Pure-play Business and Market Research Outsourcing (BR/MRO) service providers achieved a CAGR of 14% in the period FY2007 to FY2011, in a study conducted by ValueNotes. This study covers the financial performance of pure-play BR/MRO firms, principally in the Indian BR/MRO industry. The report includes service provider profiles of 10 BR/MRO firms, along with their service offerings, key financial ratios, shareholding patterns, and names of directors. For Information Visit us at - http://www.sourcingnotes.com/content/view/885/

1. 2012
Business and Market Research
Outsourcing: Financial Performance
Review
High revenue growth muted with economic slowdown
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2. 2012
Financial Performance Report Series
Business and Market Research Outsourcing: Financial Performance Review
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3. 2012
Business and Market Research Outsourcing: Financial Performance Review
Table of Contents
Research Methodology ......................................................................................................................vi
Executive Summary ........................................................................................................................... ix
1 Macroeconomics ......................................................................................................................... 1
1.1 Global Economy .................................................................................................................... 1
1.2 Major Economic Regions ....................................................................................................... 2
1.3 National Economic Performance of Select Countries ............................................................. 4
1.4 Currency Movements............................................................................................................ 7
1.5 Global Capital Markets .......................................................................................................... 8
2 Industry Insights.......................................................................................................................... 9
2.1 Indian IT-BPO Industry Revenue ............................................................................................ 9
2.2 IT-BPO Contribution Towards India’s GDP ........................................................................... 10
2.3 IT-BPO Contribution Towards India’s Exports ...................................................................... 10
3 Operating Earnings.................................................................................................................... 12
3.1 Total Income ....................................................................................................................... 12
3.2 Revenue Per Employee ....................................................................................................... 14
4 Expenses ................................................................................................................................... 16
4.1 Operating Cost .................................................................................................................... 16
4.2 Employee Cost .................................................................................................................... 17
4.3 Total Cost Per Employee ..................................................................................................... 19
5 Profitability ............................................................................................................................... 20
5.1 EBITDA Margin .................................................................................................................... 20
5.2 EBIT Margin ........................................................................................................................ 21
5.3 Net Profit Margin ................................................................................................................ 22
5.4 Net Profit Per Employee...................................................................................................... 23
6 Operating Efficiency .................................................................................................................. 25
6.1 Debtor Days ........................................................................................................................ 25
6.2 Creditor Days ...................................................................................................................... 27
6.3 Debtor Days Versus Creditor Days ....................................................................................... 28
6.4 Net Operating Cycle ............................................................................................................ 28
7 Solvency.................................................................................................................................... 30
7.1 Quick Ratio ......................................................................................................................... 30
7.2 Debt Ratio........................................................................................................................... 32
7.3 Debt/Equity Ratio ............................................................................................................... 33
8 Capital Efficiency ....................................................................................................................... 35
8.1 Return On Capital Employed ............................................................................................... 35
8.2 Return on Equity ................................................................................................................. 36
8.3 Return On Assets ................................................................................................................ 37
9 Service Provider Evaluation ....................................................................................................... 39
9.1 Consolidated Ranking.......................................................................................................... 39
9.2 Revenue Ranking ................................................................................................................ 39
9.3 RPE Ranking ........................................................................................................................ 39
9.4 Total Cost Per Employee Ranking ........................................................................................ 40
9.5 EBITDA Margin Ranking....................................................................................................... 40
9.6 Net Profit Per Employee Ranking ........................................................................................ 41
9.7 Net Operating Cycle Ranking ............................................................................................... 41
9.8 Quick Ratio Ranking ............................................................................................................ 41
9.9 Debt/Equity Ratio Ranking .................................................................................................. 42
9.10 ROCE Ranking ..................................................................................................................... 42
9.11 ROE Ranking ....................................................................................................................... 43
10 Company Profiles ...................................................................................................................... 44
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4. 2012
Business and Market Research Outsourcing: Financial Performance Review
10.1 Annik Tech .......................................................................................................................... 44
10.2 Beroe .................................................................................................................................. 46
10.3 Dun & Bradstreet ................................................................................................................ 48
10.4 Mott Macdonald ................................................................................................................. 50
10.5 TPI Advisory ........................................................................................................................ 52
10.6 Exevo .................................................................................................................................. 54
10.7 Forrester ............................................................................................................................. 56
10.8 Frost & Sullivan ................................................................................................................... 58
10.9 Prognosys ........................................................................................................................... 60
10.10 Ugam .................................................................................................................................. 62
11 Appendix................................................................................................................................... 64
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5. 2012
Business and Market Research Outsourcing: Financial Performance Review
Table of Exhibits
Exhibit i: Service Provider Categories and Sample Size .................................................................................... vii
Exhibit ii: Parameters Used for Service Provider Comparison .......................................................................... vii
Exhibit iii: Legend Used for Service Provider Comparison ............................................................................... viii
Exhibit iv: List of Abbreviations ...................................................................................................................... viii
Exhibit v: Leading Service Providers in the Business and Market Research Outsourcing Segment in 2011 .......... x
Exhibit 1: Global GDP Growth Rate from2007 to 2013....................................................................................... 1
Exhibit 2: European Union (EU) GDP Growth Rate from2007 to 2013 ................................................................ 2
Exhibit 3: BRIC (Brazil, Russia, India, China) GDP Growth Rate from 2007 to 2013.............................................. 2
Exhibit 4: India GDP Growth Rate from 2007 to 2013 ........................................................................................ 4
Exhibit 5: USA GDP Growth Rate from 2007 to 2013 ......................................................................................... 5
Exhibit 6: UK GDP Growth Rate from 2007 to 2013 ........................................................................................... 6
Exhibit 7: Indian Currency Movements from 2007 to 2011 ................................................................................ 7
Exhibit 8: Capital Market Performance from 2007 to 2011 ................................................................................ 8
Exhibit 9: Indian IT-BPO Revenue from 2007 to 2012 ........................................................................................ 9
Exhibit 10: Indian IT-BPO Contribution to the National GDP ............................................................................ 10
Exhibit 11: Indian IT-BPO Contribution to the National Exports ....................................................................... 10
Exhibit 12: Revenue and Growth Over Five Years ............................................................................................ 12
Exhibit 13: Revenue by Service Provider Type ................................................................................................. 13
Exhibit 14: Revenue Change (YoY) by Service Provider Type ............................................................................ 13
Exhibit 15: Revenue of BR/MRO Segment by Service Provider in 2011............................................................. 14
Exhibit 16: Revenue Per Employee (RPE) Over Five Years ................................................................................ 14
Exhibit 17: RPE by Service Provider Type ......................................................................................................... 15
Exhibit 18: RPE Change (YoY) by Service Provider Type.................................................................................... 15
Exhibit 19: Operating Expense as a Percent of Revenue For Five Years ............................................................ 16
Exhibit 20: Operating Expense as a Percent of Revenue by Service Provider Type ............................................ 17
Exhibit 21: Employee Cost as a Percent of Operating Expense over Five Years ................................................. 17
Exhibit 22: Employee Cost as a Percent of Revenue over Five Years................................................................. 18
Exhibit 23: Employee Cost as a Percent of Revenue by Service Provider Type .................................................. 18
Exhibit 24: Total Cost Per Employee by Service Provider Type ......................................................................... 19
Exhibit 25: Total Cost Per Employee by Service Provider Type ......................................................................... 19
Exhibit 26: EBITDA Margin Over Five Years...................................................................................................... 20
Exhibit 27: EBITDA Margin by Service Provider Type........................................................................................ 21
Exhibit 28: EBIT Margin Over Five Years .......................................................................................................... 21
Exhibit 29: EBIT Margin by Service Provider Type ............................................................................................ 22
Exhibit 30: NPM Over Five Years ..................................................................................................................... 22
Exhibit 31: NPM by Service Provider Type ....................................................................................................... 23
Exhibit 32: Net Profit Per Employee Over Five Years........................................................................................ 23
Exhibit 33: Net Profit Per Employee by Service Provider Type.......................................................................... 24
Exhibit 35: Debtor Days Over Five Years.......................................................................................................... 25
Exhibit 36: Debtor Days by Service Provider Type............................................................................................ 26
Exhibit 37: Debtor Days Change (YoY) by Service Provider Type ...................................................................... 26
Exhibit 38: Creditor Days Over Five Years ........................................................................................................ 27
Exhibit 39: Creditor Days by Service Provider Type .......................................................................................... 27
Exhibit 40: Debtor Days Versus Creditor Days ................................................................................................. 28
Exhibit 41: Net Operating Cycle Over Five Years .............................................................................................. 28
Exhibit 42: Net Operating Cycle by Service Provider Type ................................................................................ 29
Exhibit 43: Quick Ratio Over Five Years ........................................................................................................... 30
Exhibit 44: Quick Ratio by Service Provider Type ............................................................................................. 31
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6. 2012
Business and Market Research Outsourcing: Financial Performance Review
Exhibit 45: Quick Ratio Change (YoY) by Service Provider Type ........................................................................ 31
Exhibit 46: Debt Ratio Over Five Years ............................................................................................................ 32
Exhibit 47: Debt Ratio by Service Provider Type .............................................................................................. 32
Exhibit 48: Debt Ratio Change (YoY) by Service Provider Type ......................................................................... 33
Exhibit 49: Debt/Equity Ratio Over Five Years ................................................................................................. 33
Exhibit 50: Debt/Equity Ratio by Service Provider Type ................................................................................... 34
Exhibit 51: Debt/Equity Ratio Change (YoY) by Service Provider Type .............................................................. 34
Exhibit 52: Return On Capital Employed (ROCE) Over Five Years...................................................................... 35
Exhibit53: ROCE by Service Provider Type ....................................................................................................... 36
Exhibit 54: Return On Equity (ROE) Over Five Years ......................................................................................... 36
Exhibit 55: ROE by Service Provider Type ........................................................................................................ 37
Exhibit 56: Return on Assets (ROA) Over Five Years ......................................................................................... 37
Exhibit 57: ROA by Service Provider Type ........................................................................................................ 38
Exhibit 58: Consolidated Ranking of Top Five Service Providers ....................................................................... 39
Exhibit 59: Revenue Ranking of Top Five Service Providers .............................................................................. 39
Exhibit 60: RPE Ranking of Top Five Service Providers ..................................................................................... 39
Exhibit 61: Total Cost Per Employee Ranking of Top Five Service Providers ...................................................... 40
Exhibit 62: EBITDA Margin Ranking of Top Five Service Providers .................................................................... 40
Exhibit 63: Net Profit Per Employee Ranking of Top Five Service Providers ...................................................... 41
Exhibit 64: Net Operating Cycle Ranking of Top Five Service Providers ............................................................ 41
Exhibit 65: Quick Ratio Ranking of Top Five Service Providers.......................................................................... 41
Exhibit 66: Debt/Equity Ratio Ranking of Top Five Service Providers ................................................................ 42
Exhibit 67: ROCE Ranking of Top Five Service Providers ................................................................................... 42
Exhibit 68: ROE Ranking of Top Five Service Providers ..................................................................................... 43
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7. 2012
Business and Market Research Outsourcing: Financial Performance Review
Research Methodology
About the Financial Performance Report Series
These reports have been designed to analyze the financial performance of companies in the
Knowledge Process Outsourcing (KPO) industry. The information in this series will be of interest to
KPO service providers, consultancies, investment firms, and buyers of KPO services. It is aimed at
providing decision makers, analysts and influencers with relevant and actionable insights. The report
will enable service providers to benchmark their performance against their peers. It will help
investors and consultants evaluate the financial health of their service providers. Buyers of KPO
services can use this information to make informed decisions.
Scope of the Report
The Financial Performance Report analyzes key financial ratios of companies that constitute the
business and market research outsourcing (BR/MRO) segment. The companies covered in this report
are pure-play KPOs with operations in India. Pure-play KPOs provide services for a specific segment,
process or industry; in this case, the business and market research outsourcing segment. Only
private limited companies that are incorporated in India and that filed annual returns with the
Government of India’s Ministry of Corporate Affairs (MCA) are considered in the report. The
information presented in this report is based on financial statements of companies between the
fiscal period from 2007 and 2011.
In addition, publicly available information and past research by ValueNotes on information
pertaining to the companies’ service offerings and employee strength is used in this report. For more
information regarding ValueNotes’ publications on the outsourced publishing services industry, refer
to the section titled For Further Reading.
Special Notes
As per the reporting guidelines of the MCA, private limited companies are required to file their
balance sheets, profit and loss accounts, annual returns and compliance certificates. However, all
the line items in the financial statements are not mandatory.
 Financial information in the report is reported in Indian Rupees (INR).
 The financial period reported by the company has been considered as is and has not been
adjusted. Companies in the sample have differing report periods such as April to March, and
January to December.
 The financial statements of the companies have been computed as reported and
adjustments or normalizations have not been made by ValueNotes.
 The analysis in this report uses a data set of those companies that have disclosed all the
pertinent financial information for that particular year required to calculate the appropriate
financial ratio.
 Analysis and conclusions regarding industry trends have been made on the basis of available
data from the population of companies in ValueNotes’ sample (refer to Appendix).
 The data in this report does not represent the entire business and market research
outsourcing industry, as it excludes multi-service providers and captives. However, we
believe that trends within the pure-play business and market research outsourcing business
will be similar to those of the industry as a whole.
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8. 2012
Business and Market Research Outsourcing: Financial Performance Review
Service Provider Categorization
Exhibit i: Service Provider Categories and Sample Size
The total number of companies that form the Category name Revenue range
sample for this report is 11. Companies have Large INR 500+ mn
been grouped into categories based on their Medium INR 100 - 500 mn
Small INR 1 - 100 mn
latest reported total revenue. This has been
done to allow for a more meaningful comparison
of results. The categories, which are based on
annual revenue, are depicted in the adjacent
along with the sample size of each category.
Service Provider Comparison and Ratings
The report provides a relative positioning of Indian service providers in the business and market
research outsourcing segment featured in the report. The evaluation is based on their financial
performance on each of the 10 key financial ratios as listed in the exhibit below.
Exhibit ii: Parameters Used for Service Provider Comparison
Parameter
Total Income
Revenue Per Employee
Total Cost Per Employee
EBITDA Margin
Net Profit Per Employee
Net Operating Cycle
Quick Ratio
Debt/Equity Ratio
Return On Capital Employed
Return On Equity
The methodology adopted for considering companies for inclusion in the ranking requires FY 2011
data to be available for calculating at least five of the financial ratios listed above. A relative ranking
is assigned to each company based on their performance on each financial ratio. A single relative
ranking is then given to each company by taking an equally weighted average of each ranking. The
top five service providers are then positioned relative to each other across the ratios listed in the
above exhibit, from 2007 to 2011.
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9. 2012
Business and Market Research Outsourcing: Financial Performance Review
The ranking of companies are represented using a four-bar scale. The scale used to denote the
relative positions is shown in the exhibit below.
Exhibit iii: Legend Used for Service Provider Comparison
Abbreviations
The exhibit below includes a list of abbreviations used in this report. For a more detailed explanation
of the financial ratios and how they were calculated, refer to the Glossary.
Exhibit iv: List of Abbreviations
bn Billions
BR/MRO Business and Market Research Outsourcing
BPO Business Process Outsourcing
CSO Central Statistics Office
EUR Euro
FY Fiscal Year
GBP Pound Sterling
GDP Gross Domestic Product
GSAM Goldman Sachs Asset Management
IMF International Monetary Fund
INR Indian Rupee
JPY Japanese Yen
k Thousand
KPO Knowledge Process Outsourcing
MCA Ministry of Corporate Affairs
mn Millions
NASSCOM National Association of Software and Services Companies
OECD Organization for Economic Development
RBI Reserve Bank of India
USD United States Dollar
WB World Bank
WEO World Economic Outlook
YoY Year on Year
viii
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10. 2012
Business and Market Research Outsourcing: Financial Performance Review
Executive Summary
Please write to us at reports@valuenotes.co.in for a complimentary copy of the executive summary.
To purchase the full report and discuss pricing please email arjun@valuenotes.co.in.
More information about the Business and Market Research Outsourcing: Financial Performance
Review report is available here.
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11. Authors Contributors
Arjun Bhuwalka Sameer Murdeshwar
T +91-20-6623 1739 T +91-20-6623 1797
E arjun@valuenotes.co.in E sameer@valuenotes.co.in
Deepti Krishnan
T +91-20-6623 1717
E deepti@valuenotes.co.in
DISCLAIMER: This report is for general information only, and does not constitute a business
recommendation or professional advice. The information in this report has been obtained from
sources believed to be reliable. ValueNotes cannot guarantee the authenticity, accuracy or adequacy
of this information. All views expressed in this report are based on the opinions and judgments of
ValueNotes. Readers are encouraged to consult their own professional advisors before making any
decision based on the contents of this report. ValueNotes accepts no liability for any consequences
arising from the use of this report or the material contained herein.
Given that data is based on the financials of Indian registered companies, some of the overseas
subsidiaries or entities related to the Indian companies have not been included. This may result in
numbers that are discordant with other figures. If any of the companies covered in this report finds
an anomaly, please send an email to research@valuenotes.co.in, and we will rectify the data as soon
as possible.

12. For Further Reading
Market Research Outsourcing: The India Growth Story
Date of Publication January 2008
Market Research Outsourcing - Buyer Survey
Date of Publication February 2009
Our Other Reports
Outsourced Publishing Services: Financial Performance Review
Date of Publication July 2012
Legal Process Outsourcing: Financial Performance Review
Date of Publication June2012
Banking BPO Services: Getting Back to Basics
Date of Publication March 2012
The Heathcare Payor BPO Landscape In 2011
Date of Publication February 2012
The Pharmaceutical Industry Sourcing Landscape In 2011
Date of Publication January 2012
The Utilities Sourcing Landscape In 2011
Date of Publication December 2011
How Is Outsourcing Fueling The Oil And Gas Industry?
Date of Publication October 2011
Obamacare: Outsourcing Opportunities In Revenue Cycle Management
Date of Publication June 2011
Where Offshore Analytics is Heading in 2011
Date of Publication March 2011

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 Information Products: we publish proprietary market intelligence on the
(services) outsourcing industry – in BFSI, e-learning, engineering, healthcare, legal
and publishing – with an emphasis on knowledge services or KPO.
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