This document discusses knowledge process outsourcing (KPO). It begins by defining KPO and explaining that it involves outsourcing knowledge-intensive processes. Popular KPO areas include legal services, accounting, journalism, and engineering. Companies that use KPO services seek cost savings and access to trained professionals. The document also notes that chartered accountants are well-suited for KPO work due to their skills. While KPO provides benefits, challenges include issues with scale, organization, culture and standardization. However, with effective communication between clients and providers, these challenges can be overcome. The future of KPO is seen as high potential as more sectors and countries engage in outsourcing.

1. Knowledge Process
Outsourcing

2.  Introduction
 Popular KPO Areas
 Types of Companies and Firms that use KPO
services today
 Chartered Accountants in KPO
 Benefits of KPO
 Challenges before KPO
 Future of KPOs and Conclusion
INDEX

3. Introduction
Knowledge process can be defined as high added
value processes chain where the achievement of
objectives is highly dependent on the skills, domain
knowledge and experience of the people carrying out
the activity. And when this activity gets outsourced
a new business activity emerges, which is generally
known as Knowledge Process Outsourcing. It is
essentially an offshoot of business process
outsourcing (BPO). One can call it a high-end
activity, which is likely to boom in coming years.

4. Popular KPO Areas
The large professional class
available in many developing
countries like India has created
trained workers in all the modern
fields of industry and business.
These include law, pharmaceuticals,
biotechnology, data analysis and
management services, financial
services, technology research,
computer-aided simulation and
engineering design and other
professional services.

5. Many new business concerns are coming day by
day in KPO Industry. The following are the few
areas which are being associated with the KPO
sector:
Types of Companies and Firms that
use KPO services today
Search Engine Optimization (SEO)
SEO primarily focuses on search engine marketing business.
Legal Services
What started out as transcription work in India has now moved on to
areas like patents, drafting, legal research, writing software licensing
agreements, etc.

6. Accounting Services
From simple book keeping to auditing, KPO firms
can provide trained professionals who offer cheaper
services with standard quality.
Journalism and Content Development
English speaking trained writers from a KPO firm are
good candidates to help newspapers and journals with
their editing and copy writing work.
Architectural and Engineering Services
A large pool of trained draftsmen can provide
expert CAD/CAM services to clients.

7. Chartered Accountants in KPO
The tools for KPO are so specialized, Chartered accountants
have a distinct advantage over professionals who are educated
in other areas.
Candidates should be skilled with computers, and they should
also display a high level of conceptualization. In addition to this,
they must be skilled at speaking the English language, and a
professional degree is also required.
It is a proven fact that Indian Chartered Accountants possess
all these qualities. They have a natural flair for mathematics,
research and ability to perform deep researched audit manually.

8. TYPES OF KPO SERVICES PROVIDED BY CAs
1. Business and Technical Analysis
2. Legal Services
3. Preparation and filing various forms with legal authorities
4. Preparing Accounting Manuals
5. Continuous business improvement in business cycles
6. Assets Record keeping & verification
7. Taxation Consultancy
8. Credit appraisal of customers
9. Business & Market Research
10. Evaluation of supply chain
11. Writing & Content Development
12. Intellectual Property (IP) Research
13. Data Analytics
14. Analysis of Management Information System
15. Network Management
16. Training & Consultancy
17. Research & Development

9. Outsourcing of activities to KPO companies
can provide the following benefits:
 Valuable cost savings that can be utilized
elsewhere.
 Trained professionals at work.
 Standard operational efficiency.
 Increase in profits.
 Savings in time and management energy
for maintaining in house services.
 Option to recruit a larger work force
without raising costs.
Benefits of KPO

10. Here are some common challenges faced
by the KPO industry:
Scale Challenges
Obviously resources would stay loyal to their respective
managers as a result of which their capabilities remain latent.
This results in limiting the capabilities of the enterprise as a
whole. Companies that rely on individual contributions instead
of team work to generate knowledge often find it more difficult
to do so.
Organizational Challenges
The status of different departments are at different levels i.e.
their research stages may be at different levels or their
analytics capabilities might be different.

11. Cultural Challenges
Knowledge processes are fully integrated in all the
functions of a company and all decisions of the business.
Standardization Challenges
Knowledge processes are developed gradually and used
in pockets by transient resources that have high
specialties. This camouflages the fact that the processes
may themselves lack standardization across product
divisions, geographies or business units.
Solution:
An effective knowledge process outsourcing strategy ensures
that all these challenges are overcome and the with effective
communication, there is not only clarity within the
organization but also between the client
and the service provider.

12. In the future, it is envisaged that KPO has a high potential as
it is not restricted only to Information Technology (IT) or
Information Technology Enabled Services (ITES) sectors, and
includes other sectors.
In times to come, more and more countries will outsource to
low cost countries. Following the lead of the U.S. and U.K.
Companies will now pressurise governments to avoid
political stand offs as outsourcing has led to the inter-linking of
supply chains.
Conclusion- ‘Future of KPOs’

13. The ongoing rise in oil prices has put an increasing
pressure on companies for optimal use of their resources in
terms of technology and outsourcing to maximise profits.
 India can demonstrate excellence in services that require
advanced English language skills.
 In time, a paradigm shift in technological power from west
to east will take place as India and China emerge as big
players in the global outsourcing market.