Published by Evalueserve
Knowledge Process Offshoring (KPO) A Win-Win Situation
Indian KPO sector, with revenues of 0.72 billion in 2003, accounted for
56% of the global KPO sector. According to Evalueserve, share of Indian
KPO sector is expected to increase to 71% of the Global KPO sector, with
revenues of USD 12 billion, by 2010.
Evalueserve estimates that the Indian KPO market is expected to grow at
a CAGR of 49.5 percent between 2003 and 2010, compared to a CAGR of 30.6
percent for Indian BPO market, and a CAGR of 44.5 percent for global KPO
market over the same period.
The service sector accounted for 51 percent of Indias GDP in 2003,
much higher than 28 percent in 1950 and also one of the highest among
the developing economies. Evalueserve estimates that the share of service
sector is expected to rise to 57 percent in 2010 and the phenomenal growth
of IT software and services sector has remained one of the major components
of the Indian service sector growth.
Outsourcing of high-end jobs is a win-win situation for both the end client
and the KPO vendor. Evalueserve analysis shows a positive change in the
cost structure of the clients (cost-cutting of as much as 40-70 percent)
due to outsourcing of jobs to low- cost destinations like India.
India with its large pool of chartered accountants, doctors, MBAs, lawyers
and research analysts, is expected to dominate the KPO sector along with
the BPO sector. In fact, Indias edge in providing KPO services will
help it stay way ahead of other low-cost outsourcing destinations in the
global outsourcing market.
There are immense opportunities in high-end KPO for Indian firms. The
potential high-end opportunities are in the areas, such as pharmaceuticals,
investment banking, market research and competitive intelligence, bioinformatics,
data search, integration and management.
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