Digital Global Business Services Council Malaysia (GBS Malaysia)
Definition
Digital Global Business Services Council Malaysia (GBS Malaysia)
The Digital Global Business Services Council Malaysia (GBS Malaysia) is the trade body for the firms that run shared services, tech and knowledge work out of Malaysia. It is a chapter of PIKOM, and it began in 2006 as Outsourcing Malaysia.
That parentage is the first thing to know. PIKOM, the National Tech Association of Malaysia, is a broad technology association, so the council’s asks arrive at ministries carried by a far wider membership than a standalone outsourcing body could muster.
The council rebranded from Outsourcing Malaysia in 2018. The new name marked a shift away from voice-led contact center work and toward higher-value knowledge process outsourcing (KPO).
Members range from local providers to multinational captives in Kuala Lumpur, Penang and Cyberjaya. Roughly 60% are foreign-owned captives, per the council’s 2024 Outlook, which makes Malaysia’s sector unusually captive-heavy next to the Philippines.
Key takeaways
- GBS Malaysia is a chapter of PIKOM, the National Tech Association of Malaysia, rather than a standalone association.
- It began in 2006 as Outsourcing Malaysia and rebranded to the Digital Global Business Services Council in 2018.
- It works with the Malaysia Digital Economy Corporation (MDEC) and the Ministry of Investment, Trade and Industry (MITI) to pull in investment.
- In 2024 it counted over 200 member firms across Kuala Lumpur, Penang, Cyberjaya and Iskandar Malaysia, roughly 60% of them foreign-owned captives.
- It convenes and publishes through the Smart Sourcing Summit, the GBS Asia Awards and an annual Outlook report, but it certifies nobody.
How it works
GBS Malaysia runs as a member-funded chapter of PIKOM, with a committee of provider executives elected on a two-year term. It funds four workstreams: policy advocacy, investment attraction, talent development and industry visibility, each under a lead director.
The 2026–2027 committee is chaired by Raymond Davadass of Daythree Business Services. Jusri Ong Chin Yap of Telecontinent serves as deputy chair for outsourcing, and Koay Tze Siang of Dell Global Business Centre as deputy chair for shared services.
Two of the three senior posts sit with firms that deliver for global clients out of Malaysia — not with consultants or officials. That keeps the agenda operational and close to the delivery floor.
In 2024, the chapter counted over 200 member firms across Kuala Lumpur, Penang, Cyberjaya and Iskandar Malaysia.
Those members cover business process outsourcing (BPO), shared services and information technology outsourcing (ITO) delivery.
| 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, vocational colleges, member HR teams |
| Investor missions | Ongoing | Foreign investors, MITI, MDEC |
| Committee elections | Two-year term | Member firms |
Funding flows from membership dues, event sponsorships and MDEC grants tied to the Malaysia Digital initiative, the national programme MDEC runs to certify and incentivise digital investors.
Prospective buyers usually benchmark Malaysian pay rates with tools like OA’s cost calculator before they commit to one of the council’s investor missions.
Members escalate policy asks like visa quotas, tax incentives and data-residency rules through the quarterly roundtables — and the wins land in MITI’s yearly incentives package and MDEC’s investor guides.
Examples
By 2024, member firms handled work for more than 300 multinationals from Malaysian delivery centres, spanning outsourcing, technology services and captive shared-service teams. Three strands of council activity show how that book of business gets built and defended.
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.
Technical and Vocational Education and Training (TVET) colleges feed the layer beneath that: helpdesk, claims processing and contact center teams across the Klang Valley.
Employers there compete with Singapore for the same bilingual graduates, which keeps steady pressure on entry-level pay.
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, the consultancy’s recurring ranking of offshore delivery destinations by cost, skills, business environment and digital readiness.
Delegates travel to Tokyo, London and San Francisco each year to court new investors, often alongside trade missions from the Prime Minister’s office. Malaysia’s services exports had passed US$8 billion by 2023.
An investor weighing offshoring a finance function wants proof that peers already run one nearby. The 300-plus multinational client base is the proof the council leads with.
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 the GBS Asia Awards winners, from best captive to emerging provider.
The 2023 Outlook report put the Malaysian services sector at RM 26 billion in revenue, with roughly 100,000 people employed across member firms. Divide one by the other — that works out to about RM 260,000 of revenue per head.
Award categories in 2024 included Employer of Choice, Best Shared-Service Provider and Emerging Digital Hub. Winners often see follow-on request for proposal invitations from Fortune 500 buyers inside the same quarter.
Related terms
The cluster around GBS Malaysia covers the service lines its members deliver, the ownership models they run under and the investment flows the council chases. Other countries’ industry bodies sit outside this set — each of those has its own entry.
- Business Process Outsourcing (BPO): the umbrella category for delegated back office and front office work.
- Shared Services: consolidated internal service delivery, the core of the captive model in Malaysia.
- Information Technology Outsourcing (ITO): contracted infrastructure, applications and support work.
- Knowledge Process Outsourcing (KPO): higher skill analytics, research and specialist work.
- Offshoring: relocating functions to a cheaper country, distinct from third party outsourcing.
- Foreign Direct Investment (FDI): overseas capital flowing into locally incorporated operations.
- Contact Center: voice led customer support hubs, the legacy anchor of Malaysia’s services sector.
FAQ
Who runs GBS Malaysia?
A committee of member firm executives sets the agenda, with a permanent secretariat in Kuala Lumpur handling day-to-day operations. The 2026–2027 committee is chaired by Raymond Davadass of Daythree Business Services.
When was GBS Malaysia founded?
It started in 2006 as Outsourcing Malaysia. It rebranded to the Digital Global Business Services Council in 2018, reflecting the sector’s move up the value chain into analytics, finance and engineering work.
How is GBS Malaysia different from MDEC?
MDEC is the government agency; GBS Malaysia is the industry body. MDEC funds and administers the Malaysia Digital initiative, while the council represents providers and speaks on their behalf. The council also sits inside PIKOM, which MDEC does not.
What sectors does GBS Malaysia cover?
It covers shared services, ITO, BPO and KPO providers. Members run from finance and accounting captives to analytics teams, engineering support and voice-led contact centres.
Why is Malaysia a strong GBS destination?
English-language talent, competitive costs and stable infrastructure. Malaysia sits 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 recognises firms through the annual GBS Asia Awards and Outlook report rather than through any formal accreditation programme.
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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