emerging city report - nagpur (2014)

Emerging City Report - Nagpur (2014)

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ResearchFox Consulting is an Indian market research and consulting firm based in Bangalore. We strive to provide our clients with research data and reports which they can trust and analyze. Insights gleaned from our detailed and comprehensive research reports helps our clients stay ahead of trends. ResearchFox serves clients with services from data collection to analysis and reports. ResearchFox has extensive sector expertise and its consultants are abreast of global trends and issues across industries. Our areas of expertise include Manufacturing, IT-BPM, FMCG, Healthcare, Automotive, Government Sector and NGO, BFSI and Retail.

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Tableof Contents

5. Talent Ecosystem - Education5.1. Upcoming Talent Pool5.2. College Analysis5.3. Talent Pool Growths & Trends5.4. Training Ecosystem5.5. University Ecosystem5.6. Placement Ecosystem

6. Industry Connect Ecosystem6.1. IT-BPM Parks6.2. SEZ6.3. Industrial Collaboration

7. Macro & Micro Parameters7.1. Quality of Life7.2. Healthcare Ecosystem7.3. Recreation and Culture7.4. Government & Politics7.5. Business Continuity & Risks7.6. Connectivity7.7. Investment Policies

8. Cost Analysis8.1. Cost of Living8.2. Utility Cost Analysis8.3. Infrastructure Analysis

9. List of Tables10. List of Charts

1. Introduction1.1. Research Overview1.2. Objective and Scope1.3. Research Methodology1.4. Executive Summary1.5. Key Takeaways1.6. Key Definitions

2. City - At a Glance2.1. Demographic Overview2.2. Govt. & Industry Highlights2.3. Market Highlights

3. IT-BPM Talent Overview3.1. IT-BPM Evolution3.2. Workforce Analysis3.3. IT-BPM Ecosystem3.4. IT-BPM Talent Pool Insights

4. Talent Ecosystem - Industry4.1. Installed Talent Pool4.2. Company Analysis4.3. C&B Analysis4.4. Contract Staffing Analysis4.5. Diversity Analysis

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List of TablesTable 1: Objective and ScopeTable 2: Research ModelingTable 3: Interviews ConductedTable 4: Demographics OverviewTable 5: Sector wise contribution of GDP (%)Table 6: IT-BPM EvolutionTable 7: Industry PresenceTable 8: Education EcosystemTable 9: Human ResourceTable 10: InfrastructureTable 11: IT-BPM ParksTable 12: SEZTable 13: Industrial CollaborationTable 14: Air Connectivity DomesticTable 15: Air Connectivity IT-BPM ParksTable 16: Air Connectivity VicinityTable 17: Air Connectivity GlobalTable 18: Details of Index

List of ChartsChart 1: Workforce AnalysisChart 2: Installed Talent PoolChart 3: Distribution of IT/Technology companies by typeChart 4: Distribution of IT/Technology companies by Business AreaChart 5: C&B AnalysisChart 6: Contract Staffing Analysis by Company TypeChart 7: Diversity Analysis by Company TypeChart 8: Upcoming Talent Pool AnalysisChart 9: Distribution of CollegesChart 10: Distribution of Colleges by Utilization % RangeChart 11: Talent Pool Growths & TrendsChart 12: Course wise Training instituteChart 13: Analysis of Training Institutes by typeChart 14: University EcosystemChart 15: Placement AnalysisChart 16: Average Salary Packages offered during PlacementChart 17: Distribution of Expenses

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Introduction 01 5

1. Introduction

1.1. Research Overview

Companies all around the world are dealing with a well-known problem: where to locate their headquarters, new branches, R&D centers and operations for maximizing their geographical advantage. IT-BPM companies are exploring new emerging locations globally for expansion and growth in order to remain competitive. Companies are trying to leverage their expansion plans by reducing operational costs and improving the bottom line. Talent and infrastructure have always been the key operational costs and point of competitive differentiation in the IT-BPM industry. The trend is to increase location feasibility and to frequently evaluate emerging cities for the skills, capacity and cost which are the key aspects in a continuous process of transformation. It's in this context that Nagpur affords excellent growth opportunities.

This report explores and analyzes potential of Nagpur for following parameters:Demand and supply of talent (Lateral and Fresher/Upcoming)Cost reduction factorsIT-BPM Industry and Business EcosystemInfrastructural ecosystem

1.2. Objective and Scope

Objective of the Research:The objective of this research is to conduct in-depth talent pool and location analysis of Nagpur across identified technology functions which can provide a current view of this emerging location and opportunities for growth

Scope of the Research:The scope of the research explores following parameters in details:

TalentTalent Pool Analysis

a. Upcoming/fresher Talent pool from educational institutionsb. Installed/Lateral Talent pool from the industry

Compensation Analysis (C&B Analysis)Training Institutions EcosystemIndustry/Association tie-upsTalent Mobility and Location Preferences (Emerging Cities)

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Infrastructure:Facilities/Infrastructure AvailabilityAccessibility and ConnectivityQuality of life, Culture and cultural compatibilityEconomic Growth factorsGovernment Supports and initiativesEase of doing business

Cost:Infrastructure CostsUtility costsCommercial and Real Estate CostTax Structure (Policies and Benefits)

Table 1: The study encompasses the following Industries, service Lines/technologies skills & courses with respect to Talent, Infrastructure & Cost

Industry/Sector Functions/Courses Skills/Programmes

IT-BPM Industry

R & DDevelopment QA/Testing

Concept and Design Support

IT services

ADM SAP

BI Other ERP

IMS CRM

Microsoft Dynamics SCM

Oracle Other IT Services

BPM Voice Non Voice

Education

Engineering Diploma, BE/B.Tech, ME/M.Tech

Computers BCA, MCA

Management BBA/BBM, MBA

Arts BA, MA

Commerce BCOM, MCOM

Science BSC, MSC

TrainingAuthorized Training Institutions

Unauthorized Training Institutions

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1.3. Research Methodology

To benchmark Nagpur, we conducted a detailed location analysis and perception survey. The survey focused on understanding Fresher/Upcoming talent ecosystem, Lateral talent ecosystem and Training Institutions ecosystem. We conducted an in-depth analysis of the talent parameters which are currently available in Nagpur taking into consideration priorities, growth prospects and needs. Using proprietary talent pool assessment and analysis framework, we identified the talent suitable for the IT-BPM industry with particular skills, overall maturity and prior experience in similar industries.

Research Modeling

Table 2: Research Modeling

Type of Research Quantitative/Qualitative Research

Sample Size 200 Industry Participants

Target Geographies Global Emerging Cities (Tier II and Tier III cities)

Target Group Placement Coordinators, HR and Training Heads

* The margin of errors for a sample of 200 surveys is 5% with 95% confidence level.

Interviews Conducted

Table 3: A total of 200 surveys was completed as follows

Respondent % of InterviewsInformation Areas

Talent Acquisition

Recruitment & Placement

Location Overview

Training Ecosystem

Placement Coordinators 30%

HR Heads/Leaders 30%

Training Institute Owners 20%

Business Acquisition Leaders* 10%

Management Consulting Companies* 5%

SMEs of different Technology Areas 5%

* Face to Face Interviews

Analysis and TriangulationData collected through these approaches was analyzed and compared to identify trends, divergences and patterns. Findings and issues from different methodological approaches were triangulated and further analyzed to corroborate the evidence.

The Triangulation Methodology usedDocumentation review and analysisInterviews (Telephonic + Face to Face)Placement co-ordinator interviews and Focus group

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1.4. Executive Summary

Background to the ReportIT-BPM companies are exploring new locations for expansion and growth. Organizations are trying to leverage their expansion plans for reducing operational costs and improving their bottom line. Talent has always been the one significant factor that is cost-intensive and the point of competitive differentiation for IT-BPM industry. This has forced hiring managers to be on a relentless pursuit of quality talent. As the conventional locations for talent, i.e. the metros and Tier I cities get saturated, the hiring managers have started looking beyond the metros and Tier I locations. Such trends have enabled the rise of the Tier II cities. Owing to such importance of Tier II cities, ResearchFox decided to closely follow the talent trends for around 100 such cities across the Globe. This is the first in a series of reports published by ResearchFox. The following section delves into factors driving the importance and growth of Tier II cities across the Globe.

Enterprises seeking growth beyond Metros and Tier I citiesThe last few years have seen global economies becoming increasingly volatile. Global enterprises operating from metropolitan and Tier I cities have struggled to keep up with this instability. At the same time, Globe is witnessing tremendous growth opportunities from Tier II cities. These cities have relatively cheap infrastructure, progressive local governments, a number of educational institutions and an abundant supply of skilled workforce. Shared Services and BPM are the two industries which have started to show keen interest in Tier II cities

Proactive local governments of Tier II citiesLocal governments of Tier II cities have taken several proactive steps to fuel business activity in their respective regions. For instance, a few local governments have set up dedicated Software/IT parks and SEZs for IT-BPM industry. Few local governments are also offering free land, subsidies, special incentives etc., to companies

Abundant and Economical Talent availability in Tier II CitiesSome of the Tier II cities have an abundant supply of skilled workforce due to the presence of prominent local educational institutions. In addition, average salaries in Tier II cities are relatively less in comparison with salaries in the Metros and Tier I cities.

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1.5. Key Takeaways

Explores opportunities for growth, talent access and/or cost efficiencies. Gives a better understanding of the technical talent available and the entire education ecosystem in Nagpur, which will help the users to define skills and capacity to fulfil their requirements and the cost factor involved. Gives clarity on the demand and supply of fresh and lateral talent across the city and optimize training needs with appropriate alliances with training partners and colleges.

Helps in better understanding about the technical training ecosystem, which can help leaders to initiate incubation centers, industrial training centers, associations and tie-ups in Nagpur.

Helps HR leaders formulate retention strategy and curb talent mobility.Provides insights into talent infrastructure and capabilities available in Nagpur which can be up skilled to

provide high end services.Provides better understanding on transportation and utilities, which helps identify the best opportunities

present in this geography for expansion.Clarifies issues on taxation, government policies and tax benefits in Nagpur.

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1.6. Key Definitions

Key Terminologies

ADM: ADM is Any custom applications built on programming languages such as C, C++, .Net, Java, HTML, XML, VB, etc. along with its sub skills and it also includes Interactive media and Mobile app development using Android, iPhone, J2ME, Joomla, Ruby, Kony etc.

BI: Business Intelligence includes primarily all data analysis and reporting tools such as Informatica, Cognos, Microstrategy, MSAS- SSIS,SSRS, SSAS, etc.

CRM: CRM (Excluding SAP and Oracle) includes the next closest competitors of SAP and Oracle in CRM applications such as Salesfoce CRM, NetSuite, Infor etc.

IMS: IMS includes Database services (DB2, MS SQL, Pl/QSL, etc), Storage/Data center services (SAN/NAS environment from IBM, HP, EMC, Dell, NetApp, etc), Disaster recovery/back tools from Symantec, CA, IBM etc and Network operation center (NoC)

PES: PES primarily include Software product development (SPD) / testing/ support for ISV or Non- ISV companies across all verticals. It also includes Mechanical Engineering related services (Design & development of physical device/equipment/machine using Catia, Auto Cad, PLM tools, Unigraphics, etc) and Embedded Engineering related services (Design & development of embedded/firmware devices with Embedded C, VLSI, ASIC, FPGA, etc)

SCM: SCM (Excluding SAP and Oracle) includes the next closest competitors of SAP and Oracle in SCM applications.MICROSOFT DYNAMICS: It includes all Microsoft Dynamics applications such as Dynamics CRM, Axapta, and Navision.ORACLE: It includes all the Oracle enterprise applications such as Oracle CRM, Oracle ERP, Oracle SCM, Oracle HCM and

other Oracle business suites.SAP: SAP includes all SAP Technical and Functional modules.ERP (OTHERS): It includes all the next closest competitors of Microsoft Dynamics, SAP & Oracle in ERP applications.OTHERS (IT SERVICES): Web services, SEO services, website development etcCONCEPT AND DESIGN: It includes the conceptualizing and designing part of a Product development process, where

the core Software R&D companies, Telecom/Networking and Embedded/Semiconductor areas are considered for the study.

DEVELOPMENT: It includes the developing part of a Product development process, where the core Software R&D companies, Telecom/Networking and Embedded/Semiconductor areas are considered for the study.

QA/TESTING: It includes the quality assuring and testing parts of a Product development process, where the core Software R&D companies, Telecom/Networking and Embedded/Semiconductor areas are considered for the study.

SUPPORT: It includes the supporting parts of a Product development process, where the core Software R&D companies, Telecom/Networking and Embedded/Semiconductor areas are considered for the study.

VOICE: It includes any back office process done by calls/voice, both inbound & outbound calls.NON VOICE: It includes any back office process done through mails, chats & documentations.Tier I Company: Company with more than 5000 employees worldwideTier II Company: Company with range of 501 to 5000 employees worldwideTier III Company: Company with less than or equal to 500 employees worldwideTier I College: Institute of National Importance, Autonomous Colleges and other Colleges which were established

before 1991Tier II College: Colleges which were established in the year, ranging from 1991 to 2005Tier III College: Colleges which were established after 2005

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Legally Employable Population: The population that comes under the age group of 16 years to 64 years.Working Population: The entire population employed by the government, state owned enterprises or private sector

enterprises.Non-Working Population: The population, which includes students over the age of 16 years and the unemployed

population seeking employment.National level Associations: Industrial Associations/Bodies that are authorized to operate at National level.State level Associations: Industrial Associations/Bodies that are authorized to operate at State level.City level Associations: Industrial Associations/Bodies that are authorized to operate exclusively at City level.Intake Capacity: Total number of seats a college is authorized to admit in the specific academic year.Utilization Capacity: Total number of seats being occupied/admitted out of allocated intake capacity of a college, in the

specific academic year.

List of Abbreviations

Dev.: DevelopmentQA: Quality AssuranceR&D: Research and DevelopmentBPM: Business Process ManagementERP: Enterprise Resource PlanningPES: Product Engineering ServicesADM: Application Development and MaintenanceIMS: Infrastructure Management ServicesBI: Business IntelligenceCRM: Customer Relationship ManagementSCM: Supply Chain ManagementC&B: Compensation and BenefitsGDP: Growth Domestic ProductFTE: Full time employeesJOC: Job oriented coursesAICTE: All India Council for technical educationCAGR: Compound Annual Growth RateNASSCOM: National Association of Software and Services CompaniesNAC: NASSCOM Assessment of CompetenceEOU: Applicable for Export Oriented UnitsSEZ: Special Economic ZoneSTPI: Software Technology Park of IndiaFSI: Floor Space Index

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2.1. Sample Table

Company Analysis

No Company Name Head Quarter Offering Brief

1 X Ahmedabad, India X X

2 X Bangalore, India X X

3 X Bangalore, India X X

4 X Mumbai, India X X

5 X San Francisco, USA X X

Source: ResearchFox

2.2. Sample Chart

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emerging city report - nagpur (2014)

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