Global market research biggies like Nielsen, TNS, IPSOS and Synovate have always been the water hole where all the Market Research Outsourcing (MRO) companies have been going to. Although the water has not dried, the water-hole has indeed become congested and competitive.

The top 25 market research agencies around the world contribute nearly 65% of the global market research revenues and have their presence across all continents. Indeed, that has led MRO companies to target the big guns to establish strong relationships with them. A strong relationship with an established market research agency offers an opportunity to build on the services capabilities of an MRO vendor, build credibility in the buyer market and of course, have a steady cash flow. However MRO vendors are also looking at the small and medium sized research agencies for business.

Although the top 25 global giants offer huge business opportunity, it has always proved a difficult segment to crack.

• Global MR agencies continue to have large internal research teams
• Majority have captive centers spread across the globe

This also limits the offshoring of services for a MRO vendor.

Looking at small and medium sized research agencies means a different approach for a MRO vendor as opposed to a large research agency. If the value proposition for a large research agency is making operations better and leaner, the value proposition for a small and medium sized research agency is about being the operation itself. A small and medium sized research agency generally requires an onshore presence with a team of 7-10 helping the company function and operate at its optimum.

In times of recession when the small and the medium sized research agencies have been severely impacted reduced cash flows, it has become all the more imperative for them to offshore. Although offshoring is not the ultimate solution, it is an effective one in the short run in order to sustain. However it would be interesting to see whether MRO vendors can leverage relationships on a continuous basis, much like large research agencies.