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Executive Summary

After the great success of Business Process Outsourcing (BPO) in India, the entire world is looking at India as the most sought-after place for Knowledge Process Outsourcing (KPO). BPO success in India is encouraging overseas companies eyeing Indian market for outsourcing their high-tech knowledge-based jobs. Operational cost saving, pool of talented workforce, infrastructure improvement and favorable government policies are the major factors which are responsible for the Knowledge Process Outsourcing in India.

Global Knowledge Process Outsourcing industry is expected to reach USD 17 billion by 2010, of which USD 12 billion (almost 70%) would be outsourced to India alone. Indian KPO sector has already taken steps in employing highly-educated and talented people and number of KPO professionals is expected to cross more than 2,50,000 by 2010 compared to the current figure of 25,000 employees. A research carried out by Kelly Services and Asset Management reveals that the growth in the KPO segment would be at a higher rate than the BPO segment. The BPO segment is poised to grow at a rate of 25% whereas the KPO segment is expected to grow at an overwhelming rate of 45%.

It is also evident that 45% of Indian KPO service providers have the highest quality certification like Six Sigma. (A rigorous and disciplined methodology that utilizes data and statistical analysis to measure and improve a company's operational performance, practices, and systems. Six Sigma identifies and prevents defects in manufacturing and service-related processes). BPO or KPO in India are getting more quality-conscious and they are frequently improving to have standards that are internationally accepted. They are in the process of highly acclaimed quality management standards from International Organization for Standardization (ISO) such as ISO 9002, ISO 9001, ISO 9001:2000, ISO 9001:2001 and from the CMM framework to the new CMMI framework.

Long term success of KPO in India will rest on a holistic approach to the issue of manpower and this will require - the Government to improve quality and relevance of education, recruiting agencies to help attract, evaluate and recruit the best talent and the KPO to train, develop and retain the talent.

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* Contributed by: -
Deepak Bisht, is currently working as Senior Business Analyst with MarketRx, one of the leading KPOs based in Gurgaon, India. Prior to this, he worked with HP Analytics, Bangalore, as an Analytics Consultant for one of HP's GBU.