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KPO space in India to grow by 25-30 percent a year till 2013

ST Team
Tuesday, July 6, 2010
ST Team
It may be a small part of the overall business process outsourcing sector, but the emerging KPO space in India with a market size of $50-70 million at present is likely to grow by 25-30 percent annually till 2013. According to Gartner, coming from a smaller base, the growth is higher.

Gartner Research Director Tervinderjit Singh said that the growth in the industry is expected to be driven by the rising demand for profession-based services. They include research for capital and financial markets, para legal works, editing jobs for international publishing houses among many others.

KPOs core value propositions are premised on providing business-related analysis and expertise on an ongoing basis rather than transactional business process or technology-based expertise. For example, contact centres are a BPO capability, but collections analysis is a KPO analytics service.
In terms of the growing competition from other emerging markets for such services, Singh opines that although other offshoring sites like Philippines and Indonesia are emerging, India is still ahead. Countries like Philippines and Indonesia are still not mature enough in high-level professional work which India can provide.

Though the ongoing European debt crisis is not likely to affect the business volumes of domestic KPOs, the outsourcing firms having more than 30 percent exposure in northern European countries will be facing tough times even as their long-term prospects remain strong. Infact for him, the domestic outsourcing firms should maintain a right geographical balance from the point of view of their client base and opt for multi-shoring of their operations to hedge against such a crisis.
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