Business process outsourcing: Malaysian perspective

Business Process Outsourcing is acknowledge as one of a company's business strategic alternatives to face competitive business environment. Although BPO is popular business strategy in western economies, it is still new to the majority of Malaysian companies and thus, it has not been fully studied. Therefore, this study was trying to discover BPO awareness among the managers and decision makers of the Government Linked Companies (GLCs) in Malaysia. The data of this study has been gathered using a structure questionnaire involved 38 managers of the GLCs and the data were analyzed using Statistical Package for Social Science Software. The study revealed that the majority of the GLCs’ managers are aware of the BPO and they believed that BPO will becoming more prevalent in the future years. Cost saving and focus on core competency were the primary drivers and motivations of BPO adoption. However, cultural resistance to change was the main barrier to implement BPO. It is evident that the trend to business outsource will continue to exist in Malaysian business.