Competition intensifies... with vendors rapidly adding high-end services capabilities...

Published May 2007

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The current revenues from Indian publishing offshoring are slated to grow from $440 million in 2006 to reach $1.46 billion in 2010. There were an estimated 26,000 employees in this space in 2006 and this number will grow to 74,000 by 2010. The study focuses on the three key segments: STM/Academic, Educational and Legal publishing that form a bulk of offshoring to India. 

A vast majority, or 96% of the India-based vendors have capabilities to service the STM/Academic publishing segment. About 56% and 39% of the vendors have the capability to handle educational publishing and legal publishing respectively. The range of offshored services includes: Editorial, Data (operations), Design, Training and IT. Each of these has achieved varying levels of offshoring maturity, which is analyzed in detail in the report. In the Indian offshoring space, the strongest capability is within the Operations space, followed by Editorial services.

There are over 100 vendors in the publishing offshoring space and we have identified a minimum of 28 credible vendors, which fall within the scope of the study. These vendors have been categorized into clusters (between 1 to 5) and analyzed based on their services, focus, positioning and strategies. Cluster 1, 2 and 3 together account for over 80% of the total employment in the publishing offshoring space in India.

Based on our exhaustive primary research and analysis of this sector, ValueNotes has identified a "list of frontrunners", that have the highest potential to emerge as winners within their chosen niches. This is on account of strong capabilities, onshore and offshore presence, well-defined growth strategies and execution capabilities, brand and financial strengths. Included in this list (across all clusters) are SPi, OfficeTiger, Aptara (formerly TechBooks), Macmillan India, Newgen, Integra, Infomedia India, Premedia Global, Q2A Solutions and CyberMedia Services. ValueNotes believes these will be among the most exciting companies in the medium term.

According to Arun Jethmalani, CEO, ValueNotes, "Companies are rapidly adding high-end service capabilities and this will enable them to bill higher rates in an era of intense competition, margin pressures and Rupee appreciation." Adds Aradhana Kolhatkar, analyst and co-author of the report, "Interestingly, though bulk of the work will flow to the larger vendors, small vendors will also thrive, partly helped by sub-contracting from larger vendors."

The ValueNotes report: "Offshoring in the Publishing Vertical: An Update" provides an in-depth information and analysis of the Indian vendor space along with vendor profiles of all major and upcoming players in the STM/Academic, Educational and Legal Publishing segments.

The report provides an in-depth analysis of the Indian vendor space along with profiles of all major industry players. The report is designed to help:

• Publishers looking to outsource/offshore
• Publishing BPOs to assess their competitive environment
• American and European Publishers looking for Indian partners
• Outsourcing consultants evaluate and compare the offerings of Indian vendors
• Researchers and others looking for detailed information on Publishing outsourcing

Publishing houses will find this invaluable in understanding the capabilities of Indian vendors, and selecting the best fit.

The above report is based on secondary data as well as extensive interviews with key people at various publishing outsourcing companies in India.

This report is an update of "Offshoring in the Publishing Vertical", published by ValueNotes in September 2005.

Table of Figures

Table of Contents (Bi-monthly Update)