Global Sourcing (GS) April 2008 Preview Deck Topic: Availability of European Language Skills for BPO Industry in India
Background and objective Background India is a leading destination for offshore delivery of business processes in terms of both the breadth and depth of services offered The rapidly growing Indian Business Process Offshoring (BPO) industry is making a conscious effort to tap new export markets and reduce exposure to the traditional English-speaking U.S. and UK markets, which currently dominate its BPO exports Continental Europe has fast emerged as an important services export destination for India This growing focus towards continental Europe has led to an increased interest in the industry to provide non-english European language support from India Objective This study aims to provide facts, figures, and perspectives on employable European language skills available for the BPO industry in India It also provides case examples of companies providing European language support from India European languages covered in the report are French, German, Spanish, and Portuguese 2
Table of contents Topic Page no. Report contains over Section I: Introduction and key messages 30 pages of detailed 3 Background and objective information and 4 Key messages analysis 5 Section II: BPO landscape in India 6 Summary 7 Global business process offshoring market size and share by countries/geographies 8 India BPO export revenues and employment from FY 2003-2008 E 9 Distribution of BPO employees in Tier-1 and Tier-1.5 Indian cities 10 Employable voice pool for English language work in Tier-1 and Tier-1.5 Indian cities 11 Section III: European language skills in India French, German, Spanish, and Portuguese 13 Summary 14 Framework used for sizing language pool with relevant skills 15 Total number of French, German, Spanish, and Portuguese speakers in India 21 Average annual enrollments in French, German, Spanish, and Portuguese courses in India 22 Average annual French, German, Spanish, and Portuguese skills available for voice/high-end processes verses transactional-level non-voice processes 23 Average annual enrollments in Delhi, Mumbai, Pune, and Chennai by language 24 Case examples of players doing foreign language work from India 27 Section IV: City risk profiles for Delhi (NCR), Mumbai, Pune, and Chennai 31 3
Overview and abbreviated summary of key messages Continental Europe has fast emerged as an important services export destination for India, leading to an increased interest in the industry to provide European language support from India. This report provides key facts and perspectives on employable European language pool available in India, along with an overview of the Indian BPO landscape. The report sizes average annual enrollments in higher proficiency courses for respective languages to determine annual supply of language skills in India. It also assesses the employability of this language pool for voice and non-voice processes. Four city examples are included (Delhi, Mumbai, Pune and Chennai) in the report. It also provides two case examples of players doing foreign language work from India BPO landscape in India European Language skills in India In the last five years, both revenues earned through export of BPO services, and employment generated in the sector grew at over 30% on a year-on-year basis The BPO landscape is spread across numerous cities in India with large Tier-1 cities employing ~60% of the workforce The Indian BPO industry is in a conscious mode to tap new markets and reduce its exposure to the traditional English- speaking U.S and U.K markets There is a reasonable pool of European language speakers available for doing BPO work in India The pool size varies by language and type of work under consideration Of the four European languages covered in the report, French has the largest talent pool available, followed by a relatively smaller pool of German and Spanish talent. Portuguese has the smallest pool available The pool available for voice and high-end processes is much smaller, as these processes require a much greater degree of fluency and understanding of the language and culture of respective parent-language countries A number of companies are recruiting foreign nationals to augment the available language pool in the country 4
The report provides a comprehensive overview of European language skills available in India; below are four charts to illustrate the depth of the report Annual addition to the employable pool for English language work in India 2007 Bangalore Delhi/NCR Mumbai Pune Chennai Hyderabad Kolkata Average annual enrollments in higher proficiency courses in India Voice processes Non voice processes French German Spanish Portuguese Pool available for voice vs. non-voice processes 100% 1 = x x x XXX XX% XX% XX% XX% XX% % XX% XX% French German Spanish Portuguese Average annual enrollments in higher proficiency courses for select cities Delhi Mumbai Pune Chennai French German Spanish Portuguese 5
Appendix: Additional research references The following documents are recommended as complementary content that may be of interest to the reader of this report 1. Trends in Offshore Contact Center Services Market (ERI-2007-2-R-0226); 2007. This report focuses on offshore contact services market. It provides key trends and perspectives on the state of the market, potential evolution, and implications for key stakeholders (buyers and suppliers) 2. Perspectives on Delivery Center Locations for BPO - Central & Eastern Europe (CEE) (ERI-2007-2-R-0173); 2007. This research examines the relative attractiveness of CEE locations for business process outsourcing and prioritizes the best 8-10 locations. It will assist companies considering locations in CEE for BPO services understand the current and evolving city landscape and make informed decisions or trade-offs based on their specific company requirements. For more information on this and other research published by the Everest Research Institute, please contact us: Swapnil Sinha, Senior Research Analyst: Richard Caswell, Research Analyst: ssinha@everestgrp.com rcaswell@everestgrp.com Everest Research Institute Two Galleria Tower 13455 Noel Road, Suite 2100 Dallas, TX 75240 Phone: +1-214-451-3110 Email: info@everestresearchinstitute.com 6
Get the answers today that lead to tomorrow s success Everest Research Institute has the resources, experience, and capabilities to provide companies with the strategic intelligence, analysis, and insight that are crucial to making the right decisions in today s outsourcing marketplace. With the vision of our leadership team, the personal commitment, and indeed, the passion of our professionals to deliver real value to our clients, our organization is unsurpassed in its ability to guide your company s future success. Everest Research Institute Two Galleria Tower 13455 Noel Road, Suite 2100 Dallas, TX 75240 U.S.A. +1-214-451-3110 www.everestresearchinstitute.com info@everestresearchinstitute.com Everest Group 150 E., 52 nd Street, 16 th Floor New York, NY 10022 U.S.A. +1-646-805-4000 Everest India Ground Floor, Tower A Unitech Business Park South City - I, Gurgaon National Capital Region India 122001 +91-124-304-1000 Everest Australasia Level 6, 90 Mount Street North Sydney, NSW 2060 Australia +61-3-9833-1018 Everest Canada The Exchange Tower 130 King Street West, Suite 1800 Toronto, ON Canada M5X 1E3 +1-416-865-2033 Everest UK 83 Baker Street London, W1U 6LA United Kingdom +44-87-0770-0270 Everest Netherlands & Continental Europe Atrium Building 3 rd Floor Strawinskylaan 3051 1007 ZX Amsterdam +31-20-301-2138 Everest Australia 409a Wattletree Road East Malvern Melbourne, VIC 3145 Australia +61-3-9509-3933 7