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Knowledge
Process Outsourcing (KPO) is where the big bucks lie.
Buoyed by significant cost savings accrued to them,
owing to Business Process Outsourcing (BPO), more and
more firms, globally, are looking to outsource their
high-end knowledge intensive work from low-cost destinations
like India as well. According to an estimate by Nasscom,
India's top technology industry body, the KPO industry
is expected to reach $15.5 bn by 2010, up from the current
$1.2 bn. In fact, according to some other research bodies
like DB Research and Evalueserve, the figure may even
go up to $17 bn by that time. Of this growing pie, Indian
KPO firms are expected to grab the lion's share of 71%,
says a report by RNCOS (Research and Consultancy Outsourcing
Services). The report adds that the high-end KPO opportunities
are immense for Indian firms. Intellectual property
rights, legal services, cutting-edge research in biotechnology,
equity research are cited by experts as among the major
ones to benefit from the KPO phenomenon. However, issues
like talent shortage, rising attrition rates, fattening
pay packets, and competition from countries like Russia,
China, Ireland, and Pakistan could spoil the party.
Nonetheless, the sector offers a huge opportunity for
India in terms of employment generation and wealth creation.
Low-end
outsourcing which is characterized mainly by BPO may
be passé as the service providers in the country
mature which may see more and more players migrating
to KPO which is viewed at a much higher pedestal compared
to BPO (involving low-end processes like voice-based
services, HR and Payroll accounting, document management
etc.). However, unlike BPO, KPO does not involve execution
of predefined, standardized processes as it is more
judgment-oriented and less predefined, and it is where
the expertise and skills of Indian players will be tested. |
