Our years of domain experience in our core business and our evolutionary business diversification strategy, in all aspects of Customer Services Management,
has paid dividends in terms of revenue and profits for the financial year (FY) ended 30 June 2011. Our fully integrated, end-to-end suite of highly scalable
enterprise class solutions, including Strategic and Operational Consulting, Training and Education products, CRM, Customer Contact Solutions and on-demand
infrastructure and software, enables us to help our clients seamlessly deliver a differentiated customer experience and continues to drive year-over-year
revenue growth, improved operating performance and solid new business wins.
We recognise that service experience is what defines today’s brands; well managed multi-national prospects come to see us more and more as a partner
to lead them through the business evolution required to meet heightened customer expectations in today’s highly competitive globalised market place. We
continue to broaden our capabilities and are excited about our product line-up and emerging suite of online customer centric solutions which are offered
on a unique variable cost model which is attractive to our clients. From strategy to execution, we are focused on delivering an exceptional and scalable,
multi-channel, multi-touch point customer experience that enables our clients to enjoy both industry and financial leadership in their respective markets.
With over 2,800 employees, Scicom is strongly positioned as one of Malaysia’s largest and most experienced providers of customer centric solutions. Our
service offerings remain centered on the principles of customer acquisition, customer retention and customer value. These solution sets are tailored for a
targeted and discerning client base comprising both Multi-national clients as well as established Malaysian conglomerates and corporations across the region.
For FY 2011, we generated RM140.98 million in revenue and RM13.28 million in profit. Revenue increased by 14.9% while net profit increased by 59.3%
respectively for FY 2011 when compared to the preceding year. In FY 2011, 52% of our revenue was derived from outside Malaysia as compared to 68%
in FY 2010. We have attained RM0.47 million in foreign exchange gain during the financial year as opposed to a foreign exchange loss of RM1.1 million booked
in FY 2010. This is mainly attributed to the success of the Group in mitigating a portion of its foreign exchange risk by primarily denominating foreign client
billings in Ringgits Malaysia (RM). Our core business remains the provision of outsourcing solutions which amounted to 93.6% of our revenue in FY 2011.
On 30 May 2011, the Group established a wholly owned subsidiary PT Scicom Indonesia in the Republic of Indonesia in order to explore and develop business
opportunities in the region’s fastest growing economy. Indonesia’s rapid growth and consumer base augurs well for the establishment of a local presence to
leverage opportunities for the Groups’ products and services. Our association with PT Telkom has borne fruit with the first batch of PT Telkom employees
having graduated in our “Scicom-International Certificate in Customer Contact Management” targeting mid management staff and we expect to do more in
this area as well as tap into BPO opportunities, moving forward.
The Ministry of Higher Education, Malaysia vide the Approval Letter dated 23 June 2011 granted approval to the Company’s subsidiary, Scicom International
College Sdn Bhd (SICSB) to establish a Private Higher Education Institution. This Institution will focus on imparting knowledge in the area of Global Service
Management. This is a one of a kind endeavor in Malaysia and Asia.
The evolution of our training services into a series of globally recognised formal educational products is based primarily on our clear understanding in
the area of Customer Services Management. This is the natural next step in leveraging our domain expertise in order to scale in Malaysia and offer these
products regionally, to future proof our training and education business. We expect to be granted approval within the next financial year by the Malaysian
Qualification’s Agency (MQA) which oversees academic programme quality and learning standards in Malaysia.
Scicom continues in its quest to be a leader in the provision of quality educational programs. Enhancing the Nation’s human capital will be the driving force
in determining Malaysia’s growth in the future. Our focus on Customer Service Management Education has been identified in part as a key driver in delivering
and enhancing the nation’s workforce and is in line with the nation’s aspirations to be a knowledge-based first world economy, joining the ranks of highincome
nations as envisaged by the Prime Minister.
Scicom Academy Sdn Bhd (SASB), our training arm, has been complimented by the incorporation of SICSB. The approval by the Ministry of Higher
Education to establish a Private Higher Education Institution and subsequent approval to be obtained from the MQA, will allow SICSB to provide degree level
educational programmes focused in Customer Services Management across a range of industry verticals such as Customer Contact Services, Tourism and
Hospitality, Retail etc. This will be a first for Malaysia and the region and is possible for us because of our deep understanding of customer interaction and
Services Management at every touch point.
Currently, SASB boasts Malaysia’s largest vocational training facility for Customer Services Management and our programmes are accredited by Edexcel of
the UK. In 2011, we trained and “graduated” over 2,700 (up from approx. 2,000 in 2010) service professionals in Services Management and expect to do better
in 2012 both in Malaysia and around the region.
scicom annual report 2011
27
Service industries rely on human capital to drive growth. Services account for 58% of Malaysia’s GDP
and is expected to grow to over 65% over the next few years. This is a phenomena that is seen all
over South Asia. Our strategy and focus in this area not only looks at readying professionals for the
global workplace but to also offer and provide employers with a comprehensive suite of services
that will also extract the most from their employees in an environment and culture that
demands and incentivises performance. We have developed a proprietary suite of business
processes, software tools, and client engagement models that work together to improve
performance for our employees and clients. This allows us to reduce time and cost to hire, increase
productivity, decrease employee turnover, and improve quality of performance. To that end we
have rolled out Scicom- Workforce Recognition, Scicom-Performance Solutions and Scicom- Service
Awards. An integrated suite of services that encompasses strategy, training, analytics
and performance measurement tools for employers in Malaysia.
A testament to the resilience of our internal HR processes and Human Resource Outsourcing
propositions was winning the gold awards for “Employer of Choice”; the “HR Breakthrough Award”
and a silver for “HR Leadership” at the Malaysian HR awards in 2011.
In Malaysia, Scicom was awarded the Best BPO and Contact Centre Service Provider of the Year for
2011 by Frost and Sullivan. This is the second consecutive year Scicom has won the award and the
fourth time, since its inception in 2005. Globally, Scicom’s brand continues to be a powerful force
in the Outsourcing Industry. Scicom was placed in the “Top Global 100 Services Providers” listing
for 2011 by the International Association of Outsourcing Professionals (IAOP) and was placed 76th,
globally for the second year running.
The challenge is to be always one step ahead of the competition. Scicom has always had to be
nimble, innovative and focused; be of strategic relevance to our clients; be able to rollout our
products and services in timely fashion; focus on our people; and be able to implement complex
projects. Our thought leadership in this business in Malaysia is a major component in these
ingredients that contribute to our success. We expect to do better year-on-year, be in more
geographical areas on the basis of confirmed business and we expect to evolve in every way as we
do so.
Our achievements are directly linked to the success of our clients’ businesses and we continue to
focus on the two most important tenets that protect us from risk in a highly challenging business
environment; the creditability and growth potential of our clients and the careful selection of our
people.
I would like to extend my sincere gratitude to our clients and shareholders for their continued
confidence and to over 2,890 of our global employees for their hard work, creativity, passion and
commitment in delivering exceptional service to our clients and customers around the world.
Thank you for your continued support.
