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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 200607Indian KPO Industry Total Sales, 2000-11 (Figures in $ billion)8.8 11.2GR CA .5% 36

6.3 4.4 3.05 1.08CAGR 1.54 42.4%

2.18

0.26 2000-01

0.41 2001-02

0.72

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

Source: Indias 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 2006-07Indian KPO Industry FTE, 2000-11 (Figures in 000)204 155 112 75 30CAGR 42 42.4%

255GR CA .6% 31

57

9

12

21

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

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

The KPO Industry Indias Share India would continue to maintain its leadership position in global KPO industry in the next 3-4 yearsGlobal KPO Industry Total Sales, 2006-07 (Figures in Percent)100% = $4.4 billionRest of the world 30%

Global KPO Industry Total Sales, 2010-11 (Figures in Percent)100% = $16.7 billionRest of the world 33%

Ind ia 70 %

India 67%

2006-07

2010-11

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

Service LinesBusiness Research

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

Market Studies & Segment Analysis Commercialisation and Business Plans Company, Industry Profiles & Analysis Product & Value Chain Analysis Updating Databases & Existing Research

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 billionAnimation & simulation services 8% R&D 12% Others 9% Data search, integration & management 29%

Remote education & publishing 12%

Engineering and design 12%

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

Source: NASSCOM

KPO Sub sectorsDescription of Sub-segment Revenue (in Millions) 2006-07 Banking, Securities & Insurance Research Data Management, searching, & analytics Business & Consulting Research Human Resources - Research & Analytics Market Research & Comp. Intelligence Eng. Design & Architecture, CAD Game-design & Animation services Legal, Paralegal & Intellectual Property Scientific & Medical Content Publishing Remote Education. Publishing, Tech. Writing Contract Res. Orgs, Biotech services Translation and Localisation Marketing & Sales Support, Answering RFPs Remote Logistic services & Procurement Network Optimisation & Analytics TOTAL $175 $590 $125 $25 $175 $315 $245 $95 $165 $300 $580 $75 $20 $40 $125 $3,050 3,500 15,000 3,200 600 4,500 8,000 7,000 2,500 400 9,000 15,000 2,000 500 1,100 3,100 75,400 No. of professionals 2006-07 Revenue (in Millions) 2010-11 (Expected) $600 $2,500 $450 $120 $460 $950 $900 $500 $1000 $1,000 $2,500 $360 $150 $160 $450 $11,200 No. of professionals 2010-11 (Expected) 12,000 60,000 11,000 2,500 12,000 21,000 22,500 12,000 2,000 25,000 50,000 9,000 3,000 4,000 9,000 255,000

Source: Indias 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 - SWOTStrength Weakness

Large Talent Pool Low Labour Costs Success of BPOs Quality Standards

Data Security Rising Wages Lack of infrastructure

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 trendsSize and growth Key trends and developments Company background Era analysis (time chart) Product description Current strategy Future strategy SWOT Organization structure Revenue, Operating profit and total assets Stock chart analysis

Business description and overview of operations-

Strategy and assessment-

Governance and management-

Financial and market performance

Industry Profile An Industry profile includes: Industry backgroundTotal industry size Key sub-sector Size and growth

Key trends and developments PESTLE analysisPolitical factors Economic factors Social factors Technological factors Legal factors Environmental factors

Key playersTop 10 players Brief profile