KPO or Knowledge Process Outsourcing is an extended conception of the process of outsourcing business activities related to core business information by attending a top-level analytical research & technical skill with a high degree of specialist trade expertise. As we define BPO or Business Process Outsourcing is the process of outsourcing a particular business activity to a third party service provider works as an agent or representative of the business owner, in one word, the KPO is a core BPO service, a sub-set with a concentrated research activity.
As an example,Finance or Account or Audit process outsourcing is BPO service, categorized under Finance BPO but when the project is derivative management for investment guide this is a finance BPO service but namely considered as KPO.
The USP of BPO is this is cost-effective. Usually, projects which are not associated with their corresponding value-chain directly are outsourced for BPO for cost-reduction. BPO, as a sector hires people with the basic high-school education with basic computer skill. It will be better enough if the person has some communication skill.
But in case of KPO, you cannot say it would be cost-effective always. For KPO, only highly specialized and knowledge based research oriented services are outsourced. This is more perfectionist and sector specific. KPO hires people more sector oriented, more specific with services, more qualified technologically with the sector.
If functionalities and expertise is considered KPO is more fine-tuned expert-oriented sector based service than BPO.
KPO is concentrating more to India when most of the BPO services are switching over to Philippines and Bangladesh as India is good source of industry specific cialisfrance24.com experts with excellent expertise and the same source even asking for high rates is getting reduced in developed countries. Even, as the US Government is taking steps to reduce BPO services it is not going to make any affect on skill-based KPO.
Being KPO a specialized by-product of the BPO services, the quick success of the BPO model initiated numerous firms of developed countries to offer high-end knowledge services to India for all their knowledge service requirements.
NASSCOM (The National Association of Software and Service Companies) has a prediction that the India will hold the maximum involvement of 70 percent share of the entire KPO industry outsourced. The 20 billion US dollar industry at present will touch 30 billion US dollars by the end of the year 2015 owing to an increase in knowledge based services.
The demand for highly educated professionals in India is rising in fields such as medicine, engineering, management, legal, education, accountancy and company secretary services comprising jobs relevant to the KPO industry.
The sector is currently hiring nearly 3.5 lakh graduates, as it is going to be nearly double within 2015. Projected employment for 6-8 lakh people is predicted in this particular genre. According to the ASSOCHAM report the popular KPO services include: Equity research, Intellectual property research, Medical research, legal research (LPO), Business and market research, Research reports, Financial research etc.
The general economic and industry conditions provide a prediction that the KPO industry will strike out at 30 billion US dollars in 2015.