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10 Compelling Reasons Why Global Companies Outsource Software Development to Malaysia

Outsourcing software development projects can yield numerous rewards - from faster release velocity to tapping specialized skills and controlling project costs.

While many nations around the world provide outsourcing services, Malaysia offers unique advantages that set it apart.

Here are ten compelling reasons to consider outsourcing your software projects specifically to Malaysia:

Depth of Multilingual Talent

Malaysia's rich cultural diversity manifests in a tech talent pool possessing English plus Asian language abilities. Outsourcers here exhibit deep English verbal and written fluency — minimizing communication barriers that can undermine offshore relationships. But they also integrate professionals conversant in languages like Mandarin, Cantonese, Bahasa Malaysia, Tamil and more.

This rare blend facilitates seamless interaction both across internal Malaysian development teams and when engaging international clients and colleagues. The depth of multilinguists allows customized communication approaches scaled to any project’s needs.

Robust System of Technology Training and Development

Malaysia boasts a rigorous university system alongside specialized training institutes to groom talent. Public university heavyweights like University of Malaya, Universiti Sains Malaysia and Universiti Kebangsaan Malaysia graduates thousands of ICT students annually, instilling strong fundamental abilities.

Continued education emphasis means professionals here eagerly absorb niche skills in high-demand coding languages, frameworks, methodologies and more.

Malaysia provides access to developers current on everything from legacy systems to bleeding-edge machine learning because the ecosystem prioritizes continual technical skill expansion from academia through industry tenures. This creates a constantly sharpening talent pool.

At Krenovator, we also provide additional training and resources to software engineers so that they can develop industry specific skill set.

Government Commitment

Malaysia's government, including agencies like the Malaysian Investment Development Authority (MIDA) and Malaysia Digital Economy Corporation (MDEC), actively strives to nurture the rapidly expanding outsourcing industry through financial incentive, infrastructure development and training.

Public-private partnerships help fund worker training programs in digital and professional skills required by global outsourcing providers to sharpen their talent pool's capabilities. Educational institutions also receive subsidies for establishing specialized curriculums tailored to industry needs.

Significant infrastructure spending also focuses on expanding connectivity and real estate to facilitate outsourcing operations. This includes development of cybercities, technoparks with fiber broadband connectivity, and other hubs to concentrate resources, talents and support services.

Cost Efficiency

Outsourcing development to Malaysia already promises up to 40% savings over purely onshore team resourcing models for global companies. When factoring lower hidden costs, the ROI can become even more substantial.

Real estate, infrastructure needs, payroll processing fees, benefits programs, recruitment costs and other overheads for tech teams operate at significantly reduced rates compared to North America or Europe.

Lower employee attrition rates additionally mitigate recruiting and onboarding costs over time. Together, these inherent efficiencies unique to Malaysia's maturing outsourcing landscape enable partners to deliver solutions at very reasonable rates - with cost flexibility to accommodate budget parameters through transparent scaling. Controlled cost structures with limited windfalls or surprise margins ultimately benefit international clients.

IP Protection

Stringent cybersecurity regulations enable outsourcing partners operating in Malaysia to effectively safeguard client IP assets and data privacy - crucial for sensitive engagements. The Personal Data Protection Act along with other strict governance controls apply protocols to both digital infrastructure as well as personnel access management.

Outsourcing relationships dealing with heavily regulated sectors like financial services, healthcare, telecommunications and more can leverage Malaysia’s hardened data security environment.

Partners here invest heavily in compliance with ISO standards, high-grade encryption, vigilant monitoring and other globally validated security best practices. Tough enforcement also deters leakage threats. For IP-sensitive clients, Malaysia delivers a nurturing environment.

Cultural Compatibility

A diverse, tolerant culture facilitates easier syncing with teams from Western regions that can prove challenging in more homogeneous Asian delivery centers. Communication tends to flow freely.

Convenient Time Zone Alignment

Malaysia offers just a 7-13 hour time difference with American continents, Australia, and UK - closer than India or Eastern Europe. This timezone proximity facilitates easier collaboration and project oversight versus outsourcing farther afield.

Travel Accessibility

As a global transport and tourism hub with modern amenities, Malaysia makes visiting simple for outsourcing customer teams via convenient flight routes and affordable on-ground costs.


Robust investments in infrastructure like 5G and fiber broadband penetration enable seamless scaling of distributed teams to staff up capacity in lockstep with client workload needs.

Experienced IT Outsourcing Partner

Experienced outsourcing partners bring polished processes for Agile development, rigorous QA testing, security best practices, and more. Leverage ready expertise rather than reinventing the wheel.

Krenovator has over a decade of software development experience and working with software engineers from Southeast Asia such as Malaysia and Indonesia. This allows us to provide best-in-class software development outsourcing services through flexible engagement models such as staff augmentation, integrating our dedicated teams in your organization or outsourcing the whole project to our software development team.


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