| Their underlying expectation is that offshoring high-end | | | | of key parameters such as quality, precision, |
| processes will result in additional cost savings and | | | | confidentiality and project management expertise in |
| operational efficiencies, coupled with access to very | | | | the KPO industry. This paper also forecasts the |
| good talent in the low-wage offshore countries. This | | | | number of professionals that are likely to be employed |
| paper also forecasts the number of professionals that | | | | by this industry and we also present some important |
| are likely to be employed by this industry and we also | | | | drivers behind the movement from BPO to KPO. |
| present some important drivers behind the movement | | | | |
| from BPO to KPO. Once a process is successfully | | | | Finally, this paper attempts to compare countries (such |
| outsourced, the ratio can be reversed. | | | | as China, India, the Philippines, Ireland, Israel and Russia) |
| The success in offshoring Business Process | | | | that can provide KPO services with respect to labor |
| Outsourcing services operations with respect to | | | | costs, geographic location, demographic factors and |
| reducing costs and often improving quality has | | | | other miscellaneous factors. The paper also discusses |
| encouraged many firms to start offshoring their | | | | the future outlook of the global offshoring industry. |
| high-end knowledge work as well. Their underlying | | | | |
| expectation is that offshoring high-end processes will | | | | * Free you're Resources and Work on Your Strategy |
| result in additional cost savings and operational | | | | - An important aspect of business process outsourcing |
| efficiencies, coupled with access to very good talent in | | | | is its ability to free corporate executives from some of |
| the low-wage offshore countries. In this paper, we will | | | | their day-to-day process management responsibilities. |
| refer to this offshoring of higher-end services as | | | | Traditionally, executives spend 80 percent of their time |
| Knowledge Process Offshoring (KPO). | | | | managing details, and only 20 percent on strategy. |
| | | | | Once a process is successfully outsourced, the ratio |
| This paper analyzes the evolving KPO market, the | | | | can be reversed. |
| opportunities it offers, the associated challenges, and | | | | |
| the key drivers associated with the move from BPO | | | | * Improve Processes - Save Money - Companies that |
| to KPO. | | | | outsource business processes are often able to |
| | | | | reengineer those processes and capture new |
| According to our estimate, the KPO market is | | | | efficiencies. Then they can reallocate resources to |
| expected to grow from USD 1.2 billion in FY (Financial | | | | other important projects and leverage their investment |
| Year) 2003 to USD 16 billion in FY 2010. The sectors | | | | in technology. For example, processes that are |
| that are expected to 'shine' within the KPO industry | | | | handled in a shared production environment for multiple |
| include data search, integration and management | | | | companies save everyone money. In most cases, |
| services, financial and insurance research, biotech and | | | | high-caliber subject-matter experts are brought in to |
| pharmaceutical research and computer-aided | | | | design and manage these processes, bringing with |
| simulation and engineering design. | | | | them best practices, innovation, and years of |
| | | | | experience that most companies don't have access to |
| In terms of challenges, this paper analyzes the impact | | | | or can't afford on their own. |