The rapid growth in the KPO and BPO industry has made the jobs in the industry more demanding and put even more pressure on the human resources employed with them. The jobs in this industry are considered stressful. Moreover, the nature and timing of work in these outsourcing units has given rise to certain issues which are of great interest to the HR specialists. In context of this ever-increasing debate, this article aims to highlight the core HR issues that arise in KPOs and BPOs and the measures that can be adopted to resolve these HR issues.

In a global scenario, which is dominated by IT, outsourcing is a process through which one company uses the expertise of another company in the same or some other country by handing its work to that other company. In an economy where companies are shifting their focus to core business areas, outsourcing benefits both, the company that out sources and the company that provides the service. The former benefits as it can concentrate more on its core business, reduce costs and also improve its performance in non-core areas. The outsourcing company gets business for itself and builds on its area of expertise further.

Knowledge Process Outsourcing (KPO) is essentially an offshoot of Business Process Outsourcing (BPO). It is the high-end activity of the BPO industry and is estimated to have a magnificent growth in the coming years. It aims to tap the Indian talent in the field that requires expertise and enhanced knowledge. In short, KPO involves off shoring of knowledge intensive business processes that require specialized domain expertise. KPO services are more research intensive. Unlike traditional outsourcing, KPO focuses on activities such as financial planning, fixed income and quantitative research.

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