A whitepaper highlighting India's status as a prefered outsoursing destination and how Fractal Analytics can help global companies outsource complex analytics functions

1. Knowledge Process Outsourcing
Knowledge Process Outsourcing to India
In today’s age of globalization, converging technologies of telecommunication and information
technology have redefined the way we do business, with electronic commerce becoming a way of
life. This has lead to opening of many opportunities where best-in-class talent across the world
can be leveraged to provide specialized services. Companies have realized the value of
outsourcing specialized tasks to low-cost destinations such as India. Apart from significant cost
savings, outsourcing certain activities allows an organization to concentrate more on its core
business and make faster deliveries to customers leading to increased efficiency and higher
levels of customer satisfaction.
Over the last decade, India has matured as the preferred outsourcing destination for IT and ITeS
services. Outsourcing to India has allowed many corporations see a big increase in their profits,
productivity, level of quality, business value and performance. India offers many competitive
advantages such as availability of skilled talent, technological agility, quality, flexibility, cost control
and faster time-to-market. 82% of the US services companies have ranked India as their first
choice for IT/ITeS outsourcing. Cost savings, operational efficiencies, access to a highly talented
workforce and improved quality are all underlying expectations in offshoring high-end processes
to India. The chart below depicts the desirability of different countries from outsourced services
perspective, with India emerging as the most preferred destination.
The outsourcing of software and business process services to India has been followed by
outsourcing of knowledge based services in the area of research and analytics. This type of
outsourcing is popularly referred to as KPO (Knowledge Process Outsourcing). The success in
outsourcing business process operations to India has encouraged many firms to start outsourcing
their high-end knowledge work as well. Different types of knowledge services being outsourced to
India. The block diagram below shows the different types of knowledge services being outsourced
to India. It has to be noted that all these fields require specialized talent which is available in
abundance in India.
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2. Knowledge Process Outsourcing
The last few years have witnessed explosive growth in the KPO sector in India. Already, the top
12 investment banks of the world have captive operations doing high-end analysis work in India,
employing 1,200 people that is expected to go up to about 6000 in the next two years. According
to a report by NASSCOM, KPO business is expected to reach USD 17 billion by 2010, of which
USD 12 billion (71%) would be outsourced to India. In addition, the Indian KPO sector is also
expected to employ more than 250,000 KPO professionals by 2010.
It is no surprise then, that Business Analytics services have also found their way to India. Most
large financial services, retail and telecom companies today are interested in deploying analytics
within their businesses to make better data driven business decisions. But the complexity
associated with extracting and integrating data as well as unavailability of trained personnel and
technology make it difficult to address this need internally. In such a scenario, outsourcing
analytics requirements makes it far easier for them to derive maximum value with added benefits
that include:
1. No capital investments for creating an analytics infrastructure
2. No hiring and training costs for analytics resources
3. Leverage highly talented and cost-effective resources from countries like India
4. Utilizing best-in-class analytic techniques and technology to arrive at accurate insights.
India is adding more than three million graduates and professional degree and diploma holders
annually. Home to the world’s second largest reservoir of engineers and scientists, and the
second largest pool of IT manpower, India does possess a distinct competitive edge. To further
catalyze the growth in KPO, India is focusing on developing a talent pool to manage this expected
growth. The success of KPO in India can be attributed not only on the way it has moved up the
value chain in terms of services and offerings but also on how it has retained its competitive
advantage of cost arbitrage, pool of knowledge professionals, and quality of deliverables.
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3. Knowledge Process Outsourcing
Fractal Analytics is one of the pioneers of analytic services in India. The company was started in
2000 when data analytics was in its infancy stage. Over the years, Fractal’s analytics solutions
have helped companies across the globe enhance profitability by powering their customer
management efforts with scientific decision making. Fractal has deployed analytics to drive
significant value for many Fortune 1000 companies in the areas of customer acquisition,
retention, value enhancement, risk management and marketing optimization.
Why should you choose Fractal Analytics to address your Business Analytics needs?
Specialized expertise and Proven Experience
We deliver high impact solutions by combining deep industry knowledge in financial services with
sophisticated analytics. Fractal has helped several large Fortune 500 clients meet their analytics
needs in areas of Marketing, Risk and CRM analytics. We have been engaged by clients across
different industries including financial services, telecom, retail, CPG etc. and 70% of our business
is repeat business that speaks of their trust in our abilities.
Low cost and scalable partner
We leverage our unique global delivery model to provide up to 40% cost reduction while
delivering best-in-class analytics. We can also tailor our engagement model to suit your
requirements and scale and can operate both in a project model and retainer model. Further we
offer to reduce your upfront financial risk by working with you on low outlay pilots.
Highly skilled Talent
Fractal has a high quality & well balanced team of more than 100 people, with a healthy mix of
business consultants, analysts & technology consultants. We recruit from the best Business
Schools, and Math and Engineering programs including IIM, IIT & ISI. We have several
associations with US academia in the area of analytics and our staff has prior experience with
leading organizations such as GE, Microsoft, Unilever, Infosys, SmithKline Beecham, ICICI Bank.
Expertise in Membership Based Businesses, And Transaction & Bureau Data
Our key strength is in providing analytics for membership or relationship based industries like
credit cards, retail finance, telecom, hospitality etc. We have experience in handling large sized
databases. We have strong expertise in managing transaction data, credit bureau data and small
business data from credit bureaus and Dun & Bradstreet.
Robust Infrastructure and stringent security measures
Fractal’s premises equipped with world class infrastructure including high-end software and
hardware systems. We ensure quick turnaround times through the usage of multiple automation
components and proprietary data models. We are also in full compliance with customer requests
for data integrity, security and confidentiality.
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