Rod Jones - An Introduction To KPO June 09

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Towards Knowledge Process Outsourcing

Towards Knowledge Process Outsourcing

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  • 1. LIMPOPO BPO INDABA
    - 25 June 2009 -
    Towards Knowledge Process Outsourcing
    Rod Jones – BPO & Contact Centre Consultant
  • 2. Towards Knowledge Process Outsourcing
    What trade, industrial and manpower capabilities should Limpopo posses in order to move up the outsourcing value chain … from BPO to KPO ?
  • 3. Knowledge Process Outsourcing
    From Wikipedia,
    Knowledge process outsourcing(KPO) is a form of outsourcing, in which knowledge-related and information-relatedwork 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.
    Unlike the outsourcing of manufacturing, this typically involves high-value work carried out by highly skilled staff. KPO firms, in addition to providing expertise in the processes themselves, often make many low level business decisions—typically those that are easily undone if they conflict with higher-level business plans.
  • 4. Some Key Points
    • A fully developed service economy enables KPO by treating all functions as services.
    • 5. KPO demands advanced analysis and communication skills so specific higher education and language skills are essential.
    • 6. KPO is at the high-end of BPO
  • Examples of KPO
    • Business & Technical Analysis
    • 7. Research & Development
    • 8. Learning Solutions
    • 9. Animation & Design
    • 10. Business and Market Research
    • 11. Pharmaceutical & Biotechnology Research
    • 12. Medical Services
    • 13. Writing & Content Development
    • 14. Legal Services
    • 15. Intellectual Property Research
    • 16. Data Analytics
    • 17. Network Management
  • Key Differences
    BPO
    KPO
    <$10-$15 per hour*
    $30-$40 per hour*
    * Average India / Philippines
  • 24.
  • 25. The Challenges of KPO
    • Maintaining High Levels of Quality
    • 26. Investment in KPO Infrastructure
    • 27. Lack of Talent Pool
    • 28. Higher Levels of Control
    • 29. Confidentiality
    • 30. Risk Management
    • 31. Lack of Infrastructure
    Getting the contracts !
  • 32. The Way Forward
    Suggestions and Recommendations
    Developing the BPO/KPO industry in Limpopo
  • 33. Recommendations
    Formal Research
    Understand the metrics and the nature of the existing industry in Limpopo.
    Conduct a formal Regional Study
    Develop clear domestic and international development strategies
    Build a strong Regional Association and/or Professional Body.
    Form a Public-Private Partnership with Government
    Prioritise Training and Skills Development
    Adopt, adapt and regionalise existing internationally recognised training processes and materials.
    Adopt international training standards and certification
    Introduce internationally recognised call centre, contact centre and BPO standards
    Align with ISO developments
  • 34. Convince government to outsource non core call centre activities to the private sector.
    Look for ‘Quick Wins’ to develop high-quality government service delivery.
    The industry (through the Association) must be highly visible and vocal.
    Build relationships with national and international media.
    Association (or PPP) must be self-funding from the outset.
    A sustainable business model.
    Learn from your neighbours.
  • 35. Winning at the International Call Centre and BPO/KPO Game
    Understand Limpopo’s real strengths and weaknesses.
    Understand the competitive marketspace.
    Develop a Unique Value Proposition for Limpopo.
    Engage professionally with international prospects.
    Professional marketing programme
    ‘World Class’ website
    Professional sales representation in Europe and US. (Full time executives)
  • 36. What do International Outsourcers Look For?
    Long-term competitive advantage through cost-saving.
    • Limpopo MUST be able to guarantee at least 30% to 40% cost saving to UK, European or US outsourcers.
    The 4 C’s
    • Cultural Fit (Including language and accent)
    • 37. Operational Competence
    • 38. Capacity
    • 39. Credibility
    Risk Management
  • 40. 1: COST ADVANTAGE
    Recognise that international customers are highly sophisticated and accustomed to negotiating complex BPO contracts.
    Be able to display Total Cost of Ownership and/or ROI models for 3-5 or even 10 years.
    Be able to relate and compare with other international BPO locations.
    Consider and have facts relating to:-
    Transition costs
    Set-up Costs
    Grants and subsidies
  • 41. 1: COST ADVANTAGERECOMMENDATIONS
    Develop a sophisticated costing model.
    Calibrate with data from existing regional outsource contracts.
    Allow for complex “what if” scenarios.
    Allow for Country vs Country comparisons.
    Simplified ‘on-line’ version.
  • 42. The 4 C’s - # 1 Cultural Fit
    Maintain a close watch on the ‘anti offshore lobby’ in UK, Europe and US.
    Ensure high quality language and accent skills.
    Develop ‘Cultural Alignment’ models.
    Explore unique ‘niche’ opportunities.
    E.g. Non-Voice BPO processing
  • 43. 1: COMPETENCERECOMMENDATIONS
    Align the industry in Limpopo with one or more of the International Call Centre qualification certification and accreditation bodies.
    Subscribe to and implement extremely high operational standards (e.g SABS or ISO)
    Rapidly define and implement formal training for all operational levels – particularly Call Centre Management and Supervisory Skills.
    Implement on-going specialised skills training.
    Embark on ‘fast track’ Train-the-Trainer programmes to build local competencies.
  • 44. The 4 C’s - # 3 Credibility
    Establish a strong PPP-based Industry professional body.
    Employ highly qualified and experienced management.
    Import or contract the talent on a strict skills transfer model.
    Align with respected regional and international organisations and bodies.
    Use independent international consultancy to carry out competency audits on existing contact centres and BPO Centres in Limpopo.
    Actively promote positive case studies
  • 45. The 4 C’s - # 4 Capacity
    RECOMMENDATIONS
    Major outsourcers demand:-
    Low rates of staff turnover.
    Appropriate labour pool – both unskilled and experienced (Particularly supervisors)
    Assurances that competition and industry growth will not lead to unrealistic wage escalations.
    Establish a contact centre, BPO and KPO skills development academy.
    Implement contact centre and BPO ‘Career Days’ at high schools, universities and colleges.
    Offer incentives to international clients to ‘cross train’ in Limpopo.
  • 46. 3: RISK MANAGEMENT
    Recognise that all serious outsourcers will use sophisticated Risk Assessment Models.
    Many of these models will have been developed by high-profile international consultants.
    Pre-empt this reality and develop a credible risk analysis and risk mitigation tool set.
    Risk description
    Risk Severity
    Probability of Risk
    Controllability of Risk
    Mitigations
  • 47. Develop & Deploy
    International Marketing
    Develop Regional
    Value Proposition
    Refine International
    BPO / CC Entry Strategies
    Deploy Regional /
    Domestic Development Plan
    Develop Regional Policy
    & Solution Options
    Develop Regional BPO and CC
    Risk Model
    Develop BPO and CC
    Costing Model
    8 - Phase Industry Development Programme
    Input Source
    Results Flow
    Regional Study
    and Sector Survey
  • 48. Key Points
    Research and Industry Knowledge – (Domestic market)
    Gather International BPO industry knowledge
    Identify labour pool and training requirements.
    Establish professional body / association / PPP
    Establish Training Standards / Materials / Accreditation / Certification
    Establish operational Standards for call centres and BPO
    Craft a domestic industry development strategy.
    Government outsourcing and shared services centre/s
    Craft an international BPO Value Proposition and development strategy.
    Ensure Competencies
    Ensure Capacity
    Ensure Credibility
  • 49. So…..
    Let’s get to work..
    Knowledge Processing
    LIMPOPO STYLE !