Market Insights Technology IT Services IT Outsourcing

Administration Outsourcing - Malaysia

Malaysia

Revenue in the Administration Outsourcing market is projected to reach US$266.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.22%, resulting in a market volume of US$360.30m by 2029.
The average Spend per Employee in the Administration Outsourcing market is projected to reach US$14.70 in 2024.
In global comparison, most revenue will be generated in the United States (US$27,290.00m in 2024).

Key regions: Netherlands, Japan, China, United Kingdom, India

Market

Region

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Currency

Analyst Opinion

The Administration Outsourcing market in Malaysia has been experiencing a steady growth over the past few years.

Customer preferences: Businesses in Malaysia are increasingly turning to outsourcing their administrative functions to third-party service providers. This is due to the cost savings and efficiency gains that outsourcing provides. Companies can focus on their core business activities while outsourcing administrative tasks to experts in the field.

Trends in the market: One trend in the Administration Outsourcing market in Malaysia is the increasing adoption of technology. Service providers are leveraging technology to provide more efficient and cost-effective services to their clients. This includes the use of automation and artificial intelligence to streamline administrative tasks.Another trend is the growing demand for specialized services. As businesses become more complex, there is a need for specialized administrative services such as HR and payroll outsourcing. Service providers are responding to this demand by offering specialized services to their clients.

Local special circumstances: The Malaysian government has been actively promoting outsourcing as a way to attract foreign investment and create employment opportunities for Malaysians. This has led to a favorable business environment for outsourcing service providers in the country.

Underlying macroeconomic factors: Malaysia's economy has been growing steadily over the past few years, driven by strong domestic demand and exports. This has led to an increase in business activity and a growing need for administrative services. Additionally, Malaysia's strategic location and well-developed infrastructure make it an attractive destination for outsourcing service providers looking to serve clients in the Asia-Pacific region.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.