Growth for Info Industry; Boom for Indian MRO
September 26 2008
The Indian MR Outsourcing (MRO) sector will grow to around $800m in 2012, from current revenues of c.$148m (2007), according to a new report. The study also warns of challenges in acquiring and retaining talent. Meanwhile another study predicts steady growth for the global information industry as a whole despite more general economic gloom.
The outsourcing report, Market Research Outsourcing: The India Growth Story gives an overview for buyers, an in-depth analysis of the sector and profiles of the major industry players. It claims there are more than 110 vendors working in the sector, mostly firms which also offer non-MR services, but says the largest are generally those focusing on research; and it groups providers into a number of sub-categories:
- 'Pure Play MRO Vendors, which are pioneers in this space like Ugam, Annik and Exevo
- Full service research firms in India like Prognosys and Tecnova
- KPOs offering services in verticals other than MRO like Evalueserve and Integreon
- Large BPOs like WNS and HCL, and
- Small BPO firms doing low end work like Cheers Interactive.
The report says acquiring and retaining talent which can provide 'client ready output' is 'a critical success factor' for India as a rising MRO destination. Pranav Dixit, Analyst at ValueNotes, comments: 'The high attrition and rising wage levels along with adverse rupee dollar ratio will impact the profitability of the segment. These factors in turn could reduce the competitiveness of India over other destinations like Philippines and Latin America'.
Indian MRO has already moved from offering more modular servcies to meet standardised client requirements, up the value chain towards integrated services where they become strategic partners. The report suggests that the end-to-end offerings needed for the pure-play MRO providers to survive will lead to more partnerships, allowing them to include work in areas like high-end analytics services. ValueNotes' Neeraja Kandala opines: 'The MRO industry might witness some mergers and acquisitions post - 2009. While pure play vendors will continue to lead the MRO space; competition will intensify with the entry of large BPOs.'
The study is based on extensive interviews with key MRO vendors in India, supplemented with knowledge from secondary sources. More details and an index are at
www.researchandmarkets.com/product/aa1902/market_research_outsourcing_the_india_growth
Forecasting firm Outsell meanwhile says revenues for the
worldwide information industry could reach $466bn by 2011, representing a compound annual growth rate (CAGR) of 4.5%.
2008 Information Industry Market Size, Share & Forecast Report says growth will continue 'despite the challenging economy and a contracting news segment' - with the latter removed, CAGR would be 8.4%, with five sub-segments beating the overall average: Search, Aggregation & Syndication (15.6%), HR Information (10.4%), Market Research, Reports & Services, and IT & Telecom Research, Reports and Services (9.4% when combined), and Credit & Financial Information (8.5%).
Web site:
www.outsellinc.com .
All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.
