Why Is India a Favourable Destination for KPO Services?
Knowledge Processing Outsourcing is an exchange of meaningful & flexible ideas and information, which prove extremely significant in creating a value chain for the beneficiary company. The KPOs require advanced analytics and technical skills with a high level of expertise to deliver this value.
Competitive Positioning of India
The dynamics of the outsourcing work are gradually transiting from BPOs to KPOs. Many have predicted that opportunities are likely to be more in this sector.
India is in the leading role amid various countries, such as the Philippines, Russia, Ukraine, Poland, Hungary, China and South Africa. These are the most progressing countries in the knowledge processing services.
But, India is seen contributing in almost every niche of the business. This list of niches shows which country is doing a great job in getting KPO-based opportunities:
KPOs - Country
Animation - Philippines, India, China
Engineering Services - Philippines, India
Content Development - India, Philippines
Financial Services - India, China
Healthcare - Russia, India
R&D - India, China, Russia
Legal - New Zealand, India
Pharma - India, Russia
Factors Showing India a Favourable Destination for KPO Services
India has a large pool of upskilled talent in different domains, which attract the leading global companies here.
Here is a roundup of all those factors:
• Large Talent Pool
KPO services often require a strong educational background and enough hands-on experience in a particular domain, technology, industry or specialty. It is simply because they have a potential to maximize efficiency while simplifying a high degree of complexity in business activities. India is blessed with that talent and expertise, as our education system creates a substantial base for professionals. The universities, here, produce a large number of graduates. If you particularly see computer science engineering enrollments, it crossed 880 thousand students in 2019, according to a report. This is how you can estimate how many knowledge workers we are likely to produce from here.
Many developed nations like the USA and the UK are facing a shortage of professionals. This is an advantage, as they can fulfill that requirement from here through outsourcing to a respected KPO. It’s the best way out to meet requirements of intelligence that is upgraded and upskilled.
• Linguistic Advantage
A major part of our population speaks English, which is an internationally recognised language. We have more than 350 million people who know how to speak, read and write English well. It’s a key differentiator, as China and Russia have no match with our people. Despite being one of the favourite outsourcing destinations, more of the western countries look at India because of having no language barriers.
• Proactive Government Policies
Indian government appears in a proactive role, providing full support to the KPO industry. Many policies have been liberalized here. Various states have set up software technology parks to promote the fostering of this sector. Companies are rewarded with tax benefits and exemption on duties. These and many more prominent steps have been taken to let this industry scale and grow up.
• Hands-on Experience in Building Loyalty
Here, the KPO industry has gained extensive experience in building loyalty. By delivering its hands-on experience in forging strong client relationships, it frees customers to focus on the execution plans. The intelligence that is shared for managing or uplifting other businesses emerges a key to the success of these services.
Besides, the people who are sailing this industry nicely bring transparency throughout the process. They frequently communicate to keep up with the know-how process. It minimizes the risk of redoing any task and approvals come easily on every delivery.
• Cost Advantage with Quality Deliveries
It’s a prime factor for engaging more and more customers and onboarding opportunities via outsourcing of knowledge. Remote assistance or offshore knowledge intensive services outsourcing saves nearly 40% to 70% of the total investment. The percentage of saving is more or less similar to what costs for data mining here.
a. Patent Application Drafting & Filing
This job typically costs between USD 10,000 and USD 15,000 in the USA, which includes drafting and filing with the United States Patent and Trademark Office (USPTO).
Upon outsourcing to India, the end to end procedure-including preliminary drafts of the patent application, review, editing by certified professionals and finally filing it with the USPTO, results in 50% off. It’s what you have saved.
b. Research & Development
The companies of all domains want to utilize research and development services. The outsourcing companies of India offer it at a much lower cost, which adds up to 40 to 60 percent savings to the beneficiary company.
c. Cost Effective Talent Pool
For data mining and analytics, this country together with Russia is on the top because they have a large pool of engineers and PhDs. All these highly educated and upskilled professionals substantially serve at a relatively low cost. If you compare it with the pay scale of the professionals of similar education in the USA, the difference will be visibly great of USD 60,000 or USD 80,000.
