Digital Global Business Services Council Malaysia (GBS Malaysia)
Definition
Digital Global Business Services Council (GBS Malaysia)
GBS Malaysia, the Digital Global Business Services Council Malaysia, is the national industry body for shared services, IT outsourcing, and knowledge process work. Founded in 2006 as Outsourcing Malaysia, it now works with MDEC and MITI on sector growth and talent.
The council speaks for firms in BPO, shared services, and IT outsourcing from Malaysian hubs. Members range from local providers to multinational captives in Kuala Lumpur, Penang, and Cyberjaya. Roughly 60% are foreign-owned captives, per the 2024 Outlook.
GBS Malaysia rebranded from Outsourcing Malaysia in 2018, reflecting the shift from voice-heavy contact center work toward higher-value knowledge process outsourcing (KPO). It convenes buyers, investors, and policymakers around the Malaysia Digital initiative.
The council’s playbook mirrors India’s NASSCOM and the Philippines’ IBPAP — convene the sector, produce annual outlook data, and give government a single provider voice. That triangle has helped Malaysia lift its services exports past US$8 billion by 2023.
Key takeaways
- GBS Malaysia is the country’s industry body for shared services, ITO, and knowledge-work providers, founded in 2006 as Outsourcing Malaysia.
- It works alongside MDEC and MITI under the Malaysia Digital initiative to attract FDI and grow the services sector.
- Membership spans local providers and multinational captives across Kuala Lumpur, Penang, Cyberjaya, and Iskandar Malaysia.
- The council runs the Smart Sourcing Summit, GBS Asia Awards, and Outlook report to convene buyers, providers, and policymakers.
- Malaysia ranks in Kearney’s top three global services destinations, behind India and often ahead of the Philippines.
How it works
GBS Malaysia runs as a member-funded council with a board drawn from provider CEOs and government-linked agencies. In 2024, it counted over 200 member firms across Kuala Lumpur, Penang, Cyberjaya, and Iskandar Malaysia.
The council funds four workstreams: policy advocacy, investment attraction, talent development, and industry visibility. Each has a lead director and a rotating chair.
| Activity | Frequency | Primary audience |
|---|---|---|
| Smart Sourcing Summit | Annual | Buyers, providers, investors |
| GBS Asia Awards | Annual | Member firms, regional peers |
| GBS Outlook report | Annual | Government, media, investors |
| Policy roundtables | Quarterly | Ministries, regulators |
| Talent programs | Ongoing | Universities, TVET, member HR teams |
Funding flows from membership dues, event sponsorships, and MDEC grants tied to the Malaysia Digital initiative. Prospective buyers often benchmark Malaysia costs with tools like OA’s cost calculator before joining the council’s investor missions.
Members escalate policy asks like visa quotas, tax incentives, and data-residency rules through the council’s quarterly roundtables. Wins flow into MITI’s yearly incentives package and MDEC’s investor guides.
Examples
By 2024, member firms handled work for over 300 multinationals from Malaysian delivery centers, spanning BPO, ITO, and shared-service captives. Below are three examples of what the council supports on the ground.
Talent pipeline with local universities
In 2023, GBS Malaysia partnered with 15 public universities on internship pipelines — placing roughly 5,000 graduates into analytics, cyber, and finance roles at member firms.
TVET colleges plug the mid-skill gap, feeding contact-center and helpdesk teams across the Klang Valley.
FDI missions and investor pitches
The council co-hosts investor missions with MITI and MDEC, pitching Malaysia against India and the Philippines for foreign direct investment (FDI) in services. Malaysia ranked third on Kearney’s Global Services Location Index in 2023.
Council delegates also visit Tokyo, London, and San Francisco every year to court new investors, often paired with the Prime Minister’s office trade missions.
Smart Sourcing Summit and Outlook report
The annual Smart Sourcing Summit brings buyers, providers, and government heads to Kuala Lumpur. The 2024 edition drew over 1,500 delegates and named winners across the GBS Asia Awards categories, from best captive to emerging provider.
The 2023 Outlook report projected the Malaysian services sector at RM 26 billion in revenue, with roughly 100,000 people employed across member firms.
Award categories in 2024 included Employer of Choice, Best Shared-Service Provider, and Emerging Digital Hub. Winners often see follow-on RFP invitations from Fortune 500 buyers within the quarter.
Related terms
- Business process outsourcing (BPO): the umbrella category for delegated back- and front-office work.
- Shared services (SSO): consolidated internal service delivery, often the captive-model core in Malaysia.
- Information technology outsourcing (ITO): contracted IT infrastructure, apps, and support work.
- Knowledge process outsourcing (KPO): higher-skill analytics, research, and specialist work.
- Offshoring: relocating functions to a lower-cost country, distinct from third-party outsourcing.
- Foreign direct investment (FDI): overseas capital flowing into local business setups.
- Contact center: voice-led customer support hubs, the legacy anchor of Malaysia’s services sector.
FAQ
Who runs GBS Malaysia?
A member-elected board of provider CEOs and government-linked agency reps sets the agenda. A permanent secretariat in Kuala Lumpur handles day-to-day operations.
When was GBS Malaysia founded?
It was established in 2006 as Outsourcing Malaysia, then rebranded to the Digital Global Business Services Council in 2018 to reflect the sector’s move up the value chain.
How is GBS Malaysia different from MDEC?
MDEC is the government agency; GBS Malaysia is the industry body. MDEC funds and regulates the Malaysia Digital initiative, while the council represents providers and speaks on their behalf.
What sectors does GBS Malaysia cover?
It covers shared services, ITO, BPO, and KPO providers. Members range from finance-and-accounting captives to analytics teams and voice-led contact centers.
Why is Malaysia a strong GBS destination?
English-language talent, competitive costs, and stable infrastructure. Malaysia ranks in the top three of Kearney’s Global Services Location Index most years, behind India and often ahead of the Philippines.
Does GBS Malaysia certify providers?
No — it does not run a formal accreditation program. It recognises firms through the annual GBS Asia Awards and Outlook report rather than through certification.
Ready to compare Malaysia against other outsourcing destinations — start with Outsource Accelerator for provider hubs, cost data, and country-side comparisons.
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