Knowledge Process Outsourcing Knowledge Process Outsourcing Welcome to the world of outsourcing… 1 Presented by Prof. Loveleen Chawla Saturday, 28 March 2009
Conference
Oct 30, 2014
“Knowledge process outsourcing may be the next Boom Business”
The firmament of outsourcing is studded with the variety of bright and shining stars such as BPO, KPO, HRO, FPO, LPO, EPO etc. after the appearance of BPO; it is KPO which is assuming the popularity like Venus the brightest star. From the time immemorial knowledge has been considered as in all fields, be it spiritual, religious, learning, welfare, law, justice, administration or economic.
The firmament of outsourcing is studded with the variety of bright and shining stars such as BPO, KPO, HRO, FPO, LPO, EPO etc. after the appearance of BPO; it is KPO which is assuming the popularity like Venus the brightest star. From the time immemorial knowledge has been considered as in all fields, be it spiritual, religious, learning, welfare, law, justice, administration or economic.
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Knowledge Process OutsourcingKnowledge Process OutsourcingWelcome to the world of outsourcing…
1
Presented byProf. Loveleen Chawla
Saturday, 28 March 2009
KPO???KPO???
2Saturday, 28 March 2009
KPO - high intellect "cousin" KPO - high intellect "cousin" of BPOof BPO
Outsourcing of higher complexity processes which require– talented professionals – extensive education– experience credentials
KPO business entities provide– domain-based processes– advanced analytical skills – business expertise
Where BPO focuses mainly on process expertise
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Knowledge process outsourcing (KPO) Knowledge process outsourcing (KPO) is outsourcing of High end Complex is outsourcing of High end Complex
tasks, including legal process tasks, including legal process outsourcingoutsourcing
KPO firms provide domain-based KPO firms provide domain-based business expertise, rather than just business expertise, rather than just process expertise, makes many low process expertise, makes many low
level business decisionslevel business decisions
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The Evolution….The Evolution….
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Evolution of KPOEvolution of KPOKPO
Customer Care
ProcessingServices
Telemarketing
Medical Transcription
Transaction Services
Time
Valu
e
Source: Equinox Corporation6Saturday, 28 March 2009
Evolution of KPOEvolution of KPO
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KPO – A LITTLE BIT OF HISTORYKPO – A LITTLE BIT OF HISTORY Knowledge Process Outsourcing (KPO) has evolved from
the success of the Business Process Outsourcing (BPO) model.
Some of the MNC’s who pioneered the trend of setting up KPO centers in India
Frost & Sullivan Gartner Office Tiger General Electric American Express McKinsey
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WHAT IS A KPO?WHAT IS A KPO?
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Source: Technology Partners International, Inc. 11Saturday, 28 March 2009
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Services OfferedServices Offered
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KPO ServicesKPO Services
Knowledge Services
Investment Research• Corporate finance• Financial modeling and analysis• Investment banking support Market Research
• Data acquisition and data entry• Data processing • Presentation
Analytic Services• Data warehousing• Data preparation, ETL services• MIS & reporting• Business intelligence• Statistical and econometric modeling• Optimization modeling and or solutions
Information Management• Database creation• Quantitative/financial statement analysis• Data/information synthesis
Legal Research• Legal, Para-legal content and services• Drafting, review of documents and contracts• Legal research (case history)
Sourcing Management• Spend data analysis & supplier intelligence• Low-cost country sourcing• Advisory service
Source: Equinox Corporation14Saturday, 28 March 2009
Source: NASSCOM
Resources Performing KPO Work
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KPO vis-à-vis BPO growthKPO vis-à-vis BPO growth
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IndiaIndia India as a leading Hub
Cost effective comparatively to the Foreign Counterparts Skilled human capital availability in India vis-à-vis the
developed countries like the USA and UK English speaking labor pool domain expertise internationally accepted quality standards and processes
Challenges Are we still low cost? high attrition rates in the industry and an unstable political
climate.
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18Saturday, 28 March 2009
BUSINESS PROCESS MAPPING
The Indian PropositionThe Indian Proposition
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The Indian Proposition
WHY INDIA?WHY INDIA?
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The Mainstay – India's Higher Education SystemThe Mainstay – India's Higher Education System100% Sales Tax Exemption in places like 100% Sales Tax Exemption in places like
Mysore, Bangalore etcMysore, Bangalore etcIndia – The Trust FactorIndia – The Trust Factor
Data Privacy and Information Security InitiativesData Privacy and Information Security InitiativesReverse Brain DrainReverse Brain Drain
Improved communication modes at lower costsImproved communication modes at lower costsIndia has the world's second largest reservoir of India has the world's second largest reservoir of
Engineers, Scientists and Managers plus the Engineers, Scientists and Managers plus the largest pool of IT Manpower with nearly 50+%, largest pool of IT Manpower with nearly 50+%,
fairly proficient in Englishfairly proficient in English
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Talent Pool Available
With 3 million graduates per year India has a With 3 million graduates per year India has a distinct advantage over China as over 6 times distinct advantage over China as over 6 times
more people go to university in India compared to more people go to university in India compared to China China
The KPO segment requires much higher The KPO segment requires much higher technical / domain skill and business expertisetechnical / domain skill and business expertise
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ADVANTAGE INDIAADVANTAGE INDIA
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INDIA’S SOCIO - ECONOMIC - INDIA’S SOCIO - ECONOMIC - POLITICAL SCENARIOPOLITICAL SCENARIO
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INVESTOR PERSPECTIVEINVESTOR PERSPECTIVE
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MOVING UP THE VALUE MOVING UP THE VALUE CHAINCHAIN
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Service Level Maturity
Scalability
Indian outsourcing companies pay an Indian outsourcing companies pay an average of 60% that of the salaries paid in average of 60% that of the salaries paid in
the US.the US.
www.payscale.com32Saturday, 28 March 2009
www.payscale.com33Saturday, 28 March 2009
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The Challenges In KPO
Acquiring Customers and Consultants in a Cost Acquiring Customers and Consultants in a Cost Efficient manner.Efficient manner.
Making the Contract.Making the Contract.Managing the Migration of Processes and Managing the Migration of Processes and
Techniques.Techniques.Designing the process in an Offshore Facility.Designing the process in an Offshore Facility.
Equipping the Offshore Facility.Equipping the Offshore Facility.Service Delivery- Business Continuity, Service Delivery- Business Continuity,
Information Security, Inventory of Information Information Security, Inventory of Information AssetsAssets
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Future Scenario
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In 2003, the market share of Indian KPO sector in global KPO market
was 56%. And it is expected to reach 71% in 2010, which shows a
decent growth of the sector in the coming years.
According to NASSCOM,
KPO sector worldwide is expected to reach USD 17 billion by 2010.
Out of this, India will account for USD 12 billion.
Future Scenario
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CLASSIFICATION OF KPO SECTOR
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Financial Services : These include financial determining, insurance, risk assessment,
equity research, underwriting, fund management, actuarial analytics,
debt collection and recovery, corporate & market research, etc.
Some of the KPOs working in this area are Smart Analyst, Office Tiger, The Smart Cube.
Market Research and Analytics : These include services like writing & editing,
secondary & primary research, formatting client reports, conversion of findings to
knowledge, etc. Some of the KPOs working in this area are marketRx, Pipal Research,
Evalueserve, Inductis, OfficeTiger, Copal Partners, CRISIL, etc.
The moment of The moment of truth…truth…
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The last word:The last word:It would not be very wrong to state It would not be very wrong to state
that KPOthat KPOdo offer an alternate and fruitful do offer an alternate and fruitful
careercareerpath for our young minds.path for our young minds.
Going by the current statistics, the Going by the current statistics, the KPO waveKPO wave
is here to stay and Indians can now is here to stay and Indians can now benefitbenefit
much more than before.much more than before.“Knowledge Process Outsourcing May “Knowledge Process Outsourcing May
BeBeThe Next Boom Business”The Next Boom Business”
THANK YOUTHANK YOU
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