India's intellectual potential is the key factor for India being the favored destination for KPO industry. KPO involves the off-shoring of knowledge-intensive business processes that require significant domain expertise. According to a report by GlobalSourcingNow, the Global Knowledge Process Outsourcing industry (KPO) is expected to reach USD 17 billion by 2010, of which USD 12 billion would be outsourced to India. In addition, the Indian KPO sector is also expected to employ more than 250,000 KPO professionals by 2010, compared with the current figure of 25,000 employees.
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