India Knowledge Process Outsourcing Industry expected to touch US$ 30 billion by 2015

India’s KPO market is expected to touch US$30 billion by 2015 from the FY2013 level of US$20 billion, which highlights the fact that KPO industry in India, continues to grow at a CAGR of about 30% annually, according to ASSOCHAM. India dominates the Global KPO industry as it controls the 70% market and industry is seeing good growth despite the economic slowdown that impacted the outsourcing industry as a whole. Growth in the Industry is fueled by demand for profession-based services in areas of research for capital & financial markets, legal works, editing jobs for international publishing houses, analytics, etc. KPOs has also other advantages like better work tools and processes, sophisticated client centricity, higher billing rates & more domain focused organizations. Currently the industry has more than 3.5 lakh professionals specialized in engineering, medicines, management and professionals in the field of accountancy, company secretary and legal fraternity but there still is huge demand for professionals as the industry still needs around 6-8 lakhs professionals by 2015.  Not only HR requirement is an issue but also the fact the KPO industry deals with highly confidential and secured data, India needs to work its data security and privacy laws. The KPO sector deals with confidential data, including financial data, treasury and cash management functions and investment portfolio decisions and needs to address the issue of data security raised by international clients, said Mr. Mr. D S Rawat, ASSOCHAM Secretary General.

Some of the KPOs in India are Evalueserve, Genpact, EXL Service, Copal Partners, WNS, PANGEA3, etc. Availability of highly educated talent, cost arbitrage, favorable government policies, Time Zone advantage, India has become the most attractive location for KPO. Companies like Bain & Co, Mckinsey & Co, Ernst & Young, and KPMG have their own knowledge centres in India. India’s professionals are proficient in KPO software like SPSS, SAS and MS Excel and well trained in advanced analytical, technical and interpretation skills. But industry is facing stiff competition from countries like Philippines, Russia, China, Poland and Hungary as these are emerging strong contenders for KPO business in view of qualified KPO professionals, low-cost advantages, domain expertise, location advantage, sales and marketing capabilities and data compliance, according to ASSOCHAM. Industry have to look at Tier 2 & Tier 3 cities where there is good talent available due to presence of good educational institutions and the companies can work closely with these institutions and train the talent accordingly. With high speed internet penetration, Tier 2 & Tier 3 cities are a good option for KPO Industry players and since KPO work can be done by individuals or small teams – remote work is also possible. KPO companies have to come up with working models that can tap into the isolated resources pools available in smaller towns across India, adds the ASSOCHAM. KPO industry growth will be driven by factors like breadth and depth of coverage, domain expertise, location advantage (e.g., near-shoring & language capabilities), sales and marketing capabilities, data compliance with respect to regulatory standards (especially of USA, Canada & the European Union) and the management of business risks, according to ASSOCHAM. The KPO industry has matured and the range of services being provided has expanded from research and analytics, to a variety of services, such as legal process outsourcing and clinical trial management.