and India in BPO market, how does Malaysia position herself in that<br />

context? Answer: “Malaysia will serve them”<br />

It may sound surprise, but the fact is that many reputable India outsourcing provider such<br />

as Infoys ,Wipos already planning to open new branches in Malaysia due to the rise of<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 899

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