From BPO to GBS: How Governments Can Leverage Technology-Driven Service Providers to Build Local Champions

In the world of business and governance, the evolution from Business Process Outsourcing (BPO) to Global Business Services (GBS) is akin to the transformation of a single musician into a full orchestra. While BPO focused on individual tasks—like a soloist playing a single instrument—GBS brings together multiple functions in harmony, creating a symphony that drives efficiency, innovation, and strategic value. Just as a conductor carefully selects local talent to bring out the best in their orchestra, governments must recognize the importance of nurturing local tech champions. By cultivating these local enablers, they can orchestrate a transformation that resonates far beyond cost savings, driving sustainable growth and positioning the nation on the global stage.

The Evolution from BPO to GBS

BPO was born out of the need for companies to reduce operational costs by outsourcing non-core functions to external providers. For decades, cost efficiency was the primary driver behind outsourcing decisions, leading to the rapid growth of the BPO industry across the globe. According to Statista, the global BPO market was valued at approximately $245.9 billion in 2021 and is projected to reach $343.2 billion by 2025. However, as markets became more competitive and customer expectations more sophisticated, the limitations of a purely cost-driven outsourcing model became apparent.

Enter Global Business Services (GBS). Unlike traditional BPO, which focuses on individual processes, GBS is a holistic approach that integrates multiple business functions—ranging from finance and HR to IT and customer service—under a unified governance model. The key differentiator of GBS is its emphasis on delivering end-to-end solutions that not only drive cost efficiencies but also enhance service quality, agility, and innovation.

Today, organizations are no longer outsourcing merely to cut costs. They are increasingly seeking partnerships with tech-enabled service providers who can leverage digital tools such as artificial intelligence, automation, and data analytics to create value beyond cost savings. A survey by Deloitte found that 58% of companies are now outsourcing to access new technologies, making it the second most important reason for outsourcing, behind cost reduction.

The Rise of Technology-Driven Service Providers

The driving force behind the shift from BPO to GBS is the growing demand for technology-enabled services. As businesses navigate the complexities of digital transformation, they are looking for service providers who can do more with less, using technology to optimize processes, enhance customer experiences, and enable faster decision-making.

Tech-enabled service providers bring to the table a suite of advanced technologies that are transforming how businesses operate. Automation and artificial intelligence are reducing the need for manual intervention in routine tasks, allowing companies to reallocate resources to more strategic initiatives. For instance, Accenture reported that implementing AI-driven automation in their finance processes reduced processing time by 40%, while enhancing accuracy and compliance.

Data analytics and machine learning are also providing deep insights into customer behavior and market trends, enabling businesses to make informed decisions and stay ahead of the competition. An example of this is IBM’s Watson, which has been deployed across multiple industries to analyse vast amounts of data, offering predictive insights that have driven better business outcomes.

This shift is not just about technology for the sake of innovation; it’s about driving tangible business outcomes. Companies are leveraging technology to achieve greater efficiency, agility, and scalability, all while maintaining or even enhancing service quality. As a result, the traditional lines between outsourcing and insourcing are blurring, with GBS emerging as a model that offers the best of both worlds—a seamless integration of technology and services that drives business growth.

Lessons for Governments: The Need for Local Tech Enablers

While the private sector has embraced the GBS model and the benefits of technology-driven services, governments have been slower to adopt these changes. The sheer scale and complexity of government operations make transformation a daunting task. However, the lessons from the evolution of outsourcing are clear: governments too must look beyond cost savings and focus on harnessing technology to drive better outcomes.

One of the biggest challenges for governments is the speed at which they can implement change. Large, bureaucratic structures often mean that transformation initiatives take years to materialize, and even then, they may fall short of their intended goals. To overcome this, governments must look to local tech service providers who can act as enablers of transformation. These providers have the agility, expertise, and local knowledge to drive change more effectively than large, multinational corporations.

Take, for example, Estonia—a small nation that has transformed its government operations through strategic partnerships with local tech firms. Estonia’s digital ID system and e-Government services have become models of efficiency, drastically reducing bureaucracy and enabling 99% of public services to be accessible online. This transformation was achieved by leveraging the expertise of local tech companies like Nortal, which have since become global players in the digital government space.

Building Local Champions: The Ripple Effect on the Economy

Engaging with local tech enablers offers a myriad of benefits that extend beyond the immediate goals of government transformation. By fostering local champions, governments can significantly enhance the nation’s economic resilience and global competitiveness. One of the key advantages of nurturing a strong local tech ecosystem is its potential to attract foreign direct investment (FDI). When foreign companies see a robust, innovative local tech industry, they are more likely to invest, bringing not only capital but also technology transfer and new opportunities for collaboration.

Malaysia, for example, has successfully attracted major multinational tech companies like Microsoft, which announced a $1 billion investment to establish its first data center region in the country. This investment is not just a boost for the local economy, but also an opportunity for local tech firms to collaborate with Microsoft, further enhancing their capabilities.

Moreover, the rise of local champions can stimulate the export of services, positioning the nation as a global hub for technology-driven solutions. As these local providers gain expertise and scale, they can begin offering their services beyond domestic borders, tapping into international markets. This not only drives economic growth but also enhances the country’s reputation as a leader in technology and innovation. According to the World Trade Organization (WTO), global exports of ICT services reached $529 billion in 2020, highlighting the vast potential for nations to capitalize on this growing market.

To further amplify the benefits of FDI, governments should encourage foreign companies to collaborate with emerging local tech firms as part of their transformation efforts. By outsourcing portions of their work and processes to these promising local companies, foreign investors can help build the competitive capabilities of the domestic tech industry on the global stage. This collaboration not only accelerates the development of local expertise but also ensures that the benefits of foreign investment are shared more broadly, fostering a more inclusive and sustainable growth model. For instance, in India, global tech giants like Google and Amazon have partnered with local startups, driving innovation and creating new export opportunities for the country’s burgeoning tech sector.

Conclusion: A Call to Action

As in a well-conducted orchestra, where each instrument contributes to a harmonious whole, governments must ensure that their approach to transformation includes all the right players—especially local tech champions. By encouraging foreign investors to collaborate with emerging local companies, governments can create a powerful ensemble that not only competes globally but also enriches the national economy. Just as a symphony relies on both seasoned professionals and fresh talent, the future of government services and the broader economy depends on a blend of established expertise and local innovation. In this grand performance of progress, local champions are the instruments that will ensure the nation’s melody is both strong and enduring on the world stage. By embracing this holistic approach, governments can ensure that they not only achieve their strategic goals but also contribute to a vibrant, competitive, and self-sustaining local technology industry.

Waqas B. Moghal is the Director of Business Transformation & Advisory at Daythree. He leads the Group’s advisory and transformation initiatives, working closely with organisations to enhance service delivery and operational performance through strategic business process solutions.

Waqas brings over two decades of global experience across Asia Pacific, Europe, and the United States. A distinguished customer experience consultant and certified COPC expert, he combines deep industry knowledge with a strong academic foundation in Software Engineering and MBA studies. Throughout his career, he has guided leading organisations through complex transformation programmes, delivering measurable improvements in operational efficiency and customer engagement.

At Daythree, Waqas focuses on helping organisations reimagine service delivery by integrating strategy, technology, and operational excellence. His work supports clients in strengthening business performance, improving customer interactions, and achieving sustainable growth in an increasingly digital landscape.

Justin Leong is the Director of Corporate Affairs & Strategic Growth at Daythree. He leads the Group’s corporate affairs and growth strategy, shaping the organisation’s positioning as a digital-first business process services provider while strengthening partnerships and market presence.

Justin brings over eight years of cross-sector experience spanning corporate finance, capital markets, business strategy, and technology-driven industries. With hands-on involvement in mergers and acquisitions as well as initial public offerings, he combines financial discipline with strategic insight and operational perspective to guide structured planning, stakeholder alignment, and data-driven decision making.

At Daythree, Justin focuses on advancing the Group’s strategic growth initiatives, including the development of its technology ecosystem. He works closely with global technology providers, cloud platforms, and enterprise solution partners to expand the company’s digital capabilities and enhance its go-to-market offerings. His work supports the organisation’s regional expansion across Asia-Pacific while reinforcing its role as a trusted partner for digital transformation.

Chiew is the Chief Digital Officer at Daythree. He leads the organization’s digital strategy by integrating cutting-edge technology into business processes, delivering insight-driven and innovative solutions.

With over 20 years of experience in strategic management and digital transformation, Chiew has a rich professional background. He began his career pioneering digital imagery and 3D animation for Malaysian TV game shows and marketing campaigns for large MNCs and GLCs. He has extensive expertise in CX Lifecycle Management, having set up a CX delivery center with over 900 FTEs for a regional telecom organization and achieving targeted CSAT scores for 23 consecutive months.

At Daythree, Chiew established the Travel, Leisure, and Hospitality CX delivery center. He subsequently lead the Digital Transformation team and founded Daythree’s RPA Centre of Excellence — setting up one of Malaysia’s largest RPA bot farms. Recognized as “Best Digital Transformation Leader” from 2019 to 2021, Chiew’s forward-looking vision and dedication to process automation and blockchain promise a bright future for Daythree.

Raymond is the visionary Founder & CEO of Daythree, specializing in strategic management and digital transformation. With a Master of Business Administration in Strategy & Planning and Chartered Accountant credentials, Raymond’s leadership has earned him accolades such as ‘Best Thought Leader’ in 2017 and 2019, and the Technopreneur Excellence Award in 2023.

As President of the Contact Centre Association of Malaysia (2019-2023), he spearheaded constitutional reforms and strengthened governance, enhancing the association’s prominence and fostering robust industry relationships. He also led the publication of Malaysia’s Global Business Services (GBS) Strategy Report for 2022-2027, reinforcing Daythree’s thought leadership.

Raymond’s strategic direction culminated in taking the company public in 2023, marking a significant milestone. Raymond envisions a future where Daythree continues to drive innovation and deliver exceptional value through cutting-edge process automation solutions, solidifying its position as a leader in the global business services landscape.

Saarva is the Head of Information Technology at Daythree. Since joining, he has excelled in the IT and Infrastructure sector, leveraging his extensive experience with various product principals and vendors to enhance Daythree’s operations.

He skillfully balances operational efficiency, cost optimization, and vendor selection while planning and executing large-scale projects with seamless precision. His key role involves maintaining frameworks that ensure the highest standards of availability and resiliency, consistently surpassing SLAs and SLGs with clients.

Saarva enforces Information Security policies across all infrastructure setups, aligning with ISO and PCI-DSS frameworks. A keen follower of technological advancements, he implements appropriate tech frameworks for each Line of Business. His efforts have secured certifications like ISO 9001, ISO 27001, PCI-DSS and SOC 2 (Type 2), elevating Daythree’s industry stature. With a vision to position Daythree as a leader in global business services, he actively pursues this goal with unwavering determination.

Calvin Chan, Director of Sales & Growth Initiatives, brings over 20 years of expertise in Sales & Account Management, with a focus on accelerating business growth in the APAC outsourcing sector. Calvin has orchestrated successful market entries into key APAC markets, including Japan, China, Thailand, and the Philippines. His strategic prowess in crafting compelling value propositions expanded market presence and secured major global contracts, solidifying his company’s leadership in the region.

Under Calvin’s leadership, his APAC operations experienced exponential growth, expanding from 600+ to over 3,000 employees within five (5) years. His effective go-to-market strategies drove substantial increases in revenue and EBITDA, demonstrating his ability to scale operations and deliver operational excellence.

At Daythree, Calvin continues to leverage his extensive client-facing experience to drive impactful initiatives and forge strategic partnerships. He envisions Daythree as a pioneering force in the APAC market, committed to sustained growth through innovation and strategic execution.

As Senior Director of Strategy & Partnerships, Sivanesh brings over a decade of diverse expertise to propel the Group’s strategic initiatives. His career began at KPMG Malaysia, excelling across sectors like Telecommunications, Technology and Financial Services. Transitioning to a role in an investment holding company, he led growth initiatives in technical education and services, refining sustainable business development skills.

Sivanesh is a Chartered Accountants (ACCA) and holds a qualification in Mergers & Acquisitions from Imperial College Business School, London. Beyond corporate roles, he mentors at INTI University and engages with the ACCA community, fostering innovation and leadership. Sivanesh also completed the Axiata’s Young CEO Development Program and represented Malaysia at the Global Young Leaders Conference in New York & Washington DC.

At Daythree, he drives strategic vision and corporate development, embodying expertise, global perspective, and a passion for innovation. Sivanesh is committed to advancing Daythree’s strategic goals with dedication to growth, innovation, and global impact.

Callie is the Financial Controller at Daythree. She oversees the accounting and financial matters of the Group, leveraging her extensive 15 years of experience in the accounting field. Callie holds a Bachelor of Accountancy (Honours) and is a member of both ACCA and MIA.

Callie’s career began at KPMG Malaysia, where she conducted audits for various private and public companies. She subsequently joined as an Internal Auditor for company specializing in water filtration and sanitization equipment, ensuring compliance with financial, operational, and regulatory objectives., She transitioned to a multinational finance shared service hub as a Management Accountant, and subsequently served as Head of Group Finance and Accounting at an investment and capital advisory firm.

At Daythree, Callie has streamlined financial operations and improved reporting accuracy, which has been instrumental in bolstering the Group’s growth and stability. She is committed to fostering financial innovation and excellence, aiming to propel Daythree forward as a leader in digital transformation.

Charan is the Chief Operations Officer at Daythree, where she oversees strategic client partnerships and operational excellence. With over 20 years of experience in the CX industry, she employs an insights-based, outcome-driven approach to enhance client success.

Charan began her career in sales in 1999 and transitioned to the CX industry in 2002. She has held various roles, from front desk executive to business analyst, eventually taking on leadership positions that involved managing large teams and complex CX operations in the financial services and telecommunications sectors. Her notable contributions include significant achievements in operational efficiency and team performance.

At Daythree, Charan has successfully expanded her team and strengthened operational capabilities, earning recognition for the company’s growth and innovation. She is a COPC Certified Customer Experience Performance Leader and serves as an active Executive Committee member of the Contact Centre Association of Malaysia, where she shares her expertise with industry peers. Charan’s visionary leadership continues to drive Daythree’s strategic initiatives, positioning the company for sustainable future growth and enhanced market competitiveness.