The realm of outsourcing has expanded the business thinking both beyond creative and geographic boundaries. Indian outsourcing scenario has been developing and adapting to international demands at lightening speed. The Knowledge Process Outsourcing (KPO) industry has opened new vistas to various business opportunities. While on the demand side as quality, prompt response, costs, etc., have emerged as decision factors, the suppliers are struggling to acquire customers, attracting and retaining the talented workforce, meeting the desired standards. It is in this context, the present article analyzes the supply side dynamics of this industry.

Knowledge Process Outsourcing (KPO) refers to the outsourcing of high-end complex tasks and processes to specialized service providers. It involves a global delivery team. It is driven by depth of knowledge, experience and judgment. It requires technology, analytical and decision-making competencies. Maintaining in-house knowledge-based services with a shortage of trained professionals proves to be expensive as compared to getting the same job done outside with similar precision, quality, adroitness, and cost-effectiveness. It provides value to the customers through domain expertize. Outsourcing non-core activities enables the outsourcing firm to concentrate on core specialization and core competency areas. It offers various advantages for the outsourcer viz.

Firms, which decide to outsource its knowledge-based services, may do it either through captive units or outside service providers. For the service providers, KPO opens up the door to innumerable avenues. The potentials of KPO are not only restricted to IT or its sectors, but includes other sectors like intellectual property-related services, business research and analytics, clinical research, publishing, market research, etc., as well. Thus, major candidates for KPO include Legal Processes (LPO), Research Processes (RPO), Human Resources (HRO), Medical Processes (MPO), etc.

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