The entrance of SPs with a history of working with clients to build and develop IT solutions that integrate multiple functional and core-industry processes has created a competitive divide between IT SPs and traditional function-specific BPO SPs. In Malaysia, it is a trend that a BPO contract is spearheaded by the development of a particular application, say HR management (HRM). With one foot tapped into the organization, local SIs can upsell their services to manage the entire processing services for the companies.

BPO would be a prevailing market in the coming years, with a competitive landscape between IT SPs and BPO SPs. The former introduces new BPO engagement models, redefining the very nature of BPO services, and altering the competitive dynamics both within specific BPO markets and across the broader IT service marketplace. These players are broadening their own total available markets by repositioning themselves to tap into new sources of IT and business services spending.