The domestic knowledge process outsourcing (KPO) industry in India is able to meet just 10-15% of the demand for research and analysis work from overseas.
KOLKATA: The domestic knowledge process outsourcing (KPO) industry in India is able to meet just 10-15% of the demand for research and analysis work from overseas. This is essentially owing to the shortage of skilled manpower.
Two-thirds of the work outsourced to India is related to equity and fixed-income research, while the rest is linked to investment banking analysis. By 2010, major investment banks alone are expected to spend $200 million and provide employment to over 3,700 personnel through outsourcing to India.
According to Forrester Research, the total outsourcing of business process jobs by US companies is expected to grow to $136 billion by 2015 from $4 billion in 2000. This could create 3.3 million jobs out of which one million could come India’s way.
But most vendors of specialised equity research said the key to capturing a chunk of the market lies in trained manpower resources.
Equity research is a high-end job, requiring the services of chartered accountants and MBAs with specialisation in finance. Poaching is rampant in the KPO industry owing to the shortage of trained personnel.
Said J K Sharma, MD, Zacks Research, in Kolkata: “Though we have reached a critical mass, we must remember the Chinese are beginning to learn English!”
Billing rates in the equity research offshoring space are kept strictly confidential but, according to sources, average rates range from $75-100 per hour. Gupta of Evalueserve said: “Since we do not have enough trained personnel, India needs to offer the right people at the right price. But we must ensure that India does not price itself out of the market.” –
With inputs from Bloomberg
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}