Knowledge Process Outsourcing
The evolution and maturity of the Indian BPO sector has given birth to yet
another wave in the global outsourcing scene: KPO or Knowledge Process
Outsourcing. The success in outsourcing business process operations to India has
encouraged many firms to start outsourcing their high-end knowledge work as
well. Cost savings, operational efficiencies, access to a highly talented
workforce and improved quality are all underlying expectations in offshoring
high-end processes to India .
The future of KPO
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. A report by Evalueserve predicts
that India will capture more than 70 percent of the KPO sector by 2010. Apart
from India, countries such as Russia, China, the Czech Republic, Ireland, and
Israel are also expected to join the KPO industry.
Comparison of Opportunity in BPO and KPO markets
Low-end outsourcing services have an expected Cumulative Annual Growth Rate (CAGR)
of 26% by 2010. In contrast, the global KPO market is poised for an expected
CAGR of 46% by 2010. The following figure demonstrates the expected growth in
the BPO and KPO markets over the next seven years.
What high-end services can be outsourced to the Indian KPO sector?
Here are some KPO services that can be outsourced to India :
- Research & Development
- Business and Technical Analysis
- Learning Solutions
- Animation & Design
- Business & Market Research
- Pharmaceuticals and Biotechnology
- Medical Services
- Writing & Content Development
- Legal Services
- Intellectual Property (IP) Research
- Data Analytics
- Network Management
- Training & Consultancy
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The challenges in KPO
KPO delivers high value to organizations by
providing domain-based processes and business expertise rather than just process
expertise. These processes demand advanced analytical and specialized skill of
knowledge workers that have domain experience to their credit. Therefore
outsourcing of knowledge processes face more challenges than BPO (Business
Process Outsourcing). Some of the challenges involved in KPO will be maintaining
higher quality standards, investment in KPO infrastructure, the lack of talent
pool, requirement of higher level of control, confidentiality and enhanced risk
management.
Comparing these challenges with the Indian IT and ITES service providers, it is
not surprising that India has been ranked the most preferred KPO destination
owing to the country's large talent pool, quality IT training, friendly
government policies and low labor costs.
India is well equipped to meet this emerging sector's challenges and all set to
be the global KPO hub!
Outsource your Knowledge Processing Requirements to India
If you are considering outsourcing your knowledge processing needs, or would
just like to know more about the various KPO services that can be outsourced to
India, check out O2I's Knowledge Process Outsourcing Services.
We have specialized departments that focus on various areas of Knowledge
Processing Outsourcing.
Please
contact us for your knowledge process outsourcing services.
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