Rising demand for professional based services is expected to drive the growth of KPO in India

Updated on: Monday, August 05, 2013

India's Knowledge Process Outsourcing (KPO) industry may touch USD 30 billion by 2015 from the existing USD 20 billion, on the back of growing demand for knowledge based services, a study said.

"The rising demand for professional based services is expected to drive the growth in the industry. It would be in areas of research for capital and financial markets, legal and editing jobs for international publishing houses, among many others," according to an Assocham study.

Therefore, it said, a vast pool of highly educated professionals in engineering, medicines, management and professionals in the field of accountancy, company secretary and legal fraternity would be required to serve the sector.

The country would need about 6-8 lakh people in the industry. At present, the sector engages about 3.5 lakh people, the study said.

Considering the situation that there is no dearth of doctors, engineers, MBAs and lawyers in India, the industry is banking on availability of this talented pool to fill up its seats, but now they are facing the supply crunch, it said.

Assocham Secretary General D S Rawat said, "It is the kind of shortfall predicted between target and realistic growth which is worrying. If the industry is unable to sustain the momentum, it is quite possible that other alternative destinations will become attractive for clients."

At present, domestic KPO industry is facing stiff competition from countries like China, Philippines, Russia, Poland and Hungary as they offer services at low costs, have sales and marketing capabilities, domain expertise and location advantage, he added.

Rising demand for professional based services is expected to drive the growth of KPO in India

More Education news