Today, business leaders of various MNCs are focusing beyond domestic workforce and skilled immigrants as part of their talent acquisition plan. This stands true not only for large corporations but for all organizations (irrespective of size) that are creating & managing remote, virtual teams to remain competitive in the marketplace. However, any business case on globalization can’t be complete without a clear evaluation of talent ecosystem in the outsourcing destination.

1. Zinnov Management Consulting
Global Location Analysis
Landscape update
2011
This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for
distribution outside the client organization without prior written approval from Zinnov.

2. SCOPE
 This report is intended to provide country wise talent pool analysis across key global locations
(highlighted in the map)
 The report will focus on the following
domains
 IT Services
 Product development (Hardware &
Russia
Software)
 BPO
 Technical support
 The key dimensions for analysis for the Egypt
India
China
above domains include Vietnam
Philippines
 Expected and projected talent pool Malaysia
 Service Insights Brazil
 Annual salary
 Attrition
 Hiring Insights – challenges, career Argentina
motivators etc.
PREVIEW REPORT
 The current document is a preview to the complete study and covers two locations, Argentina
and India, on talent pool aspects
2

3. Zinnov’s Country-wise talent pool analysis
Russia
Egypt China
India
Vietnam
Philippines
Malaysia
Brazil
PREVIEW REPORT
 The current document is a preview to the
Argentina complete study and covers two locations,
Argentina and India, on talent pool aspects
3

4. Argentina is distinguished by its highly-educated talent pool, attractive costs, and
various well established IT brand names
Expected Talent Landscape Transition
100000 30
80000 25 Talent Pool 2008
20
60000 Projected Talent
15 Pool 2012
40000
10 Service CAGR
20000 5
0 0
IT Services BPO Tech Support PDS PDH
Service Insights
IT services sector specializes in four strategic areas:- Agribusiness, Digital Content & Internet Related
IT Services
Solutions, Healthcare, and Value Added IT Services
IT players like HP, Oracle and Cisco are seeking to consolidate their regional back office and customer-
BPO
service operations in Argentina
Argentina's aggressive promotion of Software Development Centers has seen its software industry grow
Software Product Development
2 to 3 times as fast as the overall economy
Hardware Product Development There is low availability of talent in the Hardware product development domain
Leading Hardware and Software product companies have set up captive shared services centers to
Technical Support
provide enterprise technical support to their clients
Source: Zinnov Analysis 4

5. Except for product development, all other IT domains are facing less hiring challenges
due to abundance of quality talent
Top 2 Career Deciding Parameters Annual Salary and Attrition
18000 18
Compensation Brand Value 16000 16
14000 14
12000 12
10000 10
Hiring Challenges 8000 8 Average Salary
(USD)
6000 6
IT Services PD (S&H) Tech Support BPO Percentage
4000 4
Attrition Rate
2000 2
0 0
IT BPO Tech PDS PDH
Services Support
Moderate Severity High Severity Low Severity Low Severity
Hiring Insights
• Like any emerging market, Monetary Compensation is a key motivating factor for Argentineans. Brand name is given high importance and
Argentineans generally prefer to work for well known foreign companies, , which provide work environment of international standards
• Availability of talent along with relatively lower hiring costs makes hiring for high-end tech support and BPO less severe
• The cost of operations and compensation are much below those in Mexico, Brazil and Chile. However, in tune with the market demand,
compensation as well as attrition levels have been increasing
• The time advantage is believed to be the main reason for the low attrition rate in BPO. Currently, attrition levels for the IT-Services, Tech-
Support and Software product development is on the higher side due to rising competition
Source: Zinnov Analysis 5

6. Zinnov’s Country-wise talent pool analysis
Russia
Egypt China
India
Vietnam
Philippines
Malaysia
Brazil
PREVIEW REPORT
 The current document is a preview to the
Argentina complete study and covers two locations,
Argentina and India, on talent pool aspects
6

7. India’s excellent social, political and economic conditions along with high penetration
& usage of technology makes business operations in the country convenient
Expected Talent Landscape Transition Annual Salary and Attrition
1600000 30
1400000 18000 35
25 Talent Pool
1200000
16000 30
2008
20 14000 Average
1000000 25 Salary
12000
(USD)
800000 15 Projected 10000 20
Talent Pool
600000 2012 8000 15 Attrition
10 6000
400000 10
Service 4000
5 CAGR 5
200000 2000
0 0 0 0
IT BPO Tech PDS PDH IT BPO Tech PDS PDH
Services Support
Services Support
Service Insights
IT Services Application Development and Maintenance constitutes to over 70% of the total IT services market in India
BPO Currently, the BPO industry stands at USD 9.4 billion and employs approximately 600,000 professionals in India
Software Product Revenues from software products for India based software product companies is expected to increase by about
Development 40% till 2012
Hardware Product
There are over 45,000 professional working in HPD in MNC R&D centers
Development
Technical Support Tech Support talent concentration is higher in cities like Bangalore, Pune & Hyderabad
Source: Zinnov Analysis 7

8. The country’s large pool of young talent between the ages of 15-64 is one of the key
drivers of the economy
Filter 1 Filter 2 Filter 3
Population Above the Employed Population Sector Labor Force Distribution
Legal Age Analysis
Industry: 13%
1.15 billion 516 million 480.3 million
India’s Total Legally Employable Working
Population Population Population Agriculture: 55% Services: 32%
3000 Fresh Talent Pool Growth (CAGR 15%)
Talent Pool Insights:
Talent Pool (in Thousands)
2500
• Relaxation in labor laws is reducing employment gap
between organized and unorganized sector 2000
• Over 60% of the projected labor force growth is occurring
in age group of 15-64 years 1500 2008
• India has a large resource base in terms of young 2012
population which can serve as talent pool for business & 1000
technology
• The IT and ITES sector is estimated to presently provide 500
direct employment to more than 1.9 million professionals
0
Engineering Commerce Arts Science others
Source: Zinnov Analysis 8

9. IT services and BPO are the largest domains within the Services talent pool as these
sectors are relatively more mature in India
IT Services (833,198) BPO (911,154)
9% Application
Development and 12% F&A
8% Maintenance
Application Testing
41%
10% HR
Infrastructure and 31%
57%
Application Support Marketing/Sales
16%
System Integration
16% Others
Product Development (273,836) Tech Support (139,293)
Software Application
Development 28% Customer Support
36%
45%
Embedded Software
72%
Engineering Design & Enterprise Support
19% Development
Source: Zinnov Analysis 9

10. India has put considerable emphasis on up-grading its talent pool not only in ICT sector
but also in other booming sectors
Hiring Challenges Career Deciding Parameters
IT Ser PD (S&H) TS BPO
Availability of Resources  Most employees in India puts lesser relevance to perks and
rewards compared to job content, training and development
opportunities. However, compensation remains a key
Regulatory Constraints consideration in job selection
 More than brand name, the work force in India is influenced by
Quality of Talent
the organizational culture/work culture
 In India, having a long-term career is considered positive and
Skill Specific Competency
stable. Frequent job changes are viewed negatively. Therefore,
high importance is given to commitment level
Cost of Hiring
Overall Assessment IT Ser PD (S&H) TS BPO
High Severity Moderate Severity Compensation
Low Severity Non Severe
Brand Value
• Availability of talent & business ecosystem of Bangalore, Pune, Career Growth
& Hyderabad makes it an ideal location for IT, BPO, Tech The people we work
Support & Product Development operations with and for
• India expertise is High in BPO, Tech Support & Financial
Services but low in Hardware and Software Product Work Quality
Development
• Across all domains, Bangalore and Pune remain the highest Work Culture
paymasters followed by NCR and Hyderabad respectively
Very Important Important Less Important Least Important
Source: Zinnov Analysis 10

11. Additional Information
 The full report provides country wise talent pool analysis across the following other key global
locations
 Brazil
 Egypt
 Russia
 China
 Malaysia
 Vietnam
 Philippines
 Full report on country wise talent pool analysis can be accessed at
 Zinnov ‘s Global Location & Talent Pool Portal. Sign up today for a free trial account
http://zinnov.com/US/demo_signup.php
 Or, email us at info@zinnov.com
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