Kpo India Looking Ahead
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Kpo India Looking Ahead as PDF for free.
More details
- Words: 2,462
- Pages: 7
KPO India Looking Ahead LENGTH: 1096 words FinancialWire-14 January 2008-KPO India Looking Ahead ©2008 Investrend Communications, Inc. January 15, 2008 (FinancialWire) (ValueNotes Outsourcing Watch: Insights for Investors) Outsourcing companies like WNS (
NYSE: WNS
Enhanced Coverage Linking NYSE: WNS -Search using: •
News, Most Recent 60 Days
•
Company Profile
), Genpact (NYSE: G), Cognizant (NASDAQ: CTHS), Infosys (NASDAQ: INFY), are betting big on the potential of the knowledge services industry in India, which is fast moving up the value chain. More Points To The Same Most segments in the knowledge process outsourcing (KPO) space, such as legal, publishing, media services, analytics and engineering services are growing at anywhere between 30 to 40 percent per annum. Within a few years of takeoff, the KPO industry is rapidly moving towards more innovative business models and showing signs of growing maturity. The industry was earlier not garnering interest from the investor community due to the lower scale of operations compared to BPO companies. However, concerns about a less than rewarding exit from the KPO sector have been put to rest over the last few months due to the attractive valuations of firms such as Inductis, Marketics and marketRx. Exits have also taken the form of IPOs (eClerx in India, DQ Entertainment on the LSE, etc). Recent instances of funding show that the KPO sector is gaining more and more prominence: 1 ) Sequoia Capital invested $25 million in pharma and biotech research company GVK Biosciences in November 2007. 2) Kubera Cross Border Fund invested $17 million in Ocimum Biosolutions, a genomics outsourcing company. 3) Helion Venture Partners invested $5.1 million in Hurix Systems, an elearning solutions, knowledge management, and publishing services company in October 2007. 4) Helion earlier invested in Mindworks Global, a KPO, which provides media outsourcing and custom publishing services. 5) In July 2007, legal KPO Pangea3 completed $7US million in Series C funding by Sequoia Capital India. The company plans to utilize the funds towards recruitments, expanding its service offerings and increasing sales and marketing. So far, the Indian outsourcing industry rode the value proposition of significant labor cost savings. However, media hype and high returns for industry pioneers have led to an explosion of service providers, and those ready to
provide funds to them. Infosys BPO has recently announced its entry in the legal services outsourcing space. Apart from lending more credibility to the legal services industry, this is likely to provide additional vigor to the growth plans of several large, mid-size and small companies. With the acquisition of marketRx, Cognizant looks to strengthen its KPO practice, and increase focus on the life sciences space. The industry has its set of challenges: rising wages, training and depreciating dollar revenues. However, the most important challenge at this point seems to lie in addressing a shortage of trained professionals. In fact, advisory firm TPI suggests that there is reason to be cautious about any growth rate predictions on account of shortage of trained professionals and IP concerns in India. Looking Ahead Despite the challenges, the race to acquire capabilities and clients will trigger several inorganic growth actions by ambitious vendors. Over time, we will see more of the large multi-service BPOs acquiring capacity and capability, and also international firms looking for India capacity. We believe that in 2008, KPO will rise to the next level of maturity and move from the staff augmentation model to a valueadded role, in which the service provider partners, and even consults the service user, and services provided have the potential to directly impact the buyer s business objectives. ValueNotes Outsourcing Watch: Insights for Investors is a unique news and analysis service from the ValueNotes Outsourcing Practice, focused entirely on outsourcing; This weekly publication analyses events in outsourcing, outsourcing companies, trends in the sector, impact of global competition from offshoring to established US companies, and emerging investment opportunities. No responsibility is accepted for errors of fact or opinion. Neither the analyst nor ValueNotes has a position in the stocks covered above, or has received any payment in any form for this report. ValueNotes does not own or trade in the stocks of companies under coverage. ValueNotes does not provide investment banking services or investor relations services to preserve the independence of its research. Neither ValueNotes nor the analyst incurs any liability arising out of use of the above information/ report. Reproduction in whole or in part without written permission is prohibited. ValueNotes is an independent research firm based in India, and provides a range of custom research and business intelligence services, including India-based research outsourcing solutions. Through a constantly evolving range of products and services, the ValueNotes Outsourcing Practice (www.valuenotes.biz) provides service buyers, vendors, consultants and others in the outsourcing industry with access to indepth analysis backed by reliable primary intelligence. Both ValueNotes and Investrend Research are members of the First Research Consortium, and participate in the organization s standards development panel for independent research providers located at http://www.firstresearchconsortium.com . For up-to-the-minute news, features and links click on http://www.FinancialWire.net FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation from any company for its news or opinions. Other divisions of Investrend, however, provide shareholder empowerment platforms such as forums, independent research and webcasting. For more information or to receive the FirstAlert daily summary of news, commentary, research reports, webcasts, events and conference calls, click on http://www.investrend.com/contact.asp For a free annual report on a company mentioned in the news, please click on http://investrend.ar.wilink.com/?level=279 To become an investor monitor of independent research for a company in which you are invested, go to the not-for-profit Shareholders
Research Alliance, Inc. website by clicking on http://www.shareholdersresearch.com/ The FinancialWire NewsFeed is now available in multiple formats to your site or desktop, free. Click on: http://www.investrend.com/XmlFeeds?level=268
KPO India Looking Ahead LENGTH: 1066 words January 15, 2008 (FinancialWire) (ValueNotes Outsourcing Watch: Insights for Investors) Outsourcing companies like WNS (
NYSE: WNS
Enhanced Coverage Linking NYSE: WNS -Search using: •
News, Most Recent 60 Days
•
Company Profile
),
Genpact
Enhanced Coverage Linking Genpact -Search using:
(
•
News, Most Recent 60 Days
•
Company Profile NYSE: G
Enhanced Coverage Linking NYSE: G -Search using:
•
News, Most Recent 60 Days
•
Company Profile
), Cognizant (NASDAQ: CTHS), Infosys (NASDAQ: INFY), are betting big on the potential of the knowledge services industry in India, which is fast moving up the value chain. More Points To The Same Most segments in the knowledge process outsourcing (KPO) space, such as legal, publishing, media services, analytics and engineering services are growing at anywhere between 30 to 40 percent per annum. Within a few years of takeoff, the KPO industry is rapidly moving towards more innovative business models and showing signs of growing maturity. The industry was earlier not garnering interest from the investor community due to the lower scale of operations compared to BPO companies. However, concerns about a less than rewarding exit from the KPO sector have been put to rest over the last few months due to the attractive valuations of firms such as Inductis, Marketics and marketRx. Exits have also taken the form of IPOs (eClerx in India, DQ Entertainment on the LSE, etc). Recent instances of funding show that the KPO sector is gaining more and more prominence: 1 ) Sequoia Capital invested $25 million in pharma and biotech research company GVK Biosciences in November 2007. 2) Kubera Cross Border Fund invested $17 million in Ocimum Biosolutions, a genomics outsourcing company. 3) Helion Venture Partners invested $5.1 million in Hurix Systems, an e-learning solutions, knowledge management, and publishing services company in October 2007. 4) Helion earlier invested in Mindworks Global, a KPO, which provides media outsourcing and custom publishing services. 5) In July 2007, legal KPO Pangea3 completed $7US million in Series C funding by Sequoia Capital India. The company plans to utilize the funds towards recruitments, expanding its service offerings and increasing sales and marketing. So far, the Indian outsourcing industry rode the value proposition of significant labor cost savings. However, media hype and high returns for industry pioneers have led to an explosion of service providers, and those ready to provide funds to them. Infosys BPO has recently announced its entry in the legal services outsourcing space. Apart from lending more credibility to the legal services industry, this is likely to provide additional vigor to the growth plans of several large, mid-size and small companies. With the acquisition of marketRx, Cognizant looks to strengthen its KPO practice, and increase focus on the life sciences space. The industry has its set of challenges: rising wages, training and depreciating dollar revenues. However, the most important challenge at this point seems to lie in addressing a shortage of trained professionals. In fact, advisory firm TPI suggests that there is reason to be cautious about any growth rate predictions on account of shortage of trained professionals and IP concerns in India. Looking Ahead Despite the challenges, the race to acquire capabilities and clients will trigger several inorganic growth actions by ambitious vendors. Over time, we will see more of the large multi-service BPOs acquiring capacity and capability, and also international firms looking for India capacity. We believe that in 2008, KPO will rise to the next level of maturity and move from the staff augmentation model to a valueadded role, in which the service provider partners, and even consults the service user, and services provided have the potential to directly impact the buyer s business objectives. ValueNotes Outsourcing Watch: Insights for Investors is a unique news and analysis service from the ValueNotes Outsourcing Practice, focused entirely on outsourcing; This
weekly publication analyses events in outsourcing, outsourcing companies, trends in the sector, impact of global competition from offshoring to established US companies, and emerging investment opportunities. No responsibility is accepted for errors of fact or opinion. Neither the analyst nor ValueNotes has a position in the stocks covered above, or has received any payment in any form for this report. ValueNotes does not own or trade in the stocks of companies under coverage. ValueNotes does not provide investment banking services or investor relations services to preserve the independence of its research. Neither ValueNotes nor the analyst incurs any liability arising out of use of the above information/ report. Reproduction in whole or in part without written permission is prohibited. ValueNotes is an independent research firm based in India, and provides a range of custom research and business intelligence services, including India-based research outsourcing solutions. Through a constantly evolving range of products and services, the ValueNotes Outsourcing Practice (www.valuenotes.biz) provides service buyers, vendors, consultants and others in the outsourcing industry with access to indepth analysis backed by reliable primary intelligence. Both ValueNotes and Investrend Research are members of the First Research Consortium, and participate in the organization s standards development panel for independent research providers located at http://www.firstresearchconsortium.com . For up-to-the-minute news, features and links click on http://www.FinancialWire.net FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation from any company for its news or opinions. Other divisions of Investrend, however, provide shareholder empowerment platforms such as forums, independent research and webcasting. For more information or to receive the FirstAlert daily summary of news, commentary, research reports, webcasts, events and conference calls, click on http://www.investrend.com/contact.asp For a free annual report on a company mentioned in the news, please click on http://investrend.ar.wilink.com/?level=279 To become an investor monitor of independent research for a company in which you are invested, go to the not-for-profit Shareholders Research Alliance, Inc. website by clicking on http://www.shareholdersresearch.com/ The FinancialWire NewsFeed is now available in multiple formats to your site or desktop, free. Click on: http://www.investrend.com/XmlFeeds?level=268
KPO market to be worth USD10-17 bn by 2010: KPMG SECTION: NATIONWIDE INTERNATIONAL NEWS LENGTH: 167 words DATELINE: New Delhi Feb 13 The knowledge process outsourcing industry is expected to reach 10-17 billion dollars by 2010, with the financial process contributing a major share towards the growth, according to a study.
The financial services sector, which accounts for a major proportion of the knowledge process outsourcing (KPO) industry, is expected to reach over five billion dollars by 2010, according to a report by research firm KPMG. India remains the number one KPO destination and most global banks and insurers are expected to adopt KPO, it said. "India is expected to remain a preferred location for KPO activity, but organisations are expected to look for alternate locations for additional delivery centers, both from a customer and service provider prospective," KPMG said. There are few limitations on the potential growth of the KPO industry over the next three years, it said. The issues that can potentially hamper that growth include skill set shortage, a declining US dollar and compliance and regulatory pressures.
SUBJECT: BANKING & FINANCE SECTOR PERFORMANCE (90%); BANKING & FINANCE (90%); OUTSOURCING (90%); US DOLLAR (88%); INSURANCE (72%) COMPANY: KPMG (94%) INDUSTRY: NAICS541211 OFFICES OF CERTIFIED PUBLIC ACCOUNTANTS (94%); SIC8721 ACCOUNTING, AUDITING, & BOOKKEEPING SERVICES (94%) GEOGRAPHIC: NEW DELHI, INDIA (55%) INDIA (90%); UNITED STATES (69%) LOAD-DATE: February 13, 2008
Financial services outsourcing to be $5 bn industry by 2010 BYLINE: Report from Indo-Asian News Service brought to you by HT Syndication. LENGTH: 271 words DATELINE: New Delhi New Delhi, Feb. 13 -- India's knowledge process outsourcing (KPO) industry dealing with financial services is set to become $5 billion by 2010, global consultancy firm KPMG said in a report. The KPO industry is booming in India. The industry is expected to grow to $10 billion to $17 billion by the year 2010, KPMG said.
The financial services KPO market in India is growing due to various reasons such as availability of high quality and often certified talent in offshore locations, moves taken to push outsourcing strategies beyond traditional businesses and global recognition of standards, qualifications, skills and experience. "Success in offshoring business operations has encouraged many multinationals to start outsourcing key business processes and high-end knowledge work," said Pradeep Udhas, global partner-in-charge, sourcing advisory, KPMG. "Cost savings, operational efficiencies, access to a highly talented workforce and improved quality are all expectations driving the offshoring of high-end knowledge based processes. However, without a measured and strategic approach to KPO, organisations run the remaining at the low end of outsourcing value chain where labour arbitrage benefits are being eroded daily," Udhas added. However, there are some challenges that are facing the KPMG industry that needs to be addressed to sustain its growth. Problems such as maintaining higher quality standards, investment, lack of talent pool, absence of higher level of control and enhanced risk management may pull down its growth. Published by HT Syndication with permission from Indo-Asian News Service.
NYSE: WNS
Enhanced Coverage Linking NYSE: WNS -Search using: •
News, Most Recent 60 Days
•
Company Profile
), Genpact (NYSE: G), Cognizant (NASDAQ: CTHS), Infosys (NASDAQ: INFY), are betting big on the potential of the knowledge services industry in India, which is fast moving up the value chain. More Points To The Same Most segments in the knowledge process outsourcing (KPO) space, such as legal, publishing, media services, analytics and engineering services are growing at anywhere between 30 to 40 percent per annum. Within a few years of takeoff, the KPO industry is rapidly moving towards more innovative business models and showing signs of growing maturity. The industry was earlier not garnering interest from the investor community due to the lower scale of operations compared to BPO companies. However, concerns about a less than rewarding exit from the KPO sector have been put to rest over the last few months due to the attractive valuations of firms such as Inductis, Marketics and marketRx. Exits have also taken the form of IPOs (eClerx in India, DQ Entertainment on the LSE, etc). Recent instances of funding show that the KPO sector is gaining more and more prominence: 1 ) Sequoia Capital invested $25 million in pharma and biotech research company GVK Biosciences in November 2007. 2) Kubera Cross Border Fund invested $17 million in Ocimum Biosolutions, a genomics outsourcing company. 3) Helion Venture Partners invested $5.1 million in Hurix Systems, an elearning solutions, knowledge management, and publishing services company in October 2007. 4) Helion earlier invested in Mindworks Global, a KPO, which provides media outsourcing and custom publishing services. 5) In July 2007, legal KPO Pangea3 completed $7US million in Series C funding by Sequoia Capital India. The company plans to utilize the funds towards recruitments, expanding its service offerings and increasing sales and marketing. So far, the Indian outsourcing industry rode the value proposition of significant labor cost savings. However, media hype and high returns for industry pioneers have led to an explosion of service providers, and those ready to
provide funds to them. Infosys BPO has recently announced its entry in the legal services outsourcing space. Apart from lending more credibility to the legal services industry, this is likely to provide additional vigor to the growth plans of several large, mid-size and small companies. With the acquisition of marketRx, Cognizant looks to strengthen its KPO practice, and increase focus on the life sciences space. The industry has its set of challenges: rising wages, training and depreciating dollar revenues. However, the most important challenge at this point seems to lie in addressing a shortage of trained professionals. In fact, advisory firm TPI suggests that there is reason to be cautious about any growth rate predictions on account of shortage of trained professionals and IP concerns in India. Looking Ahead Despite the challenges, the race to acquire capabilities and clients will trigger several inorganic growth actions by ambitious vendors. Over time, we will see more of the large multi-service BPOs acquiring capacity and capability, and also international firms looking for India capacity. We believe that in 2008, KPO will rise to the next level of maturity and move from the staff augmentation model to a valueadded role, in which the service provider partners, and even consults the service user, and services provided have the potential to directly impact the buyer s business objectives. ValueNotes Outsourcing Watch: Insights for Investors is a unique news and analysis service from the ValueNotes Outsourcing Practice, focused entirely on outsourcing; This weekly publication analyses events in outsourcing, outsourcing companies, trends in the sector, impact of global competition from offshoring to established US companies, and emerging investment opportunities. No responsibility is accepted for errors of fact or opinion. Neither the analyst nor ValueNotes has a position in the stocks covered above, or has received any payment in any form for this report. ValueNotes does not own or trade in the stocks of companies under coverage. ValueNotes does not provide investment banking services or investor relations services to preserve the independence of its research. Neither ValueNotes nor the analyst incurs any liability arising out of use of the above information/ report. Reproduction in whole or in part without written permission is prohibited. ValueNotes is an independent research firm based in India, and provides a range of custom research and business intelligence services, including India-based research outsourcing solutions. Through a constantly evolving range of products and services, the ValueNotes Outsourcing Practice (www.valuenotes.biz) provides service buyers, vendors, consultants and others in the outsourcing industry with access to indepth analysis backed by reliable primary intelligence. Both ValueNotes and Investrend Research are members of the First Research Consortium, and participate in the organization s standards development panel for independent research providers located at http://www.firstresearchconsortium.com . For up-to-the-minute news, features and links click on http://www.FinancialWire.net FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation from any company for its news or opinions. Other divisions of Investrend, however, provide shareholder empowerment platforms such as forums, independent research and webcasting. For more information or to receive the FirstAlert daily summary of news, commentary, research reports, webcasts, events and conference calls, click on http://www.investrend.com/contact.asp For a free annual report on a company mentioned in the news, please click on http://investrend.ar.wilink.com/?level=279 To become an investor monitor of independent research for a company in which you are invested, go to the not-for-profit Shareholders
Research Alliance, Inc. website by clicking on http://www.shareholdersresearch.com/ The FinancialWire NewsFeed is now available in multiple formats to your site or desktop, free. Click on: http://www.investrend.com/XmlFeeds?level=268
KPO India Looking Ahead LENGTH: 1066 words January 15, 2008 (FinancialWire) (ValueNotes Outsourcing Watch: Insights for Investors) Outsourcing companies like WNS (
NYSE: WNS
Enhanced Coverage Linking NYSE: WNS -Search using: •
News, Most Recent 60 Days
•
Company Profile
),
Genpact
Enhanced Coverage Linking Genpact -Search using:
(
•
News, Most Recent 60 Days
•
Company Profile NYSE: G
Enhanced Coverage Linking NYSE: G -Search using:
•
News, Most Recent 60 Days
•
Company Profile
), Cognizant (NASDAQ: CTHS), Infosys (NASDAQ: INFY), are betting big on the potential of the knowledge services industry in India, which is fast moving up the value chain. More Points To The Same Most segments in the knowledge process outsourcing (KPO) space, such as legal, publishing, media services, analytics and engineering services are growing at anywhere between 30 to 40 percent per annum. Within a few years of takeoff, the KPO industry is rapidly moving towards more innovative business models and showing signs of growing maturity. The industry was earlier not garnering interest from the investor community due to the lower scale of operations compared to BPO companies. However, concerns about a less than rewarding exit from the KPO sector have been put to rest over the last few months due to the attractive valuations of firms such as Inductis, Marketics and marketRx. Exits have also taken the form of IPOs (eClerx in India, DQ Entertainment on the LSE, etc). Recent instances of funding show that the KPO sector is gaining more and more prominence: 1 ) Sequoia Capital invested $25 million in pharma and biotech research company GVK Biosciences in November 2007. 2) Kubera Cross Border Fund invested $17 million in Ocimum Biosolutions, a genomics outsourcing company. 3) Helion Venture Partners invested $5.1 million in Hurix Systems, an e-learning solutions, knowledge management, and publishing services company in October 2007. 4) Helion earlier invested in Mindworks Global, a KPO, which provides media outsourcing and custom publishing services. 5) In July 2007, legal KPO Pangea3 completed $7US million in Series C funding by Sequoia Capital India. The company plans to utilize the funds towards recruitments, expanding its service offerings and increasing sales and marketing. So far, the Indian outsourcing industry rode the value proposition of significant labor cost savings. However, media hype and high returns for industry pioneers have led to an explosion of service providers, and those ready to provide funds to them. Infosys BPO has recently announced its entry in the legal services outsourcing space. Apart from lending more credibility to the legal services industry, this is likely to provide additional vigor to the growth plans of several large, mid-size and small companies. With the acquisition of marketRx, Cognizant looks to strengthen its KPO practice, and increase focus on the life sciences space. The industry has its set of challenges: rising wages, training and depreciating dollar revenues. However, the most important challenge at this point seems to lie in addressing a shortage of trained professionals. In fact, advisory firm TPI suggests that there is reason to be cautious about any growth rate predictions on account of shortage of trained professionals and IP concerns in India. Looking Ahead Despite the challenges, the race to acquire capabilities and clients will trigger several inorganic growth actions by ambitious vendors. Over time, we will see more of the large multi-service BPOs acquiring capacity and capability, and also international firms looking for India capacity. We believe that in 2008, KPO will rise to the next level of maturity and move from the staff augmentation model to a valueadded role, in which the service provider partners, and even consults the service user, and services provided have the potential to directly impact the buyer s business objectives. ValueNotes Outsourcing Watch: Insights for Investors is a unique news and analysis service from the ValueNotes Outsourcing Practice, focused entirely on outsourcing; This
weekly publication analyses events in outsourcing, outsourcing companies, trends in the sector, impact of global competition from offshoring to established US companies, and emerging investment opportunities. No responsibility is accepted for errors of fact or opinion. Neither the analyst nor ValueNotes has a position in the stocks covered above, or has received any payment in any form for this report. ValueNotes does not own or trade in the stocks of companies under coverage. ValueNotes does not provide investment banking services or investor relations services to preserve the independence of its research. Neither ValueNotes nor the analyst incurs any liability arising out of use of the above information/ report. Reproduction in whole or in part without written permission is prohibited. ValueNotes is an independent research firm based in India, and provides a range of custom research and business intelligence services, including India-based research outsourcing solutions. Through a constantly evolving range of products and services, the ValueNotes Outsourcing Practice (www.valuenotes.biz) provides service buyers, vendors, consultants and others in the outsourcing industry with access to indepth analysis backed by reliable primary intelligence. Both ValueNotes and Investrend Research are members of the First Research Consortium, and participate in the organization s standards development panel for independent research providers located at http://www.firstresearchconsortium.com . For up-to-the-minute news, features and links click on http://www.FinancialWire.net FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation from any company for its news or opinions. Other divisions of Investrend, however, provide shareholder empowerment platforms such as forums, independent research and webcasting. For more information or to receive the FirstAlert daily summary of news, commentary, research reports, webcasts, events and conference calls, click on http://www.investrend.com/contact.asp For a free annual report on a company mentioned in the news, please click on http://investrend.ar.wilink.com/?level=279 To become an investor monitor of independent research for a company in which you are invested, go to the not-for-profit Shareholders Research Alliance, Inc. website by clicking on http://www.shareholdersresearch.com/ The FinancialWire NewsFeed is now available in multiple formats to your site or desktop, free. Click on: http://www.investrend.com/XmlFeeds?level=268
KPO market to be worth USD10-17 bn by 2010: KPMG SECTION: NATIONWIDE INTERNATIONAL NEWS LENGTH: 167 words DATELINE: New Delhi Feb 13 The knowledge process outsourcing industry is expected to reach 10-17 billion dollars by 2010, with the financial process contributing a major share towards the growth, according to a study.
The financial services sector, which accounts for a major proportion of the knowledge process outsourcing (KPO) industry, is expected to reach over five billion dollars by 2010, according to a report by research firm KPMG. India remains the number one KPO destination and most global banks and insurers are expected to adopt KPO, it said. "India is expected to remain a preferred location for KPO activity, but organisations are expected to look for alternate locations for additional delivery centers, both from a customer and service provider prospective," KPMG said. There are few limitations on the potential growth of the KPO industry over the next three years, it said. The issues that can potentially hamper that growth include skill set shortage, a declining US dollar and compliance and regulatory pressures.
SUBJECT: BANKING & FINANCE SECTOR PERFORMANCE (90%); BANKING & FINANCE (90%); OUTSOURCING (90%); US DOLLAR (88%); INSURANCE (72%) COMPANY: KPMG (94%) INDUSTRY: NAICS541211 OFFICES OF CERTIFIED PUBLIC ACCOUNTANTS (94%); SIC8721 ACCOUNTING, AUDITING, & BOOKKEEPING SERVICES (94%) GEOGRAPHIC: NEW DELHI, INDIA (55%) INDIA (90%); UNITED STATES (69%) LOAD-DATE: February 13, 2008
Financial services outsourcing to be $5 bn industry by 2010 BYLINE: Report from Indo-Asian News Service brought to you by HT Syndication. LENGTH: 271 words DATELINE: New Delhi New Delhi, Feb. 13 -- India's knowledge process outsourcing (KPO) industry dealing with financial services is set to become $5 billion by 2010, global consultancy firm KPMG said in a report. The KPO industry is booming in India. The industry is expected to grow to $10 billion to $17 billion by the year 2010, KPMG said.
The financial services KPO market in India is growing due to various reasons such as availability of high quality and often certified talent in offshore locations, moves taken to push outsourcing strategies beyond traditional businesses and global recognition of standards, qualifications, skills and experience. "Success in offshoring business operations has encouraged many multinationals to start outsourcing key business processes and high-end knowledge work," said Pradeep Udhas, global partner-in-charge, sourcing advisory, KPMG. "Cost savings, operational efficiencies, access to a highly talented workforce and improved quality are all expectations driving the offshoring of high-end knowledge based processes. However, without a measured and strategic approach to KPO, organisations run the remaining at the low end of outsourcing value chain where labour arbitrage benefits are being eroded daily," Udhas added. However, there are some challenges that are facing the KPMG industry that needs to be addressed to sustain its growth. Problems such as maintaining higher quality standards, investment, lack of talent pool, absence of higher level of control and enhanced risk management may pull down its growth. Published by HT Syndication with permission from Indo-Asian News Service.
Related Documents
Kpo India Looking Ahead
November 2019 15
Eric Garland - Getting Ahead While Looking Ahead
October 2019 18
Looking Ahead To The November Meeting
November 2019 19
Looking Ahead To Opensuse 11 0 [outlook110]
October 2019 21
Resume Kpo
August 2019 19