Recent News and Events

December 2008
Consumer Sentiment Continues to Drop Due to Broad-Based Slowdown in the Indian Economy

Economic conditions, employment conditions, consumer spending, and expectation of decline in household income drove the overall decline in consumer sentiment; inflation-related sentiment recorded significant rise in the past month

Boston Analytics released the Boston Analytics Consumer Sentiment Index (BACSI) for India for the month of November 2008. The BACSI, a monthly barometer of Indian consumer opinion regarding the current state and future expectations of the macro economy, household financial conditions and consumption, declined 2.6% for November to 81.8. The survey is now conducted across thirteen cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Nagpur, Kochi, Lucknow, Jaipur, Chandigarh, and Bhubaneswar.

Disaggregation of the data reveals that the primary drivers of the decline in consumer sentiment were decreases in respondent’s confidence in the observed and expected state of the economy. Low job security in the wake of the global economic meltdown was a significant contributing factor to the falling BACSI. More respondents are reporting a fall in household income both on observed and expected basis compared to previous months. Sentiment pertaining to consumer spending continues the persistent dismal decline; however, the BACSI Inflation Sentiment Index has shown significant improvement in the last month as inflationary fear subsides among respondents.

"The urban consumer in India continues to express significant concern about the future of the Indian economy,” said Sam Thomas, Ph.D., Boston Analytics’ director of research and development. “The primary drivers of the decline in sentiment are broad based and appear to be building in momentum on the downside. These fears of continued weakness in the state of the general economy can turn self-fulfilling if monetary and fiscal authorities don’t respond rapidly to them. In particular, there is a marked declining trend in consumer spending plans."
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Overall consumer sentiment remains unchanged in October due to economic, employment, and consumer spending factors; however, improved inflation sentiment reflects recent moderation in commodity and crude prices

Boston Analytics released the Boston Analytics Consumer Sentiment Index (BACSI) for India for the month of October 2008. The BACSI – a monthly barometer of Indian consumer opinion regarding the current state and future expectations of the macro economy, household financial conditions and consumption – stood at 84 for October, unchanged from the previous month’s reading. October’s survey has been extended to 11 cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Nagpur, Kochi, Lucknow, Chandigarh, and Jaipur.

Disaggregation of the latest survey data reveals weakness in respondents’ confidence in the general economy and in employment conditions. Sentiment related to consumer spending fell for the fourth consecutive month indicating cautious spending in reaction to recent global financial turmoil. Sentiment related to inflation improved in October due to moderation in commodity and crude prices in the past few weeks.

"The urban consumer in India continues to telegraph significant concern about the future of the Indian economy," said Sam Thomas, Ph.D., Boston Analytics’ director of research and development. "The primary drivers of the declining sentiment were fears of continued weakness in the state of the general economy and a marked declining trend in consumer spending plans."
>> Read the complete announcement
>> See media coverage of Boston Analytics India Watch reports
>> Learn more about Boston Analytics India Watch

Economic conditions, employment conditions, and consumer spending drive decline in overall consumer sentiment in September

Boston Analytics released the Boston Analytics Consumer Sentiment Index (BACSI) for India the month of September 2008. The past month registered a 6.6% decrease in the BACSI, a monthly barometer of Indian consumer opinion regarding the current state and future expectations of the macro economy, household financial conditions and consumption. The index is based on a monthly survey which targets a diverse set of Indian consumers across nine cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Chandigarh, Nagpur, Kochi, and Jaipur.

The BACSI for the month of August stood at 84.0, down 6.6% from the previous month’s reading of 89.9. Disaggregation of the data reveals that the primary drivers of the decline in consumer sentiment were decreases in respondents’ confidence in the economy and in employment conditions. Sentiment related to consumer spending fell sharply in September, signaling a low key festival holiday season ahead.

"The urban consumer in India continues to signal significant concern about the future of the Indian economy,” said Sam Thomas, Ph.D., Boston Analytics’ director of research and development. “What is particularly noteworthy in the September survey is the fact that the consumer spending sentiment subindex of the BACSI registered a significant decline, falling below 100 for the first time this year. The consumer spending sub-index had been the strongest component of the BACSI since the beginning of the year.”
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Economic conditions, employment conditions, and inflationary pressures drive decline in overall consumer sentiment in August

Boston Analytics released the Boston Analytics Consumer Sentiment Index (BACSI) for India for August 2008. The past month registered a 3.5% decrease in the BACSI, a monthly barometer of Indian consumer opinion regarding the current state and future expectations of the macro economy, household financial conditions and consumption. In an effort to capture the country’s heterogeneity, the BACSI’s August survey has been extended in terms of both geographic coverage and sample size and is now conducted across seven cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Chandigarh, and Nagpur.

The BACSI for the month of August stood at 89.9, down 3.5% from the previous month’s reading of 93.2. Disaggregation of the data reveals that the primary drivers of the decline in consumer sentiment were decreases in respondents’ confidence in the economy and in employment conditions. Sentiment related to inflation has remained pessimistic since the beginning of the year, but fell sharply in August. Despite observed and expected increase in household income, the Consumer Spending Index recorded a marginal decline in August.

"The urban consumer in India is clearly telegraphing significant concern about the future of the Indian economy," said Sam Thomas, Ph.D., Boston Analytics’ director of research and development. “Every sub-index within the BACSI composite index registered a decline in August. The primary drivers of the declining sentiment were fears of runaway inflation and concern about employment conditions."
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“Automotive Industry in India” report is based on findings derived from the proprietary Boston Analytics Consumer Sentiment Index (BACSI) surveys

Boston Analytics announced the release of its “Automotive Industry in India” report as a part of the series of monthly reports that analyze consumer observations and sentiments regarding a specific sector. These reports are based on the results of monthly surveys for the Boston Analytics Consumer Sentiment Index (BACSI) for India. The new Syndicated Research Report focuses on India’s automotive industry and captures consumer responses to questions in areas including vehicle ownership patterns, prices of vehicles and vehicular traffic, customer preferences and buying behavior, cost of owning a vehicle, infrastructure for vehicles, consumer confidence in public transport, and sources of automotive-related information.

"The heterogeneity in preferences across metropolitan cities in India is fascinating,” said Sam Thomas, PhD, director of research and development, Boston Analytics. There are noticeable differences in cities in vehicle ownerships patterns, car purchase preferences, and buying behavior. For example, ownership of a motorized vehicle within our sample is nearly universal in Delhi and Chennai, both of which have relatively underdeveloped public transportation systems. Approximately 90% of the respondents in both Delhi and Chennai, and 60% in Mumbai and Kolkata, own a vehicle.
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>> Read the Automotive Industry in India report executive summary
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Declining confidence in job security, household income, and economic conditions drives decline in overall July 2008 Boston Analytics Consumer Sentiment Index for India

Boston Analytics today released the Boston Analytics Consumer Sentiment Index (BACSI) for India results for the month of July 2008. The past month registered a marginal 3.8% decrease in the BACSI, a monthly barometer of Indian consumer opinion regarding the current state and future expectations of the macro economy, household financial conditions and consumption. In an effort to capture the country’s heterogeneity, the BACSI’s July survey has been extended in terms of both geographic coverage and sample size with the inclusion of Hyderabad. The survey is now conducted across five cities—Delhi, Mumbai, Kolkata, Chennai, and Hyderabad. Disaggregation of the data reveals that the primary drivers of July’s decline in consumer sentiment were decreases in respondents’ confidence in the economy and in employment conditions. Sentiment related to inflation remained pessimistic but improved relative to the June reading, most likely due to the government’s highly visible campaign to combat inflation. Despite the overall composite sentiment index trending down, the consumer spending component remained strong in July.

"It appears that overall consumer sentiment in India is trending lower in a gradual manner, unlike the dramatic declines in consumer sentiment being reported in the United States and Europe," said Sam Thomas, Ph.D., Boston Analytics’ director of research and development. “It is also notable that despite a worldwide slowdown in consumer spending, and continued concerns about inflation, Indian consumer attitudes toward spending remain optimistic, reflecting an upward trend in the BACSI since May.”
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>> See media coverage of Boston Analytics India Watch reports
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Improved attitudes related to job security, household income, and consumption drive a slight increase in the June 2008 Boston Analytics Consumer Sentiment Index for India

Boston Analytics released the Boston Analytics Consumer Sentiment Index (BACSI) for India results for the month of June 2008. The past month registered a marginal 2.9% increase in the BACSI, a monthly barometer of Indian consumer opinion regarding the current state and future expectations of the macro economy, household financial conditions, and consumption. The BACSI for the month of June stood at 96.9, up 2.9% from the previous month’s reading of 94.2. The rise is attributable primarily to the improvement of sentiment related to consumption plans, employment, and expectations about the future state of the economy. However, sentiment related to inflation remained very low and acted as a significant offset.

“The month of June was characterized by the onset of monsoon and tough talk by the government authorities about fighting inflationary pressures,” said Sam Thomas, Ph.D., Boston Analytics’ director of research and development. “The improved sentiment of consumers may have been affected by seasonal optimism and relative confidence about the future impact of the government’s inflation-fighting measures.”
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Total return indices enable investors and money managers to evaluate BSE and NSE stock performance with fair benchmarks and diverse indicators reflecting their investment style; sector profiling maps economic sectors based on pricing factors; Boston Analytics India Market Index gives -5.28% return for May

Boston Analytics released its May edition of Stock Market Diaries to track the Indian stock universe by a diverse range of categories. It is a set of total return indices which includes dividends and asset pricing factor based portfolios that track the Indian stock universe by a diverse range of categories; and cover the broad groups of stocks examined closely by money managers and investment institutions. With the help of Stock Market Diaries, investors will be able to view Indian stocks through a prism of asset pricing factors. Starting with the May Edition, Boston Analytics will provide factor profiles of economic sectors. This report covers the automobile and banking sectors in India. Future reports will cover other economic sectors.

Bears dominated the Indian exchanges in May due to various factors, including the global economy, domestic politics, energy prices, and inflation. The Boston Analytics India Market Index gave a negative return – of -5.28% – during the current period. Investor sentiment was negative regardless of company size. Value stocks have underperformed, while in contrast to the previous month, loser portfolios have outperformed the winner portfolios.
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>> Read the May 2008 Stock Market Diaries report
>> Learn more about Boston Analytics Stock Market Diaries

This monthly updated Consumer Sentiment Index for India is designed to be the most insightful barometer of the macro economy and household financial conditions

The Boston Analytics Consumer Sentiment Index (BACSI) for India is a new monthly barometer of Indian consumers’ changing opinion and expectations towards the macro economy, household financial conditions and consumption. In the context of India’s rapid growth, there is need for comprehensive periodic assessment of consumer sentiment as a leading indicator of economic conditions to guide policymakers and businesses. The BACSI fills this void, providing a critical gauge of the country’s economy that has heretofore been unavailable. The BACSI is designed to be the most frequently released consumer sentiment index by an independent third party research operation in India.

The BACSI for the month of May stood at 94.2, dropping by 0.8 percent from April's level. The fall in the BACSI reflects an inclination to save more and spend less and is attributable primarily to increasing inflationary concerns. The persistent decline in the BACSI portends a decrease in aggregate demand on the part of the consumers and a possible slowdown in the overall economy.
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>> Read the May 2008 BACSI Executive Summary
>> See media coverage of this announcement
>> Learn more about Boston Analytics India Watch

Boston Analytics Unveils Monthly India Watch Sector-Based Research Reports

“Healthcare in India” is the first sector to be analyzed based on time-series data from Boston Analytics Consumer Sentiment Index surveys; Indian consumers are upbeat about healthcare quality trends but concerned about rising costs

Boston Analytics launched a new series of monthly reports that analyze consumer observations and sentiments of a given sector. These reports are based on the results of monthly surveys for the Boston Analytics Consumer Sentiment Index (BACSI). The inaugural Syndicated Research Report focuses on India’s healthcare sector and captures consumer responses to questions on topics that include health profiles and behavior, insurance, medications, diagnostic services, emergency and specialist care, and access to healthcare information. According to the results of May’s survey, the Indian consumer is very optimistic about trends in the quality of healthcare in the country, but concerned about healthcare costs. Half of Indians surveyed were covered by healthcare insurance, and four out of five rely primarily on physicians for their healthcare information.
>> Read the complete announcement
>> Read the May 2008 BACSI Executive Summary
>> See media coverage of this announcement
>> Learn more about Boston Analytics Syndicated Research Reports

Boston Analytics Launches Stock Market Diaries with ‘Boston Analytics India Market Index’ and Tradable Style Investment Portfolios

Total return indices enable investors and money managers to evaluate BSE and NSE stock performance with fair benchmarks and diverse indicators reflecting their style of investment; Boston Analytics India Market Index gives 5.40% return during for mid-April to mid-May period

Boston Analytics launched its Stock Market Diaries to track the Indian stock universe by a diverse range of categories. The Stock Market Diaries consist of a set of total return indices which include dividends and asset pricing factor-based portfolios. These indices cover the broad groups of stocks examined closely by money managers and investment institutions, enabling evaluation of stock performance with fair benchmarks and a diverse set of indicators that better reflect their preferred approach to investing.

The Boston Analytics India Market Index gave a return of 5.40% during the current period. Among the observations for this period, in market capitalization sorted portfolios, the smaller market cap portfolios outperformed the larger market cap portfolios for the current period and also on YTD return basis. In valuation (price-to-book) sorted portfolios, the high book value relative to price portfolios outperformed the low book value portfolios. The top half of the momentum sorted portfolios performed better than the last month, suggesting that momentum stocks are again picking up pace.
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March 2008
Boston Analytics Names Max Senechal COO

CRA International Veteran to Help Manage Rapid Growth of Knowledge Services Firm

Boston Analytics announced that Max Senechal has joined its executive team as chief operating officer. In this role, Senechal will help Boston Analytics scale its operations to handle rapid growth while maintaining operational continuity and preserving its spirit of innovation. He will spearhead Boston Analytics’ two-year growth plan that includes the cultivation of a workforce consisting of 1,000 high-end researchers and analytical support staff members. Senechal will also be responsible for the firm’s long-term IPO planning and execution strategy. In a related move, Boston Analytics Co-Founder Ted Thorbjornsen has been named chief analytical officer. In this role, Thorbjornsen will focus on pioneering new research analytics products and services that can be applied to the firm’s core industry segments.
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Boston Analytics Expands Healthcare Practice

20-Year Industry Veteran Helena Long Appointed Vice President and Practice Co-Leader

Boston Analytics announced it has expanded its Healthcare Practice to help companies within the industry adjust to, and capitalize on, rapidly shifting paradigms that include increased global competition, considerably more outsourcing of R&D and manufacturing to lower-cost nations and emerging "pay-for-performance" schemes. As part of this expansion, Boston Analytics has hired Helena Long, vice president of business research and analytics, to serve as co-leader of the practice with fellow Vice President Kimberlee Luce. Long joins an experienced team that includes Chairman of the Board Partha Ghosh and Senior Project Manager Valerie Kuo.
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February 2008

Boston Analytics' Healthcare Leaders Highlight the Value-Enhancing Benefits of Global R&D Outsourcing

"Opportunities Beyond Cost Savings: Maximizing the Strategic Value of Global R&D Outsourcing," by Partha Ghosh and Kimberlee Luce, published in the January/February 2008 issue of Contract Pharma magazine

With the globalization of the pharmaceutical industry, most of the arguments for research and development (R&D) outsourcing have focused on the cost-saving benefits that U.S.-based pharmaceutical firms can enjoy if they outsource their R&D. Much less discussed are the more strategic, value-enhancing benefits of global R&D outsourcing -- new drug discoveries, patient recruitment, new market opportunities unique to local environments and even potential new sources of funding. Indeed, in an industry where R&D expenses comprise roughly one-third of total costs, we have reached a point of inflection where R&D management has to be viewed with a fresh perspective.
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January 2008
Boston Analytics Senior Advisor Tarun Khanna Authors New Book on Entrepreneurship in China and India

Renowned Author and Expert on Indian and Chinese Entrepreneurship Explores Impact of “Billions of Entrepreneurs” on Global Business and Culture

January 22, 2008 – Boston Analytics Senior Advisor Dr. Tarun Khanna has published a new book titled “Billions of Entrepreneurs: How China and India are Reshaping Their Futures – and Yours.” His book explores where Western companies can participate in this stage of India and China’s developments. By revealing where these courses overlap and complement one another – and where they diverge and compete – Khanna illustrates what these two countries can learn from each other and also how those lessons will affect business, politics and society in North America.
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>> Purchase the book at Harvard Business Press