KPO India
As one of the leading offshore destinations in the knowledge process outsourcing (KPO) industry, India certainly has much to look forward to in the future. Several organizations and companies have released studies predicting the likely path the KPO India based companies will take, the market share the country will enjoy, and the possible areas for improvement, among other things.
The National Association of Software and Services Companies (NASSCOM), an organization that represents the Indian software industry, released a report indicating that the KPO industry will reach around USD 17 billion this year, KPO India based companies enjoying more than 70 percent of the global market share. The report also indicated that the other countries expected to join the KPO industry includes China, Russia, Ireland, Israel, and the Czech Republic. Also, NASSCOM predicted that most business process outsourcing will become knowledge-based, a significant shift from process oriented to knowledge and expertise oriented business processes.
Evalueserve, a knowledge process outsourcing company, conducted a study predicting that the global KPO industry will grow from USD 1.2 billion in 2003 to USD 17 billion this year while the low-end outsourcing services market is expected to grow from USD 7.7 billion to USD 39.8 billion. KPO India based companies were lauded in the same study as the ones that provide high quality manpower at the most cost effective prices. The Evalueserve white paper also noted the difference between the salary ranges of those in the BPO industry and KPO service providers. Evalueserve foresees a boom in the KPO industry brought about by a lack of specialized manpower in developed countries – the kind of specialized talent they can get offshore at lower costs.
Outsource2India, a Bangalore-based outsourcing company, reports that recently the process outsourcing industry has been focusing more on getting skilled professionals like doctors, engineers, accountants, and architects into talent pools. According to the report, the BPO industry has evolved from data entry and call center jobs to more specialized areas that require skills, expertise, and experience. KPO Indian based firms can capitalize on knowledge based projects like intellectual property research which is rather expensive in the United States. According to the study, outsourcing a portion of the patent drafting and filing process can save a lot of money for companies who rely heavily on innovation and new inventions.
Outsource2India also indicated that KPO India based companies can profit from the amount of outsourced research and development, especially in pharmaceuticals and biotechnology. KPOs can also take advantage of the demand for skilled workers in other industries.
At any rate, it’s a win-win situation for both the KPO India based firms and companies looking to outsource some of their knowledge based processes. The KPO service provider generates income while the company can get quality service at a fraction of the price they would pay for in-house talent. Considering the enormous potential for growth and expansion, KPO India based companies will need to broaden their talent pools and maintain the high quality of service they already provide.