DESPITE the numerous success stories of companies in the information and communication technology (ICT) industry in Malaysia, the business community is still skeptical about the quality of products and services offered by the local ICT players.

Poor confidence in the quality of Malaysian-made ICT products and services have been one of the key chalenges faced by the industry players, said Puvanesan Subenthiran, CEO of Privasia Sdn Bhd, a business process outsourcing services provider.

"Maybe they should bring back the 1980's 'Belilah Barangan Buatan Malaysia' (Buy Malaysian Products) campaign," he said.

Puvanesan said government-linked agencies such as the Malaysian Development Corp Sdn Bhd (MDeC) have been taking measures to promote the Malaysian ICT companies, but the focus has been to promote it outside Malaysia.

Another organisation which could encourage quality service providers is Bursa Malaysia, he said.

"Bursa can do something about it to result in better quality companies in Mesdaq listing," he said.

According to him, ICT companies had found it hard to grow due lack of skilled professionals.

"In the past, companies hire professionals from India, But now we are getting many quality (local) graduates who are as good as the foreign professionals that our company have hired some of them," he said.

He said local ICTcompanies are now capable of providing quality services and products to cater to the Malaysia market better.

"If you can get more local companies to buy local products, this will result in a more vibrant industry here. A lot more investment will go into the R&D, and you get better product and services coming out of Malaysia," he added.

Currently, Privasia is in the process of merging with Mesdaq-listed Airocom Technology Bhd, which has proposed to acquire the former for RM40.7 million via a share issuance. This will see the vendors of Privasia emerging as the major shareholders of Airocom.

"This is a very competitive market, and instead of kliing each other, companies can become stronger through M&A. We can also leverage on the resources of the combined company to expand overseas," he said.

Among others, Privasia provides e-bidding solutions to DRB-Hicom Bhd group to supply stationery and to AirAsia for the purchase of airline tags.

The company also provides IT consultancy to University Malaysia Sabah and Spend Management System for Indah Water.

Last year, Privasia managed to chalk up a revenue of RM20 million and a net profit of RM4.8 million and Puvanesan expects a 10% growth in both top and bottom lines this year.

After the merger, the company is also planning to make inroads into Cambodia, its first foray outside Malaysia. "Vietnam by now, has become too expensive. I guess we've miss the boat," he said.