Hi Everyone,

Good evening!

I’m Yash Bhojwani and would like to present my research and recommendations on the topic

“To study and analyze India as new backoffices of the world and to identify visible opportunities for
HP”

Slide 1:

Starting off with macro environment analysis, figured out that Across most industries be it
consumer, energy resources and industrial products, financial services, telecom media and
entertainment etc India continues to be the top preferred location for Shared service centers . Post
covid 19, Global business service and shared service model are evolving and increasing shift is
observed

This data is basis my secondary research done from various sources- Deloitte papers, Gartner papers,
etc

Basis survey done by Gartner on outsourcing organization on emloyees, 42% want hybrid model and
hence increasing demand of PC, printers in offices and home will be observed

Slide 2:

Further deep diving to sector wise study to understand what is the contribution of outsourcing in
each sector

IT, Tax and HR outsourcing continue to grow year on year. Surprisingly post 2019, outsourcing is
most leveraged by Payroll sector which observed 80% contribution for outsourcing followed by
customer service or contact center function with with 73% in 2021

To analyse further, I made size vs penetration table, which we can see here. If we study further size
vs penetration of these outsourcing functions, IT falls in high size and high penetration, Finance and
HR in high size and moderate penetration which continues to grow YOY and hence HP maket
leadership to be continued in these functions

High size low penetration functions are payroll, customer service, real estate etc. where area of
opportunity is immense for market leader HP and hence further detailed study on these sectors
done in subsequent slides.

Slide 3:

Also tried studying HPs revenue potential in laptop in India’s backoffices.

As per Livemint report, currently there are 4 mn employee workforce in India backoffices all
combined

Demand is studied in 2 types – Replacement and new demand

Replacement demand- on an avg laptop to be replaced in a company in avg 3 years (basis primary
research )
Hence approx 1/3rd of 4 mn employees, approximately 13.5 lacs employee replace laptop every year

Backoffice in India growth is assumed to be 25% in FY21-22 and 20% in FY 22-23 and further 15% and
10% as conservative approach

Employee growth accordingly taken

New Demand is calculated basis employee growth which is 6 lacs new employee

Hence total addressable market is 19.5 lacs of laptop, per laptop on an avg costs Rs 70k, hence total
revenue can which is being generated is 13,650 crores

HP current market share is 28.5% (Livemint) with on an avg 5% YOY growth (conservative approach)
total anticipated revenue from total addressable market is approx. 3890 cr with CAGR of 9%

Slide 5

Analysing further outsourcing