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KPO to generate 11-12b revenue
By  Bharat Jain | Published  09/10/2007 | Business |

According to the Evalueserves study, India's top Knowledge Process Outsourcing firm, Indian KPOs will formulate almost 280,000 jobs and by 2010, up-to 11-12 billion revenue. In addition to this, the studyThe Future of Knowledge Process Outsourcing Make or Buy in KPO reveals that India 's ITES development lies in the KPO section. The matter on which experts have been foretelling for the stretch of time.


Evalueserve foresees that the progression of the more promising KPO industry will be parallel to IT industry. Ashish Gupta, COO, Evalueserve held that, they have acknowledged the four phases which cover the commonalities in both the industries.


The appearance of Western captives.

The mounting of Indian firms.

The growth of Indian firms.

The Indian firms exceed captives.


Nevertheless, the elementary differences between both the models are still enduring. At the same time, as the majority of IT firms get dealing from the bigger projects, KPOs are catering to the small and medium ventures (SMEs). Furthermore as SMEs are much more in figures, the growth potential is also higher in relation to IT industry.


In 2010, Buy is going to be the standard engagement model as document implies that KPOs will now likely to trail behind the mature offshore IT services model in the course of a 10-year time shift. The flourishing captives will continue to subsist and nurture, if it cross the significant accumulation of about 300-500 experts.


Gupta declares that by 2010, the number of the SMEs (relying on the captives or third-party KPO service suppliers) is liable to raise from 900 in 2006 to 5,000 an annual growth rate of 50%. Besides, by 2010, KPO services providers are expected to amplify their ability by 55%, whereas the capacity in the captives may possibly be increase by 45%. Particularly in the case of SMEs, rather than setting up of the captives, the share of companies is commencing to work with the Indian companies.


The positive aspect is that in order to propose their services in manifold languages, KPO vendors are now escalating their functions in Latin America and China . Above all, along with the outsized firms which have captives, an additional trend that can come forward is twofold-sourcing (outsourcing their work to their captive and external vendors).


As nearly all of the 5,000 global companies is going to have the distinct policy and are intended for implementing their offshoring strategies at some point. So, SMEs will be the KPO industry's key growth driver consequently.


Nonetheless, in favor of representing about half of the private-sector employment, there are about five million SMEs in US, one million in UK and about four million in continental Europe. Evalueserve guesstimates that of about 10 million SMEs in US and Europe, about 5-10% (0.5-1.0 million SMEs) might gain from KPO services.


In case of language-sensitive work, due to the inadequate aptitude in non-English KPO solutions, European SMEs are going to face the poorer growth. Yet pretending the extremely small engagement sizes, the multiplier are so hefty that KPOs work will be surpassed by SMEs from 5,000 global companies.
Bharat Jain
Author: Bharat Jain Source From:, an outsourcing hub where provider and buyer exchange their needs. Looking to outsource KPO services? Visit  

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