Knowledge process outsourcing: Difference between revisions

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The Philippines Knowledge Process Outsourcing (KPO) services are often called "non-voice" or back office services, referring to activities outside contact center, customer and IT support services. In 2014, the KPO sector comprised 40 percent of the country's outsourcing industry. The Information Technology and Business Process Outsourcing Association of the Philippines (IBPAP) predicts that the Philippine outsourcing sector will reach $25 billion in revenues and employ about 1.3 million people by 2016.<ref name= "COSS">{{cite web| title= SourceFit| url= http://www.sourcefit.com/blog/why-the-philippines-is-emerging-as-a-leading-destination-for-knowledge-process-outsourcing#sthash.8P2V7DcX.dpuf}}</ref>

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.