“knowledge Process Outsourcing”

“KNOWLEDGE PROCESS OUTSOURCING”

Confidential – for internal use only

Prepared by RAJAAK BARAL MBA(gen)(pre)91

Contents

Introduction Indian KPO Industry Things should be remembered Information Resources Examples  Company and Industry Profile

What is KPO (Knowledge Process Outsourcing) ??

KPO is a form of outsourcing in which knowledge related & information related work is carried out by the workers in a different company or subsidiary of the same organization, which may be in same country or in any other country to save cost.

Contents

Introduction Indian KPO Industry Things should be remembered Information Resources Examples  Company and Industry Profile

The KPO Industry – Market Size Indian KPO industry is estimated to reach $11.2 billion in revenue by 2010-11, from just $3.0 billion in 200607 Indian KPO Industry – Total Sales, 2000-11 (Figures in $ billion)

11.2

8.8

GR CA .5% 36

6.3 4.4 3.05

0.26

0.41

2000-01

2001-02

0.72

2002-03

1.08

2003-04

CAGR 1.54 42.4%

2004-05

2.18

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Source: India’s Knowledge Process Outsourcing (KPO) Sector: Origin, Current State, and Future Directions” by Alok Aggarwal, Chairman, Evalueserve

The KPO Industry – FTE (Full Time Employees) Indian KPO industry is forecasted to employ 255,000 individuals by 2010-11, from just 75,000 individuals in 2006-07 Indian KPO Industry – FTE, 2000-11 (Figures in ‘000)

255

204

GR CA .6% 31

155 112 75

9

12

2000-01

2001-02

21

2002-03

30

2003-04

CAGR42 42.4%

2004-05

57

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Source: India’s Knowledge Process Outsourcing (KPO) Sector: Origin, Current State, and Future Directions” by Alok Aggarwal, Chairman, Evalueserve

The KPO Industry – India’s Share India would continue to maintain its leadership position in global KPO industry in the next 3-4 years Global KPO Industry – Total Sales, 2006-07 (Figures in Percent) 100% = $4.4 billion

Global KPO Industry – Total Sales, 2010-11 (Figures in Percent) 100% = $16.7 billion

Rest of the

Rest of the

world

world

30%

33%

India

India

70%

67%

2006-07

2010-11

Source: India’s Knowledge Process Outsourcing (KPO) Sector: Origin, Current State, and Future Directions” by Alok Aggarwal, Chairman, Evalueserve

Service Lines Business Research

Market Research



Market Studies & Segment Analysis

• Design, Conduct, Analysis of Surveys



Commercialisation and Business Plans

• Experience of more than 15,000 surveys so far



Company, Industry Profiles & Analysis



Product & Value Chain Analysis

• B2B surveys including



Updating Databases & Existing Research

- Spending Decision Criteria • B2C surveys including - Consumer Preferences and Behaviour - Decision Criteria

Data Analytics’ Research • Financial Modeling for Fixed Income and Hybrid Instruments • Market Risk Analysis • Credit Risk analysis • Asset Liability Management

Investment Research • Valuation of public and privately-held companies • Creating/ Updating/ Maintaining/ Auditing Valuation Models

The 2010 Cake

How KPO Market will look like in 2010 (Figures in Percent) 100% = $17.0 billion Animation & simulation services 8%

Others 9%

Data search, integration & management 29%

R&D 12%

Remote education & publishing 12%

Engineering and design 12%

Source: NASSCOM

Biotech & pharma (contract research organisations, lead optimisation, manufacturing processes) 18%

KPO – Sub sectors Description of Sub-segment

Revenue (in Millions)

No. of professionals

Revenue (in Millions)

No. of professionals

2006-07

2006-07

2010-11 (Expected)

2010-11 (Expected)

Banking, Securities & Insurance Research

$175

3,500

$600

12,000

Data Management, searching, & analytics

$590

15,000

$2,500

60,000

Business & Consulting Research

$125

3,200

$450

11,000

Human Resources - Research & Analytics

$25

600

$120

2,500

Market Research & Comp. Intelligence

$175

4,500

$460

12,000

Eng. Design & Architecture, CAD

$315

8,000

$950

21,000

Game-design & Animation services

$245

7,000

$900

22,500

Legal, Paralegal & Intellectual Property

$95

2,500

$500

12,000

Scientific & Medical Content Publishing

$165

400

$1000

2,000

Remote Education. Publishing, Tech. Writing

$300

9,000

$1,000

25,000

Contract Res. Orgs, Biotech services

$580

15,000

$2,500

50,000

Translation and Localisation

$75

2,000

$360

9,000

Marketing & Sales Support, Answering RFPs

$20

500

$150

3,000

Remote Logistic services & Procurement

$40

1,100

$160

4,000

Network Optimisation & Analytics

$125

3,100

$450

9,000

TOTAL

$3,050

75,400

$11,200

255,000

Source: India’s Knowledge Process Outsourcing (KPO) Sector: Origin, Current State, and Future Directions” by Alok Aggarwal, Chairman, Evalueserve

The KPO Industry – Hot Destinations

Poland Russia Ireland The Czech Republic Hungary Israel China India Philippine s

Chile

The domestic KPO industry is facing stiff competition from countries like the Philippines, Russia, China, Poland and Hungary as these have qualified KPO professionals, low-cost, domain expertise, location advantage, sales and marketing capabilities and data compliance.

The KPO Industry - SWOT Strength

Weakness

Large Talent Pool

Data Security

Low Labour Costs

Rising Wages

Success of BPOs

Lack of infrastructure

Quality Standards

Opportunities

SWOT

Threat

High attrition rate Small & Medium Enterprises in the US Lack of human force in the US and UK

Supply gap Lack of Qualified workforce

Contents

Introduction Indian KPO Industry Things should be remembered Information Resources Examples  Company and Industry Profile

Things should be remembered • You should have: - Good knowledge of Microsoft Office - Google searching techniques - Report writing skills - Creative and logical mind - Curiosity to learn about new things - Good reading skills - Good knowledge of strategic management - Good knowledge of marketing - Good knowledge of financial ratios - Knowledge to read a typical annual report

Contents

Introduction Indian KPO Industry Things should be remembered Information Resources Examples  Company and Industry Profile

Few examples of information resources for US market

Contents

Introduction Indian KPO Industry Things should be remembered Information Resources Examples  Company and Industry Profile

Company Profile A company profile includes: •

•

•

•

Industry background and trends -

Size and growth

-

Key trends and developments

Business description and overview of operations -

Company background

-

Era analysis (time chart)

-

Product description

Strategy and assessment -

Current strategy

-

Future strategy

-

SWOT

Governance and management -

•

Organization structure

Financial and market performance -

Revenue, Operating profit and total assets

-

Stock chart analysis

Industry Profile An Industry profile includes: •

Industry background -

Total industry size

-

Key sub-sector

-

Size and growth

•

Key trends and developments

•

PESTLE analysis

•

-

Political factors

-

Economic factors

-

Social factors

-

Technological factors

-

Legal factors

-

Environmental factors

Key players -

Top 10 players

-

Brief profile