India's Knowledge Process Outsourcing (KPO) industry may touch $10 billion by 2012, if the sector is opened for nano and biotech experts and steps are taken to build a strong chain of qualified professionals, according to a study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Currently, the KPO size is estimated to be around US$ 5.7 billion and the sector has grown at around 15-17 percent in last few years, dominated by professionals belonging to fields such as management, medical, engineering etc. ASSOCHAM says that a vast pool of highly educated professionals in engineering, medicines, management and professionals in the field of accountancy, company secretary, legal fraternity would be required to serve the industry.
According to ASSOCHAM, the domestic KPO industry is facing stiff competition from countries such as Philippines, Russia, China, Poland and Hungary. These countries are seen to be emerging as strong contenders for KPO business in view of qualified professionals, low-cost advantages, domain expertise, location advantage, sales and marketing capabilities and data compliance.
The study noted that the domestic KPO industry will need to tighten its service level agreements to provide quality services and also needs to attract more revenue by entering into partnerships with big financial service organisations. Small and Medium Enterprises (SMEs) are likely to be the major growth drivers for the KPO sector. According to estimates, out of the 10 million SMEs in US and Europe, about 10-12 percent can benefit from KPO services due to reduced complexity, ability to compete effectively with small and large competitors, shorter time to market, higher flexibility, overall lower costs and potentially higher quality for the same costs.
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