This is a discussion on business process outsourcing (BPO) within the Investment forums, part of the Financial Services category; Transiting from a major business process outsourcing (BPO) hub, India is set to emerge as a $17 billion knowledge outsourcing ...
Transiting from a major business process outsourcing (BPO) hub, India is set to emerge as a $17 billion knowledge outsourcing destination by 2010, states a new industry study.
"India could emerge as a global knowledge process outsourcing (KPO) hub as the business requires specialised knowledge in respective verticals and the country's large number of engineering and technical institutes are geared to address the manpower demand," the Confederation of Indian Industry (CII) said in a study released Sunday.
The study 'India In The New Knowledge Economy' estimates that the KPO business is expected to register 46 percent annual growth to reach a staggering $17 billion by 2010.
The study points that the growth of the services sector is expected to remain over eight percent annually, raising its share in India's GDP to over 51 percent, affirming that "India's transition from being a BPO destination to a KPO destination is imminent."
Pharmaceuticals, biotechnology, and ICT, besides legal support, intellectual property research, design and development for automotive and aerospace industries are some of the areas where India's strength lies.
"India stands to gain from its inherent strengths in the healthcare sector, pharmaceutical and biotech sector and ICT sector," the study states.
Listing India's advantages in the medical sector with its well-equipped hospital facilities and cost advantage besides growing western preference for Indian systems of medicines, the study feels further investments is required to help the country realise the potential in healthcare.
Similarly in pharma and biotechnology, the paper observes that India offers excellent network of research laboratories, well-developed base industries, rich bio-diversity, extensive clinical trial opportunities and trained manpower and knowledge base, which makes it an automatic base for KPO.
Indian pharma companies are already offering custom synthesis services at 30-50 percent cost savings compared to global costs.
"The Indian IT sector too could strike it rich in a new breed of high-end knowledge-based outsourcing as global corporations are moving process like data and intellectual property researches to offshore locations and more specifically to India," the CII states.