According to this month's Red Herring magazine, India's software industry is growing at an average rate of 28 percent a year, with revenues for the 2006-7 fiscal year topping $47.8 billion, up nearly tenfold from 1998. Close to two-thirds of this total represents exports -- namely Indian software firms selling products and services to overseas customers.
Knowledge Process Outsourcing is a subset of the larger Business Process Outsourcing market, but refers to the outsourcing of higher value-added intellectual and thought process work such as pharmaceuticals and biotechnology research, financial services, research and analytics, technology research, engineering, general business research and legal services (including patent document writing, global filing, search, trademark search, and trademark registration).
India's KPO industry is currently a $3 billion business and is expected to reach $10-12 billion by 2010. This torrid growth rate should both give U.S. entrepreneurial and middle market companies pause and also one that offers unique opportunity for those positioned properly within it.
Growthink has a unique perspective on the Indian KPO challenge and opportunity. We, regularly utilize a team of Growthink-trained, India-based knowledge professionals to provide research, business modeling, and document development support to our domestic advisory teams. Also, India-based professional service firms and professional service firms that rely on India professionals are significant business competitors to our practice. Finally, we have India KPO firms as clients -- providing them strategic advisory and investment banking advice similar to that offered to our U.S. and Europe-based clients. A few quick takeaways from these various India KPO experiences: