Business

Thursday May 22, 2008

Growth seen in IT outsourcing services

By SHANNEN WONG


SHAH ALAM: Information technology (IT) solutions provider HeiTech Padu Bhd hopes its new tier IV data centre will attract more customers from the banking and financial institutions as well as increase its domestic share of the IT outsourcing services market.

Chief financial officer and senior vice-president of group finance services division Abdul Halim Md Lassim said the company was targeting 20% growth in the local market for IT outsourcing services this year.

Abdul Halim Md Lassim

The International Data Corp in a report in 2007 forecast the demand for data centre services in Malaysia to be worth more than US$150mil annually and grow steadily at 15% compounded annual growth rate until 2011.

“We believe that this new data centre would help us to gain a substantial market share in the banking and financial segment where business data management, such as data loss, system hacking and information leak, is crucial,” he told a media briefing yesterday.

Unlike many other IT solutions providers in Malaysia, HeiTech offered a complete end-to-end business solution, including business continuity and managed network solutions, on top of fundamental managed data centre solution, said Halim.

The new data centre provides full suite technology services that range from managed data centre, web-hosting services, managed network, disaster recovery, managed security and desktop solutions and consultancy services.

Located on a 2.13-acre site, the investment cost for the five-storey data centre in Bukit Jelutong of RM40mil was funded by internal funds and bank borrowings.

Halim said the group, which currently has a presence in Indonesia and Sri Lanka, planned to expand its export markets to the Middle East, North Africa as well as the Asia-Pacific region.

Currently, HeiTech has about 80 customers worldwide, of which 40% are from the government sector.

However, the public sector was its main source of income, contributing 70% to revenue, Halim noted.

The HeiTech group registered a net profit of RM15.3mil on revenue of RM424mil for the financial year ended Dec 31, 2007, while its net cash stood at RM50mil with net gearing at 40%.

 
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