Scope of Knowledge ProcessOutsourcing (KPO) inPharmaceutical SectorPresented byVANDANA JATAV
Introduction They are firms that provide services based onspecialised knowledge of a certain industry. Knowledge process can be defined as high addedvalue processes chain where the achievement ofobjectives is highly dependent on the skills, domainknowledge and experience of the people carryingout the activity. And when this activity getsoutsourced a new business activity emerges, whichis generally known as Knowledge ProcessOutsourcing. The KPO typically involves a component of• Business Processing Outsourcing (BPO),• Research Process Outsourcing (RPO) and• Analysis Process Outsourcing (APO)
Overview on KPO The central theme of KPO is to create value forthe client by providing business expertise ratherthan process expertise. The profile of people being hired to serve withinKPO service companies are more diverse thanjust being drawn from technical IT services. KPO is a continuation of BPO, with more businesscomplexity. KPO is emphasizes on business expertise. Training is an essential component of the KPOindustry. Hourly charge rates for KPO services aresignificantly higher.
Evolution of KPO in India The evolutionary phases of the Indian KPOindustry are very similar to that of the Indian ITindustry. Activities related to IT outsourcingcommenced in India in the late 1980s. During this period, foreign companies such as IBM,Texas Instrument, Motorola, HP, etc preferredestablishing captive centres in India. The NascentKPO industry is following the footsteps of the ITindustry. India leads in KPO services. Countries such as thePhilippines, Russia, Ukraine, Poland, Hungary,China and South Africa are fast catching up.
The following table provides an indicative list ofservices that are being offered by KPOs.KPO segments CountryAnimation Philippines, India, ChinaEngineering Services Philippines, IndiaContent Development India, PhilippinesFinancial Services India, ChinaHealthcare Russia, IndiaR&D India, China, RussiaLegal New Zealand, IndiaPharma India, Russia
KPO Delivery Indian KPO vendors operate mainly through threebusiness models, i.e., captives, third-party and virtual. The selection of a business model depends onmany parameters such as the complexity of the work, internal competency levels, nature of business (core or non-core) and costs involved.
KPO Delivery1. Captive Centers In a captive centre set-up, a multinational companyestablishes its dedicated operations in countriesoffering high talent availability and low cost ofoperations. Moreover, the scalability of the captive centre isdependent on the amount of work, which is generallylow as the centre caters solely to the requirements ofthe parent company. Examples of prominent captives in India includeGoldman Sachs, Morgan Stanley, McKinsey, JPMorgan, UBS, Deutsche Bank, etc.
2. Third-party Service Providers The cost associated with captive centers is high,especially if the volume of work is not large, third-partyservice providers offer a viable option to companies. One of the key benefits of third-party service vendorsis that operations can be ramped up as and whenrequired. Third-party service providers address these concernsby formulating service-level agreements with clientsand certifying their process under quality audits suchas ISO 27001. Example -Evalueserve, Irevna, Aranca, etc
3.Virtual captives Virtual captive centers have both the functionality ofcaptives and third party service providers. It is a hybridbusiness model. There is no upfront investment undertaken by theparent company in establishing the centre as in acaptive centre. This centre acts as an overseasresource centre for a client in the third-party serviceprovider setup. The major advantage of virtual captive is that, itprovides higher quality of services involving highertransparency, control and security.
Major Segments of KPO Industry The seven largest segments of the KPO industry interms of revenue are ;1. Data Management, Search and Analytics2. Contract research and biotech3. Remote Educationand Publishing4. Engineering design5. Animation simulationservices6. Market Research7. Banking, security andinsurance
Another are- Scientific and medical content publishing, Business and consulting research, Network optimization and analysis, Legal research and IP, Translation and localization, Remote logistics services and procurement, Human resource research and analytics, Marketing and sales support.
BPO v/s KPO In the BPO sector, thevendor acquires aprocess from the endclient and runs it at itssite until the processreaches its logicalconclusion, after whichthe results, if any, arethen sent to the client. KPO focuses ondelivering value-addedservices to the clients.Its prime objective is toprovide clients withuseful insights that mayassist them in theirstrategic decisionmaking process.
PHARMA KPO Pharma KPO is provides its partners with a broadrange of solutions that are aimed at reducing costswhile optimizing business performance. Pharma KPO focuses in the field of pharmaceuticaland medical knowledge process outsourcing (KPO). Services that require general or specializedknowledge in the pharmaceutical, pharmacological,and medical science.
Contract Research The growth of the global healthcare and pharmaindustry has been hindered by high development costs,lower number of unique molecules discovered,increased development timelines and dynamic marketconditions. Currently, the outsourcing of research anddevelopment work seems to be a viable optionavailable to mitigate the risks involved. India offers a strong advantage in clinical research andtrials due to the following factors: - Availability of a large and diverse patient pool - Reduced time for data analysis - Availability of large skilled workforce
Pharma companies that are workingwith KPO’S Pharmaceutical giants like Astra Zeneca and GlaxoSmithKlihave set up drug discovery centers in India for R&D work. Presently, global pharma companies and consultancies lMarketRx, Frost & Sullivan, TNS and ZS Associates, have sup their KPOs in India. Beside Pharma companies, Law firms such as Patent MetrCantor-Colburn and Schwegman, Lundberg, and Woessn& Kluth have already set up offices in India. Pharma KPO is a joint venture between Zuellig Pharma,leading healthcare distribution company in Asia, and ADESolutions to provide business process / knowledge proceoutsourcing services to the life sciences industry.
Challenges for pharma sector Managing clients expectations. Extensive interaction between the client teams andthe delivery teams. A good report needs to have rich insights; goodamount of depth. Working under the pressure of steep deadlines.
Job Profile KPOs mainly offer research and backend work. KPOs use their employees expertise to carry outhigh-end processes like Valuation Research investment researches patent filing legal and insurance claims medical diagnoses and reports Clinical trialand many other profiles depending on the industry theKPO caters to.
Jobs in Pharma KPO1.Pharma Sector Analyst: As the name KPO suggest, the focus is on knowledgeprocesses which require adequate knowledge of thesector. We might be a great help to a financial analyst by givingmeaningful information . We can do a data mining job and do a lot of analysis on agiven set of data.2.Medical Transcription (MT): We need to undergo small session on Medical Transcriptionwhich may be a class room based training or an onlinetraining. The work involves taking narration from a recorded voicewhich normally comes from a healthcare practitioner(doctor) and documenting in a systematic and error free
3.Telecaller (Marketing Executive) of PharmaProducts: There are lot of KPO/ BPOs who are involved inpromoting products of Pharma Companies throughTelecalling. Some of these products are highly specialized andpromotional calls can be handled through qualifiedmedical professionals only. It may be due to facts that the target audiences of suchproducts are Doctors or health practitioners.4. KPO - Pharma and Health care Division – CustomerCare Supervisor: The customer care supervisor or an executive isrequired in any pharma company or health care divisionin dealing with inbound and outbound calls. These customer care supervisor or an executive need tohandle calls, market the pharmaceutical products.
5. KPO - Pharma Division – Co-Vigilance Executive: In this KPO Job, the desired candidate shoulddemonstrate high level of proficiency in the field ofproduct quality complaints. He should actively audit the entire product. he should handle queries pertaining to product. he should bring awareness of any changes andregulations of new products.6.KPO - Pharma Division – Medical Reviewer orAnalyst: Here the main responsibility will be review of reportspertaining to product, and also thorough review andpreparation of clinical trial safety assessments andreporting any weakness, before giving a green signalfor the product to be sold in the market.
7. KPO - Pharma Division – Medical Representative /Technical Sales Executive or Officer: The foremost objective to ensure the availability ofthe product range in Hospitals. Another objective is to know whether they areshortfall of any products in Hospitals or Shops.8. KPO - Pharma Division –Hospital Administration: Here the main responsibility will beadministration, mapping the products andshould be aware of product specification andits techniques.
Scope and future of KPO A report predicts that India will capture more than70 percent of the KPO sector. Apart from India,countries such as Russia, China, the CzechRepublic, Ireland, and Israel are also expected tojoin the KPO industry. According to a recent study by “Evalueserve, aGurgaon based outsourcing company havingservice chart for global world”, the global KPOmarket is expected to grow at a CAGR of 46 percent. In the Indian context, KPO salaries could be 25-50 per cent higher than those offered to thesame domain experts such as Engineer, Doctor,CA, Lawyer, Architect, Biotechnologist,Economist, Statistician and MBAs.
In the future, it is envisaged that KPO has a highpotential as it is not restricted only to InformationTechnology (IT) or Information Technology EnabledServices (ITES) sectors, and includes other sectorslike Intellectual Property related services, BusinessResearch and Analytics, Legal Research, ClinicalResearch, Publishing, Market Research (Marketresearch KPO), etc. Various research organizations-1. National Association of Software and ServicesCompanies (NASSCOM)2. Evalueserve3. Rocsearch, a UK-based research services company
Benefits Cost reduction - companies can save significantly –as much as 40-50% – by outsourcing work to lowwage countries. Provide a large pool of engineers and even PhDs at asubstantially lower cost. Boost employment and help their economies. Provide flexibility in terms of HRM & timemanagement. KPOs charge their international clients much morethan BPOs. Salaries are three to four times higher than BPOcompanies because the qualifications required arehigher. The biggest advantage of working for a KPO is that itexposes you to the global industry.
Risks Security - confidential company data, intellectualproperty and knowledge. The quality of personnel and work cannot beguaranteed. Idealized expectations regarding the return oninvestment and time. Legal, language and culture barriers can beserious problems.
TOP 5 KPO COMPANIES IN INDIA2013-1. Genpact: Genpact’s KPO specializes in competitiveintelligence, campaign management, programtracking, customer relationship management etc.2. Evalueserve: It has 650 people engaged in marketresearch and business intelligence.3. Ugam Solutions: Ugam Solutions entered the areaof market research analytics in 2001.4. 24/7 Customer:. Its KPO focuses on customeranalytics, where it studies consumer behaviour andanalyses data pertaining to related activities such ascampaigns and marketing activities.5. WNS: Web Notification Service is a Mumbai-basedBPO, WNS has just started its KPO division formarket research with 300 people. It operates in theknowledge services business segment and offershigh-end services such as market, investment andbusiness research.