In the recent years, knowledge process outsourcing got a good exposure in India. And thus beside business outsourcing, knowledge process outsourcing has become a good reason for foreign companies to enter the Indian business scenario. KPO or knowledge processing companies basically deal with intellectual work which needs white label support services to complete the high-end tasks. The reason behind the establishment of KPO firms in India is the exchange of intellectual services at low cost.
India is on its way of becoming the hub of knowledge process industry as it boasts of a huge talented workforce making India a top favorite amongst foreign investors. At present India holds about 70% share of the KPO industry in the whole world, the industry is likely to reach $30billion by the end of 2015. Financial services tops the list of services contributing to the growth of the KPO industry in India. Other prominent services include legal outsourcing, payroll, research and analysis, information technology, managerial works, and lots more. Financial services include insurance process, credit or debit card processing, investment banking, equity plans, etc.
The main question remains- Can India will be able to hold its position of top knowledge process service provider?
Other countries such as China and Phillipines are gearing up to grab a good percentage of the business share. They are easily fulfilling the need of qualified workforce which is creating tough competition in India. The growing demand for qualified workforce may exceed the current number of professionals leading to a serious talent shortage. The KPO companies will need 0.60-0.80 million workforce compared to the current number of 0.35 million. The competitor countries like China and Philippines on the other hand is offering low cost services which are attracting the foreign clients pose a serious threat to India’s KPO industry.