According to India¡¯s trade organization, NASSCOM, Knowledge Process Outsourcing (KPO) was slated to increase by $1.2 billion to $17 billion by the end of this year. Although this area of outsourcing has a lot of potential, a more recent report by NASSCOM claims that Indian KPO is currently stuck at growth of $4 billion. Although the global recession can be factored in to this decline, the figures still point to a wide margin of unatapped potential.

Between 2009-2010, KPO has gained prominence in the outsourcing landscape ¨C most firms think of it as an exentenson of business process outsourcing (BPO). However, there doesn¡¯t seem to be sufficicent data to support the idea that the KPO sector is picking up pace at expected levels, say analysts.

According to one expert at the National Outsourcing Association (NOA) Sourcing Summit, when the audience was asked about how many thought of their current business relationships with outsourcers as KPOs, just two out of three hundred people said ¡®aye.¡¯ That does seem to indicate a disparity in the KPO segment.

NASSCOM has sad that KPO has yet to go ¡®full throttle¡® as far as realizing its full potential is concerned. With pricing concerns still a factor for outsourcers, major players in the sourcing industry will have to wait and see how effectively compannes can make use of KPO.

Most experts believe that there is more to the KPO story than just getting work done by external employees. Most executives say they are reticent to give away sensitive company information to KPO firms. This is one hurdle that U.S. companies will have to overcome so that they can steer away from weariness about outsourcing their central business. In addition, this will lead to more innovation and business opportunities from the resulting synergetic relationship with offshore KPO vendors. But the current figures reflect the hesitancy on part of U.S. corporations to engage in KPO deals, reports silicon.com

"Now the recession looks to be ending (double dips permitting), the opportunities for companies to grow and enhance through KPO look much more achievable. All that¡®s left is for suppliers to keep pushing and end-users to work at overcoming their qualms. Advisors, analysts, associations and suppliers all have a part to play here; and though it¡®s a long road, KPO will make it in the end," says Martyn Hart, Chairman of NOA.