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Digital Literacy Exploring Africa Re-Engineering to Remain Relevant NEWSLINE The Big News About Big Data VOL. 2 ISSUE 9 SEPTEMBER 2012 06 11 13 Indian BPO: Digital Literacy Exploring Africa Re-engineering to Remain Relevant http://www.nasscom.in/nasscom-newsletter/nasscom-newsline NASSCOM Research At a Glance NASSCOM has recently released segment-specific reports highlighting opportunities available in these areas. Some of the reports are highlighted below: Highlights the opportunity in offering services around Big Data implementation and analytics across industries. Covers the market size, emerging growth opportunities and competitive landscape, proposals for winning in the global Big Data: The Next Big Thing and local market. India’s IS Outsourcing Market: Adapting to Megatrends – Reinventing Business A comprehensive deep-dive analysis of the global retail industry from a demand Analyses the strategies firms (retailers) and supply side (IT-BPO need to adopt on this journey service providers) perspective. – build suitable offerings and differentiation, align with overall An Overview of strategy, financial impact, etc. the Retail Market: Analysing Opportunities Verticalisation: Industry Evolution for a Better Value Proposition Highlights the pivotal role of Marketing Analytics, and the opportunities, challenges and future trends associated with it. All reports are FREE for members. To get access Marketing Analytics to the industry trends and insights, become a member today. Join Now – Write to us at [email protected] To view the complete list, visit www.nasscom.in/research-reports What’s Inside Editorial Opportunities Galore We have for you a Newsline that covers much, presenting you with insights on a host of issues related to the Indian IT-BPO industry, especially emerging opportunities. The big movers of this decade is expected to be Big Data and analytics, which by all accounts is anticipated to grow into a significant market opportunity for both the IT services as well as BPO industries. A NASSCOM- CRISIL report, that we released at our recent NASSCOM BPO Summit 2012, highlights the potential of this segment and what Indian players can do to leverage it. While continuing on the areas of opportunity, we share 04 The Big News About Big Data with you news from the world of retail, where the sector is expected to touch USD 15.7 trillion in 2013. 06 Indian BPO: Re-engineering to The Indian IT-BPO industry is providing a value-add Remain Relevant to the vertical through its merchandising, logistics/ SCM, store operations/management, CRM and channel 08 Exploring the Retail Opportunity management solutions. 09 Emerge In this issue, we also talk about the emerging geographic markets, key among them Africa. NASSCOM led its third 11 Digital Literacy delegation to the continent in an effort to improve the traction of the Indian IT-BPO industry in this vast market. 12 Top 20 IT/BPO Exporters NASSCOM has been advising member organisations, especially SME members about how they can crack 13 Exploring Africa Africa and the strategies they need to embrace in order to gain first mover advantage here. We also talk about capacity building, especially among SMEs, that are constantly fighting for talent. NASSCOM hosted a special roundtable session, with eminent panellists from the HR sector, to discuss ways in which SMEs could attract, develop and retain expertise. Details from this session are additionally shared in this issue. Do let us know what you think about the issue. We welcome contributions, so write in with your views on the key issues of the day. Copyright © 2012, NASSCOM, International Youth Centre, Teen Murti Marg, Chanakyapuri, New Delhi - 110 021 Phone: 91 11 2301 0199. To contact Newsline Editorial team, write to [email protected] Sangeeta Gupta Sr Vice President, NASSCOM Design and production: CREATIVE INC. (011 4163 4301) Newsline September 2012 3 Cover Story The Big News About Big Data Over the last few years, there has been growing talks valuable business insight, that organisations can use to about the emerging Big Data opportunity, and why the predict changes in client and market sentiment, identify Indian IT-BPO sector needs to focus on building its the current state of business and new opportunities, skill sets in this domain. quantify existing and potential risks, and automate decisions for real-time processes. Big Data also enables According to a report by NASSCOM and global research better customer segmentation, improved productivity and analytics organisation, CRISIL, titled ‘Big Data: and fraud detection across all industry sectors including The Next Big Thing’, Big Data essentially relates to the the public sector, healthcare, financial services, retail, rapidly growing, structured and unstructured datasets telecom, and manufacturing. with sizes that go beyond gigabytes and terabytes and into the range of petabytes and zetabytes. Conventional Big Data analytics is gaining momentum the world over, database tools are unable to store, manage, and with advanced techniques being applied on big datasets analyse this data, which is why Big Data requires to answer questions previously considered beyond reach. new advanced tools, large storage infrastructure and Advanced analytic and visualisation techniques are being capacity, and quicker methods of retrieval and informed used on datasets to uncover hidden patterns and unknown decision making. correlations for effective decision making. The Big Data ecosystem is constituted by Big Data management, Big Data furthermore, is not just voluminous and analytics, IT services and applications, while social media complex. It is also defined by variety and velocity. This analytics, sentiment analysis and behavioural analysis large quantity of data can be enterprise-specific, or are the upcoming Big Data analytics services. general, or public or private. It can be created by social networking feeds, video and audio files, emails, sensors Organisations are increasingly leveraging insights or other raw data. At the end of the day, this Big Data is a provided by Big Data by delivering ‘Big Data value’ 4 Newsline September 2012 The Big News About Big Data directly to consumers through data-driven applications. These applications can reside on PCs, smartphones, India’s Big Data opportunity is estimated at USD tablets or other web-enabled devices. 200 million in 2012. The Big Data outsourcing opportunity is projected to reach around The Big Data industry USD 1.1-1.2 billion between 2012-15. The NASSCOM-CRISIL study shows that inhibit the growth of the market in the future. The US market alone is expected to face a shortage of 1.5 million • The Big Data industry is expected to cross data-savvy managers and over 150,000 data scientists in USD 8 billion by 2012, and around USD 25 billion 2018. In this respect, India has an early mover advantage by 2015 vis-à-vis other outsourcing destinations such as China, Poland and the Philippines, in creating a robust Big Data • In 2012, the market will be dominated by pilot workforce, and meeting this shortfall. projects, with over 90 per cent being rolled out in North America In order to improve talent availability for Big Data, IT organisations like EMC, Oracle, IBM, Infosys, etc., • The emergence of niche start-ups, M&As, and are leveraging their academic alliance programmes, technological developments are catalysing the with universities in India and overseas to introduce growth of the Big Data industry courses in various areas related to the domain. Private IT training institutes in India such as NIIT and • New Big Data organisations are attracting Aptech are also developing talent through courses funding rounds of over USD 50 million specific to Big Data. The result is that India is expected to emerge as a India too, is reflecting these global trends, with preferred destination for analytics and IT services in the several large IT services providers, and a host of new years ahead. organisations specialising in Big Data industry gaining traction. Indian service providers are adding Big Data capabilities to their portfolios by leveraging M&As and go-to-market partnerships, and focusing on talent development. The opportunity for Indian service providers, including Global In-house Centres, pure play analytic firms and IT-BPO players lies in offering services around Big Data implementation and analytics for global customers. Limited talent availability and low awareness about the benefits of Big Data analytics, however, are expected to Fast Facts McKinsey’s view of Big Data • Emerging academic research suggests that organisations that use data and business analytics to guide decision making are more productive and experience higher returns of equity than competitors that don’t • McKinsey research shows that ‘networked organisations’ can gain an edge by opening information conduits internally and by engaging customers and suppliers strategically through web-based exchanges of information • Over time, Big Data may well become the new type of corporate asset that will cut across business units and functions, much as a powerful brand does, representing a key basis for competition • Organisations need to start thinking in earnest about whether they are organised to exploit Big Data potential and manage the threats it can pose (Source: Article in McKinsey Quarterly, 2011 Number 4) Newsline September 2012 5 BPO Indian BPO: Re-engineering to Remain Relevant From a time over 20 years ago, when it was performing a few basic functions for overseas customers, the Indian BPO industry has emerged as a preferred partner for global clients. It is not even so much about Business Process Outsourcing, as much as Business Process Management, with the sector remodelling itself to move from efficiency to effectiveness. In the last few years, BPO players have been re-engineering themselves to overcome some of the existing challenges and deliver transformation impact to customers. In order to sustain this edge, the industry now needs to focus on process excellence, newer models and best With margins getting squeezed, greater regulatory practices, and emerging opportunities such as Big Data pressure and customers cutting IT budgets, the and analytics.
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