India dominates the Knowledge Process Outsourcing Market and is expected to continue to grow till 2015.

1. Analysis & Outlook
India Knowledge Process Outsourcing Industry expected to touch US$ 30billion 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 aCAGR
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 ofUSA, 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.
Rajesh Prabhakar
Analyst Bio @ http://itbizcharts.blogspot.com/