Walter Rhodes Group may sound like a foreign company but it was founded in Malaysia by entrepreneur Darren Ng, who is the group managing director. Ng says the name was chosen to give the company an international appeal.
Walter Rhodes is fast becoming a regional player in the shared services and outsourcing (SSO) space. The company, which was established in 2006, offers services that ranges from market study  and monitoring to customer and technical support. Its SSO network is undertaken by its subsidiary

Walter Rhodes BPO Solutions Sdn Bhd — a joint-venture company with KPerak INC Corp.
KPerak is an ICT agency appointed by the Perak government to oversee and manage technology developments in the state. The JV company, which is based at MSC Malaysia Cybercentre @ Meru Raya, Perak, manages the expansion strategies of the SSO network.
Walter Rhodes has already made inroads into China and Vietnam. It plans to set up 10 SSO hubs in Asia in three years. Below is a Q&A with Ng.

netv@lue2.0: On what basis are you claiming to be Malaysia’s leading outsourcing ser­vice provider?
Ng: While most companies claim that they are the leading outsourcing providers, they are often related to information technology... Walter Rhodes is providing operational outsourcing using technology. Hence, we are a partner to these outsourcing partners. Our platform provides the ingredients to steer ambitious companies through rough seas. We’ve been courted by leading technology companies which want us to be associated with them to provide easier access to the partner companies that are keen to venture abroad.

Why set up in Perak and not in Cyberjaya? Who are your customers? What is your strategy?
I’ve always told others that one of the reasons for establishing a base in Perak is that I come from Perak. I was born there and spent the first 17 years of my life in the state. Indeed, it was my wish to see Perak grow that prompted me to initiate discussions with the state. KPerak also played a significant role in making the venture happen as its vision is to make Perak a shared services and outsourcing hub of Malaysia, while Walter Rhodes will provide the framework and network to make it happen.

Our customers in Perak include AIM-listed RHM Ltd and Mesdaq Market-listed Privasia Bhd. Both companies are in the technology space and both see Perak as the gateway to overseas markets. Hence, they have established their R&D unit in the state to develop new products and distribute them to China via the SSO network and later to Vietnam when the third hub is ready [currently it has one hub each in Perak and China]. Our niche has always been facilitating cross-border interaction and expansion for technology-related small and medium enterprise companies, and we’ll continue to stay that way.

Who provided the start-up capital and are you talking to venture capitalists?
The initial capital came from the shareholders of Walter Rhodes and a small portion from KPerak. Yes, we are currently talking to a conglomerate, which may subscribe for shares in Walter Rhodes via a strategic acquisition exercise. Nevertheless, Walter Rhodes shall continue to retain majority control of the group.

What type of work will your China operations be handling? Who are some of the customers and why in Suzhou?
We provide a full set of outsourcing services from market feasibility studies, company incorporation to implementation and customer support. All the vertical services such as human resource, marketing and accounting can be outsourced to us. Some of our customers include those related to mobile technology, animation, software R&D and advertising technology.

We are currently in talks with both CSF Advisers, the largest data centre company in Southeast Asia, and SAP International, which is the world’s leading provider of business software, to be part of the SSO network. Suzhou happens to be one of the leading cities in China... it has about 144 Fortune 500 companies operating in the city. Moreover, the cost of living is lower than in other major cities and it boasts a sizeable population of graduates with strong background in IT.

What are your mid to long-term goals?
In the mid term, I would like to see Perak grow as a SSO hub of choice not only for Malaysians but also for neighbouring countries. In the long term, our achievement will be measured by our plan to establish about 10 hubs in the next three years to facilitate export of locally made technologies to foreign markets via the SSO platform.

How important is it for the government and large companies to start outsourcing some of their functions?
Amidst the economic slowdown, large companies are starting to tighten their belts. SAP says many large industries have embarked on a hosted model instead of the traditional one, where the software is an outright purchase and supported internally. Hence, we will be seeing a lot of changes in the industry as it moves from ownership of software to outsourcing it. The government’s role is also important. By outsourcing its function, it will improve the efficiency of delivery... which will translate to better public service.

This article appeared in netv@lue2.0, the technology section of The Edge Malaysia, Issue 779 Nov 2 - 8 2009