India can be global KPO hub: CII

New Delhi, May 8 | Updated: May 9 2005, 07:32am hrs
Having already emerged as the preferred destination for business process outsourcing (BPO), India has now set its sights on becoming a global hub for knowledge process outsourcing (KPO). The country stands to gain from its inherent strengths in the healthcare sector, pharmaceuticals and biotech sector and ICT sector which offer significant growth potential for KPO, a Confederation of Indian Industry (CII) paper has said.

According to the paper titled India in the New Knowledge Economy, KPO would grow at 46% to reach $17 billion by 2010. India could emerge as a global KPO hub as the business requires specialised knowledge and the countrys large number of engineering and technical institutes are geared to address the manpower demand, the paper said.

As per the paper, the healthcare sector could account for 7-8% of GDP by 2012 and provide direct and indirect employment to around 9 million people. At present, the country spends $22.7 billion on healthcare and the sector is the largest service industry in terms of revenue and the second largest after education in terms of employment.

The study observed that more than 70% of the American population prefer a natural approach to health, and spend around $25 billion on non-traditional medical therapies and products, thus making India one of their most preferred destinations because of ayurveda, yoga and siddha.

New Vistas
Knowledge process outsourcing will grow at 46%
Healthcare sector can account for 7-8% GDP by 2012
Biotech sector annual earnings may touch $5billion by 2010
Ayurveda, Yoga etc make India the most preferred destination for the Americans
In the area of pharmaceuticals, Indian companies are offering custom synthesis services at 30-50% cost savings compared to global costs, and with clinical trials costing about $25 million as compared to $300-500 million, India could become the most preferred destination for outsourcing, the CII paper said.

The countrys biotech sector too is now on an upswing and is expected to earn $5 billion annual revenue by 2010. The country has a wide network of research laboratories, well-developed base industries, rich bio-diversity, extensive clinical trial opportunities, etc, which will promote it as a major base for KPO, the CII paper said.