Business Research Services India: Importance of Benchmarking Analysis
Every day there are new opportunities and challenges for any company. Globalization has not only opened new doors but also created new hurdles in the market. There are also new challenges and threats for the companies due to emerging competition, changing market conditions and customer preferences and government policies. Business research provides insights in a timely accurate and relevant manner to tackle such difficult situations. Business research services conduct research on the prospective customers, competitors, and the potential markets. Benchmarking analysis is one such research activity undertaken by business research services providers in India.
Business Research Services and Outsourcing industry
The Indian outsourcing industry has grown exponentially since 2000. The industry took advantage of the crisis created by the Y2K bug scare in computer systems during the later part of 1990s. The growth of the internet, falling telecom tariffs and the availability of inexpensive local workforce all contributed to the rise of the Indian outsourcing industry.
Initially, computer-related jobs were outsourced but then progressed to call centers of major western companies, such as banking and insurance and back offices of big western companies shifting to India. High-end outsourcing services such as market research, business research, and legal research too followed.
The measurement of differences in comparative performance between a particular company and its competitors particularly the best performing competitors is called benchmarking. Specific indicators such as cost, time and quality are used to measure performance while benchmarking. By analyzing the benchmarks, business owners are able to increase the performance of their companies by adopting the best practices of their competitors.
A researcher will be able to provide the company with up to date, authorized and reliable benchmarking information and make it easy for the company to understand the financial and operational performance in comparison with the industry leaders thus enabling them to incorporate substantial improvements in their processes aligned to their business objectives of achieving long-term growth and development.
A few of the benchmarking analysis solutions are, process benchmarking, performance benchmarking, financial benchmarking, product benchmarking, functional benchmarking, operational benchmarking, investment benchmarking and strategic benchmarking
The process of benchmarking analysis involves
- Determining the problem areas
- Identifying industries with similar processes
- Determine the leaders in the respective areas
- Conduct surveys to identify measures and best practices
- Visiting companies recognized for best practices
- Recommending strategic plans for improvement
Benchmarking analysis is being widely used as a management tool. In a layman’s language, a benchmarking analysis is similar to a report card showing the marks obtained by one student in comparison to other students.
The importance of benchmarking analysis can be understood when during 1973, Great Britain had ten major domestic television manufacturers but the next year only one manufacturer remained. All the nine of the existing domestic manufacturers were taken over or bought by Japanese television companies. The reason was that none of the domestic manufacturers use world class benchmarking to improve quality and instead paid no attention to quality or costs of foreign companies thus were on the losing side.
Thus, business research services in India through benchmarking analysis help companies to be on the winning side.