With customers demanding highquality services, enterprises are forced to adopt systems and. Kpo, on the other hand, requires technology, analytical and decisionmaking competences and no doubt kpo companies charge more than twice the manhour rates than that of a bpo job. Evalueserve article indias knowledge process outsourcing. Kpo can also provide challenging and progressive positions for employees that want to move into supervisory and monitoring roles. In 2014, the kpo sector comprised 40 percent of the countrys outsourcing industry. Developed economies are facing great shortage of skilled, trained and specialized professionals in various knowledge intensive highskill sectors, such as research and development, engineering design, information technology, financial risk management etc. More and more businesses in every vertical are asking these very questions and many are finding the answer in what has been called knowledge process outsourcing kpo. Kpo firms provide domainbased processes and business expertise, rather than. The outsourcing business, which started with bpo, is now also propelling the outsourcing of knowledge process work.
Knowledge process outsourcing can provide cost savings and process efficiencies and allow companies to focus on increasing revenue growth. The philippines knowledge process outsourcing kpo services are often called nonvoice or back office services, referring to activities outside contact center, customer and it support services. Kpo companies provide knowledgeintensive work and engage highly skilled professionals such as mbas, cas, cfas, engineers, phds, doctors, lawyers, etc. Kpo services are broadly classified into four kinds of services. Knowledge process outsourcing kpo is onestep extension of. Knowledge process outsourcing market size industry report, 2025. This paper examines issues of knowledge process outsourcing in terms of hecksher. What is offshoringoutsourcing offshoring the practice of moving processes or services to another country, in order to improve business efficiency and reduce costs is now an integral part of the modus operandi of western business, and the numerous companies that have gone down this route in recent years have derived immense benefits, not. Kpo means knowledge process outsourcing, by nature, is suitable for people whore looking forward to making a specialist career.
Kpo has since come to refer to those outsourcing activities that require significant domain expertise e. Knowledge process outsourcing kpo describes the outsourcing of core informationrelated business activities which are competitively important or form an. Knowledge process outsourcing services can be outsourced to india. Harnessing intellectual arbitrage to capture value. These are both highvalueadded forms of business process outsourcing bpo. The questions in this quiz will measure your understanding of business process outsourcing bpo and knowledge process outsourcing kpo. Because bpos are mostly processoriented where your general processing skills come handy. Bpo generally functions with predetermined set of designs of operations for the desired solutions. Knowledge process may be defined as high added value process chain where the achievement of. The emergence of knowledge process outsourcing kpo has transformed this, since the companies want to have tailormade solutions for specific issues like, cycle time efficiency, market research and demandbased management. Knowledge process outsourcing unlocking topline growth by. Kpo is, essentially, highend business process outsourcing bpo. May 14, 2019 knowledge process outsourcing kpo is the outsourcing of core, informationrelated business activities to individuals that typically have advanced degrees and expertise in a specialized area.
Jan 01, 2006 read from business process outsourcing bpo to knowledge process outsourcing kpo. Knowledge process outsourcing analytics outsourcing. The issues are derived from five cases studied by the authors in india and ireland. Ip intellectual property kpo knowledge process outsourcing orc outsourcing. Knowledge process outsourcing kpo market trends analysis. The global knowledge process outsourcing kpo market size was valued at usd 28. This includes research and work on intellectual property, equity and finance, analytics, market research and data management, etc. After achieving success in bpos, india is now gearing towards kpos. If youre a graduate and looking for a job, its easier to get one in bpobusiness process outsourcing. The structuring and management of this type of outsourcing is also very complex and fraught with new risks. Kpo is involved in services like valuation and investment research, patent filing, legal and insurance etc. Some issues, human systems management on deepdyve, the largest online rental service for scholarly research with thousands of academic publications available at your fingertips.
This article has been published in the information technology special issue june 2006 of sanhita a monthly magazine for corporate professionals published by the pune chapter of wirc of the institute of company secretaries of india. Pdf knowledge process outsourcing kpo is onestep extension of business process outsourcing bpo. Knowledge process outsourcing kpo is the next step up the outsourcing value chain. Today, the indian kpo sector offers organizations the choice of a multitude of knowledge based services across industry verticals. Kpo can simply be explained as an offshoring of knowledge concentrated business processes that needs specialized domain oriented expertise. Introduction bpo has become an accepted and widely adopted way of doing business. The kpo opportunity represents both risks and benefits, and managers must find ways to avoid costly failures. Outsourcing knowledge based services to india offers companies with greater benefits, as they can get access to domainbased processes and advanced analytical skills, rather than just process expertise. Knowledge process outsourcing kpo market expected to. It delineates financial business processes along a low to highend continuum. A value proposition anurag pahuja, rajesh verma abstract in this paper an attempt has been made to study how and why the outsourcing have started moving up the value chain. Knowledge process outsourcing kpo is the allocation of relatively highlevel tasks to an outside organization or a different group possibly in a different geographic location within the same organization.
The outsourcing of knowledge processes facilitates the maximum utilization of resources at much lower costs. Scribd is the worlds largest social reading and publishing site. Kpo involves the outsourcing of knowledge intensive work. This research reports the findings from a study on nine knowledge process outsourcing kpo vendors working in the financial services industry. Knowledge process outsourcing kpo is the next step up the. Knowledge process outsourcing kpo market, 2025 industry. Hence, the characteristics of the knowledge process outsourcing industry are. This has given rise to a new trend in outsourcing, knowledge process outsourcing, kpo. Knowledge process outsourcing kpo enables clients to unlock their topline growth by outsourcing their core work to locations that have a highly skilled and relatively cheap talent pool. The global knowledge process outsourcing kpo market is anticipated to grow at a considerable pace over the forecast period. The global knowledge process outsourcing market size is expected to reach usd 124. Know mcre follow us services free home about services news make a habit ottwo things to help, or at least to do no harm hippocrates welcome to pharma kpo what we offer. Strategic importance of knowledge process outsourcing hro today. Not surprisingly, the financial services sector is leading the kpo charge.
Press release knowledge process outsourcing kpo market trends analysis report by. Meaning of kpo knowledge process outsourcing kpo is a form of outsourcing, in which knowledge related and informationrelated work is carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost. Increasing need for enhanced flexibility in service level agreements sla is one of the major growth drivers. Our proven business values for meetin your kpo needs.
Legal process outsourcing is estimated to emerge as the fastest growing service segment in the knowledge process outsourcing market, owing to the efficiency of services provided and reduction in cost. The huge availability of data is one of the key factors that have enabled the growth as it needs to be analyzed and processed. This paper presents a number of issues related to knowledge process outsourcing from the client firm and the providers perspectives. The service provided by a kpo company can be classified as highly complex, customized, requiring. Knowledge process outsourcing kpo definition investopedia. Feb 03, 2014 knowledge processing outsourcing kpo summary. Strategic importance of knowledge process outsourcing.
While bpo provides extensive process expertise, kpo is emphasizes on business expertise. Competitive knowledge is increasingly being outsourced to knowledge process outsourcing kpo vendors, indicating a shift in the opinion that core business activities cannot be outsourced. Kpo knowledge process outsourcing allows organizations to do fairly complex operations and get the benefit of time to market, said ritesh idnani, head of global sales at progeon, a business process outsourcing subsidiary of infosys technologies based in bridgewater, n. Ito or business process outsourcing bpo, both of which emphasize cost. The outsourcing of knowledge processes facilitates the maximum utilization of resources at. Knowledge process outsourcing the canadian center of science. Alexander mierau, strategic importance of kpo, 2007. Knowledge process outsourcing kpo overview, outsourcing. Prnewswire the global knowledge process outsourcing kpo market is expected to reach usd 124. Knowledge process outsourcing kpo is the process of outsourcing knowledge intensive activities that are data driven and encompass the process of gathering, managing, analysing and delivering objective insights into businesses. Knowledge process outsourcing kpo is onestep extension of business process outsourcing bpo. An explicit distinction has been made between business process outsourcingbpo and knowledge process outsourcingkpo.
Kpo knowledge process outsourcing contact pdf solid experience. Knowledge process outsourcing kpo is the outsourcing of core, informationrelated business activities to individuals that typically have advanced degrees and expertise in a specialized area. The global knowledge process outsourcing kpo market is expected to reach usd 124. Knowledge process outsourcing 3 value proposition of kpo the increasing competition in global businesses has resulted in a smaller cycle time for introducing products and services. From business process outsourcing bpo to knowledge process. Apr 16, 2011 meaning of kpo knowledge process outsourcing kpo is a form of outsourcing, in which knowledge related and informationrelated work is carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost.
When conceptualizing what kpo is, it is helpful to think about it as business process outsourcing bpo, however at a higher position in the intellectual value chain. Knowledge process outsourcing kpo involves outsourcing work to individuals that typically have advanced degrees and expertise in a. Knowledge process outsourcing kpo is a form of outsourcing, in which knowledge related and informationrelated work is carried out by workers in a different company or by a subsidiary of the same organisation, which may be in the same country or in an offshore location. Knowledge process outsourcing free download as powerpoint presentation. Short notes on knowledge process outsourcing kpo, prepared. Knowledge process outsourcing in financial services the. Pdf in recent years, tremendous growth has been observed in learning and knowledge creation processes.
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