Regardless of the slowdown, Knowledge Process Outsourcing (KPO) industry in India is flourishing at an impressive compound annual growth rate of almost 30% per annum. The overall market size of Indian KPO industry has touched over $20billion and currently, India caters to more than 70% of the global KPO industry. According to ASSOCHAM, if this growth momentum continues, the growth rate will soon cross $30 billion by the year 2015.
ASSOCHAM has recently introduced a paper on ‘Current scenario of Indian KPO Industry’. According to the report, the ever rising demand for outsourcing services is likely to instill growth in the Indian KPO industry in fields of research for financial markets, legal work, capital, editing jobs and lots more. Some of the popular KPO services provided in India are- Financial research, Business research, Market research, equity research, Intellectual property research, financial research, legal research, medical research, research in pharmaceuticals, research in biotechnology, research reports, etc.
India is considered as the best outsourcing destination as almost all kind of research activities can be easily outsourced to India. Moreover, India has large number of post graduates as well as PhDs / MBAs with proficiency in KPO. According to ASSOCHAM Secretary General, Mr. D S Rawat, the current domestic KPO market is experiencing tough competition from several countries such as Philippines, China, Russia, Hungary and Poland. These countries are emerging as strong rivals in KPO industry, in terms of qualified KPO professionals, domain proficiency, affordability, data compliance, sales skills, marketing capabilities and location advantages. ASSOCHAM further says that a huge team of highly skilled professionals in the field of medicine, engineering, management, accountancy, legal fraternity and company secretary will be required for serving the KPO industry. According to a rough estimation the number should be within the range of approximately over 6 to 8 lakhs against the existing number of 3.5 lakhs.
Mr. D S Rawat further added that it often gets difficult for KPO firms to find proficient and experienced workforce in India. Considering the fact there is no shortage of doctors, engineers, MBAs, and lawyers etc. in India, the KPO industry is now depending solely on the availability of this skilled workforce to fill up the its seats. But presently, these firms are facing the problem of supply crunch. If the KPO industry fails to continue with the momentum, it is probable that the other outsourcing destinations will become ever more preferable for the clients. This is no doubt a threat for the Indian KPO industry and should be treated as a challenge that should be immediately addressed. One of the best ways to solve this crisis is to tap the skilled professionals in smaller cities in India. The method of distributed work can also work wonders for KPO companies.
KPO industry in India is growing by leaps and bounds and the wide array of services provided by KPOs have been increasingly expanding with the growth of KPO industry. ASSOCHAM’s paper reveals that in the coming times, KPO will possibly be driven by factors such as domain expertise, marketing skills, business risk management, sales capabilities, location advantage, language capability and data compliance.
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