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MARKET RESEARCH
MARKET RESEARCH DEC 2013Questions and Focus Areas
Think Tanks, International Research Agencies
Social Science Academics (Departments) in American Universities utilizing on ground survey methods in India/Asia/Developing Countries
U.S. Companies entering/struggling/low-margin operating in India with market research needs
1) Who are we looking for? How do we identify the right candidates?
2) Who has done previous in field research studies in Developing Countries/India?
3) How were the data collection methods, in field research, and/or outsourced techniques conducted for those studies?
4) What was the use of the data / purpose of the study? Would we be able to assist?
5) What is the budget for these types of studies?
6) Once identified, what should be the initial contact strategy?
MARKET RESEARCH DEC 2013Recommendations
Type of Institutions Recommendation
Think Tanks Value-added short term projects for brand recognition
University Research Facilities Value-added short term projects for brand recognition
US Companies – Remote Presence
A possibility however it is more a focus for work in India
US Companies – Physical Presence
Not the right target market
US Companies – Emerging Industries seeking low cost markets
With proper identification there may be a moderately strong market potential
US THINK TANKSWITH AN
INDIAN FOCUS
US THINK TANKS By Locations, Expenditures, & Assets
WASHIN
GTON D.C.
NEW YORK
MARYLAND
PENNSYLVANIA
MICHIGAN
OHIO
WASHIN
GTON
INDIANA
TENNESSEE
KANSAS
HAWAII
IOW
A
ARKANSAS
NEW M
EXICO
WEST VIRGIN
IAIDAHO
ALASKA
0
50
100
150
200
250
300
350
400
450
# of Think Tanks by State/District
We want to look at funding from donors that contribute to projects and programs that would allow for social science research in India/Asia. As project budgets are rarely available we will need to look into proxy criteria for measurement
The best figure to look at are net assets, a combination of funding that donors have formally committed plus endowment, minus current liabilities (mortgages, bank debts, or pension obligations)
http://onthinktanks.org/2013/07/17/how-think-tanks-work-analyzing-budgets/
Brookings
CEIP
GMFUSRAND
Heritage AEI
Urban Insti
tuteNBER
Wils
on CenterCSIS
Peterson
CBPPW
RICATO ICG
Pew CAP
CGDev
New America
Atlantic C
ouncil$m
$50m
$100m
$150m
$200m
$250m
$300m
Expenditure by Top 20Exp 2011 Exp 2012
Brookings
CEIP
GMFUSRAND
Heritage AEI
Urban Insti
tuteNBER
Wils
on CenterCSIS
Peterson
CBPPW
RICATO ICG
Pew CAP
CGDev
New America
Atlantic C
ouncil$m
$50m$100m$150m$200m$250m$300m$350m$400m$450m
Assets by Top 20 Think TanksAssets 2011 Assets 2012
THINK TANKS Top Ranked
http://repository.upenn.edu/cgi/viewcontent.cgi?article=1006&context=think_tanks
1. Brookings Institution 2. Carnegie Endowment for International Peace3. Council on Foreign Relations (CFR)4. Center for Strategic and International Studies (CSIS)
5. RAND Corporation6. Woodrow Wilson International Center for Scholars7. American Enterprise Institute for Public Policy Research (AEI)
8. Pew Research Center9. Heritage Foundation10. Cato Institute11. Center for American Progress (CAP)12. Peterson Institute for International Economics13. National Bureau of Economic Research (NBER)14. Center for a New American Security (CNAS)15. World Resources Institute (WRI)
1. Brookings Institution
3. Center for Global Development (CGD)
4. Center for International Development (CID)5. Woodrow Wilson International Center for Scholars7. Center for Strategic and International Studies (CSIS)
9. Council on Foreign Relations (CFR)11. International Food Policy Research Institute (IFPRI)16. Carnegie Endowment for International Peace18. Cato Institute Center for Global Liberty and Prosperity20. RAND Corporation25. Atlas Economic Research Foundation 29. Hudson Institute Center for Global Prosperity38. American Enterprise Institute (AEI)77. James A. Baker III Institute for Public Policy
Top TT Ranked in the US
Top 80 Ranked for International Development
Globally (in the US)
8 of the Top Ranked Think Tanks in the US
are also on the Top Globally Ranked
International Development Ranking.
Focus shall be here first
THINK TANKS Preliminary Findings
In House Survey Work and/or
Contracted Work30%
No Survey Work Done on the
Ground70%
Survey Work Done by Top 10 Think Tanks in the United States
TOP 10 FROM BOTH CATEOGORIES
1. Brookings Institution 2. Carnegie Endowment for International Peace3. Council on Foreign Relations (CFR)4. Center for Strategic and International Studies (CSIS)
5. RAND Corporation6. Woodrow Wilson International Center for Scholars7. American Enterprise Institute for Public Policy Research (AEI)
8. Pew Research Center9. Heritage Foundation10. Cato Institute
THINK TANKS Preliminary Findings
Brookings Institution
Pew Research Center
Woodrow Wilson International Center for Scholars
face-to-face interviews conducted under the direction of Princeton Survey Research Associates International
Namesh Killemsetty, surveyor of slums: National Sample Survey Organisation (NSSO)
between 2002 and 2003 1990 ASAG AMC Slum Survey 2001 Census of India Slum Survey 2001 AMC-MHT Slum Survey for 1668 slums
and chawls 2007 SEWA (self Employed Womens
Association) Slum Survey for 75 slums and chawls
2012 SEWA Slum Survey for 120 slums and chawls
2012 SAATH Slum Survey for 98 slums and chawls.
Oxfam India Surveys
Overwhelming use of surveys performed by government and non-government organizations
Surveys were conducted by Social and Rural Research Institute of IMRB, New Delhi
US THINK TANKS Recommendations
CONS:• Not the largest market & sparsely utilizes in-field researchers• Not sustainable repeat customers• Projects will be small scale and limited scope
PROS:• Revenue is still revenue• Name recognition within the Academic community in the US and Abroad• Soliciting our services and pricing to the top 100 as a supplementary marketing
campaign focused on researchers would be advantageous to spread word in the US.
• To be published in US Think Tank reports can be value validation marketing
INTIAL CONTACTS:• Top 200 in US (particularly in the DC area)• List is given in the accompanying spreadsheet
US FIELD RESEARCH UNIVERSITIES
TOP 200 RESEARCH UNIVERSITIES DEC 2013
Source: The Center for Measuring University Performance
50000
150000
250000
350000
450000
550000
650000
750000
850000
950000
1050000
1150000
12500000
10
20
30
40
50
60
Top 200 Institutions in Total Research Expen-ditures
Total Research Expenditure (X 1000)
# of
Uni
vers
ities
2000060000
100000
140000
180000
220000
260000
300000
340000
380000
420000
460000
500000
540000
580000
620000
660000
700000
740000
780000
8200000
5
10
15
20
25
30
35
Top 200 Universities in Federal Research Expenditures
Federal Expenditure for Research (X 1000)
# of
Uni
vers
ities
TOP RESEARCH UNIVERSITIES with Social Science Focus
Source: The Center for Measuring University Performance
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 250
10
20
30
40
50
60
% of Total Research Funding Allocated to Social Science Research
% of Total Funding
# of
Uni
vers
ities
400012000
2000028000
3600044000
5200060000
6800076000
8400092000
100000
108000
116000
1240000
10
20
30
40
50
60
70
Total Social Science Funding Allocation of Top 200 Research Universities
Total Funding going to Social Science Research (X $1000)
# of
Uni
vers
ities
TOP 20 RESEARCH UNIVERSITIES Expensing the Most for Social Science Work
Source: The Center for Measuring University Performance
Public or Private University
Total Research Funding Total SS % Total SS (X1000)
Public University of Michigan - Ann Arbor $ 1,128,686 11% $ 127,541.52 Public University of Maryland - College Park $ 440,556 22% $ 95,600.65 Public University of North Carolina - Chapel Hill $ 746,828 10% $ 71,695.49 Public University of Wisconsin - Madison $ 940,286 7% $ 64,879.73 Public University of California - Berkeley $ 659,572 9% $ 56,723.19 Public Washington State University - Pullman $ 285,120 20% $ 55,883.52 Public University of California - Los Angeles $ 899,677 5% $ 40,485.47 Public Ohio State University - Columbus $ 719,574 5% $ 37,417.85 Public Rutgers - St. Univ. of NJ - New Brunswick $ 407,170 9% $ 36,238.13 Public Michigan State University $ 399,358 9% $ 34,344.79 Public George Mason University $ 77,966 42% $ 32,667.75 Private Duke University $ 980,514 3% $ 32,356.96 Public Pennsylvania State University - Univ. Park $ 674,763 5% $ 31,039.10 Private Harvard University $ 561,703 5% $ 29,770.26 Private University of Pennsylvania $ 793,523 4% $ 29,360.35 Public Arizona State University $ 296,458 9% $ 27,274.14 Public University of Georgia $ 225,406 12% $ 27,274.13 Public Purdue University - West Lafayette $ 477,145 6% $ 26,720.12 Private Princeton University $ 231,862 11% $ 26,432.27
TOP 20 RANKED UNIVERSITIES For Social Science
Source: Times Higher Education, 2011
University RankHarvard University 94.6Princeton University 92.9Stanford University 92.4University of Michigan 92Yale University 92University of Chicago 91.5University of California, Los Angeles (UCLA) 87.7University of California, Berkeley 86.9University of Pennsylvania 85.9Columbia University 84.7Northwestern University 81.2University of North Carolina at Chapel Hill 77.3Cornell University 76.1Duke University 73.6University of Washington 71.1New York University (NYU) 70.4Carnegie Mellon University 69University of Illinois at Urbana Champaign 68.4University of Minnesota 67.2University of California, San Diego 65.5
Universities that fall within the Top 20 Universities for both Quality (Ranked) and Expenditure spent on Social Science Research.
SAMPLE UNIVERSITY PROJECTSIn the Field or with South Asian/India Focus
US UNI RESEARCH CENTERSRecommendations
CONS:• Not the largest market• Not sustainable repeat customers• Projects will be small scale and limited scope• Most likely dealing with independent researchers rather than the larger research
center so funding may be barebones
PROS:• Revenue is still revenue• Name recognition within the Academic community in the US and Abroad• With one or two survey successes our academic network will grow fast
INTIAL CONTACTS & APPROACH:• Reach out to the different international programs and list our services for
independent researchers • Top 20 in US/Europe – focus on Health, Energy, & Population Studies• List of contacts is given in the accompanying spreadsheet
US INVESTMENT IN INDIA
1) Expanding existing businesses in India2) Starting a new business in India3) Profit from opportunities in India
(physically or remotely)
What are investors considering?
4) Business, economic, and social environment
5) Markets and growth prospects6) Legal and regulatory framework7) Special incentives
US COMPANIES IN INDIAWhy go to India?
Physical Presence Remote Presence
Mining/ Construction
Food and Beverage
Finance / Insurance
Retail / Franchising
Sales & Support
BPOs
IT & Services
REASONS TO GO
Fluidity of capital
Flexibility of the labor pool
Government receptivity to business
Information communication
Technologies
Private sector development infrastructure
Legal systems to protect intellectual property rights
Available scientific and human capital
Cultural propensity to encourage creativity
US COMPANIES IN INDIAWhy go to India? The Specifics
According to The US Government’s 2013 Country Commercial Guide for U.S. Companies in India, the highest growth potential for US firms in India are in: Commercial Sectors
• Defense and Civil Aviation
• Education Services
• Environment and Water
• Franchising
• Healthcare and Medical Equipment
• IT Services
• Transportation Infrastructure (Roads, Ports, Railways)
• Mining and Mineral Processing Equipment
• Plastics
• Power and Renewable Energy
• Travel and Tourism
US COMPANIES IN INDIASector Breakdown
Marketing & Advertising2%
Retail10%
Food/Beverage14%
Natural Re-sources (Oil, Gas,
Minerals, etc)3%
Electronics & Appliances
12%
Finance & Banking9%
IT & Services24%
Machinery3%
Real Estate2%
Pharma3% Power
5%
Auto5%
Healthcare & Insurance3%
Shipping & Frieght3%
Top 57 US Companies in India in 2010 +Walmart
US COMPANIES W/ A REMOTE
PRESENCE IN INDIA
IT & SERVICESITeS-BPOs catering to US Companies
CIS F&A HR Administration Others0
500
1000
1500
2000
2500
3000
3500
4000Segment-wise ITeS-BPO Export Revenue
2005 2006 2007
Reasons Why US Companies Outsource (Multiple Answers Allowed) Percent
Reduce or control costs 44 %Gain access to IT resources unavailable internally 34 %Free up internal resources 31 %Improve business or customer focus 28 %Accelerate company reorganization / transformation 22 %Accelerate project 15 %Gain access to management expertise unavailable internally 15 %
Reduce time to market 9 %
CIS contributes 45-50% of industry revenueF&A contributes around 40-45%
Where 80-85% of demand is generated by large size companies and only 10-15% by mid size companies. The remainder are government and non-profit groups.
Note: CIS (Customer Interaction Services); F&A (Financial & Accounting); HR (Human Resource) and Others include content management and other back office work. Source: NASSCOM
REASONSEasily offshorable jobs have already gone (American and European banks and financial-services firms have already offshored about 80% of what they can reasonably send to India)
Jobs that could have been offshored are already being wiped out by productivity improvements
The cost advantage that drew firms offshore in the first place is disappearing. Salaries for software engineers are going up rapidly and inflation is high
- Used to be about 80% less than in America; now the gap is 30-40% and narrowing fast.
URBAN ITeS-BPOSUS Outsourcing Stagnation/Decline
“Indian IT and BPO industry will face lower profit margins in the coming years” –Shine.com
Prediction of a slow down after 2014 and may stop entirely by 2022
“Rural BPOs have lower real estate and labor costs along with less attrition rate, resulting in costs savings of nearly 40 percent over their urban counterparts.” – The Times of India
“Every year, about 114,000 new graduates with engineering backgrounds enter the job market, but more than half of them are from small towns and villages” - report by Zinnov Management Consulting Pvt.
RURAL BPOSA New Cost Advantage?
Undoubtedly Rural BPOs have the opportunity to enjoy the cost advantage of lower salaries as well as rentals in Indian villages.
RURAL BPOSValue Assessment
ADVANTAGES:Very Low Attrition: Compared to BPOs in urban areas, rural BPOs don’t suffer attrition problems. In fact attrition is almost not present in rural BPOs.
Employment and Reverse migration: One of the key aspects with rural BPOs is that it provides employment to villages and smaller towns. Though it may not be as huge as that in the bigger cities, they source resources and manpower locally. This has led to many youth going back to their villages after they had migrated to bigger cities for job opportunities.
HURDLES & OPPORTUNITIES:The rural location should have a good system of infrastructure such as high-speed internet, access to manpower and telecommunication systems. Also, it should be close to bigger cities to enable easy movement of materials and clients. However, low cost power generators and multiple internet service providers have helped others in the industry stay competitive.
REMOTE PRESENCE IN INDIALocation Intelligence & Target Market Assessment
Areas of Importance Secondary Data Datasets Primary Data Surveys
Demographic reports (queries) on a 10km radius of potential locations
population, race, age, income, etc.
Prevalence of English, Training Programs available
BPO and Liaison Prevalence
Location Availability Internet connectivity, no/few power outages, equipment availability,
Building complexes,
Land Use land value, public v private, residential, commercial, etc.
Human Capital Staffing needs, managerial roles, etc.
Safety and Security crime rates, natural disaster indicators – floodplains, etc.
Legality National, State, District, Local laws – vertical construction legalities, etc.
Two methods of outreach:1. Directly to companies in the US looking to set up call centers/BPOs in India2. Indirectly to Outsourcing companies in India looking to capitalize on rural real estate