'Financial services KPO to touch $5 bn'

NASSCOM 2008: INDIA LEADERSHIP FORUM

The financial services knowledge process outsourcing (KPO) industry is expected to be worth $5 billion by 2010, said a KPMG study.

KPMG's view was revealed in a report launched at the Nasscom India Leadership Forum 2008 in Mumbai today. Edge Zarrella, global partner-in-charge, IT advisory, KPMG, said: "Our study looks at the financial services KPO space which is driving the KPO evolution."

While organizations are trying to master Information Technology Outsourcing (ITO) and BPO strategies, they are now faced with a new industry trend: KPO.

Pradeep Udhas, global partner-in-charge, sourcing advisory, KPMG, said, "Cost savings, operational efficiencies, access to talented workforce and improved quality are driving offshoring of high-end knowledge-based processes."

India is expected to remain a preferred location for KPOs. However, organizations may look at other locations for additional delivery centers. Canada and Australia have the power to support the KPO industry. China, South Africa, and Singapore are other possible locations.

Issues that can hamper the growth include skill shortage and the declining US dollar.