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Emerging Trends in the KPO Industry of India That You Need to Be Aware of

  • By admin
  • November 8, 2021

For many years now, India has been the go-to place for building up IT service centers. It has also seen steady outsourcing for decades. Knowledge Process Outsourcing India has exploded in popularity during the previous decade. India has thrived with exceptional KPO trends that continue to expand and successfully dominate the global outsourced market.

To answer the very obvious question, why do companies outsource to India in the first place? The KPO outsourcing company uses highly skilled individuals such as engineers, CPAs, lawyers, and MBAs to provide knowledge-intensive support services to multinational corporations with affordable pricing and highly competitive skillsets

India represents around 71% of the global Knowledge process outsourcing business and offers a wide range of services, including legal processing, advanced research, analytics, and clinical trial administration, thanks to its large pool of talented employees.

Tier-II Cities Becoming the Center of Attention:

Tier-I cities have been the torchbearer of India’s IT growth for past decades. However, despite a phenomenal growth rate, KPO enterprises in India are confronted with serious difficulties such as rising real estate prices, high attrition rates, and so on. These challenges have added to the pressure on businesses to maintain profit margins that are already thin due to fierce competition. Now Tier-II cities are emerging to become the center of attention.

Offshore Delivery Centers Are Being Established:

Many Indian KPO companies are now looking to expand their virtual reach and grow their operations in Eastern Europe, China, and Latin America who can easily outsource to india.

Two main elements are driving the trend. First one is that as different geographical areas have different time zones, 24×7 support is crucial. Secondly, the clients of these KPO firms are looking for services that are specific to their region. They are looking for businesses who are capable of delivering that.

Captive Centers Will Be Closed Gradually:

Global firms established captive centers during the rise of the outsourcing wave in India. Captive centers are up against powerful competition from local vendors who are also thriving in some sectors.

First of all, local providers are significantly better at dealing with security issues than outsourcing. Besides, in some areas captive centers are underperforming due to lack of management support, rising expenses, lack of flexibility and attrition. As a result, failing to grow for these captive centers is becoming a pain point in Knowledge Process Outsourcing India. That is why spreading the businesses virtually is becoming a major challenge for success.

From Service Providers, Promotion to Strategic Partners:

When you need to come up with something innovative for your business like a spell down, the key conditions or fund-raising strategy, the Knowledge Process Outsourcing India industry can help. A KPO player can serve a private equity fund, equities research, or a corporate finance consultancy very efficiently. Therefore, now what needs to be outsourced and what not is becoming unclear.

To summarize, big companies will continue to consolidate and develop offshore delivery centers for Knowledge Process Outsourcing India. The KPO sector in India will be shaped by new measures and trends in the upcoming years.

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Also Read: 5 Irrefutable Benefits of Efficient Knowledge Process Outsourcing to India