Melbourne, November 7, 2011 – India has
been at the forefront of the development of the knowledge process outsourcing
(KPO) industry and will remain so for the foreseeable future. However, in
recent years a number of other viable KPO sourcing hubs have emerged in the
Asia-Pacific region, according to Ovum.
In a new report*, the independent technology
analyst firm finds that these new KPO delivery locations, including China, the
Philippines and Sri Lanka, are unlikely to challenge India's dominant position
in the market, but they have enabled many vendors to pursue a multi-shore
strategy.
Ed Thomas, Ovum analyst and author of the
report, said: “Being able to deliver services from multiple locations means
providers can offer existing clients greater flexibility and minimize the risks
associated with having all their operations in one facility, while at the same
time tapping into fresh labour pools”.
The KPO industry is maturing and the range of
services being provided has expanded as the market has developed. From its
initial beginnings in research and analytics, the definition of KPO currently
includes a variety of services, such as legal process outsourcing and clinical
trial management, among others.
On the latter topic, Ed Thomas said: “A major
challenge facing life sciences companies is the growing cost of R&D and, as
a result, a growing number of pharma companies are turning to
outsourcing and offshoring as ways of reducing
these costs. China is an attractive location for companies that run and manage
all phases of the clinical trial process, as it offers a significant pool of
potential patients in an important emerging market.”
Along with China, the Philippines is also
becoming an increasingly important player in the KPO market. It has started to
carve out a niche for itself in a number of key areas, including healthcare
outsourcing (providing industry-specific services to hospitals and healthcare
providers). This market is expected to grow significantly during the next few
years, with a notable increase in demand coming from the US as a result of the
recent reforms in healthcare regulations.
Sri Lanka has also focused on developing
skills around specific service lines. For example, the country has a
significant number of qualified accountants, capable of providing the kind of
high-end complex tasks associated with service areas such as equity and credit
research.
The recent emergence of countries such as
China, the Philippines and Sri Lanka as viable locations for KPO delivery has
been a positive development for vendors, as it has enabled them to begin
offering a blend of offshore and nearshore delivery while also giving them
access to sizable and previously untapped talent pools.
About
OVUM
Ovum provides clients with independent and
objective analysis that enables them to make better business and technology
decisions. Our research draws upon over 400,000 interviews a year with business
and technology, telecoms and sourcing decision-makers, giving Ovum and our
clients unparalleled insight not only into business requirements but also the
technology that organisations must support. Ovum is part of the Informa Group.
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