The State of Sourcing

The H1N1 virus has created a hubbub since the time it has hit India. With the number of deaths rising in the country, people are doing all that they can to keep the flu away, be it following the doctor’s advise or new found belief in grandma’s home-made flu-be-gone concoctions! Companies around the globe have reacted in a similar fashion to the recession -

• Either following the traditional route entailing cost cutting, laying off employees, curbing marketing budgets or
• looking at a solution that would not only help curb costs but also facilitate revenue growth.

The global market research industry has also seen drastic changes in cost management and according to a recent survey conducted by MarketResearchCareers, research organizations around the world have slashed their budgets by 2.9% for the first half of 2009 along with their total budgetary cuts of 9.5% for the year 2008. As per the research, the most common tools of cost reduction have been layoffs, reduced travel, reduced raises, and reduced conference attendance and participation. So the question arises..is this a pandemic yet or is it an infodemic? Has the market research industry been gravely affected by the recession like the automobile or real-estate sector, or is it just a spillover effect? Most of you would agree with the latter. Market research companies are, however, taking preventive measures to fight off symptoms to avoid being hit by a pandemic.

The challenge for the industry is to evolve with the times and offer more than what is expected. With clients (corporates) demanding more from their contracts, what’s requested most is data that is direct and will impact their business ‘Now’ and not ‘Tomorrow’. For a market research company to sustain growth, its about looking for the right business at the right place and building long term relationships with clients. Although the industry would sustain a flat growth rate for the end of this year, its still definitely better than a negative fall!

- Suheil

Last 5 posts by Suheil

• MR techniques: to socialize or not to socialize - January 13th, 2010
• Market research outsourcing: shift in buyer landscape? - December 29th, 2009
• Market Research: Shift from Reactive to Proactive - December 21st, 2009
• Turnover in market research: Snail paced recovery - November 27th, 2009
• Of global recession and strategic acquisitions - November 20th, 2009