According to an Assocham ( Associated Chambers of Commerce and Industry of India) report, the Indian KPO industry is expected to be worth $10 billion by 2012, growing at 25-27%. Currently, the size of the KPO sector is estimated at $4 billion and it has grown at around 15 % the past few years.

The report also estimates that by 2012, this industry will employ close to 100,000 professionals as compared to approximately 40,000 at present. Potentially, the sector is quite attractive due to higher revenues as compared to BPOs, and the salaries are also several notches higher. I’ve met several candidates from different fields and backgrounds, all now keen to hop on to the KPO bandwagon as the “next big thing”.

The Indian KPO industry however faces tough competition from Philippines, Russia, China, Poland and Hungary, which have qualified professionals, low-cost, domain expertise, location advantage, sales and marketing capabilities and data compliance, whereas Indian KPOs need to gear up on their SLAs to provide quality services.

The biggest threat in our case is of course, is proper data security where we are always found wanting, and with all the credit card / financial frauds involving Indian BPOs, foreign clients are obviously concerned about outsourcing anything to India that is related to confidental financial information.

 

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