Is outsourcing the answer?

Malaysia is projected to have a shortage of about 20,000 IT personnel by 1995. A growing number of Malaysian companies are beginning to look at outsourcing as a viable solution. ANITA DEVASAHAYAM reports…

“EVERYTHING works. Nothing, not even the lights, fail in this building, ” said K B Low, general manager, IBM Malaysia.

And to ensure that all systems go without being interrupted, Big Blue Malaysia is outsourcing to boost its human resource pool and in areas where Low felt it would be difficult to provide meaningful career paths for workers.

He also strongly believes in the following maxim: “Employers must give employees the necessary tools and have respect for the individual,” said Low.

But even this philosophy will not be able to protect IBM against the harsh reality of a manpower shortage. It is an employees’ market in Malaysia and the situation would be felt even more acutely in the next few years.

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KLSE-Tandem Deal Worth US$30M

by Anita Devasahayam

KUALA LUMPUR: The Kuala Lumpur Stock Exchange (KLSE) has purchased Tandem fault tolerant computer systems and software estimated at US$30 million (M$81 million) from Formis Computers.

Sources said that the deal was expected to be concluded in mid-July. The systems, comprising 12 Tandem CPUs and applications, are expected to be used solely to implement scripless trading which is expected to be fully in place in June next year.

From July I this year, however, KLSE will introduce an interim programme, the Broker Depository System (BDS).

The 12 CPUs are likely to be distributed throughout KLSE’s regional centres across the country.

Industry watchers questioned the fact that no public tender was put out for the contract. Whilst the KLSE is a private company, some argued that the amount paid for the systems was “sky high”.

The bourse is keeping mum over the purchase but Formis has confirmed the deal although it declined to reveal any details or to confirm its value.

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Call To Tighten Copyright Act

by Anita Devasahayam

KUALA LUMPUR: University Malaya law professor Molly Cheang has slammed the country’s present copyright laws as inadequate for the protection of software and computer-related products and urged the government to draft a separate legislative Act for this purpose.

Cheang was speaking at a workshop on Computer Programs and Software organised jointly by the Law Library Consultants, Pikom, Institute of Banks Malaysia and Sweet and Maxwell of London.

The current Copyright Act 1987, Cheang said, was outdated because the legislators who drew up the Act did not envisage new technology at that time and the principles governing the Act were not necessarily the same anymore.

Cheang called for a fresh look at the elements involved in software copyright rather than “moulding the products of history” (referring to the present Copyright Act).

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