Post on 20-Nov-2014
transcript
“KPO Sector in India”
Confidential – for internal use only
Prepared byJaspal Singh
Mrinal Agarwal
Contents
Introduction
Indian KPO Industry
Things should be remembered
Information Resources
Examples
Company and Industry Profile
What is KPO (Knowledge Process Outsourcing) ??
46%
26%
26%IT
BPO
KPO
Market Size (2010) CAGR
USD 17 billion
USD 40 billion
USD 57 billion
We are moving up in the value chain in the global outsourcing industry…
• KPO term was coined by Evalueserve’s Chief Operating Officer, Ashish Gupta, in September 2003, in an effort to differentiate between his firm’s services and those of the established BPO firms.
• It is different from a BPO jobs as you need to perform lot of analysis and prepare a project report for the same.
Contents
Introduction
Indian KPO Industry
Things should be remembered
Information Resources
Examples
Company and Industry Profile
4.4
6.3
8.8
11.2
0.26 0.410.72
1.08 1.542.18
3.05
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
The KPO Industry – Market Size
Indian KPO Industry – Total Sales, 2000-11(Figures in $ billion)
CAGR
42.4%
CAGR
36.5%
Indian KPO industry is estimated to reach $11.2 billion in revenue by 2010-11, from just $3.0 billion in 2006-07
Source: India’s Knowledge Process Outsourcing (KPO) Sector: Origin, Current State, and Future Directions” by Alok Aggarwal, Chairman, Evalueserve
9 1221
3042
5775
112
155
204
255
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
The KPO Industry – FTE (Full Time Employees)
Indian KPO Industry – FTE, 2000-11(Figures in ‘000)
CAGR
42.4%
CAGR
31.6%
Indian KPO industry is forecasted to employ 255,000 individuals by 2010-11, from just 75,000 individuals in 2006-07
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
Global KPO Industry – Total Sales, 2006-07(Figures in Percent)
Global KPO Industry – Total Sales, 2010-11(Figures in Percent)
100% = $16.7 billion100% = $4.4 billion
2006-07 2010-11
India would continue to maintain its leadership position in global KPO industry in the next 3-4 years
Rest of the
world
30%
India
70%
Rest of the
world
33%
India
67%
Source: India’s Knowledge Process Outsourcing (KPO) Sector: Origin, Current State, and Future Directions” by Alok Aggarwal, Chairman, Evalueserve
Service Lines
Market Research• Design, Conduct, Analysis of Surveys
• Experience of more than 15,000 surveys so far
• B2B surveys including
- Spending Decision Criteria
• B2C surveys including
- Consumer Preferences and Behaviour
- Decision Criteria
Intellectual Property• Patentability Assessment Search
• Technology Due-Diligence
• Patent Landscape analysis
• Patent drafting and filing
Data Analytics’ Research• Financial Modeling for Fixed Income and
Hybrid Instruments
• Market Risk Analysis
• Credit Risk analysis
• Asset Liability Management
• Usage Pattern Analysis
Investment Research• Valuation of public and privately-held companies
• Creating/ Updating/ Maintaining/ Auditing Valuation Models
Business Research Market Studies & Segment Analysis Commercialisation and Business Plans Company, Industry Profiles & Analysis Product & Value Chain Analysis Updating Databases & Existing Research Newsletters (outsourcing and off shoring,
telecom, financial services)
Data search, integration & management
29%
Biotech & pharma (contract research organisations, lead
optimisation, manufacturing
processes)18%
Engineering and design12%
Remote education & publishing
12%
R&D12%
Animation & simulation services
8%
Others9%
The 2010 Cake
How KPO Market will look like in 2010(Figures in Percent)
100% = $17.0 billion
Source: NASSCOM
KPO – Sub sectors
Description of Sub-segmentRevenue
(in Millions)No. of
professionalsRevenue
(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
Philippines
Chile
India
China
RussiaIreland
Poland
Hungary
The Czech Republic
Israel
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.
Strength Weakness
ThreatOpportunities
Domain Expertise
Small & Medium Enterprises in the US
Lack of human force in the US and UK
Large Talent Pool
Low Labour Costs
Success of BPOs
Quality Standards
Data Security
Rising Wages
Lack of infrastructure
IPR Act, 2005
High attrition rate
Supply gap
Qualified workforce
The KPO Industry - SWOT
SWOT
Major Competitors
0
2
4
6
8
10
12
0 2 4 6 8 10 12
Grail Research
Pipal Research
Adventity Knowledge Services
EvalueServe (EVS)
WNS Knowledge Services
Each KPO is uniquely positioned, offering different kinds of services as per their business model
Employees’ Compensation
Type
s of
Res
earc
h
The Smart Cube
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
• Industry background and trends - Size and growth
- Key trends and developments
- Porter analysis (Five forces models)
• 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
- Brief bios
• Financial and market performance- Revenue, Operating profit and total assets
- Stock chart analysis
- Peer analysis
A company profile includes:
Industry Profile
• 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
• Porter analysis (Five forces models)
• Key players- Top 10 players
- Brief profile
An Industry profile includes:
• HIGHEST PAYING KPO FIRMS
• Gold mans sachs bangaloreDeutsche bank bombayUBS hyderabadSBI capitalJP morgan chase bombayKotak bank bombayICICI bombayEvalueserve delhiGenpactWNSCopal partnersLehman brothers bombayLozenge Consultancy ServicesPatni Computer SystemsHutchison EssarHector & Streak