Kpos In India What Lies Ahead

With the boom in IT industry, many new terms have been minted and have shaped the business spectrum around the world. Outsourcing is a part of this changing scenario for economy.

With outsourcing, BPO term got the boom and now it is giving place to a new name, KPO (Knowledge Process outsourcing). KPO is the buzzword and is to take the advantages on outsourcing booming conditions. It is estimated that KPO industry can reach somewhere between $12 million and $15.5 million by 2010. These crude statistics mark a growth rate of 40-50% of KPO industry in the next five years.

Future Perspectives

The future for ICT KPOs seems to be bright in the country conditionally the working terms and remunerations for the same are better in comparison to the BPO industry. KPO, as an industry has been around for 10 years and is already established in terms of revenue earnings, headcounts and above all the customer impact. As per the market reviews, the next 5-10 years are going to be even more dramatic in history of KPO industry as firms will scale up, develop new capabilities and bring strategic innovation to their business models.

The KPO industry will see a proliferation and entry of new service providers in the arena. The new opportunities, the expansion in the spectrum for offering services, verticalized offerings and other aspects will for sure help KPO industry to attract a new breed of entrepreneurs, absolutely professionals like lawyers, chartered accountants, doctors, engineers, scientists, etc. into the outsourcing business.

The sector will see a paradigm shift in its offerings of services in the coming next five to ten years that will really define the dynamism of the industry and its relevance. The other big change that KPO industry will face in the few next coming years is the move from an effectiveness focus to an efficiency focus. The KPO firms will make an exemplary shift from the offshore body shopping model to a factory model.

This approach will surely help to reduce the attrition level, breaking the more complex problems into smaller and less complex forms, and to meet more client requirements.

The shift in the industry will consolidate the BPO and KPO firms there by bringing the hybrid models. Along with it, the rise in industry will see infusion of multiple pricing models.


In the future, it is expected that KPO has a high potential as it is not restricted only to Information Technology (IT) or Information Technology Enabled Services (ITES) sectors, and includes other sectors like Intellectual Property related services, Business Research and Analytics, Legal Processes Outsourcing, Web Development Application, CAD/CAM, Finance and Accountants Management and Consultancy, Legal Research, Clinical Research, Publishing, Market Research (Market research KPO), etc.