Knowledge process outsourcing: Difference between revisions

Revision as of 23:10, 21 October 2024

Revision as of 02:48, 13 November 2024

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{{Short description|Outsourcing of core information-related business activities}}

{{globalize|date=March 2012}}

'''Knowledge process outsourcing''' ('''KPO''') describes the [[outsourcing]] of core information-related business activities<ref name="Ivey">{{cite web|title=The benefits and risks of knowledge process outsourcing |publisher=Ivey Business Journal |url=http://www.iveybusinessjournal.com/topics/strategy/the-benefits-and-risks-of-knowledge-process-outsourcing |date=May–June 2010 |access-date=2012-03-20 |url-status=dead |archive-url=https://web.archive.org/web/20120422191917/http://www.iveybusinessjournal.com/topics/strategy/the-benefits-and-risks-of-knowledge-process-outsourcing |archive-date=2012-04-22 }}</ref> which are competitively important or form an integral part of a company's [[value chain]].<ref>{{cite web|title=Sourcing cheaper staff the new groth industry|publisher=The Sidney Morning Herald|url=http://www.smh.com.au/business/sourcing-cheaper-staff-the-new-growth-industry-20120127-1qlou.html|date=2012-01-28|access-date=2012-03-20}}</ref> KPO requires advanced analytical and technical skills as well as a high degree of specialist expertise.<ref name="Mierau">{{cite web|last=Mierau|first=Alexander|title=Strategic Importance of Knowledge Process Outsourcing|publisher=Technical University of Kaiserslautern|url=http://www.hrotoday.com/pdf/white-papers/Strategic-Implications-of-KPO.pdf|date=2007-01-17|access-date=2012-03-20}}</ref><ref>{{cite web|title=Now, BPO moves up the value chain|publisher=The Economic Times|url=http://articles.economictimes.indiatimes.com/2005-04-17/news/27485579_1_kpo-process-outsourcing-indian-bpo|archive-url=https://web.archive.org/web/20121209064028/http://articles.economictimes.indiatimes.com/2005-04-17/news/27485579_1_kpo-process-outsourcing-indian-bpo|url-status=dead|archive-date=December 9, 2012|date=2005-08-17|access-date=2012-03-20}}</ref>

Reasons behind KPO include an increase in specialized knowledge and expertise,<ref name="Ivey" /> additional value creation,<ref name="Mierau" /> the potential for cost reductions, and a shortage of skilled labor.<ref name="Ivey" /> Regions which are particularly prominent in knowledge process outsourcing include India, Sri Lanka, and Europe, especially Poland, Romania, and the Baltic States.<br />KPO is a continuation of [[business process outsourcing]], yet with rather more of business complexity. To be successful in knowledge process outsourcing, a lot of guide is required from [[interorganizational system]].<ref name="Ghosh, Biswadip">{{cite journal|title= Knowledge process outsourcing|journal=Acis 2009 Proceedings |date=December 2009 |publisher=Ghosh, Biswadip, ACIS 2009 Proceedings Paper 52.|url=http://aisel.aisnet.org/acis2009/52/ |author1=Ghosh }}</ref>

== Types ==

KPO services include all kinds of research and information gathering , e.g., [[intellectual property]] research for patent applications; [[equity research]], business and [[market research]], legal and medical services; training, consultancy, and [[research and development]] in fields such as [[pharmaceutical]]s and [[biotechnology]]; and animation and design, etc.{{sfn|Sornarajah|Wang|2010|p=280}}

==Importance==

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The KPO area has considerable measure of potential

development in India. India confronts various efforts by securing itself as a worldwide KPO pioneer. The real test in setting up a KPO will be to obtain skilled employees. KPO organizations include high risk and confidentiality and the greater part of the work would be outsourced from the US. The area likewise obliges larger amount of control, confidentiality and enhanced risk management.<ref>{{cite web|title= Challenges for Indian Companies in the Financial Services KPO Business|url= http://www.crisil.com/crisil-young-thought-leader-2005/dissertations/Smita-Bhattacharya_Dissertation.pdf}}</ref> Moreover, legal language and cultural barriers can result in genuine issues. Both organizations need to appreciate each other's corporate and national societies and find common helpful approaches to create successful participation.{{cncitation needed|date=November 2020}}

== In the Philippines ==

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The KPO industry is different from the BPO in the respect of that the former is more resilient to artificial intelligence (AI) and automation. With the 4th Industrial Revolution, it is estimated that most job losses will occur in low value-added contact center (“voice”) and other BPO services. Other services impacted by AI and automation include medical transcription, basic 2D animation services, parts of IT technical support and back-office transactions.<ref>Lee Kai-Fu (2018), AI Superpowers: China, Silicon Valley and the New World Order</ref> Advanced functions that are projected to become more in demand include analytics and optimization engines, automation enablement, clinical data analytics, remote health management, Virtual Reality (VR)/Augmented Reality (AR)-enabled animation and supply chain optimization.<ref>IBPAP (2018), “The IT-BPM Industry”</ref>

Like India's KPO industry, the Philippine KPO sector has evolved along similar lines. Starting with contact center services and low-value back office work like data entry and IT maintenance, the country is now considered an established destination for animation and design and content/publishing KPO services (Sathe and Aradhana, Sourcingmag.com). Back office and non-voice services contributed $1.1 billion in revenues to the country's outsourcing sector in 2009. Former IBPAP executive director for information research Gillian Virata said that the Philippine KPO industry is expected to reach the same market size as the voice service sector by 2015-2016. Non-voice services are already growing at a faster rate than traditional voice services.

===Non-voice services===

'''Banking and Finance Services'''

The banking and financial services industry is leading KPO activity in the country, with global financial institutions providing underwriting, research and analytics, training and consulting, profit and loss, risk mitigation, and other BFSI-related services. KPO vendors also provide strategic research, market research, financial services research, analytics, and competitive intelligence monitoring.

'''Legal Services'''

Companies from the Philippines are expected to compete strongly with Indian providers of legal and paralegal services to the United States. Besides its cultural affinity with the West and excellent English proficiency of its talent pool, the Philippines used to be an American colony, and its laws are patterned after those of the U.S. Integreon is an established legal services provider in the country, specializing in discovery, contract management, compliance, legal research and knowledge management, intellectual property, and due diligence.

'''Medical Services and Research and Development'''

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* {{cite book|title=China, India and the International Economic Order|first1=Muthucumaraswamy|last1=Sornarajah|first2=Jiangyu|last2=Wang|publisher=Cambridge University Press|year=2010|isbn=978-0-521-11057-0}}

* {{cite book|title=The Domestic Abroad: Diasporas in International Relations|first=Latha|last=Varadarajan|publisher=Oxford University Press|year=2010|isbn=978-0-19-988987-7}}

[[Category:Business process]]