Global Location Analysis: Landscape update
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Zinnov Management Consulting This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside the client organization without prior written approval from Zinnov. Global Location Analysis Landscape update 2011
description
Today, business leaders of various MNCs are focusing beyond domestic workforce and skilled immigrants as part of their talent acquisition plan. This stands true not only for large corporations but for all organizations (irrespective of size) that are creating & managing remote, virtual teams to remain competitive in the marketplace. However, any business case on globalization can’t be complete without a clear evaluation of talent ecosystem in the outsourcing destination.
Transcript of Global Location Analysis: Landscape update
Zinnov Management Consulting
This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside the client organization without prior written approval from Zinnov.
Global Location Analysis Landscape update 2011
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Argentina
Brazil
Egypt
Malaysia Philippines
Russia
Vietnam
India China
SCOPE
PREVIEW REPORT The current document is a preview to the complete study and covers two locations, Argentina
and India, on talent pool aspects
This report is intended to provide country wise talent pool analysis across key global locations (highlighted in the map)
The report will focus on the following domains
IT Services Product development (Hardware &
Software) BPO Technical support
The key dimensions for analysis for the above domains include
Expected and projected talent pool Service Insights Annual salary Attrition Hiring Insights – challenges, career
motivators etc.
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Argentina
Brazil
Egypt
Malaysia
Philippines
Russia
Vietnam
India
China
Zinnov’s Country-wise talent pool analysis
PREVIEW REPORT The current document is a preview to the
complete study and covers two locations, Argentina and India, on talent pool aspects
Expected Talent Landscape Transition
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Argentina is distinguished by its highly-educated talent pool, attractive costs, and
various well established IT brand names
Source: Zinnov Analysis
IT Services IT services sector specializes in four strategic areas:- Agribusiness, Digital Content & Internet Related Solutions, Healthcare, and Value Added IT Services
BPO IT players like HP, Oracle and Cisco are seeking to consolidate their regional back office and customer-service operations in Argentina
Software Product Development Argentina's aggressive promotion of Software Development Centers has seen its software industry grow 2 to 3 times as fast as the overall economy
Hardware Product Development There is low availability of talent in the Hardware product development domain
Technical Support Leading Hardware and Software product companies have set up captive shared services centers to provide enterprise technical support to their clients
Service Insights
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Except for product development, all other IT domains are facing less hiring challenges due to abundance of quality talent
• Like any emerging market, Monetary Compensation is a key motivating factor for Argentineans. Brand name is given high importance and Argentineans generally prefer to work for well known foreign companies, , which provide work environment of international standards
• Availability of talent along with relatively lower hiring costs makes hiring for high-end tech support and BPO less severe
• The cost of operations and compensation are much below those in Mexico, Brazil and Chile. However, in tune with the market demand, compensation as well as attrition levels have been increasing
• The time advantage is believed to be the main reason for the low attrition rate in BPO. Currently, attrition levels for the IT-Services, Tech-Support and Software product development is on the higher side due to rising competition
Source: Zinnov Analysis
Top 2 Career Deciding Parameters
Compensation Brand Value
Hiring Challenges
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Annual Salary and Attrition
Hiring Insights
IT Services PD (S&H) Tech Support BPO
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PercentageAttrition Rate
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Argentina
Brazil
Egypt
Malaysia Philippines
Russia
India
Vietnam
China
Zinnov’s Country-wise talent pool analysis
PREVIEW REPORT The current document is a preview to the
complete study and covers two locations, Argentina and India, on talent pool aspects
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Expected Talent Landscape Transition
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India’s excellent social, political and economic conditions along with high penetration
& usage of technology makes business operations in the country convenient
Source: Zinnov Analysis
IT Services Application Development and Maintenance constitutes to over 70% of the total IT services market in India
BPO Currently, the BPO industry stands at USD 9.4 billion and employs approximately 600,000 professionals in India
Software Product Development
Revenues from software products for India based software product companies is expected to increase by about 40% till 2012
Hardware Product Development
There are over 45,000 professional working in HPD in MNC R&D centers
Technical Support Tech Support talent concentration is higher in cities like Bangalore, Pune & Hyderabad
Service Insights
Annual Salary and Attrition
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The country’s large pool of young talent between the ages of 15-64 is one of the key drivers of the economy
Filter 1 Population Above the
Legal Age
Filter 2 Employed Population
Legally Employable Population
Working Population
India’s Total
Population
1.15 billion 516 million 480.3 million
Labor Force Distribution Filter 3 Sector
Analysis
Services: 32% Agriculture: 55%
Industry: 13%
Talent Pool Insights:
• Relaxation in labor laws is reducing employment gap between organized and unorganized sector
• Over 60% of the projected labor force growth is occurring in age group of 15-64 years
• India has a large resource base in terms of young population which can serve as talent pool for business & technology
• The IT and ITES sector is estimated to presently provide direct employment to more than 1.9 million professionals
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Engineering Commerce Arts Science others
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Fresh Talent Pool Growth (CAGR 15%)
Tale
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Source: Zinnov Analysis
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IT services and BPO are the largest domains within the Services talent pool as these sectors are relatively more mature in India
IT Services (833,198) BPO (911,154)
Product Development (273,836) Tech Support (139,293)
57%
16%
10%
8%
9% ApplicationDevelopment andMaintenanceApplication Testing
Infrastructure andApplication Support
System Integration
41%
16%
31%
12% F&A
HR
Marketing/Sales
Others
45%
19%
36%
Software ApplicationDevelopment
Embedded Software
Engineering Design &Development
72%
28% Customer Support
Enterprise Support
Source: Zinnov Analysis
BPO
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India has put considerable emphasis on up-grading its talent pool not only in ICT sector but also in other booming sectors
Source: Zinnov Analysis
Hiring Challenges
Availability of Resources
Regulatory Constraints
Quality of Talent
Skill Specific Competency
Cost of Hiring
Overall Assessment
IT Ser PD (S&H) TS
Career Deciding Parameters
BPO IT Ser PD (S&H) TS
Compensation
Brand Value
Career Growth
The people we work with and for
Work Quality
Work Culture
High Severity Moderate Severity
Low Severity Non Severe
Very Important Important Less Important Least Important
• Availability of talent & business ecosystem of Bangalore, Pune, & Hyderabad makes it an ideal location for IT, BPO, Tech Support & Product Development operations
• India expertise is High in BPO, Tech Support & Financial Services but low in Hardware and Software Product Development
• Across all domains, Bangalore and Pune remain the highest paymasters followed by NCR and Hyderabad respectively
Most employees in India puts lesser relevance to perks and rewards compared to job content, training and development opportunities. However, compensation remains a key consideration in job selection
More than brand name, the work force in India is influenced by the organizational culture/work culture
In India, having a long-term career is considered positive and stable. Frequent job changes are viewed negatively. Therefore, high importance is given to commitment level
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Additional Information
The full report provides country wise talent pool analysis across the following other key global locations
Brazil Egypt Russia China Malaysia Vietnam Philippines
Full report on country wise talent pool analysis can be accessed at
Zinnov ‘s Global Location & Talent Pool Portal. Sign up today for a free trial account http://zinnov.com/US/demo_signup.php
Or, email us at [email protected]
Zinnov LLC
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