30 percent shortfall in talent will impact KPO business

30 percent shortfall in talent will impact KPO business

By SiliconIndia   |   Tuesday, 20 November 2007, 08:00 Hrs
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New Delhi: An estimated 30 percent shortfall is likely to emerge in the size of knowledge process outsourcing (KPO) business by 2012, which according to Assocham would stagnate at $10.5 billion as against the projected growth of $15 billion, mainly on account of dearth of talented professionals in the absence of relevant institutions for imparting KPO skills in India.

Currently over 260 KPO companies are operating in India. This number will go up to 350 by 2008 with employment opportunities for qualified professionals increasing to 1,00,000. Big players include Genpact, Evalueserve, WNS, 24/7 Customer, EXL, Copal Partners, HCL and Wipro.

The study conducted by Assocham says that over one lakh educated professionals in engineering, medicine, management, finance and law would be required to serve the industry. Countries like Philippines, Russia, China, Poland and Hungary are emerging as strong contenders for the KPO business because of low-cost , domain expertise, location, sales and marketing capabilities and data compliance. Appreciation of Indian rupee is gradually making Indian KPOs less competitive and with rising costs in India.

Domestic KPO industry needs to attract more revenue by entering into partnerships with big financial service organizations. It is difficult for KPO companies to always find qualified, experienced and talented workforce in India. The KPO industry is now facing a supply crunch.

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