The KPO Market
The great economic success of BPO has given way to many industries to trigger off the process of high-end knowledge work. The main reason is that most companies are looking for access to specialized knowledge processes that are rare to possess.
The KPO market is currently estimated anywhere form $1.3 billion. The growth prospects in future are expected to reach USD 17 billion by the year 2010. The amount of 12 billion USD would be outsourced to India. There have been reports that India will capture more than 70 percent of the KPO sector by 2010.
The trend will be followed by many other countries such as Russia, China, the Czech Republic, Ireland & Israel.
The predictions also say that the cumulative Annual growth rate of low-end outsourcing services will reach up to 26% by 2010. in contrast to this estimation the global KPO market will experience a 46% growth in cumulative Annual growth Rate.
A KPO company cannot measure success in terms of the number of employees. The measurement is totally based on revenue per employee.
India possesses the wealth of highly proficient professionals who have perfect hold over English as an international language. This is the reason that the India KPO sector will reach the size of USD 121 billion by 2010. This amount is equivalent to a market share of about 70%.
UK and US have the biggest markets for KPO due to English language. The widespread NRI community and their expertise with off shoring services to countries like India & China also account for the largest share of KPO in US/UK. However, the shortage of talent in the US to offer KPO services has given India a room to offer these services.
More & more countries are relying on India for offshoring KPO serves as this means offering cost savings amounting to 40 to 50 percent in the areas of research & clinical trials in conjunction with quality work.