This IDC study presents profiles of the top 5 outsourcers in Malaysia. The Malaysia IT outsourcing market is projected to increase at a compound annual growth rate (CAGR) of 27.2% over the next five years, reaching a value of US$349.2 million in 2004.

The outsourcing market is driven by the fact that customers demand access to a more reliable infrastructure that can ensure smooth core business operations at lower costs and with greater flexibility. The willingness to pay for outsourcing services is high especially among players in the banking, insurance, manufacturing, healthcare, and government sectors.

With a new set of opportunities and challenges in the IT outsourcing market, outsourcers will need to manage these challenges while leveraging these opportunities. "Outsourcers should manage their engagement costs, guard against offshore outsourcing, combine outsourcing with business change management, align investment strategies with competitive positioning, provide new service offerings, and demonstrate financial stability to clients," says Katherine Chan, market analyst, IT Services Research, IDC Malaysia.