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Indian Industry

Future Scenario

The future of KPOs in India is bright. Along with creating job opportunities for talented engineers, MBAs, doctors, lawyers and other professionals, the sector is spreading its wings into different directions which will finally lead to the development of India.

KPO salaries will be 25-50% higher than those in other fields.

Billing rates for KPOs are higher as compared to BPOs. But billing rates in India are much less than those in UK or US for KPOs. This makes India save more money and generate more revenue.
Continuous growth is expected in KPO sector in the future as new areas are being added to the existing list of areas of specialization.


In 2003, the market share of Indian KPO sector in global KPO market was 56%. And it is expected to reach 71% in 2010, which shows a decent growth of the sector in the coming years. According to NASSCOM, KPO sector worldwide is expected to reach USD 17 billion by 2010. Out of this, India will account for USD 12 billion.

According to Evalueserve, KPO sector is expected to grow at a CAGR of 46 per cent globally. This is possible as India has the potential to provide cost-effective and quality workforce.

Hurdles in Growth

  • Low employability despite high graduate turnout because it requires high level skills.
  • Job opportunities in other sectors are also increasing, thereby further reducing the supply of skilled people to the KPO sector.
  • Supply gap: According to Rocsearch, a UK based Research Company, the KPO sector may only reach $5 billion by 2010 and 100,000 employees instead of projections of $12 billion market and 250,000 employees.

    In the near future, India will experience a higher rate of growth in KPOs as compared to BPOs. KPO sector will heavily contribute to the revenue generation and job creation due to its increasing size. Therefore it has a promising future.


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