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Smaller BPOs to feel the heat of downturn
By siliconindia
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Thursday, 09 April 2009, 19:34 IST |
7 Comments
Pune: "The ongoing economic crisis may hit so badly the smaller outsourcing companies that they may have to shut shop or larger players may take over them," said Lokendra Tomar, COO, Asia Pacific Region, Integreon. Tomar believes that U.S. and UK, major markets for outsourcing, will continue to be so and countries like Germany, Australia and Canada will emerge as potential markets for outsourcing.
According to Tomar, the high-end knowledge service comprised market research outsourcing (Knowledge Process Outsourcing - KPO) and legal processing outsourcing (LPO). "The growth in legal services outsourcing would be higher and noticeable. An example from Document Review services, which are delivered from offshore and is one of the major revenue generating components for LPOs, would illustrate the cost saving potential for law firms," opined Tomar. The billing rate for document review in the U.S. is $200 an hour, whereas in India it amounts to just $25-30 an hour.
Nasscom has forecasted that the overall KPO industry may reach at $17 billion by 2010, of which $12 billion would be outsourced to India.