ValueNotes Connect
Welcome to the September issue of ValueNotes Connect.

The global business environment has become more competitive. Although organisations today have access to more critical information than they did a decade ago, they know they must analyse this data to gain an advantage over their competitors. As market intelligence service providers become more mature, talent shortage, cost economics and the demand for research ebbs and flows will continue to drive the offshore market. Data on research off-shoring is scarce; some estimates peg the average annual growth at over 70% in the 2003 to 2010 period.

Why, then, are organisations confused about whether they should offshore their market intelligence needs or not? There is so much hype among both, the proponents and opponents of off-shoring, that it is hard to distinguish fact from fiction. Varsha Chitale reveals some of the myths associated with off-shoring business research. She goes on to tell us why cost arbitrageisn’t the only reason why companies offshore their business research.On another note, ValueNotes has just published a research report on India’s chocolate industry – a part of our series of short industry reports, a quick-access industry research tool.

As always, we hope you enjoy reading our newsletter, and we look forward to your comments.

Best regards.

Seven business research off-shoring myths
by Varsha Chitale
Confused about off-shoring business research? There is so much hype among both, the proponents and opponents of off-shoring that it is hard to distinguish fact from fiction. Here are a few myths I have encountered in the last more-than-a-decade that I’ve been associated with offshore business research. Some large corporations and database providers started offshore market intelligence operations as early as the mid-nineties. In recent years, medium and small companies have also jumped into the fray. Traditional market research firms have been outsourcing (onshore as well as offshore) to subcontractors for the longest time.
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Why do companies offshore business research?
by Varsha Chitale
 offshore-business-research_ValueNotes Duh! Isn’t it all about cost? Perhaps, perhaps not. When one talks about off-shoring, the first thought that pops up is cost arbitrage. Indeed, cost arbitrage between developed countries and most offshore destinations is significant. But this is not the only reason; and in some cases, it isn’t even the most important reason for off-shoring. Despite a sharp rise in salaries in many off-shoring destinations like India and the Philippines, the average salary of an analyst in the US is over 10 times that of an analyst in say India. All of this is not realised in an offshore partnership, as there are several overheads to be considered.
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