Revenues in the Indian service sector are expected to rise by 12 percent per annum
(from USD 306 billion in FY 2003 to USD 675 billion in FY 2010), contributing 57
percent to India’s GDP by FY 2010.
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India to Account for 71% of Global KPO Revenues by FY 2010
New Delhi, India – 4 May 2005: According to Evalueserve, the Indian KPO sector will
account for 71 percent of global KPO revenues by FY 2010. The global KPO market
will grow by 45 percent per annum, from USD 1.29 billion in FY 2003 to USD 17 billion
by FY 2010. This high growth in the KPO sector presents a huge opportunity for India
in terms of employment generation and wealth creation, which will result in an increase
in the number of jobs, from 25,000 in 2003 to 2, 50,000 by 2010. The average annual
salary in the Indian KPO sector is currently around USD 8,800 per annum, as compared
to USD 6,000 per annum in BPO. This is the outcome of higher revenue per unit and
enhanced billing rates. The report also highlights the fact that revenues in the
Indian service sector are expected to rise by 12 percent per annum (from USD 306
billion in FY 2003 to USD 675 billion in FY 2010), contributing 57 percent to India’s
GDP by FY 2010. KPO will contribute around 1.8 percent to the Indian service sector
by FY 2010, up from 0.24 percent in FY 2003.
The report also explains how outsourcing high-end jobs is a win-win proposition
for clients as well as KPO vendors. The chart on the following page indicates the
positive change in the cost structure of clients outsourcing high-end jobs to destinations
such as India:
The maximum share of value creation goes to clients outsourcing high-end jobs, thereby
cutting costs by 40 to 70 percent and improving quality exponentially. On the other
hand, 30 percent of the revenue of a typical KPO vendor is retained in the form
of profits (before taxes) and 35 percent goes towards employee costs. The balance,
i.e., 35 percent of the revenue, represents overhead costs. This translates into
income for the allied sectors, and has a multiplier effect on profit and employment
generation. “This multiplier effect could result in two to three jobs being created
in other sectors for every job created in the off-shore financial (KPO) sector directly,”
says Marc Vollenweider, CEO and President, Evalueserve. The Evalueserve report provides
an in-depth analysis of the various drivers, value proposition, and imperatives
of the KPO sector.
Evalueserve Overview
Evalueserve offers high-quality knowledge services in Investment Research, Business
Research, Intellectual Property, Market Research, and Data and Financial Analytics
to clients worldwide. Founded in 2000, it has more than 1,500 employees, with operations
centres in India, China and Chile, and a strong sales presence across all major
global locations. Evalueserve won several awards in 2006, including Red Herring
Asia Top 100, NASSCOM IT Innovation Award for Business Model Innovation and the
Deloitte Fast 500 APAC Award.
To learn more about Evalueserve, please visit http://www.Evalueserve.com.
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