Unlike BPO, KPO or Knowledge process outsourcing involves processes that demand advanced research and analytical, technical and decision-making skills. The KPO work mainly includes Research and development work for the sectors like pharmaceuticals, Insurance, patent research, IP research as well as business or marketing analysis.
Where as, Business Process Outsourcing (BPO) is giving long term contract to an outside service provider for specific business task i.e. back office outsourcing, secretarial work, data entry work, form processing and other similar tasks that require extensive manpower. The sole purpose for this is to help the company’s key professionals to save precious management time and money which helps them to concentrate more on core sectors.
After BPO, India is focusing on becoming the world’s hub for knowledge process outsourcing (KPO). It is a new terminology related to patents and intellectual property.
Since India has second largest English speaking population after America most of the world is looking towards India to outsource their needs related to patent search, infringement search, validity search etc. The Indian graduates cost 50% less than US graduates and initial set up costs are half those in USA.
The Indian government’s policy of free markets have created largest back office staff available anywhere in world and it has transformed India in to a major force on ITO and BPO service provider.
The Indian service providers estimate that KPO would grow at 46% per year to become $17 billion sector by 2010 and 70% of it or about $12 billion will be outsourced to India. Thus KPO is going to be very beneficial to India. Fields where most KPO benefits will percolate are pharmaceuticals, biotechnology, and ICT besides legal support, research and design and development of aerospace industries.
KPO is basically about valuation research, investment research, legal and insurance claim processing etc. India due to its large skilled manpower available at much lower rates will be a big bidder for KPO business.
The economy is developed by new inventions. There is a need to protect your new inventions that you make money from them. You can protect your new invention by various means so that others do not make money on your inventions. For this they have to patent their new products and conduct research before getting them patented. This is the service being provided by many KPO affirms of India at a very reasonable price.
Therefore, it is expected that KPO business will increase manifolds more than the BPO business and there will be a huge demand for skilled people in KPO business in near future.
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KPO emerge from the shadows of BPO as a respond to the diverse demand of the many businesses globally. Due to the recent trends of the economy, many companies from the West opt to outsource their labor needs to developing countries mostly situated in Asia in order to cut off the productivity cost without sacrificing the quality of the output.
Great article.Keep it coming.