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