Global consulting firm KPMG report on Knowledge Process Outsourcing (KPO) industry has pointed out that financial services KPO industry to be worth in excess of US$5 billion by the year 2010.

According to KPMG, financial services, consisting of insurance, banking, mutual fund, etc, will be largest in the Indian BPO segment that is slated to reach between US$10 billion to US$17 billion by year 2010.  India will get the lion’s share of world KPO because of its several unique strength like specific skill, young work force, lower cost and scalability, the report said.

KPMG feels that the KPO phenomenon will gain further momentum in the coming years because most global banks and insurers are expected to go for larger KPO, outsourcing may be accelerated to preserve and increase competitive advantage and “Boutique” providers should leverage KPO to create new services and offerings.