EMIS Emerging Market Information Service IndiaBPO

KPO Data (graphs show Indian fiscal years) ASSOCHAM Estimates on Indian KPO Market, USD bn 10 8 5.7 KPO Market India by Service Segmentation, 2010 R&D 12% Engineering and Design 12% Remote Education and Publishing 12% Animation and Simulation Services 8% Biotech and Pharma 18% 2010 2011 2012 ASSOCHAM Estimates on Indian KPO Market, USD bn Data Search, Integration and Management 29% Market Research and Intellectual Property 9% Growth of LPO Industry in India and the Philippines 17,000 Differences Between KPO and BPO KPO Outsourcing of knowledge-intensive business process and activities Value, time-to-market, scale, flexibility are the primary drivers, then cost Knowledge creation process is not well defined BPO Outsourcing of standard business process Cost is the primary driver Processes are mostly standartized 4,900 1,300 56 300 6,100 1,000 400 2005 2009 Indian LPO Professionals 2010 2015 Filipino LPO Professionals Industry is mature and outsourcing components Industry is evolving and clients are still learning easily carved out Most of the risks have been addressed by Clients perceive risk of data security and IP infrastructure, process and contract Service-Level leakage Agreements /SLAs/ Bigger is better, economy of scale is a competitive Domain expertise (depth) more important than size advantage Finding skilled talent is the biggest challenge Managing attrition is the biggest challenge Source: ASSOCHAM, Evalueserve, itbizcharts, SG Analytics Any redistribution of this information is strictly prohibited. Copyright © 2013 Internet Securities, Inc. (trading as ISI Emerging Markets), all rights reserved. - 27 -

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