MELAKA ICT HOLDINGS

KNOWLEDGE DRIVEN SERVICES

SHARED SERVICES &
OUTSOURCING (SSO)
Azuddin Jud Ismail
ceo@micth.com
Clarification on SSO Activities
 Definition of High Value
Activities for SSO

Technology Business Business Business Business

Applicatio Process Management & Transformatio
Infrastruct
ns Integration n
ure CRM, Billing
Business, Global Business
Telecoms Vertical Admin, Finance and Integration
Applications Finance Project
Device Management Research,
Management Horizontal HR, Training Product Design
Applications Sourcing and and
Supply Chain Procurement Development
Hosting
(Manufacturin
g Services) Process Design Investor
Customer and Engineering Relations and
Support Logistics Management
Marketing, Sales
Market Strategy

Analytics –
Industry
High Value Verticals (BFSI,
What is SSO?
 Shared Services are the convergence and streamlining of
and organization's functions to ensure that they deliver the
organization the services required of them as effectively and
efficiently as possible.

 This often involves the centralizing of back office functions

such as HR and Finance but can also be applied to the middle
or front offices. A key advantages of this convergence is that it
enables the appreciation of economies of scale within the
function and can enable multi function working (e.g. linking HR
and Finance together, where there is the potential to create
synergies)

 A large scale cultural and process transformation is often a

key component of a move to Shared Services. This
transformation often results in better quality of work life for
employees.

 Shared Services are more than just centralization or

consolidation of similar activities in one location. Shared
cont….

What is SSO?

The term “SSO” encompasses both outsourcing and

off shoring activities. “Shared Services” is and
arrangement where common services are provided
by a single organization levering an economies, such
as outsourcing and call-center consolidation.

Outsourcing is to seek resources outside of an

organizational structure, usually to reduce costs and
to exploit competencies of other entities.

Off shoring is the provision of services from a country

that is geographically removed from the client, for
example, services provided to a US enterprise by a
service provider located in a developing country.
[Excerpt from : “Economic Report 2005/2006,” by
Ministry of Finance Malaysia, p.34]
Types Of SSO Activities

 Information Technology Outsourcing

(ITO)

 Business Process Outsourcing (BPO)

 Knowledge Process Outsourcing (KPO)

NB

iii.List of SSO activities presented are non

exhaustive;
iv.Companies may be involve in multiple activities
across above segmentation
v.Horizontal refer to the span of SSO activities
across industries and Vertical refers to the specific
industries (i.e. Finance, Logistics, Energy,
Technology, Manufacturing, etc.)
Example of ITO related
SSO Companies

Information Technology Outsourcing

(ITO) :

iii.ExxonMobil Business Support Center Malaysia

Sdn. Bhd.

v.Shell Information Technology International Sdn.

Bhd.

vii.Asia-Pacific Information Services (DHL) Sdn.

Bhd.

ix.Ericsson Expertise Center Sdn. Bhd.

Example of BPO related
SSO Companies

Business Process Outsourcing (BPO) :

iii.E2 Power Sdn. Bhd

v.DHL Asia Pasific Finance Shared Services Sdn.

Bhd.

vii.HSBC Electronic Data Processing (Malaysia)

Sdn. Bhd.

ix.IBM Malaysia (M) Sdn. Bhd.

Example of KPO related SSO
Companies
Knowledge Process Outsourcing
(KPO) :

iii.Shell Global Solutions

v.HSBC Global Resourcing Ltd

vii.Pulse MSC

ix.PGS

xi.Panasonic R&D Center

xiii.Nokia Siemen
 Information Technology
Outsourcing (ITO)

IT Service & Support – SSO

activities that relates to the in-
sourcing or outsourcing of
activities relating to IT services
& support
 MICTH
CallCente IT Helpdesk
Data Center EntireTec
r

Tech Support M-BPO

Hosting K-Eco

Software
SAMB
Development
Example Applications
KTIAM
of ITO Development
Activities Device
Management
Disaster
Recovery Data
Center - LHDN
Horizontal (Process
Specific)
Applications
Vertical (Industry
DIGITAL System Specific) Applications
Melaka Integration
 Business Process
Outsourcing (BPO)

 Back-office Processing – SSO activities

that relates to the in-sourcing or
outsourcing of activities relating back-
office processing which typically requires
plenty of manual data entry efforts.

 In the Finance vertical for example, this

business process includes simple tasks
like credit card or be expanded to include
billing, call center services, transaction
management, correspondence
management, revenue management,
collections and exception processing
operations.
cont….

Business Process Outsourcing

(BPO)

In Human Resource (HR) vertical – the BPO

activities which are in-sourced or
outsourced may include processos such as
payroll processing, administration of
employees’ benefits and
entitlements,employee data records and
management.The SSO activites under the
HR may also cover
performance,reward,training and exit
process.

Customer Services and Call Centers

 Example
of BPO
Activitie
s
Contact/Call Payroll
Center Processing

Data Entry Billing

Finance & Supply Chain

Accounting Management

Transaction Human Resource

Processing Customer Training
Relationship
Management
 Knowledge Process
Outsourcing (KPO) – Knowledge
KPO or KnowledgeService
Services are basically the
higher value activities that can be consolidated
within a company. These may include core
and/or non-core activities within the company.

The most common form of KPO being done is

Research and Development work. Companies
in each industry vertical may have varying
core and non-core activities.

For Example, R&D work for an IT company will

be different from R&D work being done in a
company within the Pharmaceutical industry.
Additionally, certain activities may only be
specific to a particular industry.
 Equity
Global Research
Business Sourcing and
Integration Procurement

Financial
Project
Modeling and
Management
Analysis

Example
Legal
Research, Design
& Development
of KPO Research
Activities
Investor
Customer and Relations &
Portfolio Analysis Management

Process Design Market Research

& Engineering and Intellectual
Property
 Potential KPO Area for
MELAKA – MSC Malaysia
BFSI – Strong track record for Islamic Finance
and access to BFSI players and customers.
Excellent G2G relations to promote products and
services to potential clients

Manufacturing – natural progression to use

Malaysia’s strength in traditional manufacturing
activities to develop system, processes and
services to support global manufacturing needs

Legal – Strong legal foundations i.e. English

laws, Cyber laws and Islamic laws to fuel KPO
related research and analysis
Medical & Pharmaceutical – Access to ready
local talents (doctors, nurses) and life sciences
researches, alternative medicines etc