Knowledge process outsourcing: Difference between revisions

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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'''
Many Chinese research and development pharmaceutical firms have set up offices in Metro Manila due to relatively lower rental and operating costs compared to traditional destinations. The country also has a pool of 250,000 nursing graduates, about half of which are expected to be employed in the healthcare services sector in 2016.<ref name= "HIMO">{{cite web| title= Philippines Healthcare Info. Management| url= http://www.dict.gov.ph/healthcare-information-management-outsourcing-association-of-the-philippines/}}</ref>
 
'''Animation and Design'''
The Philippines has established itself as a successful [[Filipino cartoon and animation|Animation and Design]] outsourcing destination. The [[Animation Council of the Philippines]] estimates that global animation industry revenues have been growing at 20 to 30 percent over the past few years, increasing demand for low-cost, highly skilled creative labor. The rise of the animation outsourcing industry in the Philippines began in the early 1980s, with FilCartoons, Burbank Animation Inc. and Asian Animation setting up operations in the country and providing animation exports to foreign companies. In 2008, the Philippines had over 50 animation companies, mostly small and medium-sized companies. Larger animation companies include [[Toei Animation|TOEI Animation]], Roadrunner and [[Toon City|Toon City Animation Inc.]], which employs about 1,300 animators and artists (about 18 percent of the country's animation labor pool. Overall, the Philippines employed about 7,000 people in the animation sector in 2008 and generated up to US$97 million in 2006 and US$105 million in 2007.<ref name= "THOLONS">{{cite web| title= The Philippines Animation Industry|url= http://www.tholons.com/nl_pdf/150508_philippine_Animation_Industry.pdf}}</ref>
 
== In Eastern Europe ==
Although India has traditionally been a KPO destination for North American, British, and Australian companies, with an increasing number of European companies are looking to Eastern Europe, especially the Baltic countries, to satisfy their KPO needs.<ref>"Outsourcing market in Eastern Europe heats up" Oct. 17, 2012. http://www.bpmwatch.com/columns/outsourcing-market-in-eastern-europe-heats-up/</ref>
 
==See also==