the research industry summit on data quality the marketing research event las vegas, nv 2009 tom h....
TRANSCRIPT
The Research Industry Summit on Data QualityThe Marketing Research Event
Las Vegas, NV 2009
Tom H. C. AndersonCEO, Anderson Analytics
Founder & Chairman, Offshoring Transparency Foundation
What I’m Not Going to Talk About
• Is Western MBA or PhD = MBA or PhD elsewhere• Macro Economics• Politics/Nationalism• …
Please keep in mind: • Not Anti-India• Not Anti-offshoring• Offshoring is a fact
..but…• Trust, Data and IP Confidentiality is critical
so must have this discussion!
What I will Talk About
• Market Research, KPO, India • MR “2/3 of MR firms off-shore”
• Types: ITO BPO KPO(KPO est. $17 billion market 2010)
• India (expected to capture 70% of market share)
• No Offshoring, Captive/Wholly Owned, Third Party, and JV
• Lack of Transparency in Offshoring!• India aka “Region 13”
• Biggest problem with offshoring
• A solution!
Offshore Employee Issues (Qual Exploratory)
• Research among professionals in off-shoring business.(Issues from their perspective)• Frequently quoted benefits/concerns
• Time zone coverage, benefit but…
“Access to resources AND
Reactive/Flexible Employees”
“Should Market Researchers
Regularly have the 2:00am shift?”
“Hierarchical/Lack of Creativity/No
Pushback”
“Abundance of MBA’s and
PhD’s”
Supplier AND Client Issues (Exploratory)
• Challenges• Ethics - In China “Guanxi”, in India “Bakshish”• India ranked 85th out of 180 countries in corruption
(Transparency International/Cambridge University Press/Ernst & Young 2009)• Data confidentiality breeches (Both IP and Customer Data) • Highly Competitive = Little Loyalty
• Churn. Attrition rates Remarkably high (30-50% for BPO/KPO, over 100% for ITO!)
• Inherently dangerous, constant movement of confidential data• Employees/Ex-Employees highest risk for breech
• No Protection• Risk: On US Trade Representative Priority IPR/301 Watch List• Lack of Compliance: NO Gramm-Leach-Bliley Act, NO SOX, NO HIPPA, • NO EU-Safe Harbour… (send it to Romania)• Lack of Law: No Statute on IP, Work for Hire (Must have contracts) S. Baldia• Contracts must cover subcontractors and employees• India Ranked 182/183 in enforcing contracts by The World Bank!
Most Important (What Client Wants)Quantitative Research
• Next Gen Market Research Group on LinkedIn (NGMR)
• 6,000+ Market Researchers
• NGMR Survey Currently in Field n>800(73% US, 27%ROW)(19% Buyers, 76% Suppliers, 5% Other)
Do “2/3” of Companies Really Offshore MR?(Among MR Suppliers n=586 Client n=145)
ClientsSuppliers
Transparency Gap
Most Important (What Client Wants)
• What is your personal feeling on Offshoring any part of themarketing research function?
1. It is necessary and a good way for companies to stay competitive
2. 3. Neutral4. 5. It is not as profitable as others think and is fraught with
risk
Mixed Feelings (What Do Client Want/Expect?)
AllSuppliers
Clients/Buyers
Pro Offshoring
Wary of Offshoring69%61%
31%40%
Most Important (What Client Wants)Suppliers - Who is Offshoring?
Transparency Gap (What Clients Want/Expect)Suppliers Utilizing Offshoring vs. Clients
• Percent ”OK” with this part of MR value chain being offshored
OK
NOTOK
Transparency Gap (What Clients Want/Expect)Suppliers Utilizing Offshoring vs. Clients
• Percent ”OK” with this type of MR project being offshored
OK
NOTOK
Transparency?
• Q. Regardless of what your stance is on offshoring, do you believe research suppliers have an obligation to tell their clients that they offshore?
>Yes, companies need to be transparent
>No, that's proprietary information
Transparency (Almost Everyone Agrees!)
68%
31%
73%
26%
61%
38%
90%
8%
Most Important (What Client Wants)
Thank You
www.OffshoringTransparency.org
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