Growth of Indian KPO industry: An Overview

India with its large pool of knowledge population is fast becoming the favorite hub for knowledge process outsourcing (KPO). KPO is an extended arm of business process outsourcing (BPO) whereby KPO includes the process of creating, sharing and maintaining of knowledge.

Recently a report was published by ASSOCHAM, the apex industrial body of India on the KPO sector in India. The report highlighted that earnings of Indian KPO in 2011 was $8 billion and is expected to grow at a rate of 25-27% by the end of the year 2012.

knowledge management. Image source:

Today more and more outsourcing companies are turning to include knowledge process outsourcing into their service portfolios eyeing the boom in the sector.

Indian outsourcing companies are betting high on the available large pool of domain experts in the nation. India possesses a large pool of experts in various fields like engineering, medical, management, economy etc.

Tapping into this talent pool has enabled the outsourcing companies to offer quality services to overseas clients at competitive prices.

Indian KPO companies offers KPO services in following domains:

  1. Research and development
  2. Business and market research
  3. Training and consultancy
  4. Legal services
  5. Data analytics
  6. Content marketing
  7. Medical services
  8. Engineering services etc.

Why India is the most preferred destination for knowledge process outsourcing?

Benefits in outsourcing knowledge processing to India

  1. The first and foremost benefit of KPO services in India is that it is cost effective. India is a hub to talented professional people in various domains. Companies can access these talents at a low cost.
  2. India offers high quality and skilled professionals for KPO services.
  3. The companies accessing KPO services can be assured of the security of the information they share. This is because Indian companies bind their knowledge workers with non disclosure agreement.
  4. India KPO services use latest technologies and infrastructure to process the data which assures error free and fast delivery of the services.
  5. By using the services of Indian KPOs clients can experience an increase in revenue and gain competitive advantage in the market.
  6. Indian KPO services provide the flexibility to its clients to add as well as reduce the personnel as the business cycle demands.

With benefits there are also challenges faced by the Indian KPO industry. As the industry is growing, the companies face the challenge of building a strong base of KPO professionals.

Another major challenge faced by the industry is the emerging KPO destinations. Indian KPO services are required to make continuous investment in latest technology and infrastructure in order to remain competitive in the global market.

Indian KPO services have come a long way by providing top notch quality services to varied industry verticals for both domestic and international market and is still growing to make a mark in the world market.


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  1. The KPO industry is regarded as one of the fastest growing sectors these days covering various areas starting from market research, content development, clinical research, financial analysis, data entries and analytics a much more. As per the recent reports by various research firms, the clinical research is the latest working arena in KPO industry in India. Over more than 50000 professionals is currently working in this field covering the work value of $ 500 million. This indeed reveals the fact that how fast the Indian KPO industry is really emerging and growing from the last few years in the global market.

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