Offshoring in the Publishing Vertical - An Update

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

The report is based on secondary data as well as extensive interviews with key people at various publishing outsourcing companies in India. Publishing houses will find it invaluable in understanding the capabilities of Indian vendors, and selecting the best fit.

Table of Contents (Report):

1. Executive Summary

2.Services Offshored by Publisher

2.1 Scope

2.2 Offshored Publishing Services and Current level of Offshoring

2.3 Services and Billing Rates

2.4 Vendor Capabilities by Segment

2.5 Vendor Maturity by Output Type

2.6 Vendor capability split by services

2.7 Who buys offshore publishing services?

3.Indian Vendor Landscape

3.1 Typical Vendor Groups

3.2 Offshore Capacity: Manpower Estimates

3.3 Client Mix of Offshore Vendors

3.4 Vendors Focus, by Segment

3.5 Cluster-wise Analysis of Vendors

3.6 Positioning

4.Trends, Insights and Projections

4.1 Offshore Revenues and Employment Growth

4.2 Emerging Opportunities

4.3 Greater Cross-border Acquisitions and Joint ventures

4.4 Increased Offshoring Will Necessitate Sub-contracting

5.Company Profiles

Alden Prepress Services

Aptara (TechBooks)

CyberMedia Services

Datapage

Digital Publishing Solutions

IBH Publishing

Infomedia India

Innodata Isogen

Integra Software Services

Integreon Managed Solutions

KnowledgeWorks Global

Laserwords

Lason India

Macmillan India

Newgen Imaging Systems

OfficeTiger

Olympus Infotech

PreMedia Global

Q2A Solutions

SPi

SPS Publishing

SR Nova

Thomson Digital

TnQ

6.Directory

7.Research Methodology

8.About ValueNotes

Table of Exhibits (Report):

Exhibit 1: Editorial Services: Offshoring Maturity

Exhibit 2: Data Services (operations): Offshoring maturity

Exhibit 3: Design: Offshoring maturity

Exhibit 4: Training: Offshoring Maturity

Exhibit 5: IT services: Offshoring Maturity

Exhibit 6: Indicative Billing Rates

Exhibit 7: Indian Vendor Capabilities by Segment

Exhibit 8: Offshoring Maturity by Vertical

Exhibit 9: Overall Service Capabilities

Exhibit 10: Major Service Buyers: Segment-wise

Exhibit 11: The Typical Vendor Groups: Cluster-wise Characteristics

Exhibit 12: Employment by Major Vendors

Exhibit 13: Cluster-wise Distribution of Employees

Exhibit 14: Chennai: The Publishing BPO hub

Exhibit 15: Major Clients, by Vendor

Exhibit 16: Segment Focus of Vendors

Exhibit 17: Cluster 1 Vendors

Exhibit 18: Service capabilities: Cluster 1 Vendors

Exhibit 19: SWOT Analysis: Cluster 1 Vendors

Exhibit 20: Cluster 2 Vendors

Exhibit 21: Service capabilities: Cluster 2 Vendors

Exhibit 22: Acquisitions by Cluster 2 Vendors

Exhibit 23: SWOT Analysis: Cluster 2 Vendors

Exhibit 24: Cluster 3 Vendors

Exhibit 25: Service Capabilities: Cluster 3 vendors

Exhibit 26: SWOT Analysis: Cluster 3 Vendors

Exhibit 27: Cluster 4 Vendors

Exhibit 28: Service Capabilities: Cluster 4 Vendors

Exhibit 29: SWOT Analysis: Cluster 4 Vendors

Exhibit 30: Cluster 5 Vendors

Exhibit 31: Service Capabilities: Cluster 5 Vendors

Exhibit 32: SWOT Analysis: Cluster 5 Vendors

Exhibit 33: Comparative Positioning of Vendor Clusters

Exhibit 34: Positioning and Strategies of Individual Vendors

Exhibit 35: Frontrunners List Exhibit 36: Revenue Growth

Exhibit 37: Revenue Contribution by Services

Exhibit 38: Revenue Contribution by Vertical

Exhibit 39: Employee Growth

Exhibit 40: Some Recent M&A deals

Table of Contents (Bi-monthly Update):

1. Cover Story

2. Q&A with a CEO

3. Recent News and Analysis

4. About ValueNotes