“KNOWLEDGE PROCESS OUTSOURCING”
Confidential – for internal use only
Prepared byRAJAAK BARALMBA(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
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
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
Business Research Market Studies & Segment Analysis Commercialisation and Business Plans Company, Industry Profiles & Analysis Product & Value Chain Analysis Updating Databases & Existing Research
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
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
High attrition rate
Supply gap
Lack of Qualified workforce
The KPO Industry - SWOT
SWOT
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
• 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
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
• Key players- Top 10 players
- Brief profile
An Industry profile includes: