Business process outsourcing (BPO) in Malaysia is a rapidly growing industry driven by the demand for quality and dedicated workers worldwide. Malaysia offers a young, talented workforce in a scenic Asian country known for its strong community and rich culture. The country’s BPO industry is expanding exponentially due to job globalization. BPO refers to the practice of offloading jobs and responsibilities to external service providers, allowing organizations to focus on core activities while outsourcing non-core tasks like back-office operations, digital marketing, accounting, and customer service.

Malaysia’s top BPO companies, such as Outsourced Global, ENVO BPO, and Upstream BPO, offer services to international clients, enabling cost savings of up to 70% on staffing. The Malaysian BPO market is projected to reach a revenue of US$1.56 billion by 2025, with an annual growth rate of 5.87% leading to US$1.96 billion by 2029, supported by Malaysia’s strong IT infrastructure and strategic location. The industry’s resilience during the COVID-19 pandemic, maintaining a growth rate of 3.1% from 2019 to 2024, underscores its stability and contribution to economic growth.

What is Business Process Outsourcing in Malaysia?

Business Process Outsourcing (BPO) is the practice of contracting specific business functions to third-party service providers. In Malaysia, BPO is a rapidly growing industry that benefits from the country’s skilled workforce and cost-effectiveness. Malaysia, with its strategic geographical position and supportive government policies, has become a favorable destination for BPO services. The country’s BPO market covers a wide range of services, including customer service, finance, IT, and human resources, and is projected to continue its growth trajectory significantly in the coming years.

Why is Malaysia a Popular Destination for BPO?

Malaysia is a popular destination for BPO due to several key factors. The country offers cost-effective solutions, allowing companies to save up to 70% on staffing costs. This is a significant advantage for businesses looking to optimize their expenses without compromising on quality. Additionally, Malaysia’s young and dynamic workforce is proficient in multiple languages, including English, which is crucial for catering to global markets.

The Malaysian government supports the BPO industry through incentives and policies, fostering an environment conducive to business growth. Furthermore, Malaysia’s robust IT infrastructure and strategic location in Southeast Asia make it an ideal hub for reaching other major Asian markets.

What Services Can Be Outsourced to BPO Companies in Malaysia?

Services that can be outsourced to BPO companies in Malaysia include 5 main services:

Back-Office Tasks

These involve administrative and support functions such as data entry, payroll, and HR services. Companies like RSM Malaysia offer tailored back-office solutions that enable businesses to focus on their core activities.

Digital Marketing

Outsourcing digital marketing allows companies to leverage the expertise of Malaysian firms like Canaan Communication & Technologies, which offer services ranging from SEO to social media management.

Accounting and Bookkeeping

BPO providers in Malaysia, such as Crowe Malaysia, deliver comprehensive accounting and financial services, ensuring compliance and efficiency in financial operations.

Customer Service

Companies like Teleperformance Malaysia offer customer service solutions that enhance client satisfaction and loyalty through efficient and effective customer interaction.

Voice and Non-Voice Campaigns

These services include telemarketing, lead generation, and customer support through various channels, both spoken and written.

How Has the Malaysian BPO Industry Changed During the Pandemic?

The Malaysian BPO industry adapted and thrived during the COVID-19 pandemic, maintaining a steady growth rate. The industry demonstrated resilience, with a growth rate of 3.1% from 2019 to 2024, according to Global Data. This growth is partly attributed to the increased demand for digital transformation and remote work solutions, which BPO companies in Malaysia quickly adapted to.

Many BPO firms in Malaysia, such as Scicom Berhad, have embraced the remote work model, offering work-from-home solutions that ensure business continuity. The pandemic accelerated the adoption of technologies such as Robotic Process Automation (RPA) and Artificial Intelligence (AI), further enhancing the efficiency of outsourced services.

Who are the Top BPO Companies in Malaysia?

The top BPO companies in Malaysia in 2025 are known for their services and global reach. Some of the leading names include:

Outsourced Global

Based in Kuala Lumpur, Outsourced Global provides offshore staffing solutions across various industries, enabling significant cost savings for its clients.

ENVO BPO

Located in Selangor, ENVO BPO specializes in customer service, telemarketing, and IT outsourcing, offering professional teams to handle complex tasks.

Upstream BPO

Also in Selangor, Upstream BPO is recognized for its inbound call centers and telesales services, catering to a wide array of industries.

Brandt International

This Kuala Lumpur-based company specializes in customer experience management and IT outsourcing, empowering clients to focus on their core business activities.

Teleperformance Malaysia

With a global presence, Teleperformance Malaysia provides world-class customer service solutions, helping businesses enhance their customer engagement strategies.

How Does the Future Look for Malaysia’s BPO Industry?

The future of Malaysia’s BPO industry is promising with expected continuous growth. The projected revenue in the Business Process Outsourcing market is set to reach USD 1.56 billion by 2025, with an annual growth rate of 5.87% leading to a market volume of USD 1.96 billion by 2029, as per Statista’s insights.

Malaysia’s competitive labor costs and strategic initiatives by the government are expected to keep it as a preferred BPO destination. The increasing adoption of automation and AI technologies is likely to drive further efficiency and innovation in the services provided by Malaysian BPO companies. Furthermore, the country’s strategic location and well-developed infrastructure will continue to attract businesses looking to expand in the Asia-Pacific region.

What Are the Key Considerations When Choosing a BPO Provider in Malaysia?

When choosing a BPO provider in Malaysia, businesses should consider the provider’s expertise in the relevant industry and services. It is crucial to assess the provider’s track record and client testimonials to ensure reliability and quality of service. Additionally, understanding the technological capabilities of the BPO company, including their use of AI and RPA, can be a significant factor in decision-making.

Companies should also evaluate the cultural compatibility and communication skills of the BPO provider, as these are vital for seamless integration and collaboration. Lastly, considering the cost-effectiveness and potential for long-term partnership can help businesses maximize the benefits of outsourcing with a Malaysian BPO firm.