Financial Services industry KPO to be worth ‘$5-b worth by 2010

Mumbai: Global consultancy services provider KPMG and Nasscom today indicated that the Financial Services industry KPO (knowledge process outsourcing) is poised to be worth $5 billion in India by 2010.

In a report brought out jointly and released by the Union IT&C Minister, Mr A. Raja, KPMG researchers indicated that while there are various projections of KPO industry that range between $10 billion and $17 billion by 2010, India is well poised to garner about $5 billion worth of financial services business.

Mindgame

Addressing a press conference, Mr Edge Zarella, Global Partner-in-charge, IT Advisory, KPMG, said that India is at an extremely advantageous position to garner this business, which is often misunderstood. It is not a numbers game but a mindgame, where consultants would play a very strategic role. A couple of years ago, talk of KPO seemed far-fetched, especially as businesses were still struggling to come to terms with what the earlier forms of outsourcing could do for them.

This study focuses on financial services and how KPO could play a strategic role. The Indian capabilities are tried and tested and consultants with cross functional experience would provide strategic inputs for business. These could be in the areas of investment research, IP launching, data analysis, business research among others.

Talent pool


Mr Edge Zarella cited that about 5,000 companies have their regional headquarters in Singapore only because of the talent pool available there. “Likewise, you will see many companies harnessing the potential of senior executives and consultants in India”, he said.

The Global Partner-in-charge, Sourcing Advisory, Mr. Pradeep Udhas, said that a number of factors would play a role in attracting this business. These include the existing capability of IT services and BPO companies, the comfort zone these companies have built, push towards global sourcing and improved remote project management capabilities.

Interestingly, the report predicts that there is likely to be a significant shift in the boundaries between outsourceable and non outsourceable activities and offshoring activities to embrace new locations and most global banks and insurers are expected to adopt KPO strategies.