Inductis is a prominent player in the high value added Analytics Segment of the KPO (Knowledge Process Outsourcing) industry.

A recent study showed that the global KPO market is expected to grow at a cumulative annual growth rate (CAGR) of 40%+ per cent to touch approximately $17 billion in 2010. It is expected that India will garner almost 70% of the KPO market by 2010. We believe, India will witness similar steep growth in KPO as it has seen in offshore software and BPO services through late nineties.

Our assessment of the KPO industry reveals the following factors that work in India's favour:

1. Cost competitiveness: KPO sector in India will continue to have high direct cost advantages atleast over the next 2-4 years,
2. Funding availability: Lot of venture capital money seems readily available for KPO Shops having sustainable revenue model,
3. Raw Talent pool availability: Availability of raw talent pool in India (MBA, Engineers, and Statisticians) is high, though the skilled pool is limited.

However, the KPO industry is not bereft of challenges:

1. Lack of experienced talent pool with domain expertise is something that KPO industry will have to address pretty soon, if the advantages have to be sustained over a long term basis,
2. Average age of employees of KPO organizations being < 30 years, it is witnessing high attrition rates (15-20%+) which is not sustainable over long term,
3. KPO industry will also have to build comfort in clients on issues related to data security and client confidentiality. Recent outcries of breaches of data security (stolen laptops, etc.) will add to challenges of India's KPO sector,
4. Other countries will be breathing down the neck for garnering KPO market share once India starts losing its cost advantages.  

With all its challenges, we do firmly believe, that KPO sector is the next big thing in India. Our assessment is that this sector is in the formative stage where we will see lots of mergers/acquisitions and investments happening in the near future, through which will emerge the big names of the KPO industry in India.