Our Services
Knowledge Process Outsourcing
What is KPO?
It is being claimed that KPO is one step extension of Business Processing Outsourcing (BPO) because BPO Industry is shaping into Knowledge Process Outsourcing because of its favourable advantageous and future scope. But, let us not treat it only a 'B' replaced by a 'K'. In fact, 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.
Knowledge Processing Outsourcing (popularly known as a KPO), calls for the application of specialized domain pertinent knowledge of a high level. The KPO typically involves a component of Business Processing Outsourcing (BPO), Research Process Outsourcing (RPO) and Analysis Proves Outsourcing (APO). KPO business entities provide typical domain-based processes, advanced analytical skills and business expertise, rather than just process expertise. KPO Industry is handling more amount of high skilled work other than the BPO Industry. While KPO derives its strength from the depth of knowledge, experience and judgment factor; BPO in contrast is more about size, volume and efficiency.
In fact, it is the evolution and maturity of the Indian BPO sector that has given rise to yet another wave in the global outsourcing scenario: KPO or Knowledge Process Outsourcing. The success achieved by many overseas companies in outsourcing business process operations to India has encouraged many of the said companies to start outsourcing their high-end knowledge work as well. Cost savings, operational efficiencies, availability of and access to a highly skilled and talented workforce and improved quality are all underlying expectations in outsourcing high-end processes to India.
The future of KPO has a high potential as it is not restricted to only Information Technology (IT) or Information Technology Enabled Services (ITES) sectors and includes other sectors like Legal Processes, Intellectual Property and Patent related services, Engineering Services, Web Development application, CAD/CAM Applications, Business Research and Analytics, Legal Research, Clinical Research, Publishing, Market Research (Market research KPO ) etc.
In today's competitive environment, focus is to concentrate on core specialization and core-competency areas and outsource the rest of the activities. Many companies and organizations have come to realize that by outsourcing non core activities, not only cost are minimized and efficiencies improved but the total business improves because the focus shifts to the key growth areas of the business activity.
The major benefits of the KPO outsourcing services are described below.
Knowledge Process Outsourcing when contrasted with Business Process Outsourcing sector faces more challenges. In BPO sector, clients provide the business process requirements to the outsourcing service provider. KPO demands professionals with advanced analytical and specialized skills in specific domains. Confidentiality and enhanced risk management, requirement of higher level of control and high investment for infrastructure are some of the challenges involved in this sector. Regardless of these challenges, Indian outsourcing industry still expects US companies to significantly increase the volume and depth of KPO activities executed from India. In the next few months, KPO sector will have a thumping impact on the Indian and US economies.
Some Examples
Drafting and filing of patent applications in the United States is very expensive. It may cost about $10,000 - $15,000 to draft and file a patent application with the United States Patent and Trademark Office. Outsourcing of the patent drafting process can give the client around 50 per cent cost saving. To cash in on the emerging opportunity, many law firms have already set up offices in India, and a few others are joining hands with Indian companies.
Research and Development in biotechnology and pharmaceuticals is another area where Knowledge Process Outsourcing has great potential. India offers 40 to 60 per cent cost advantages in the areas of contract research and clinical trials. Many Multinational companies have set up drug discovery centers in India to offshore Research and Development activities.
All major integrated design manufacturers such as Motorola, Intel, Analog Devices, National Semiconductor, IBM, Cisco, Cypress Semiconductor, Nokia and Philips have set up offshore design centers to take advantage from the Knowledge Process Outsourcing industry.
Knowledge Process Outsourcing saves 60 to 70 per cent cost on analytics and inventory management for Data-mining services.
Right step from the government
Indian government has taken the right steps to ensure an increasing talent pool of highly qualified professionals by introducing premium educational institutions like Indian Institute of Technology and Indian Institute of Management in every state. Computer science is introduced as a subject even in the primary school classes, and every course in engineering, science and commerce have included computer science programs. These steps will help professionals to get synchronized with the Knowledge Process Outsourcing industry requirements at a rapid pace. To take advantage of the KPO sector, the government has initiated a wide range of revolutionary steps such as improving infrastructure, setting up new technology parks, info parks, hi-tech cities, and electronic cities, special economic zones, opening up telecom sector for enhanced connectivity and providing uninterrupted power supply. It has also relaxed regulations in granting licenses to internet service providers to establish their own international gateways and submarine cable landing stations.
Future
The Global Knowledge Process Outsourcing industry is expected to reach USD 17 billion by 2010, of which USD 12 billion would be outsourced to India. This will create fabulous opportunities for people seeking a long-term career in BPO. The skills gained in a KPO career are transferable in the domain vertical and provide employees with immense mobility internally and across geographies. The people working in KPO industry, who have realized that metrics like loans underwritten per day have a greater value than average call handling time or keystrokes per minute. They will emerge as the Indian business leaders and managers of tomorrow.
A survey conducted by the National Association of Software and Services Companies (NASSCOM) indicates that global businesses are trying to keep down Research and Development costs by moving their work abroad. They are particularly looking to places like India and China. India has a huge talent pool with domain-specific, vertical skills to handle tasks that involve expertise and judgment.
The Gartner research report shows that almost 400 out of the Fortune 500 companies turned to India's large resource of skilled and English-speaking talent to cut their costs.
Another survey conducted by the Confederation of Indian Industry (CII) indicates that the total market size of Knowledge Process Outsourcing would grow at 46 per cent to become $17 billion sector by 2010.
Knowledge Process Outsourcing will contribute the major segment of the outsourcing business by creating new jobs and generating billions of foreign currency. By the end of this decade, India is expected to be positioned at the pinnacle of the Knowledge Process Outsourcing sector by garnering 71% of the market share.
It is being claimed that KPO is one step extension of Business Processing Outsourcing (BPO) because BPO Industry is shaping into Knowledge Process Outsourcing because of its favourable advantageous and future scope. But, let us not treat it only a 'B' replaced by a 'K'. In fact, 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.
Knowledge Processing Outsourcing (popularly known as a KPO), calls for the application of specialized domain pertinent knowledge of a high level. The KPO typically involves a component of Business Processing Outsourcing (BPO), Research Process Outsourcing (RPO) and Analysis Proves Outsourcing (APO). KPO business entities provide typical domain-based processes, advanced analytical skills and business expertise, rather than just process expertise. KPO Industry is handling more amount of high skilled work other than the BPO Industry. While KPO derives its strength from the depth of knowledge, experience and judgment factor; BPO in contrast is more about size, volume and efficiency.
In fact, it is the evolution and maturity of the Indian BPO sector that has given rise to yet another wave in the global outsourcing scenario: KPO or Knowledge Process Outsourcing. The success achieved by many overseas companies in outsourcing business process operations to India has encouraged many of the said companies to start outsourcing their high-end knowledge work as well. Cost savings, operational efficiencies, availability of and access to a highly skilled and talented workforce and improved quality are all underlying expectations in outsourcing high-end processes to India.
The future of KPO has a high potential as it is not restricted to only Information Technology (IT) or Information Technology Enabled Services (ITES) sectors and includes other sectors like Legal Processes, Intellectual Property and Patent related services, Engineering Services, Web Development application, CAD/CAM Applications, Business Research and Analytics, Legal Research, Clinical Research, Publishing, Market Research (Market research KPO ) etc.
In today's competitive environment, focus is to concentrate on core specialization and core-competency areas and outsource the rest of the activities. Many companies and organizations have come to realize that by outsourcing non core activities, not only cost are minimized and efficiencies improved but the total business improves because the focus shifts to the key growth areas of the business activity.
The major benefits of the KPO outsourcing services are described below.
- Cost reductions.
- Standard operational efficiency.
- Expert man-power.
- Time Saving.
- Profit Increments.
- Large man-power without raising costs.
Knowledge Process Outsourcing when contrasted with Business Process Outsourcing sector faces more challenges. In BPO sector, clients provide the business process requirements to the outsourcing service provider. KPO demands professionals with advanced analytical and specialized skills in specific domains. Confidentiality and enhanced risk management, requirement of higher level of control and high investment for infrastructure are some of the challenges involved in this sector. Regardless of these challenges, Indian outsourcing industry still expects US companies to significantly increase the volume and depth of KPO activities executed from India. In the next few months, KPO sector will have a thumping impact on the Indian and US economies.
Some Examples
Drafting and filing of patent applications in the United States is very expensive. It may cost about $10,000 - $15,000 to draft and file a patent application with the United States Patent and Trademark Office. Outsourcing of the patent drafting process can give the client around 50 per cent cost saving. To cash in on the emerging opportunity, many law firms have already set up offices in India, and a few others are joining hands with Indian companies.
Research and Development in biotechnology and pharmaceuticals is another area where Knowledge Process Outsourcing has great potential. India offers 40 to 60 per cent cost advantages in the areas of contract research and clinical trials. Many Multinational companies have set up drug discovery centers in India to offshore Research and Development activities.
All major integrated design manufacturers such as Motorola, Intel, Analog Devices, National Semiconductor, IBM, Cisco, Cypress Semiconductor, Nokia and Philips have set up offshore design centers to take advantage from the Knowledge Process Outsourcing industry.
Knowledge Process Outsourcing saves 60 to 70 per cent cost on analytics and inventory management for Data-mining services.
Right step from the government
Indian government has taken the right steps to ensure an increasing talent pool of highly qualified professionals by introducing premium educational institutions like Indian Institute of Technology and Indian Institute of Management in every state. Computer science is introduced as a subject even in the primary school classes, and every course in engineering, science and commerce have included computer science programs. These steps will help professionals to get synchronized with the Knowledge Process Outsourcing industry requirements at a rapid pace. To take advantage of the KPO sector, the government has initiated a wide range of revolutionary steps such as improving infrastructure, setting up new technology parks, info parks, hi-tech cities, and electronic cities, special economic zones, opening up telecom sector for enhanced connectivity and providing uninterrupted power supply. It has also relaxed regulations in granting licenses to internet service providers to establish their own international gateways and submarine cable landing stations.
Future
The Global Knowledge Process Outsourcing industry is expected to reach USD 17 billion by 2010, of which USD 12 billion would be outsourced to India. This will create fabulous opportunities for people seeking a long-term career in BPO. The skills gained in a KPO career are transferable in the domain vertical and provide employees with immense mobility internally and across geographies. The people working in KPO industry, who have realized that metrics like loans underwritten per day have a greater value than average call handling time or keystrokes per minute. They will emerge as the Indian business leaders and managers of tomorrow.
A survey conducted by the National Association of Software and Services Companies (NASSCOM) indicates that global businesses are trying to keep down Research and Development costs by moving their work abroad. They are particularly looking to places like India and China. India has a huge talent pool with domain-specific, vertical skills to handle tasks that involve expertise and judgment.
The Gartner research report shows that almost 400 out of the Fortune 500 companies turned to India's large resource of skilled and English-speaking talent to cut their costs.
Another survey conducted by the Confederation of Indian Industry (CII) indicates that the total market size of Knowledge Process Outsourcing would grow at 46 per cent to become $17 billion sector by 2010.
Knowledge Process Outsourcing will contribute the major segment of the outsourcing business by creating new jobs and generating billions of foreign currency. By the end of this decade, India is expected to be positioned at the pinnacle of the Knowledge Process Outsourcing sector by garnering 71% of the market share.
