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The Handy Guide to Outsourcing Talent in Malaysia for U.S Companies


In an environment of ever-increasing competition, finding and keeping top employees has become a professional headache. Especially tech companies, which have niche skill requirements. One such solution that is rapidly gaining prominence is talent outsourcing, with Malaysia being the choice destination for many U.S. based companies. In the next article, we discuss in detail about the ways how U.S. Companies can outsource talent to Malaysia with digital employees, AI recruitment, and digital headhunting to help reduce the cumbersome traditional recruitment process.


Why Outsource Your Talent to Malaysia

Cost-Effective Recruitment

One of the main reasons why companies in the US go to Malaysia in order to provide them with outsourced talent is that it is cost-effective. Cost-effective hiring in Malaysia is much cheaper compared to the U.S. This cost advantage gives the companies the ability to invest more in other important areas like technology and marketing.

Abundant Skilled Workforce

Notably, Malaysia has a large pool of skilled talent, especially in software development and IT support. In turn, the national education system spits out workers with the latest technical skills, delivering the perfect workforce for corporations to exploit.

Cultural Compatibility

Advantage of this is cultural compatibility. Additionally, Malaysia has an experienced workforce in dealing with international clients, so the move would be easier for U.S. companies.

Eligibility Criteria for Malaysian Talent Acquisition

Let me show you the conditions of your firm need to fulfill in order to start hiring in Malaysian.

Legal and Regulatory compliance

One of them is the labor laws and compliance requirement in Malaysia. Particularly in the area of work permits, tax obligations and employee rights. Working with an expert local is going to help you understand and be able to avoid those complexities.


Hiring a Service Provider v.s. Forming a Subsidiary

When it comes to hiring talent in Malaysia you have two main options: Service Provider: One of the more cost-effective and straight-forward channels to sourcing talent might involve engaging a local service provider.

Local Entity: Setting up a local entity (used in another sentence) can be more costly upfront but would provide you with more control over the hiring process.


AI-powered hiring tool by StrategyBrain

Digital Employees

AI-powered digital workers can perform routine, repetitive tasks for efficient use of your human workforce on more strategic tasks. This can lead to a massive productivity increase and limiting operational costs.

AI Recruitment

Artificial intelligence (AI) powered recruitment platforms are able to sort through thousands of resumes to identify the most qualified applicants. This helps to quicken the recruitment process and ensures that you get the finest talent that you can.

Digital Headhunting

Traditional headhunting is slow and costly. AI-driven digital headhunting can help organisations find and engage top talent at speed, and at scale.


Case Study: ABC CompanyAnonymous

Background: The premier U.S. tech firm, ABC Company, experienced critical talent shortages in software development and tech support. In response to this they chose to subcontract a portion of their operations to Malaysia.

Implementation Process

Market Research and Finding the Right Partner for your Business

ABC Company did exhaustive research into the job market in Malaysia, the cost advantage, and a technology talent pool. They selected Kuala Lumpur-based XYZ Outsourcing Company for software development & IT support.


Legal and Compliance ABC Company was in compliance with the laws and regulations of Malaysia before the signing of the contract. Blaming specific cases, they wrote up elaborate agreements on the extent of the services, quality, security, and intellectual property. RIGHT!

Talent Selection and Training

XYZ Company recruited at ABC Company for good software developers and tech support who fell under the requirements. These employees shared specific training that drifted along the ways of ABC Company workflows, technical standards, and culture.

Project management and the art of listening

Established channels of communication (e.g. weekly meetings, monthly reports, quarterly reviews). Use of project management tools such as JIRA and Trello for monitoring the progress of implementation and task allocation.

Performance assessment and quality improvement

XYZ company is rated by ABC Company on a regular basis for the quality of its code, the timeline of the project, and how quickly they solve the issues. Necessary project success changes were made as needed.


Outcomes and Benefits

Cost Savings: By outsourcing to Malaysia, ABC Company saved more that 30% of its labor cost.

Increased Efficiency: Their unique set of skills helped expedite project schedules, getting products to market earlier.

Focus on Core Activities: This helped ABC Company freed to focus on its core activities of R&D and market expansion, which ultimately contributed to business growth.

Risk Management: By the creation joint venture with XYZ Company also organised the risks related to the resources i.e. they hired on the project needs only which made the teams flexible.



When you outsource your talent to Malaysia, you can enjoy a host of benefits, some of the major ones include cost savings, a pool of skilled resources, more efficient operations etc. U.S. businesses can boost the efficiency of their hiring processes by using virtual employees, AI recruitment and online headhunting. The experience of the ABC Company is an exemplar of how outsourcing can be utilized to yield massive success in the world of global business today.

Is your recruitment strategy ready for the revolution? Start your free StrategyBrain AI recruitment trial today and use it to lead the ongoing push towards the next generation of recruitment automation!


Key points:

Remote tech talent

Discover how your company can tap into a vast pool of remote tech talent by outsourcing to Malaysia. Our expert services ensure you get access to highly skilled IT professionals without the high costs of local hires.

International hiring

Streamline your international hiring process with our specialized HR services. We help U.S. companies effortlessly recruit top talent from Malaysia, ensuring compliance with local labor laws and cultural compatibility.

Hire remote team

Boost your productivity and reduce costs by hiring a remote team from Malaysia. Our comprehensive HR solutions provide you with top-notch digital employees, AI recruitment, and efficient digital headhunting services.

Why Gonex?

Experienced Management Team: each member in the team has 10+ years experiences in Overseas Human Resources Management, composed of seasoned HR professionals.

Powerful connection: Gonex has established over 10 entities worldwide, along with more than 30 stable partners, together offering the most comprehensive overseas human resource services to our clients.

Strict compliance with laws and regulations: At every step in our service process, Gonex strictly adheres to local laws and regulations, ensuring our clients completely avoid any legal disputes.

Competitive price: Gonex’s services are 20% more affordable compared to other companies in the industry, allowing our clients to allocate more resources to their core business.


What Gonex offer?

Employment of Record: This service helps clients legally hire employees in countries or regions where they do not have a legal entity established.

Payroll BPO service: This includes payroll project implementation plan development, project deployment, payroll calculation, payment of funds, administration of statutory and supplementary benefits, customized reporting, and other comprehensive payroll services.

Global Mobility: Based on the company’s internationalization strategy, the company assigns employees to overseas branches/subsidiaries and handles visa and tax matters in accordance with local policies, while assisting in the compliance management of employees throughout their international assignment life cycle.


GONEX One-Stop Solution: Your strategic partner

Compliance and Legal Adherence: GONEX’s Employer of Record (EOR) service ensures legal compliance in employing local staff.

Cross-Border Payroll and Tax Management: Streamlined payroll services simplify cross-border management.

Flexible Employment Solutions: Adaptable employment services cater to changing business needs.

International Talent Dispatch: Support services facilitate the dispatch of key talent to overseas.

Digital HR Management Platform: Technology-driven solutions enhance management efficiency and cultural integration.


Who do we serve?

Gonex served 70+ clients to expand overseas. The incomes of our clients like Mengniu, Kuaishou and CHINT are up to 192.4 billion.


Let Gonex assist you and your company with handling such complex overseas hiring processes! To access more information on corporate international expansion cases, global employment guidelines, worldwide compensation management, regulations for various regional countries, and factory establishment manuals in different nations, you are welcome to visit the GONEX official website at www.letsgonex.com to download these resources or view our company’s business introduction in PDF format (https://letsgonex.com/in.pdf).

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