Impact of Investment in Infrastructure in Emerging Markets

Client

Semester

Spring 2012

Accenture has engaged this Capstone team to help them identify business opportunities that may result from infrastructure spending in the emerging economies around the world. The research had 5 objectives:

  1. Provide a mapping for 23 emerging countries and XX infrastructure sectors of the current state and future needs for infrastructure. To help this effort we have benchmarked the different states of infrastructure around the emerging world to that of the US today.  We have estimated absolute needs as the increase in infrastructure it would take for each country to reach US levels.
  2. Identify what countries (government and private sector) are doing to meet those needs in terms of spending priorities. We have obtained total levels of infrastructure as well as annual rates of infrastructure spending for 23 countries across 15 sectors.  We have also compiled a list of “main players” , companies and entities -private and public - in the field of infrastructure both locally and globally.
  3. Create an opportunity/risk “heat map” by combining our own-developed country risk index (which we have customized for specific infrastructure risks) with pools of spending for infrastructure in different countries and sectors. In addition, we have ranked these opportunities by our own developed “Information Technology Intensity Index” given Accenture’s business strength in this area.
  4. Indentify key trends in infrastructure spending in emerging markets. We have identified 10 trends, 3 are global across sectors and 7 are sector or country specific.
  5. To develop a set of preliminary projections of the main infrastructure areas though 2020.
  6. To provide a set of 8 case studies for countries of the highest priority for Accenture as defined in discussions between Accenture and the team.