KPO- An Indian revolution and why India leads

India is one of the key destinations for outsourcing of core business operations by many firms functioning abroad. One of the emerging sectors for outsourcing witnessed in the 21^st century is the Knowledge Process Outsourcing (KPOs).

KPOs involve outsourcing of high-end activities of the businesses which requires skill, knowledge and expertise of the human resources in their respective areas.  It is a broad concept covering Business Process Outsourcing (BPO), Research Process Outsourcing (RPO) and Analysis Process Outsourcing (APO) under its umbrella of activities. It provides a plethora of knowledge-based services such IT, Engineering, Web Application Development, Business Research and analytics etc.

India over the recent years, managed to gain the top position in contributing the maximum to the KPO sector. As per ASSOCHAM, the share of the Indian KPO sector in the world KPO industry is nearly 70%. But do you know why it is at the top? Let me the question the other way- What makes India the KPO hub in the world?

Well the answer is quite simple. There are many reasons which make India a global leader in the KPO industry which includes reduced costs, operational efficiencies and ease in setting up KPO centre. One of the major reasons which I am going to talk about is the availability of highly skilled and experienced workforce in India.

Yes it is true. India has a very large workforce accompanied with skills and expertise in various fields. India’s strength lies in its manpower resources which gives it a competitive advantage in the off-shore business.  So in order to tap the skilled workforce and gain advantage of efficient KPO services, many companies are encouraged to set up KPO centres in India.

To the Indian workforce, KPOs provide great employment opportunities. Moreover, the salaries given to KPO professionals is way above than those offered to these experts which drive them to seek employment in this sector.

At the same time, the Indian KPO sector is not free from challenges. There is increasing competition by new entrants into this field like China, Israel and Czech Republic which is a huge challenge for Indian KPO sector. Moreover, there is a dearth of highly skilled experts, although we have a huge workforce. These are the main hindrances to the growth of this sector in India.

Nevertheless, India is experiencing growth in this sector and is sure to maintain its top position in future!

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