Knowledge process outsourcing (KPO): A balanced view of an emerging market

The maturity and evolution of outsourcing strategies is leading businesses to shift towards the Outsourcing of high-end processes to low-wage destinations, a trend referred to as KPO. The success in operations with respect to reducing costs and often improving quality has encouraged many firms to start Outsourcing their high-end knowledge work as well. Their underlying expectation is that Outsourcing high-end processes will result in additional cost savings and operational efficiencies, coupled with access to very good talent in the low-wage offshore countries. In this paper, we will refer to this Outsourcing of higher-end services as (KPO). This paper analyzes the evolving KPO market, the opportunities it offers, the associated challenges, and the key drivers associated with the move from BPO to KPO. In terms of challenges, this paper analyzes the impact of key parameters such as quality, precision, confidentiality and project management expertise in the KPO industry. This paper also forecasts the number of professionals that are likely to be employed by this industry and also discusses the future outlook of the Indian Outsourcing industry.