DS0509_Opinions_p6-p7_Cogent:Layout 1 29/4/09 17:23 Page 7
DATA ANALYTICS
THE FACT BOX
EXPECTED GROWTH IN
GLOBAL BPO & KPO MARKET 20032010
60
CAGR (KPO) =45%
50
CAGR (BPO) =26%
40
30
SIZE (US$ Billion)
20
10
- the agency model - is a combination of the accounted for as well as the time taken for the
first two: the outsourcer can choose to new business unit to become truly effective. 0
outsource to an organization that has set up The agency model, like the pureplay model, FY 2003 FY2010
its own captive KPO service, but retains a offers the advantage of bypassing the cost and
presence and key account handling and effort of setting up an off-shored KPO BPO KPO
commercial skills in the developed economies. business. An agency also offers the benefit of
Cogent Analytics operates from London and expertise and knowledge gained from
Mumbai and is part of The Collinson Group, a operating both in the originating developed
privately-owned global organisation that uses economy and also as an off-shored KPO For further information and a trend
data, customer insight and marketing expertise organization. report on analytics on KPO, contact
to the benefit of its companies, clients and Financial risk is largely held by the agency matt.hutchison@cogentdataanalytics.com
their customers. Our work covers the full range and the combination of off-shored and local
of analytical services - from segmentation and resources serves KPO disciplines well because In terms of the added difficulty of running
profiling, predictive modelling, data mining, they are more specialist and often require input complex data-mining/profiling/modelling
RFM (recency, frequency, monetary value) from different skill-sets (for instance, a typical operations offshore, potential entrants into
analysis to bespoke insight analysis, reporting analysis project may require programmers, this market should be aware that there are
and data planning. statisticians, sector-specific commercial experts, hurdles – particularly in the early stages – to
The pureplay option is often likely to be the marketing specialists and account handlers). be overcome. Again, the size of those hurdles
cheapest, but is also less likely to be able to While some of these specialist skills can be depends on the way the an organisation
deliver the range, depth and quality of sourced off-shore, others are better supplied at enters into the KPO arena – whether alone or
analytical services by the other two options. a local level where understanding of local with a partner. Either way, recruitment,
They are more likely to be BPO providers who markets is more intimate. training and establishing effective multi-
are stretching their business into KPO Therefore where KPO disciplines (such as national working practices can be problematic,
disciplines, and hence have not had the analytics) demand a mix of off-shore and local and there are also cultural, legal and
advantage of the input of knowledge and skills, the agency model may be preferable as geographical differences to be aware of.
experience from the developed economies, it will have this global team-working element However, despite these difficulties, the
where KPO disciplines such as data analytics built-in. Delivering complex projects via economic advantage is such that the shift of
have developed in highly competitive global teams across multiple disciplines is not the analytics function away from the mature to
environments for years. always an easy task. In most cases, the agency the developing economies is an inevitability.
The captive model offers the advantage of model probably represents the most effective What this of course means is that end-users
potential cost-savings through the fact that way of doing this simply because it will have can expect to see lower costs for their
the staff delivering the work remain in- the range of skills across its off-shored and analytics – whether on their own payroll or
sourced, but are off-shored. There is a greater local offices and because it will have a wider their agencies’ invoices. The days of the well-
level of control with the captive model, but range of experience of delivering projects in paid, high-overhead analyst in London, San
there are significant setup costs to be this global, multi-disciplined manner. Francisco or Frankfurt may be numbered.
OPINIONS ON DATA | MAY 2009 7
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17