introduction about KPO means the knowledge processing unit. in which the business service and business analysis comes under the guidelines of KPO and BPO means the business processing unit.
2. Knowledge Process Outsourcing (KPO) is a form of outsourcing, in which
knowledge-related and information-related work 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.
KPO business entities provide typical domain-based processes, advanced analytical
skills and business expertise.
3. Process transparency is a major barrier to using KPO services
"KPO is merely a continuation of BPO, though with rather
more business complexity.
The defining difference is that KPO is usually focused on
knowledge-intensive business processes that require
significant domain
The profile of people being hired to serve within KPO service
companies are more diverse than just being drawn from
technical IT services – these are people with MBAs, and
medical, engineering, design or other specialist business skills
4. • Investment research services (equity, fixed income
and credit, and quantitative research)
• Business research services
• Data Analytics
• Market research services
• Valuation and fairness opinions
• Legal process outsourcing
• Patent research services
• Business operations support, analytics &
management
• Editorial process outsourcing
5. Benefits-
▫ Cost reduction - companies can save significantly – as much as 40-50% – by
offshoring work to low wage countries
▫ Shortage of Skilled employees
▫ Provide a large pool of engineers and even PhDs at a substantially lower cost
▫ Boost employment and help their economies
▫ Provide flexibility in terms of HRM & time management
6. Risks
▫ Security - confidential company data, intellectual property and
knowledge in general
▫ Other forms of control can be lost as well. The quality of personnel
and work cannot be guaranteed
▫ Idealized expectations regarding the return on investment and time
will it take
▫ Legal, language and culture barriers can be serious problems
7. • A better assessment of the capabilities needed for an organization
to become world-class in sourcing.
• A predictable but flexible way to build these capabilities – through
strategic level agreements on various parameters.
• Year-on-year improvements in many of these Strategic
Agreements – in productivity and efficiency, quality and goal
orientation, cost savings and reinvestments.
The simplification, standardization, re-engineering and
transformation of processes and activities.
• Vendor investments and the sharing of business risks/rewards.
8. 1. Genpact: Formerly GECIS, Genpact had revenues of US$ 493
million in 2005. Genpact’s KPO specializes in competitive
intelligence, campaign management, program tracking, customer
relationship management etc.
2. Evalueserve: Based in Gurgaon, it has 650 people engaged in
market research and business intelligence. Nearly 45% of the
company’s revenues come from math related projects.
3. Ugam Solutions: Ugam Solutions entered the area of market
research analytics in 2001, much before the term KPO was coined.
Their business involves the study of consumer minds, their
behaviour and habits, for evolving a basis for business
development initiatives of global companies.
9. 4. 24/7 Customer: This BPO was listed in the Leaders
category of IAOP’s (International Association of
Outsourcing Professionals) Global 100 list. Its KPO
focuses on customer analytics, where it studies
consumer behaviour and analyses data pertaining to
related activities such as campaigns and marketing
activities.
• 5. WNS: Web Notification Service is a Mumbai-based
BPO, WNS has just started its KPO division for market
research with 300 people. It operates in the knowledge
services business segment and offers high-end services
such as market, investment and business research.
10. The KPO area has considerable measure of potential
development in India. But India confronts various difficulties to
secure itself as a worldwide KPO pioneer. The real test in setting
up a KPO will be to obtain skilled employees. KPO organizations
include high risk and confidentiality and the greater part of the
work would be outsourced from the US. The area likewise
obliges larger amount of control, confidentiality and enhanced
risk management. Moreover, legal language and cultural barriers
can result in genuine issues. Both organizations need to
appreciate each other's corporate and national societies and find
common helpful approaches to create successful participation
11. 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 pressurize governments to avoid political stand
offs as outsourcing has led to the inter-linking of supply chains.
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.
12. • 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.
