Wednesday, June 29, 2005

Research & Development Centers in Cyberjaya

Many multinational companies have realized the benefits of “outsourcing” and “off-shoring” to the Multimedia Super Corridor (MSC), at the heart of which is Cyberjaya. World-class companies like Shell, HSBC, Ericsson, Fujitsu, NTT, DHL, British-American Tobacco, Prudential, Standard Chartered Bank, EDS, IBM, Nokia, Western Union, Hewlett-Packard, Intel, Satyam, Unisys and BMW are among the long list of companies that have regional data-processing or customer-service centers in Malaysia, mostly within the MSC. These companies see Cyberjaya as an emerging regional outsourcing center.

The MSC is also attracting technology of an advanced kind. Like Motorola’s Malaysia Software Center, which began operations in mid-1999. The Center’s domain of excellence includes software applications and network management solutions in 2G, 2.5G and 3G Wireless Communication Systems, and embedded test software applications for portable wireless devices as well as for automobiles.

Motorola (Malaysia) employs more than 250 software engineers, of which over 98 per cent are Malaysians. Managing Director S Surya says, “Fifty percent of the engineers we employ have had foreign education. Malaysian engineers graduated from countries like Australia, U.K, and even IITians from India have come to work here.” He adds that the employee turnover is less than 10 percent, which makes it a good proposition to set up R&D base in Malaysia.

Even Japan’s giant NTT is developing software and content for third-generation mobile phones out of its R&D center at Cyberjaya. “90 per cent of the 75 engineers at our development center are Malaysians. By doing product development here we get to the market faster,” says Hiromitsu Honda, President & CEO, NTT MSC.

Apart from R&D work, NTT also provides Internet services, especially to the large pool of Japanese manufacturing companies like Toyota that had already set up their operations in Malaysia.

Considering the economics of operating out of Malaysia, DHL Express has invested $52 million to set up its Asia Pacific Information Center in Cyberjaya. The Malaysian center serves as one of the three IT nerve centers in the DHL global network, along with London and San Francisco. The Malaysian center develops IT solutions to assist customers in handling their logistics needs and bringing better synergies to DHL’s operations in Asia.

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