The Research Industry Summit on Data Quality
The Marketing Research Event
Las Vegas, NV 2009
Tom H. C. Anderson
CEO, 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
“Access to
resources AND
Reactive/Flexible
Employees”
“Abundance of
MBA’s and
PhD’s”
“Hierarchical/Lack
of Creativity/No
Pushback”
• Time zone coverage, benefit but…
“Should Market
Researchers
Regularly have
the 2:00am shift?”
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)
Suppliers
Not Sure
4%
Clients
Not Sure
8%
Yes
23%
Yes
38%
No
58%
Transparency Gap
No
69%
Most Important (What Client Wants)
• What is your personal feeling on Offshoring any part
of the
marketing research function?
1. It is necessary and a good way for companies to stay
competitive
2.
3. Neutral
4.
5. It is not as profitable as others think and is fraught with
risk
Mixed Feelings (What Do Client Want/Expect?)
60%
40%
31%
40%
Pro Offshoring
20%
0%
-20%
-40%
-60%
-80%
69%
All
Suppliers
61%
Clients/
Buyers
Wary of Offshoring
Most Important (What Client Wants)
Suppliers - Who is Offshoring?
Offshore
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Transparency Gap (What Clients Want/Expect)
Suppliers Utilizing Offshoring vs. Clients
• Percent ”OK” with this part of MR value chain being offshored
90%
80%
OK
70%
60%
50%
Supplier
40%
Client
NOT 30%
OK
20%
10%
0%
Survey
Design
Programming
Project
Management
DP
Client Invite Panel Invite
CATI
Multivariate
Report
Writing
Transparency Gap (What Clients Want/Expect)
Suppliers Utilizing Offshoring vs. Clients
• Percent ”OK” with this type of MR project being offshored
OK
70%
60%
50%
40%
NOT
OK
30%
Supplier
20%
10%
0%
Client
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!)
100%
90%
80%
70%
68%
60%
61%
73%
90%
50%
Yes
No
40%
30%
20%
31%
10%
38%
26%
8%
0%
Suppliers
Non
Offshoring
Supplier
Offshoring
Supplier
Clients
Most Important (What Client Wants)
Thank You
www.OffshoringTransparency.org
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