Cross-Tab facility shifted

To sustain the rapid growth, Cross-Tab has shifted to a new facility in Mumbai. The new facility is based in Andheri in Mumbai which is a central suburb and one of the most convenient locations for commutation in Mumbai. The new facility is equipped with the best infrastructure and latest tools and technologies in the Global Market Research/Analytics industry. Presently Cross-Tab has three facilities in India, two in Mumbai and one in Bangalore.

Cross-Tab directors address market research outsourcing to India

In the December 2004 issue of ESOMAR's Research World magazine, Cross-Tab's directors Kedar Sohoni and Ashwin Mittal discussed the growing trend of market research agencies outsourcing parts of their activities offshore to countries such as India.

Three major alternative strategies which top international firms are adopting are; establishing a captive centre, outsourcing to third party suppliers or getting outsourced services from their own full service research arm in the destination country.

The WPP group and Harris Interactive have chosen to go with the third party supplier route whereas TNS and Greenfield Online have taken the captive route. Firms like Research International and A.C. Nielsen are availing of outsourced services from their Indian arm.

According to Cross-Tab's Directors, the major issues which must be considered while deciding the outsourcing strategy include:

• The strategic importance of the offshored activity to the company
• Understanding of running operations in the destination country
• The learning process involved in establishing a captive centre vis-à-vis third party expertise
• Do third party providers exist in the destination country with the required expertise?
• Does the third party provider have adequate data protection measures in place?

The article further discusses the risks associated with offshore outsourcing and suggests possible measures to mitigate these risks.

The article can be seen on www.cross-tab.com/vault

Indian government intensifying its effort to build the country as a preferred destination for offshore outsourcing

In a quick analysis carried out by the Assocham BPO Council, India's BPO (offshore outsourcing) revenue is expected to soar to $15bn by 2007 from its present level of about $3bn provided the government gives impetus to this sector through infrastructure development and intensifying efforts in building the Indian brand. The revenue generation through BPO (offshore outsourcing) will exceed even $17bn by 2008 because the potential of Indian BPO (offshore outsourcing) industry is such that it can capture 25% of total global offshore outsourcing market.

Offshore outsourcing a part-and-parcel of Global economy

A survey conducted by MORI published at the start of the annual conference of the Confederation of British Industry polled the following: A total of 51 per cent of respondents said pressure to outsource abroad had risen during the last two years, while 29 per cent said the burden had increased a lot. The survey found 51 per cent of businesses that have begun outsourcing have moved their operations to India, while 49 per cent have staff working in China, 24 per cent in Poland and 20 per cent in the Czech Republic. The survey concluded that offshoring is now part-and-parcel of doing business in the global economy.

Two forecasts upbeat about 2005 ad spend

Predictions for advertising spending next year from two leading industry forecasters are surprisingly upbeat, as they project gains will be made even after the strong growth anticipated for 2004.

The unexpectedly optimistic predictions were offered by senior executives of two media agencies, Robert J Coen of Universal McCann and Steve King of the ZenithOptimedia Group. In raising estimates they made previously for worldwide ad spending in 2005, they cited reasons that ranged from a continuing boom in online advertising to the growing list of major marketers planning to substantially increase budgets to generate demand for aging or moribund brands.

The battles for consumer favour in crowded categories like drugs, automobiles, entertainment, telecommunications and packaged foods will generate sufficient additional growth, the forecasters said, to make 2005 the fourth consecutive year of year-over-year increases since the 6.5% decline in 2001, the first since 1991.

Mr. Coen and Mr. King made their forecasts at the opening session of the 32nd annual Media Week conference in Manhattan, which is sponsored by UBS.

Gartner Buys Rival

IT researcher Gartner has announced that it will purchase the META Group for $162m in cash. Both are based in Stamford, CT, USA. Gartner had $858 million in revenue last year and profit of $18 million, while Meta Group turned over $122 million with a loss of $4m.

The deal is expected to close in the second quarter of 2005. The two firms share a complementary business model that makes the integration easier. Gartner will get increased depth in key sectors, geographies and markets, and an increased ability to seize revenue opportunities with the addition of META Group's well-trained, successful sales force.

Observer Buys Delahaye

Bacon's Information, a division of Swedish-based Observer Group, has acquired the operations of Delahaye, a PR-focused media evaluation and consulting services firm with annual revenue of around $9mn, from Medialink Worldwide Incorporated.

The acquisition strengthens Observer’s offer of analysis and evaluation services, giving existing clients access to a number of high end analytic services and applications. Delahaye's clients will get greater access to content and content-related services through Bacon's comprehensive media monitoring services’.