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    A

    SYNOPSISON

    THE GROWTH OF KPOs IN INDIADURING THE PERIOD 2001-2010

    This synopsis is submitted for partial fulfillment of requirement for the

    degree of master Of Business Administration (M.B.A)

    (SESSION 2009-2011)

    Submitted to: Submitted by:

    Prof. Kushal Kanwar Rakesh Kumar

    ID. AEMB0064B/09

    ARNI SCHOOL OF BUSINESS MANAGEMENT

    ARNI UNIVERSITY, Kathgarh ( Indora ), Kangra (H.P.) 176401

    www.arni.in

    http://www.arni.in/http://www.arni.in/
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    SIGNIFICANCE OF THE STUDY

    This research project helps me to know much about the KPO(KnowledgeProcess Outsourcing) industry. The main significance of the study are

    1. This study will help me to understand the effect of the KPO in an Indianeconomy.

    2. It will help to understand the difference between the KPO (KnowledgeProcess Outsourcing) and BPO(Business Process Outsourcing).

    3. It will help to understand the growth of the KPO industry.

    4. It will help to know what kind of jobs available in the KPO industry.

    5. It will help to know the work culture of KPO industry.

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    REVIEW OF LITERATURE

    This is an updated report on Knowledge Process Outsourcing with figures thatanalyze the predictions for the future growth of KPO in India that we made morethan three years ago. In this new study, we review the evolution of KPO to dateand update our predictions for the industry for the rest of the decade.

    Current and Expected Growth of KPO

    According to Evalueserves research, therevenue earned by the Knowledge Process Offshoring industry worldwide wasapproximately US $1.2 billion in 2003-04 and US $4.4 billion in 2006-07; thisimplies an annual growth rate of 54 percent. Furthermore, the Knowledge ProcessOffshoring industry employed approximately 34,000 and 106,000 professionals in2003-04 and 2006-07 respectively. Our forecasts also show that the industry isexpected to grow to US $16.7 billion in revenue in 2010-11 (which would implyan annual growth rate of 39 percent during the next four years) and to employapproximately 350,000 professionals globally. In contrast, the rest of the Business

    ProcessOffshoring industry worldwide grew from revenue of US $7.7 billion in2003-04 to US $15.8 billion in 2006-07, which corresponds to an annual growthrate of approximately 27 percent. During the next four years, the BPO industry isexpected to grow annually at 26 percent, thereby earning US $39.8 billion inrevenue during 2010-11.

    The growth of the KPO industry in India from2000-01 to 2006-07. According to Evalueserves research, although this industryhad only 9,000 billable professionals in India that generated total revenue of US$260 million during 2000-01, this number had already grown to 75,400 by 2006-07

    and these billable professionals generated US $3.05 billion. This implies acumulative annual growth rate of 51 percent in US Dollar terms and 43 percentwith respect to the increase in the number of billable professionals during these sixyears. Interestingly, the growth of the KPO industry so far seems to be pretty muchin line with Evalueserves July 2004 forecasts, where we estimated that thisindustry would generate US $2.9 billion in revenue during 2006-07. However, we

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    believe that our original estimate of $11.9 billion being generated by thisindustry during 2010-11 may fall short by 6-7 percent, primarily because (a) a fewsub-

    sectors (e.g., legal, paralegal, intellectual propertyservices, and medical content creation) have not been growing as rapidly asexpected earlier, and (b) the KPO sector in India is experiencing substantialemployee turnover, which hurts this sector in particular because these employeesare unable to gain sufficient domain expertise and knowledge before they move onto their next job.

    we have assumed a constant conversion rate of one US

    Dollar to 45 Indian Rupees, during the last four months the US Dollar has actuallydepreciated by 9 percent with respect to the Indian Rupee and on 4th May 2007,US $1 equaled approximately 41 Indian Rupees. Clearly, since the backend costsare all in Indian Rupees, one on hand this deprecation of US Dollar may imply ahigher annual revenue for the KPO industry in India (if the captives and thirdparties are able to charge in US Dollars), but on the other it is also possible thatIndia will become less cost-competitive and hence lose some of its revenue toother low-wage countries, like China, the Philippines, Poland or Russia.

    About the Author Dr. Alok Aggarwal earned his Ph.D. in ElectricalEngineering and Computer Science from Johns Hopkins University in 1984, andfounded IBMs Research Laboratory in New Delhi, India during his 16 years atthe IBM Thomas J. Watson Research Center. Dr. Aggarwal is the Co-founder andChairman of Evalueserve, and is an expert in the founding of successful service-based operations serving a global client-base.

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    Conceptualization

    In present time KPOs industry is most growing industry in India. According toindustry estimates the size of the KPOs industry would be worth $17 billionglobally by 2010, out of which India would account for close to $12 bn. and threelakh jobs would be created in the Knowledge Process Outsourcing space by 2010and 70% of these jobs are expected to come to India. By this research topic I amdoing research on the growth of the KPOs industry in India during 2001-2010.This study will help me to know that what kind of role KPOs plays in the Indianeconomy, major functions of KPOs, what kind of jobs available in KPOs, whyKPOs comes in India. In this research project I will also try to know what kind of

    education and special skill require to get the job in KPOs.

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    FOCUS OF THE PROBLEM

    Indian economy is developing economy andchanging day by day. KPO (Knowledge Process Outsourcing) industry playingan important role in Indian economy. The size of the KPO industry would beworth $17 billion globally by 2010, out of which India would account for closeto $12 bn. In this research report the main focus of the problem is to know thatKPO are growing in India or not. What was the condition of KPO in 2001 andwhat is now? More of the problems are to know the effect of KPO on Indianemployment, does the more KPO should be open, effect of KPOs income inGDP.

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    OBJECTIVES OF THE STUDY

    To understand the growth rate of the KPO industry.

    To find does the KPO reduce unemployment.

    To find why KPO comes in India.

    To find does the income of the KPOs effect the GDP.

    To know how much the percentage of income of KPOs generated from India.

    To know more KPOs should be open or not.

    To understand the difference between KPO and BPO.

    HYPOTHESIS

    In this research project I will use null hypothesis andI will select KPO industry is not growing in India as null hypothesis.

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    RESEARCH METHODOLOGY AND RESEARCH

    DESIGN

    In this research project I will collect primary as well assecondary data. For collection of primary data I will go Chandigarh, Mohali orPunjab and for the collection of secondary data I will use internet, newspapers,magazine ect.

    Primary Data: -

    Primary data is that kind of data which is collected by theinvestigator himself for the purpose of the specific study. The data such collectedis original in character. The advantage of this method of collection is the authentic.A set of question will put together in the form of questionnaire with no. of

    questions.

    DATA

    Primary

    Data

    Secondary

    Data

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    Secondary Data: -

    When an investigator uses the data that has beenalready collected by others is called secondary data. The secondary data can becollected from journals, reports and various publications. The advantages of the

    secondary data can be it is economical, both in terms of money and time spent.The researcher of the report also will do the same and collected secondary datafrom various internet sites like google.com, altavista.com and many more. Theresearcher of the report will also have to visit various libraries for collection of theintroduction part because secondary data help us to clearly defined the problem.

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    UNIVERSE AND SURVEY POPULATION SAMPLE

    SAMPLING UNIT :-

    A decision has to be taken concerning a samplingunit before selecting sample. Sampling unit may be a geographical one such asstate, city,or country ect. It is unit that is available for the study at some stageof sampling process. In my study sampling unit are KPO locates at Punjab andchandigarh region.

    SAMPLING SIZE :-

    It refers to no. Of items to be selected from theuniverse. The size of sample should neither be excessively large , nor too small. It

    should be optimum. It is decided that a sample size of 50 will take and it is also

    decide to conduct the study in Punjab and chandigarh region.

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    COLLECTION OF DATA

    For the collection of primary and secondary data I will use two

    methods. That are-

    1. Interview method

    2. Data collection through questionnaire.

    3. Internet, newspapers, magazine ect.

    ANALYSIS PATTERN

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    After gathering the data from the Primary andsecondary sources the data will analyzed ,tabulated and interpretations will bewrite down with the help of graphs, charts, table diagram ect. with the help ofMicrosoft Excel and Microsoft Word.

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    LIMITATION OF THE STUDY

    No method is 100% perfect, every method have its own advantages and

    limitation. During my research project I may face following problems-

    1. For this research project I will go to Chandigarh, Mohali, andPunjab. This will be more time consuming.

    2. This Project also will hold more cost.

    3. People are not much aware about the KPO industry. I will not be

    able to take their valuable suggestion regarding my project.

    4. It may be possible the employees of the KPO industry will not

    co-operative.

    5. I dont know where the KPO located in Chandigarh, Mohali and

    Punjab region. This will be difficult to find there location.

    ORGANISATION OF THE STUDY

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    CHAPTER 1 INTRODUCTION

    CHAPTER 2 RESEARCH DESIGN2.1 OBJECTIVES OF THE STUDY2.2 FOCUS OF THE STUDY2.3 DATA COLLECTION2.4 UNIVERSE AND SURVEY POPULATION SAMPLE2.5 DATA ANALYSIS TOOLS2.6 SIGNIFICANCE OF THE STUDY2.7 LIMITATIONS OF THE STUDY

    CHAPTER 3 DATA ANALYSIS AND INTERPRETATION

    CHAPTER 4 FINDINGS AND RECOMMENDATIONS

    ANNEXURE

    A. BIBLIOGRAPHY

    B. QUESTIONNAIRE

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    BIBLIOGRAPHY

    1. http://www.kpoexperts.com/why-india/why-choose-india.htm

    2. http://services.tekrati.com/research/9447/

    3. http://www.kpodirectory.com/growth-in-kpo-industry.html

    4. http://www.outsource2india.com/why_india/articles/KPO.asp

    5. http://www.kpoweb.com/knowledge_overview.html

    6. http://www.vcsdata.com/bpo-kpo.html?category=BPO /KPO

    7. http://www.chillibreeze.com/articles/top-KPO-companies.asp

    8. http://www.expresscomputeronline.com/20100222/bpospecial03.shtml