Knowledge process outsourcing

The burgeoning Business Process Outsourcing(BPO) sector in India has ramified into another role, that of Knowledge Process Outsourcing(KPO). In layman's language, KPO ia about providing services related to specialised knowledge of a particular industry.

We consult a doctor for a complete health check-up. A company needs a lawyer to draft the papers for a legal suit. A qualified scientist ia required to conduct scientific research. Not all these services require highly experienced proffesionals, but domain knowledge is a must. This knowledge ia what KPOs offer.

KPO services cover not only IT, but also many other areas like real estate, pharmaceuticals, biotechnology and clinical research.

KPO is the new buzz word in the offshore industry and has achieved significance by providing domain expertise to organisations. It enables enterprises to reduce design-to-market lead times and manage critical hardware efficiently. It also faclitiates assessment of markets, competition, products, and services. It can enhance organisation's effectiveness in business administration.
Some of the services that can be outsourced under KPO include patent research, content development, and R&D in biotechnology, aerospace and animation.

BPO vs. KPO

In a BPO company, the executives need to be directly involed with the customers. A KPO company simply taps its employees expertise to carry out high-end process like valuation, research, investment, legal and insurance claims and medical diagnoses. There may be no interaction with the end-customer in the latter case.
KPO companies command more revenue than BPO organisations. Employees of a KPO setup earn a lot more and also enjoy greater exposure to the global industry. Of course, KPO requires higher qualifications. Unlike a BPO job, a KPO assignment may entail more regular hours and no night shifts. The work culture in a KPO company is more professional and even the attire is likely to be more formal. On the other hand, BPO companies follow a more informal dress code.

Future of KPO

Low-end outsourcing services have an expected cumulative annual growth rate(CAGR) of 26 percent by 2010. In contrast, the global KPO market is expected to grow at a CAGR of 46 percent by 2010. According to a NASSCOM report, thr KPO industry is expected to reach USD 17 billion by 2010, of which USD 12 billion would be outsourced to india. Other countries in the KPO market include Russia, China, the Czech Republic, Ireland, and Israel. Russia, with its huge army of engineers and doctors, could capture the European KPO market. India, taking a cuefrom the BPO sector, could dominate the US KPO market.
Some of the challenges that the KPO industry facs is maintenance of high standards of quality , the need for investment infrastructure, the lack of talent pool, and the need for higher level of control, confidentiality and risk management.

Who Can Join?

KPO work requires specialised knowledge. Teachers, engineers, MBAs and even journalists are qualified to work in a KPO. Those with a science background stand a better chance as some tasks require data analysis and programming. In order to do well in KPO, on must possess good language skills, and the ability to apply academic knowledge, to structure data and to portray insight.