Brief overview of Knowledge Process Outsourcing (KPO)

Brief overview of Knowledge Process Outsourcing (KPO)

Knowledge process outsourcing (KPO) is the most advanced form of outsourcing that includes knowledge-intensive business processes with high level of specialized domain related knowledge.

KPO is considered to be the evolution and maturity of the BPO sector that involves a component of Business Processing Outsourcing (BPO), Research Process Outsourcing (RPO) and Analysis Proves Outsourcing (APO) carried out by staffs with advanced analytical skills, technical expertise, depth of knowledge, experience and decisive judgment.

The motive of KPO is to bring higher value to organizations by providing business expertise rather than process expertise and reduce variable cost.

Segments of KPO services

The KPO services include the following

• Research & Development (equity, fixed income and credit, and quantitative research)

v      Financial Research

v      Business Research & Analytics

v      Market Research

v      Patent Research

v      Legal Research

v      Life Science Research

v      Clinical Research

v      Intellectual Property (IP) Research

• Advanced Web Applications
• Business and Technical Analysis
• Learning Solutions
• Animation & Design
• Pharmaceuticals and Biotechnology
• Medical Services
• Writing & Content Development
• Data Analytics
• Network Management
• Training & Consultancy

Now KPO is also utilized in engineering Services, web Development application, CAD/CAM Applications.

As the KPO industry effectively put together the factors like as cost advantages, scalability, the ability to provide quick turn around, and geographical attractiveness etc., the industry is expected to gain a quick growth in the near future. Outsourcing increased by three rungs with the appearance of KPO

Benefits of KPO

KPO can expect to get the following benefits to the outsourcing company:

• Huge amount of cost savings that can be used somewhere else.
• Good quality work
• Standard operational efficiency.
• On time delivery of services
• Increase in profits.
• Adaptability to changes in required quality
• Option to recruit a larger work force without raising costs.
• Help gain a competitive edge in the market by enhancing the efficiency of the processes

Evaluation of KPO

LPO

LPO is known as legal process outsourcing. LPO contains a wide range of legal processes like patent application drafting, legal research, pre-litigation documentation, advising clients, writing software licensing agreements and drafting distribution agreements.

RPO

RPO refers to Research Process Outsourcing. This is mostly applicable in the biotech industry. Clients outsource their R&D work.

Alternatively RPO is also known as Recruitment Process Outsourcing. RPO is identical to Human Resource Outsourcing (HRO). The RPO team mostly handles all the recruitment.

HRO

HRO indicates to Human Resource Outsourcing. HR contains a group of activities like payroll management, training, staffing, benefits administration, travel and expenses management, retirement and benefits planning, risk management, compensation consulting, etc. These activities are outsourced so that  the owner can concentrate on the other aspects of the business.

MBPO

MBPO is termed as Medical Business Process Outsourcing. Apollo Hospitals is the first major hospital to be getting into this.

Future of KPO

Current trend and future prospect of KPO is highly potential. Current estimates of the KPO market stand at anywhere from $1 to $3 billion assuming an average revenue per person of $55,000 over the next four years. The global KPO industry is expected to top out at a whopping $17 billion by 2010, of which $12 billion would be outsourced to India. KPO industry employed approximately 106,000 professionals in 2006-07 and is predicted to grow to 350,000 in 2011-2012.

India's KPO sector is forecasted to acquire USD 11.2 billion in 2011-2012; and the equity research and investment banking domain currently represents one of the fastest growing areas of analytics offshoring.

The Indian KPO sector is expected to employ more than 250,0000 KPO professionals by 2010. India will detain more than 70% 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

India provided $3.5 billion of BPO and KPO (but non-IT) services in 2003 and is expected to grow at a CAGR of 36 per cent during 2004 to 2010. Hence, it is likely to earn $30 billion in 2010 by providing these services.