Can KPO give India a new start
October 14, 2008
The future of KPO in India is deemed as quite bright. Though presently, it is in its infantile state, the experts and companies already well-established in this process declare that India will awake to the rising demands of KPO in near future and would be able to supplement and stabilize the meltdown of global economy and its impact on outsourcing industry. Legal Process Outsourcing (LPO) is one striking part of this huge potential and we have already discussed in our previous discussion that legal outsourcing to India is on rise. The present situation of global financial crisis only helps this cause and India is going to benefit from it.
At present, you can read a lot of articles and opinions about Indian companies facing the credit crunch due to global financial crisis and how it could affect the Indian BPO industry for bad. Indian drug export is also at threat, as China is almost near to take-over the preferred destination for this business. Lower costs and better market opportunities are going to give an edge to China, and it is expected that by 2010, it would pip India to become the leading exporter of drugs.
To the benefit of Indian future, Indian KPO companies who are trying to get accustomed to the international standards and demands will be able to provide a huge platform to launch a sort of rejuvenated recovery from this slump. Not to wonder that Indian R&D would also be able to give a sort of new look to the Indian talent pool. It is expected that the Indian R&D services market is expected to grow from $5 billion last year to $40 billion in 2020. The multiple avenues of outsourcing that await India should not go untapped; more so because of the present situation that has given a sort of clarion call to Indian companies that they can’t depend on one area of expertise to have sustainable growth and stability in international market. They need to grow their expertise along with the fact that they need to increase their appeal.
Indian manufacturing outsource is already quite low. With the financial crisis, big retail stores of the world have cut short their orders and no wonder this has further decreased the export of Indian manufacturing units. “There is a 20 per cent decline in apparel orders for the spring-summer season as compared to the last year. Consumption is coming down in the US in a big way,” said Premal Udani, MD, Mumbai-based Kaytee Corporation. The experts are saying that this could face a further low-down and the orders of retail stores could further decrease with the coming time.
It can easily be gauged that Indian industry is facing a sort of tough task at hand due to multiple reasons. However, as the tempest of financial crunch cools down a bit, India will march forward towards the potential arenas of outsourcing including LPO and KPO of multiple types. The ultimate reliance of all industries on IT is a major benefit for Indian BPO sector and it comes handy when companies have to equip themselves with the demands and requirements of any types of service-based outsourcing. The fresh graduates and the talent pool of India always look for newer opportunities with the same basic skills and this is where Indian gets an edge over other countries. Though presently, Indian BPO sector suffers from various inabilities and inefficiencies, it is certain that its newer look and appeal would be able to make it more attractive and alluring. Government and organizations should strive to provide best opportunities for growth of expertise and also for the growth of choices that could be handled by the coming generation.