India Next Biggest KPO Destination: IT Ministry

According to the Ministry of Communication and Information Technology, apart from skilled and cost-effective manpower, a man who knows vernacular of languages can help the country to emerge as the next biggest KPO destination globally.

A special report of the Ministry declared that the BPO sector had been ruling over for the past few years but Knowledge Process Outsourcing (KPO), which may be called the highest level of the BPO, was still at the beginning stage of development in India. 

India would be capable of adding value to the global KPO businesses and to its high-end processes through the large pool of skilled manpower, as in, chartered accountants, doctors, MBAs, lawyers and research analysis.

The development of KPO market would guarantee very high-value services in off-shoring, which would help the Indian market in ascending to the chain of global value and knowledge with marginal revenue as compared to BPO units.

Nevertheless, this report added that India might lose its cost profit because countries like Ukraine, Hungary, Belgium, the Czech Republic and the Philippines has put forward BPO services at a very lower rates.

According to the IT department, the movement from BPO to KPO could be comparatively smooth because the IT-ITES companies are very well established and moreover because of India's attractiveness as an investment destination.

Since, there is a brain-drain-of-role-reversal of the global sourcing model; Indian origin now provokes people to work in their own country.

Over the past six years, the IT-ITES sector's contribution to the national economy increased from 4.8 per cent in 2005-06 to 5.4 per cent in 2006-07.The sector was developed to become the largest employment generator with about 1.287 million professionals by 2005-06 and reached 1.63 million marks by March 2007.

In addition to the direct positive impact on national income and employment generation, the sector will be expanding various ancillary industries, will initiate a rise in direct-tax collections and will urge for an augmentation in consumer spending.