KPO sector may miss $15bn target: Assocham

BANGALORE, INDIA: The knowledge process outsourcing (KPO) industry is unlikely to grow to its projected size of $15 billion by 2012 due to the dearth of professionals, according to a study conducted by Assocham.

"There will be almost 30% shortfall in the size of the KPO business by 2012 ... (it) would stagnate at $10.5 billion against the projections of $15 billion -  mainly on account of dearth of talented professionals in the absence of relevant institutions for imparting KPO skills in India," the chamber said in a statement.

Emerging competition from low-cost destinations ike the Philippines, Russia, China, Poland and Hungary would also affect the KPO prospects, the statement added.

In a paper, KPO Industry in India, the chamber has said that the industry would be able to sustain its current phase of growth of nearly 18-20% with employment opportunities for 30,000 workforce only if good training institutions are set up.

Source: Agencies