South Asian Journal of Marketing & Management Research

  • Year: 2013
  • Volume: 3
  • Issue: 2

KPO a step ahead of BPO: A study on factors fuelling growth of KPO and its future

  • Author:
  • K. V. Giridhar
  • Total Page Count: 10
  • DOI:
  • Page Number: 96 to 105

Assistant Professor, Department of Commerce & Management, Sahyadri Arts & Com. College, Constituent College of Kuvempu University, Shimoga, Karnataka, India

Abstract

With the advent of specialized and high-quality KPO vendors in India, customers will increasingly go the ‘buy’ route rather than setting up their captive offshore centers. Setting up a captive takes at least a year to stabilize quality, consumes a very large amount of senior management attention, and often ends up with higher operating costs and less management control than working with one or two vendors. This effect is particularly strong in KPO, since most companies do not want to build in-house capabilities in such fields in India due to the lack of critical mass, which is currently likely to be around 200+ professionals and that too, with an increasing trend. Customers want focus rather than breadth or size Buyers of off shoring services are increasingly looking for those KPO players, which have the necessary expertise, depth and experience in focused areas of KPO. KPO players need to focus on particular market segments, in terms of services provided, industry verticals, functional skills as well as the type of clients served. Typically, customers look for the skill rather than for the size of a vendor and prefer focused vendors over vendors offering large varieties of BPO, IT and KPO services.

Keywords

BPOBusiness Process Outsourcing, KPOKnowledge Process Outsourcing, APOAnalysis Proves Outsourcing, RPOResearch Process Outsourcing, ITESInformation Technology Enabled Services