The KPO sector is growing at the rate of 50 to 60% per annum, and within it, the LPO sector is growing at 100%. There are over 100 KPO in India with approx 1lakh employees. In the coming years, this sector is expected to be as big as the BPO sector and create opportunities for over 5lakh professionals. The KPO sector has opportunities for professionals like doctors, lawyers, MBAs, accountants, scientists, and so on.
Overview about Knowledge Process Outsourcing (KPO):
The success in outsourcing business process operations to India has encouraged many firms to start outsourcing their high-end knowledge work as well. Cost savings, operational efficiencies, access to a highly talented workforce and improved quality are all underlying expectations in off shoring high-end processes to India. This talent is soon being discovered and tapped by leading businesses across the globe resulting in the outsourcing of high-end processes to low-wage destinations. Hence Knowledge Process Outsourcing involves off shoring of knowledge intensive business processes that require specialized domain expertise. Challenges with the Indian IT and ITES service providers, it is not surprising that India has been ranked the most preferred KPO outsourcing destination owing to the country's large talent pool, quality IT training, friendly government policies and low labour costs. India is well equipped to meet this emerging sector's challenges and all set to be the global KPO hub.
Future expectancy of global job Opportunities:
The Indian KPO sector is expected to employ more than 2,50,000 KPO professionals by 2010, compared with the current figure of 25,000 employees. A report by E value serve predicts that India will capture more than 70 percent of the KPO outsourcing sector by 2010. Apart from India, countries such as Russia, China, the Czech Republic, Ireland, and Israel are also expected to join the KPO industry.
Challenges in the KPO Sector:
Some of the challenges involved in KPO are listed below:
1. Higher quality standards,
2. Investment in KPO infrastructure,
3. Lack of talent pool,
4. Requirement of higher level of control,
5. Confidentiality and
6. Enhanced risk management.
Comparison of Opportunity in BPO and KPO markets:
Low-end outsourcing services have an expected Cumulative Annual Growth Rate (CAGR) of 26% by 2010. In contrast, the global market is poised for an expected CAGR of 46% by 2010. The following figure demonstrates the expected growth in the BPO and KPO markets over the next seven years.
Basic skills required:
The work in a KPO unlike that in a BPO is judgement based and requires analytical skills. For instance,
· A person with a medical background would evaluate patent applications
· A MBA would prepare business and financial reports.
Career ladder and Remuneration:
A professional with basic qualifications starts at Rs3lakhs and makes up to Rs20lakhs, per annum
Qualifications:
Qualifications like MBA, Diploma in finance, LLB, CA, MBBS are in demand.
Institutes conducting KPO course:
Professionals with domain knowledge but lacking communication and managerial skills and the know how of working in a KPO model are given in house training by corporates after they are hired.
Overview about Knowledge Process Outsourcing (KPO):
The success in outsourcing business process operations to India has encouraged many firms to start outsourcing their high-end knowledge work as well. Cost savings, operational efficiencies, access to a highly talented workforce and improved quality are all underlying expectations in off shoring high-end processes to India. This talent is soon being discovered and tapped by leading businesses across the globe resulting in the outsourcing of high-end processes to low-wage destinations. Hence Knowledge Process Outsourcing involves off shoring of knowledge intensive business processes that require specialized domain expertise. Challenges with the Indian IT and ITES service providers, it is not surprising that India has been ranked the most preferred KPO outsourcing destination owing to the country's large talent pool, quality IT training, friendly government policies and low labour costs. India is well equipped to meet this emerging sector's challenges and all set to be the global KPO hub.
Future expectancy of global job Opportunities:
The Indian KPO sector is expected to employ more than 2,50,000 KPO professionals by 2010, compared with the current figure of 25,000 employees. A report by E value serve predicts that India will capture more than 70 percent of the KPO outsourcing sector by 2010. Apart from India, countries such as Russia, China, the Czech Republic, Ireland, and Israel are also expected to join the KPO industry.
Challenges in the KPO Sector:
Some of the challenges involved in KPO are listed below:
1. Higher quality standards,
2. Investment in KPO infrastructure,
3. Lack of talent pool,
4. Requirement of higher level of control,
5. Confidentiality and
6. Enhanced risk management.
Comparison of Opportunity in BPO and KPO markets:
Low-end outsourcing services have an expected Cumulative Annual Growth Rate (CAGR) of 26% by 2010. In contrast, the global market is poised for an expected CAGR of 46% by 2010. The following figure demonstrates the expected growth in the BPO and KPO markets over the next seven years.
Basic skills required:
The work in a KPO unlike that in a BPO is judgement based and requires analytical skills. For instance,
· A person with a medical background would evaluate patent applications
· A MBA would prepare business and financial reports.
Career ladder and Remuneration:
A professional with basic qualifications starts at Rs3lakhs and makes up to Rs20lakhs, per annum
Qualifications:
Qualifications like MBA, Diploma in finance, LLB, CA, MBBS are in demand.
Institutes conducting KPO course:
Professionals with domain knowledge but lacking communication and managerial skills and the know how of working in a KPO model are given in house training by corporates after they are hired.
