Thursday, September 8, 2011

Indian outsourcers seek revenues from KPO

For advertising executive Govind Nair, working in India’s outsourcing industry for a California telecoms firm causes burning the candle at both ends for his customers.

“They try to be considerate. They know there’s a 12-and-a-half-hour time change between India and San Francisco but we carry on to end up getting up early and going to bed late,” Nair, 30, says.

Such hours are coming across as increasingly routine for many young Indian institutions as they liaise with counterparts in the United States and funny things Western countries on high-end “smart work” projects.

India, known as the world’s largest returning office amid its cheaper, educated English-speaking workforce, is expanding its “knowledge processing outsourcing”, submiting market research, statistical analysis, legal, health and a host of other services.

The sector — familiarly known as KPO — “is the next wave of overseas sourcing for India”, Som Mittal, head of the National Association of Software and Services Companies (Nasscom) told an industry conference the preceding week.

Performing “value-added tasks” the as writing equity reports and legal work can malicious 40 to 50 percent higher billing rates than for lower-value jobs in call centres fielding inquiries approximately bank accounts, market officials say.

KPO revenues have been growing at 26 per cent annually according to research structure Crisil, outpacing the overall expansion of the flagship outsourcing industry that has helped make India an emerging sell powerhouse.

The country now has 70 percent, or $2 billion, of the $2.9 billion distant KPO industry, Crisil says. North America provides 65 percent of the sector’s revenues, Britain 20 per cent and continental Europe 10 percent.

Nasscom believes the newest arena troubles in Europe and the United States may accelerate KPO sector growth as Western firms seek to harness the technical and financial expertise of India’s supply of university graduates, lawyers, accountants and MBAs.

“India has a tremendous advantage in its technical, analytic and managerial skills,” Matthew Vallance, chief executive of one of India’s highest back office companies, Firstsource Solutions, told AFP.

The $2 billion is still a fraction of India’s overall outsourcing revenues, expected to total $68 to $70 billion the current year. But Crisil forecasts in a new report that revenues based on what i read in outsourcing knowledge-intensive skills will nearly triple to $5.5 billion by the end of 2015.

“India is moving up the value chain,” declared Crisil number one executive Roopa Kudva, noting Indian lawyers now researching circumstances law and put together arguments to be presented in court in the United States, Britain and elsewhere.

Bankers prepare papers for acquisitions, additonally nurses monitor the arrangement of housebound patients in the West.

Doing value-added leg work has become increasingly important for India as it seeks to conserve its overall foreign outsourcing dominance, very after ceding its crown as the world’s most massive necessity centre hub to the Philippines.

Last December, the Philippines, that in addition has a trained, English-speaking workforce with a stable service culture, edged past India to become the largest call centre operator in the world, logging $5.5 billion in annual revenues compared through India’s $5.3 billion.

“India is continue to ahead (in total offshoring), although other offshoring sites want the Philippines and Indonesia are emerging,” said Tervinderjit Singh, a research director at global consultancy Gartner.

“But these countries are still not mature enough in high-level proficient work which India can provide,” he said.
Read more here

No comments:

Post a Comment

Thank You for Your Valuable Comment.

GES 2017 Hyderabad, 8th GES Registration, GES Agenda, GES venue, GES Location, Road to Ges 2017

Global Entrepreneurship Summit 2017 Hyderabad: The summit will be addressed by The Hon’ble Prime Minister of India, Shri Narendra Modi, M...