Analytics is most lucrative in KPO segment: report

September 24, 2012

Analytics is currently least affected by the global economic slowdown in the Indian KPO sector, making it the most attractive segment, says a report by a business intelligence provider. The report analyses the key financial ratios of pure-play KPOs with operations in India, that specifically cater to the analytics segment.

“The revenue of the companies, analysed in this report, increased rapidly at a CAGR of 38% from 2007 to 2011. For firms to capitalize on this high growth market, taking early steps to improve their financials will have a positive result in the long term,” says Arjun Bhuwalka, project manager at ValueNotes, the company that led the study.

The Return on Equity (RoE) of analytics companies in India was 30% in 2011, as compared to a negligible 3% in 2007, says the report titled “Analytics: Financial Performance Review”.
Financial indicators show that in 2007, the pure-play analytics companies in India urgently needed to take measures to improve their profitabilty and overall performance.

Since then, these companies have successfully improved their financial performance despite the poor economic environment.