Emerging City Report - Atlanta (2014) Sample Report

Emerging City Report - Atlanta (2014) Sample Report explore@researchfox.com +1-408-469-4380 +91-80-6134-1500 www.researchfox.com www.emergingcitiez.com 1

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. Disclaimer : This report is furnished to the recipient for information purposes only. Each recipient should conduct their own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of ResearchFox Consulting Pvt.Ltd. contained in this report for any purpose. ResearchFox Consulting Pvt. Ltd. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions there from. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of ResearchFox Consulting Pvt.Ltd. Copyright 2015. ResearchFox Consulting Private Limited 2

Table of Contents 1. Introduction 1.1. Research Overview 1.2. Objective and Scope 1.3. Research Methodology 1.4. Executive Summary 1.5. Key Takeaways 1.6. Key Definitions 2. City - At a Glance 2.1. Demographic Overview 2.2. Govt. & Industry Highlights 2.3. Market Highlights 3. IT-BPM Talent Overview 3.1. IT-BPM Evolution 3.2. Workforce Analysis 3.3. IT-BPM Ecosystem 3.4. IT-BPM Talent Pool Insights 4. Talent Ecosystem - Industry 4.1. Installed Talent Pool 4.2. Company Analysis 4.3. C&B Analysis 4.4. Contract Staffing Analysis 4.5. Diversity Analysis 5. Talent Ecosystem - Education 5.1. Upcoming Talent Pool 5.2. College Analysis 5.3. Talent Pool Growths & Trends 5.4. Training Ecosystem 5.5. University Ecosystem 5.6. Placement Ecosystem 6. Industry Connect Ecosystem 6.1. IT-BPM Parks 6.2. SEZ 6.3. Industrial Collaboration 7. Macro & Micro Parameters 7.1. Quality of Life 7.2. Healthcare Ecosystem 7.3. Recreation and Culture 7.4. Government & Politics 7.5. Business Continuity & Risks 7.6. Connectivity 7.7. Investment Policies 8. Cost Analysis 8.1. Cost of Living 8.2. Utility Cost Analysis 8.3. Infrastructure Analysis 9. List of Tables 10. List of Charts 3

List of Tables Table 1: Objective and Scope Table 2: Research Modeling Table 3: Interviews Conducted Table 4: Demographics Overview Table 5: Sector wise contribution of GDP (%) Table 6: IT-BPM Evolution Table 7: Industry Presence Table 8: Education Ecosystem Table 9: Human Resource Table 10: Infrastructure Table 11: IT-BPM Parks Table 12: SEZ Table 13: Industrial Collaboration Table 14: Air Connectivity Domestic Table 15: Air Connectivity IT-BPM Parks Table 16: Air Connectivity Vicinity Table 17: Air Connectivity Global Table 18: Details of Index List of Charts Chart 1: Workforce Analysis Chart 2: Installed Talent Pool Chart 3: Distribution of IT/Technology companies by type Chart 4: Distribution of IT/Technology companies by Business Area Chart 5: C&B Analysis Chart 6: Contract Staffing Analysis by Company Type Chart 7: Diversity Analysis by Company Type Chart 8: Upcoming Talent Pool Analysis Chart 9: Distribution of Colleges Chart 10: Distribution of Colleges by Utilization % Range Chart 11: Talent Pool Growths & Trends Chart 12: Course wise Training institute Chart 13: Analysis of Training Institutes by type Chart 14: University Ecosystem Chart 15: Placement Analysis Chart 16: Average Salary Packages offered during Placement Chart 17: Distribution of Expenses 4

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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 Atlanta affords excellent growth opportunities. This report explores and analyzes potential of Atlanta for following parameters: Demand and supply of talent (Lateral and Fresher/Upcoming) Cost reduction factors IT-BPM Industry and Business Ecosystem Infrastructural 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 Atlanta 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: Talent Talent Pool Analysis a. Upcoming/fresher Talent pool from educational institutions b. Installed/Lateral Talent pool from the industry Compensation Analysis (C&B Analysis) Training Institutions Ecosystem Industry/Association tie-ups Talent Mobility and Location Preferences (Emerging Cities) 6

Infrastructure: Facilities/Infrastructure Availability Accessibility and Connectivity Quality of life, Culture and cultural compatibility Economic Growth factors Government Supports and initiatives Ease of doing business Cost: Infrastructure Costs Utility costs Commercial and Real Estate Cost Tax 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 R & D Development Concept and Design QA/Testing Support ADM SAP IT-BPM Industry IT services BI IMS Other ERP CRM Microsoft Dynamics SCM Oracle Other IT Services BPM Voice Non Voice Education Training Engineering Computers Management Arts Commerce Science Authorized Training Institutions Unauthorized Training Institutions Diploma, BE/B.Tech, ME/M.Tech BCA, MCA BBA/BBM, MBA BA, MA BCOM, MCOM BSC, MSC 7

1.3. Research Methodology To benchmark Atlanta, 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 Atlanta 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 Sample Size Target Geographies Target Group Quantitative/Qualitative Research 200 Industry Participants Global Emerging Cities (Tier II and Tier III cities) 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 Information Areas Respondent % of Interviews 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 Triangulation Data 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 used Documentation review and analysis Interviews (Telephonic + Face to Face) Placement co-ordinator interviews and Focus group 8

1.4. Executive Summary Background to the Report IT-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 cities The 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 cities Local 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 Cities Some 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. 9

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 Atlanta, 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 Atlanta. Helps HR leaders formulate retention strategy and curb talent mobility. Provides insights into talent infrastructure and capabilities available in Atlanta 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 Atlanta. 10

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 etc CONCEPT 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 worldwide Tier II Company: Company with range of 501 to 5000 employees worldwide Tier III Company: Company with less than or equal to 500 employees worldwide Tier I College: Institute of National Importance, Autonomous Colleges and other Colleges which were established before 1991 Tier II College: Colleges which were established in the year, ranging from 1991 to 2005 Tier III College: Colleges which were established after 2005 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. 11

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. State University: State universities are the universities that are run by the state government of each state and territory of India, and are usually established by a local legislative assembly act. Central University: A Central University or a Union University in India is established by Act of Parliament and are under the purview of the Department of Higher Education in the Union Human Resource Development Ministry. Open University: Open University is a university of distance education that provides courses mainly by broadcasting and/or correspondence. Institutes with National Importance: Institutes with National Importance are the prominent educational institutes like IITs and IIMs. Private University: Private universities are the universities approved by the UGC, that can grant degrees, but they are not allowed to have off-campus affiliated colleges. Deemed University: Deemed university or Deemed-to-be-University, is a status of autonomy granted by the Department of Higher Education in the Union Human Resource Development Ministry, on the advice of the UGC, under Section 3 of UGC Act, 1956. Accordingly, the status allows full autonomy to the university with respect to courses, syllabus, admissions and fees. Upcoming Talent Pool: Upcoming Talent Pool is the number of final year students passing out from the educational institutes, during the current academic year. Installed Talent Pool: Installed Talent Pool is the number employees already working in the IT-BPM industry for a given specific skill. Arts: Arts Course includes the stream of academic programs related to any form of Arts, like BA and MA. Commerce: Commerce Course includes the stream of academic programs related to Commerce, like B. Com and M. Com. Science: Science Course includes the stream of academic programs related to any form of Science, like B. Sc and M.Sc. Computers: Computers Course includes the stream of academic programs related to Computer Application, like BCA and MCA. Engineering: Engineering course includes the stream of academic programs related to all the engineering technologies and sciences, like Diploma engineering, B.E./B.Tech, M.E./M.Tech. Management: Management Course includes the stream of academic programs related to Management and Administration, like BBA, BBM, MBA, PGDM etc. Others: Other Course includes all the stream of academic programs except the mentioned courses (viz, Arts, Commerce, Science, Computers, Engineering and Management) like ITI, JOC, BHMS, MBBS etc. IT Body: IT Body is a type of an industrial body or association which primarily works on development of the IT-BPM industry. Traders/Merchants/Dealers: Trader/Merchants/Dealers Association is a type of an industrial body or association which primarily works on development of the overall economic aspects of the traders, merchants and dealers. Development Body: Development Body is a type of an industrial body or association which primarily works on development of infrastructure and other support ecosystem. 12

List of Abbreviations Dev.: Development QA: Quality Assurance R&D: Research and Development BPM: Business Process Management ERP: Enterprise Resource Planning PES: Product Engineering Services ADM: Application Development and Maintenance IMS: Infrastructure Management Services BI: Business Intelligence CRM: Customer Relationship Management SCM: Supply Chain Management C&B: Compensation and Benefits GDP: Growth Domestic Product FTE: Full time employees JOC: Job oriented courses AICTE: All India Council for technical education CAGR: Compound Annual Growth Rate NASSCOM: National Association of Software and Services Companies NAC: NASSCOM Assessment of Competence EOU: Applicable for Export Oriented Units SEZ: Special Economic Zone STPI: Software Technology Park of India FSI: Floor Space Index 13

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 14

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