Knowledge Process Outsourcing

Brief view about Knowledge Process Outsourcing (KPO)

KPO implies outsourcing of knowledge intensive business processes that require specialized domain expertise. Touted as the best thing to happen to the outsourcing industry in India, Knowledge services or KPO, in all likelihood will outpace the Business Process Outsourcing (BPO) industry. While the latter draws upon the process expertise of the vendor, the former utilizes specialised knowledge skills.

Market studies estimate the Indian KPO sector to notch up 71 percent of the global KPO share, with revenues of USD 12 billion, by 2010. It is expected that the Indian KPO market will grow at a CAGR of 49.5 percent between 2003 and 2010, compared to a CAGR of 30.6 percent for the Indian BPO market.

Among the fast-moving verticals within the KPO space, Data Search, and Integration & Management are expected to witness the fastest growth, with close to 50% CAGR till 2010; and hit a USD 5 billion market globally. Market Research and Business Intelligence sectors will also witness close to 54% CAGR growth.

Source: Wikipedia

After BPO it's KPO

BPO vs KPO

KPO promises to be the next big thing in the outsourcing sector. It's an estimate according to a report by (Global Sourcing) KPO or Knowledge Process Outsourcing business is supposed to touch $17 billion by 2010 of which at least 70 per cent or $12 billion is to be outsourced to India. More then 300,000 new jobs are required from the current 25,000. Many companies are planning to develop KPO segment due to this. The impact of quality manpower and work helps India to receive this much of work. According to a report, for every one job created for a foreign language professional, two new jobs will be created for Indian English-speaking professionals.

What KPO is all about?
KPO (Knowledge Process Outsourcing) job is all about good money, better working hours and an opportunity to do research and technical consultancy. As more and more companies worldwide make the transition from BPO to KPO, India is fast becoming a hot destination due to cost. Knowledge workers plays a vital role in it as in most cases client's has the data but not the manpower and India has the talent pool to process the data at a cheaper cost. KPO potential has been seen in data integration, management services, financial services, web research, technology research, biotech, data mining, database creation, web support, SEO, professional writing, website/graphic designing etc. It also includes professional services, like business research, legal services, accounts services, financial analysis and management consulting.

Most probably KPO operations are likely to emerge in countries with highest educational standards along with highly qualified professionals (Engineers, PhDs, MBAs, Lawyers, etc.) such as India, China and Russia. The biggest challenge for Indian firm is the fact that clients in KPO will not look at dollars figures but they mainly concerned on quality of services. Indian industry needs to tone up itself as other countries are also focusing on KPO. Among other countries that are behind India are Russia, China, the Czech Republic, Ireland and Israel. Russia, with a huge army of engineers and doctors in the world, could capture the European KPO market. India, replicating the BPO sector could dominate the US market.

Source: Iwebconnects