Knowledge process outsourcing, or kpo, is the latest wave to hit the outsourcing business in india. A booming sector with tremendous potential. Kpo is knowledge process outsourcing. It involves outsourcing for high-end knowledge work. This includes research and work on intellectual property, equity and finance, analytics, market research and data management, et cetera.
Bpo verses kpo :- business process outsourcing means handing over the work of the company to outside company or agency for completion on contract basis. It is the delegation of one or more it intensive non core business processes to an external services provide that owns, administers and managers the selected process based on defined and measurable performance metrics knowledge process outsourcing is the field where the service providers, by using their specialized domain expertise, process the information in the most professional way and convert it into the most useful form for the client user and then deliver this processed information to client company for making most crucial decisions in the core business functions. In other words it is outsourcing of the core activities such as research and development analysis and crucial decision based function.
Functions :- the functions covered under bpo and kpo are moderately different. These functions are basically different in its natural form as the bpo covers non core functions and kpo covers core functions.
Challenges for the kpo industry
Kpo sector offers a good working atmosphere with global exposure and an opportunity to develop skill sets in a specialized field. The remuneration is high as a person with about two years experience can draw a pay packet of around rs 6 lakh (rs 600,000) to rs 8 lakh (rs 800,000) annually, while an experienced professional gets anywhere between rs 15 lakh (rs 1.5 million) and rs 20 lakh (rs 2 million). Like the bpo sector, kpo also faces attrition, as it is difficult for companies to retain talented and trained people. With higher pay packages and perks, people change jobs very frequently. Many people are still reluctant to join as they feel it is an unstable career. Many are unaware of the potential of this sector and the scope of future prospects. There is a lot of scope for teachers as this sector offers a good pay package. The sector also requires higher level of control, confidentiality and enhanced risk management.
Career building program :- bpo works on the process expertise. The process of routine work is managed by bpo more efficiently and effectively than the client companies if they do it in–house. Kpo works on domain expertise. The professional knowledge in particular field is used by kpo units to process highly critical information and data and makes it available to clients for crucial decision making in kpo industry people with high professional qualifications are employed. In this industry generally employees try to be loyal and make a career in one particular company and on the other hand the companies also try their level best to retain these employees try paying them well and providing them with better facilities.
Nature of employment :- bpo is the processing of the low end non core business functions which the people with minimum skills can do. Generally fresh or reasonably experienced bcom, ba, bsc graduates with good communication skills are preferred by bpo companies. Training is generally given by these bpo companies or by some outside training agency to the newly recruited graduates to make them suitable for the onshore as well as offshore bpo requirements.
Bpo verses kpo :- business process outsourcing means handing over the work of the company to outside company or agency for completion on contract basis. It is the delegation of one or more it intensive non core business processes to an external services provide that owns, administers and managers the selected process based on defined and measurable performance metrics knowledge process outsourcing is the field where the service providers, by using their specialized domain expertise, process the information in the most professional way and convert it into the most useful form for the client user and then deliver this processed information to client company for making most crucial decisions in the core business functions. In other words it is outsourcing of the core activities such as research and development analysis and crucial decision based function.
Functions :- the functions covered under bpo and kpo are moderately different. These functions are basically different in its natural form as the bpo covers non core functions and kpo covers core functions.
Challenges for the kpo industry
- maintaining data security and the confidentiality
- maintaining high control on the process operations
- world class infrastructure requirements
- maintenance of the talent pool in the country
- competition from the other countries like canada philippines etc.
- brain drain in india due to the people migration form india in search of jobs.
Kpo sector offers a good working atmosphere with global exposure and an opportunity to develop skill sets in a specialized field. The remuneration is high as a person with about two years experience can draw a pay packet of around rs 6 lakh (rs 600,000) to rs 8 lakh (rs 800,000) annually, while an experienced professional gets anywhere between rs 15 lakh (rs 1.5 million) and rs 20 lakh (rs 2 million). Like the bpo sector, kpo also faces attrition, as it is difficult for companies to retain talented and trained people. With higher pay packages and perks, people change jobs very frequently. Many people are still reluctant to join as they feel it is an unstable career. Many are unaware of the potential of this sector and the scope of future prospects. There is a lot of scope for teachers as this sector offers a good pay package. The sector also requires higher level of control, confidentiality and enhanced risk management.
Career building program :- bpo works on the process expertise. The process of routine work is managed by bpo more efficiently and effectively than the client companies if they do it in–house. Kpo works on domain expertise. The professional knowledge in particular field is used by kpo units to process highly critical information and data and makes it available to clients for crucial decision making in kpo industry people with high professional qualifications are employed. In this industry generally employees try to be loyal and make a career in one particular company and on the other hand the companies also try their level best to retain these employees try paying them well and providing them with better facilities.
Nature of employment :- bpo is the processing of the low end non core business functions which the people with minimum skills can do. Generally fresh or reasonably experienced bcom, ba, bsc graduates with good communication skills are preferred by bpo companies. Training is generally given by these bpo companies or by some outside training agency to the newly recruited graduates to make them suitable for the onshore as well as offshore bpo requirements.
Kpo is the processing of high end core business functions and hence the people with professional knowledge and skills such as the people with the qualification like phd, ca, cwa, cs, and mba, engineering, mbbs, and llb etc are preferred by kpo industry. The specialized knowledge and expertise of these professionals is the major asset for the kpo industry.
Functions covered under kpo
1. R & d 1. Legal services
2. Business and technical research 2. Data analysis
3. Training and consultancy 3. Animations and designs
4. Network and management 4. Business and market research
5. Writing and content developments 5. Learning solutions
6. Pharmaceutical 6. Biotechnological
7. Medical services 7. Intellectual property research
Kpo’s focus areas :- areas with significant potential for kpo include pharmaceuticals, biotechnology, data search, integration and management services, financial services, research and analytics, technology research, computer-aided simulation and engineering design and professional services, such as business research and legal services. Off shoring research and development in pharmaceuticals and biotechnology also holds great potential for kpo.
Skills required for kpo jobs as distinct from bpo jobs :- kpo includes those activities that require greater skill, knowledge, education and expertise to handle than a typical bpo job. For example, an insurance company might outsource data entry of its claims forms as part of a bpo initiative, it may also choose to use a kpo service provider to evaluate new insurance applications based on a set of criteria or business rules; this work would require the efforts of a more knowledgeable set of workers than the data entry would and hence domain/industry skills are desired.
Who can join kpo :- unlike bpo where knowledge of english is essential, kpo focuses professional on educational qualifications. Educational qualification is important as the work involves specialized knowledge. People from diverse backgrounds can join this field. Teachers, engineers, mbas, professionals with financial background and even journalists are qualified to work in kpo. People with science background have a better chance as some tasks require data analysis and programming. Kpo tasks require domain expertise for projects involving moderate to high levels of analysis, especially those related to industrial sectors. The kind of work employees have to do includes abstraction of technical patents, extraction of legacy technical data, cataloguing and indexing, taxonomy building and database creation and updating. All this requires a basic interest and knowledge in specific domains besides an aptitude for working with data and information.
Recruitment procedure-career prospectus :- companies have a cut-off for marks (grades), depending on the kind of domain knowledge required for the particular project. The works also requires people to have a right aptitude and attitude for doing research-oriented work. Employment in bpo companies is still considered by people as job and not as a career. Generally graduates work in bpo in their initial working years to earn good money and then they either try to go for higher education or to go for another job. Thus jobs in bpo are still not recognized by society. Kpo employs only highly professional people and uses their expertise. Hense this sector is nowadays considered as career by many professionals for e.g. A chartered accountant going for employment in equity research in a kpo firm. After recruitment, the candidates are trained in various skills. Besides this, the candidate should possess good communication skills, should have an aptitude towards programming, and should be able to work in a team, under pressure and of course different shift timings.
Functions covered under kpo
1. R & d 1. Legal services
2. Business and technical research 2. Data analysis
3. Training and consultancy 3. Animations and designs
4. Network and management 4. Business and market research
5. Writing and content developments 5. Learning solutions
6. Pharmaceutical 6. Biotechnological
7. Medical services 7. Intellectual property research
Kpo’s focus areas :- areas with significant potential for kpo include pharmaceuticals, biotechnology, data search, integration and management services, financial services, research and analytics, technology research, computer-aided simulation and engineering design and professional services, such as business research and legal services. Off shoring research and development in pharmaceuticals and biotechnology also holds great potential for kpo.
Skills required for kpo jobs as distinct from bpo jobs :- kpo includes those activities that require greater skill, knowledge, education and expertise to handle than a typical bpo job. For example, an insurance company might outsource data entry of its claims forms as part of a bpo initiative, it may also choose to use a kpo service provider to evaluate new insurance applications based on a set of criteria or business rules; this work would require the efforts of a more knowledgeable set of workers than the data entry would and hence domain/industry skills are desired.
Who can join kpo :- unlike bpo where knowledge of english is essential, kpo focuses professional on educational qualifications. Educational qualification is important as the work involves specialized knowledge. People from diverse backgrounds can join this field. Teachers, engineers, mbas, professionals with financial background and even journalists are qualified to work in kpo. People with science background have a better chance as some tasks require data analysis and programming. Kpo tasks require domain expertise for projects involving moderate to high levels of analysis, especially those related to industrial sectors. The kind of work employees have to do includes abstraction of technical patents, extraction of legacy technical data, cataloguing and indexing, taxonomy building and database creation and updating. All this requires a basic interest and knowledge in specific domains besides an aptitude for working with data and information.
Recruitment procedure-career prospectus :- companies have a cut-off for marks (grades), depending on the kind of domain knowledge required for the particular project. The works also requires people to have a right aptitude and attitude for doing research-oriented work. Employment in bpo companies is still considered by people as job and not as a career. Generally graduates work in bpo in their initial working years to earn good money and then they either try to go for higher education or to go for another job. Thus jobs in bpo are still not recognized by society. Kpo employs only highly professional people and uses their expertise. Hense this sector is nowadays considered as career by many professionals for e.g. A chartered accountant going for employment in equity research in a kpo firm. After recruitment, the candidates are trained in various skills. Besides this, the candidate should possess good communication skills, should have an aptitude towards programming, and should be able to work in a team, under pressure and of course different shift timings.
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