INDIAN KPO INDUSTRY

The Indian Knowledge Process Outsourcing (KPO) industry is expected to be worth $10 billion by 2012, according to a report released by the Associated Chambers of Commerce and Industry of India (Assocham).The industry is set to grow at the rate of 25-27 per cent, provided a strong chain of qualified professionals is built, opening up the field for biotechnology and nanotechnology experts, according to the report on a Future Course of KPO Industry.Currently the size of the KPO sector is estimated at $4 billion and it has grown at around 15 per cent in the last few years dominated by professionals belonging to fields such as management, medical and engineering.As per Assocham estimates, a vast pool of highly educated professionals in engineering, medicine, management accountancy and law would be required to serve the industry, which is estimated to employ over 100,000 people by 2012 as against the current number of about 40,000.The KPO sector has the potential to attract professionals as the sector provides higher revenues than the Business Process Outsourcing (BPO) industry. The salaries are also 12-15 per cent higher and even the entry-level earnings are more.Presently, the domestic KPO industry is facing stiff competition from countries like the Philippines, Russia, China, Poland and Hungary as these have qualified KPO professionals, low-cost, domain expertise, location advantage, sales and marketing capabilities and data compliance.