July 31, 2006
Is The KPO Boom Over?
Until recently, the Knowledge Process Outsourcing (KPO) boom was hyped in the industry and in media. It was touted as the future of thousands of professionals. However, if we are to believe the recent reports, the much-hyped KPO boom may be over soon. A huge supply gap is all set to cripple the growth of KPO industry.
The evidence gathered by RocSearch, suggests that the KPO market may just reach $5 billion by 2010 instead of the earlier projection of $12 billion. What could be the possible reason for the downward trend in KPO industry? Do you believe that there is a knowledge crunch, which is affecting the KPO growth?
According to The Times of India -
Assuming an average revenue per person of $55,000 over the next four years, 100,000 knowledge workers point to a $5 billion market. This size, though based on a CAGR of 32%, is still 60% less than the $12 billion potential projected by big KPOs, like Evalueserve, last year.
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