Beruflich Dokumente
Kultur Dokumente
- An Analyst’s Viewpoint
Arun Jethmalani
Chief Executive Officer
Business models
Implications of
business models
• Estimates about the size of the global KPO industry by 2010 range from $15- $18 billion.
• The sector is likely to grow faster than BPO in the next 3-4 years.
• By 2010, the KPO sector is expected to employ 250,000 professionals, while employment in
the BPO sector will go up to 820,000.
Engg. Legal
Design
Time
Analytics
Animation
Publishing
Research
F&A
Medical
transcription
Call
Centers
(Nipuna), etc.
Auto/Engg. design: Software firms (Infosys), automobile
cos. (Mahindra), auto ancillaries (Hero), BPOs (Wipro),
~$8 - $25 specialised players (Neilsoft), etc.
Publishing: Publishers (MacMillan), specialist KPOs
(Techbooks), designers, journalists, etc.
Research & Analytics: Financial services (JP Morgan),
BPOs (WNS), IT companies (Wipro), specialized MR firms
(Ugam, Marketics), high-end analytics (Inductis, MarketRx),
traditional MR companies (AC Nielsen)
BPO KPO Taxation/Accounting: Big 4 (E&Y, Deloitte), local
accounting firms (GKM), software firms (Mphasis), U.S.
Facilitators (Xpitax)
BPO KPO
BPO KPO
Business models
Implications of
business models
Business models
Implications of
business models
Diversified Niche
Scale Very important – “I have to be larger Only within the niche – “I have to be
than the next guy” the best/biggest in my selected area”
Cash Needs Very high Moderate
Marketing/ Diversified customer base: less Well defined customer: Better targeting
Customers targeted => higher marketing costs, => could lower marketing costs, and
but can leverage cross-selling opps. develop brand within segment
Price Usually lower prices, but premium Move to premium pricing – by
positioning pricing for managing composite demonstrating quality, knowledge and
service delivery process innovation specific to domain
People Knowledge & skills + strong Professionals with deep domain
resources management to build and manage knowledge and high end skills
scale
Market cycles Better able to handle downside in Greater risk => all eggs in one basket
any single business
Attracting Large brand more attractive, can Not so strong brands, but focus will
Talent afford recreational infrastructure; attract certain types of people; Can
some issues with a widely divergent achieve closer bonding, sense of
employee base and less bonding belonging
Integreon
MarketRx
Office Tiger
Inductis
Pangea3
It’s not just Scale, but Scale & Specialization that will be the KEY
to a successful diversified KPO ValueNotes Database Pvt. Ltd.
…Or a Niche KPO
Arun Jethmalani
arun@valuenotes.com