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Knowledge Process Outsourcing

It is the evolution and success of the Indian BPO sector that has given rise to an another wave in the global outsourcing scenario which is known as Knowledge Process Outsourcing (KPO). While BPOs deal with size, volume and efficiency, Knowledge Process Outsourcing deals with the depth of knowledge, experience and niche skill set.

Organizations around the globe are facing great challenges like less time available for introducing products and services into the market and shortage of professionals in various knowledge-intensive high-skill sectors which have paved way to the growth of the KPO industry.

India has experts in various sectors like Pharmacy, Medicine, Law, Biotechnology, Education & Training, Engineering, Analytics, Design & Animation, and Research & Development etc. Morover as there a lot of attractive career opportunities in India many highly qualified Indians are opting to return back to India. They are a best blend of western work system experience and familiarity with Indian work ethics. Returning Indian scientists have expertise in international methodology and regulations. Returning Indian workers have skills in working with global clients. These professionals are contributing to the knowledge pool and know-how in India.

Apart from Indians, knowledge workers from countries like America, Europe and China are also considering India for job opportunities. Such talent is discovered and tapped by leading businesses across the globe which has resulted in outsourcing the high-end processes to low-wage destinations. Knowledge Process Outsourcing involves off shoring of knowledge intensive business processes that require expertise. Knowledge Process Outsourcing is highly value added processes in which the achievement of goals is highly dependent on the skills, knowledge and experience of the people carrying them out.

Knowledge process outsourcing (KPO) is a form of outsourcing, in which knowledge and information-related work is carried out by workers in a different company or in the subsidiary of the same company, which may be in the same country or in an offshore location to save cost. It involves high-value work carried out by highly skilled staff. KPO often take some low level business decisions which could be easily undone with, in case if they conflict with higher-level business plans.

Examples of services which are outsourced include:
  • Research & Development
  • Learning Solutions
  • Animation & Design
  • Business & Market Research
  • Medical Services
  • Intellectual Property Research
  • Data Analytics
  • Training & Consultancy
  • Business and Technical Analysis
  • Pharmaceuticals and Biotechnology
  • Legal Services
  • Network Management
  • Writing & Content Development

As the KPO's provide knowledge based expertise rather than just process expertise they require analytical and specialized skill to ensure completion of the outsourced jobs. Therefore outsourcing of knowledge processes face more challenges than BPO (Business Process Outsourcing). Some of the challenges involved in KPO include the necessity to maintain higher quality standards, investment in KPO infrastructure, scarcity of talented workforce, confidentiality etc.

India is the most preferred KPO outsourcing destination due to availability of skilled workforce, large English speaking population, IT savvy workforce, friendly government policies and low labour costs. The Indian government has recognized that knowledge processes will influence economic development to a large extent in the future and has taken measures towards liberalization and deregulation.

The Indian government has taken steps to improve infrastructure with better roads, setting up technology parks, opening up the telecom sector for enhanced connectivity, providing uninterrupted power to augment growth.

Tax holidays and concessions for given to the companies involved in scientific research and development. The government has taken initiatives to focus on various issues like data privacy, information security and Intellectual Property Rights. Indian companies have taken several measures to protect the information of their customers.

The benefits of KPO include:
  • Cost reductions.
  • Increased operational efficiency.
  • Utilization of the expertise
  • Time Saving.
  • Profit Increments.
  • Availability of required man-power at nominal costs

India is well equipped to meet the challenges and all set to be the global KPO hub. Indian KPO industry is expected to be growing at almost 46% by the year 2010. Apart from India countries like Russia, China, the Czech Republic, Ireland, and Israel are also expected to join the KPO industry.

Read more about the KPO services that Infosearch provides.

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