Recruitment challenges in the KPO Industry. Agenda. How is a KPO different from a BPO? Market demand for KPO services delivered from India Demand and supply challenges for the KPO industry in India Recruitment and training are the biggest supply side challenges Recruitment challenges
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Recruitment challenges in the KPO Industry
How is a KPO different from a BPO?
Market demand for KPO services delivered from India
Demand and supply challenges for the KPO industry in India
Recruitment and training are the biggest supply side challenges
Case study of a KPO analyst working on a project
The Indian mindset
KPO resource requirements, are these being met?
Lack of strong middle management layer
Are the universities geared towards producing KPO talent?
Addressing talent management : What can businesses do?
Source: Industry whitepapers, Rocsearch, KPO Experts
*Market size is an estimate only
**The see next slide for supply side constraints
Global KPO industry is estimated to grow from 1.2 bUSD in 2003 to 10 bUSD in 2014, representing a CAGR of 21%
India has an opportunity to capture 50%-70% of the market share, i.e. 5 bUSD-7 bUSD in 2014
Major KPO domains are financial services, legal, healthcare, industrial design, animation and gaming, biotech, clinical trials and drug research
Revenue per employee for KPO services are between 40 kUSD-55 kUSD per year
Demand for KPO resources is estimated to reach 180K in 2014**
90% of KPO’s are expected to be 3rd party KPO’s
Demand side challenges
KPO industry is still nascent and potential clients have to be convinced about its benefits
The recent financial crisis could affect the KPO decisions in the short-mid term
BUT, in the long term, KPO will become an integral part of doing business as companies restructure themselves
Supply side challenges
Due to supply side constraints, the KPO industry can hire only 100K resources as compared to projected demand of 180K
Less than half of the business school graduates would be employable due to lack of skills for KPO jobs
KPO will have to invest in continuous training for resources to maintain quality
Hiring good quality raw talent:
Support local niche finance/economic institutes through funded training programs and projects
Leverage the results of CAT and JEE as potential screening exams for strong candidates
Internships to quality local and international students
Hiring experienced talent
Attracting US/Europe based NRI talent by marketing through Nasscom, TiE, Pan-IIT/IIM network groups
Identifying domains to build expertise in and hiring domain experts by tapping into industry pools
Employee mentoring program
“On the job” mentoring for employees from experienced managers in the organization. This process needs to be institutionalized.
Employee career path in the organization
Building a transparent and visible employee career growth plan personalized by employee
Establish clear financial incentives tied to promotions and good performance
Institutionalize a rigorous Induction training program
Ongoing training (in-house learning and external training)
Grooming experienced technical talent to project management roles which are client facing
Setup ESOP’s and/or profit sharing schemes for the employees