5210566 Knowledge Process Outsourcing

8/9/2019 5210566 Knowledge Process Outsourcing

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KPO(KNOWLEDGE PROCESS OUTSOURCING)

The next big

opportunityPresented By

Sanjeev Prasad

Akhilesh Mishra


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Paradigm shifts taking place in various facets of MBA education.

Earlier Now

Production and Operations

Management

ERP, CRM, SCM and IT enabled

manufacturing.

Marketing Management E-business, E-com, planningweb enabled marketing, globalinternational business, B2Band B2C market places andCyber exchanges etc;

Human ResourcesManagement

E-HRM, outsourced web basedHR management, DistributedHRM etc;

Finance Management Globalized economy, E-enabledfinancial data bases, IT in

markets management etc;

Systems Management ICE or IT Technologycomponents, Networking, Sunand Microsoft and otherTechnologies, IT management,Knowledge management,

Business Intelligence etc.


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THE VALUE CHAIN

CEO

Sr. Executives/MANAGERS

KPO

BPO

CALL CENTRE EXECUTIVE


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BPO KPOIt provides services like customer

care, technical support through

voice processes, tele-marketing,

sales, etc.

yLow end services

yProcess expertise

yPre-defined processes

yIt employees not- so- qualifiedworkers as it focuses on

communication skills

KPO provides in-depth

knowledge, expertise and

analysis on complex areas like

Legal Services, Business &Market Research, etc.

yHigh end services

yKnowledge expertise

yRequires application,

understanding of business andanalytical bent of mind

It involves skill and expertise of

knowledge workers with

excellent educational

background.

Difference between KPOs and BPOs:We can say that KPOs emerged from BPOs.


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The kind of job it entails

content development

market research

equity research

data researchdatabase creation

analytical services

financial modeling

design and development in industries

remote educationpublishing and legal support


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How it can make India a global player

Large talent pools and favorable government policies together make

India the most conducive environment for KPO

Several global players such as McKinsey, Reuters, Harris Interactive

and Ipsos among others are already investing in India.

As with the BPO sector, India is cost-effective and provides a vast

intellectual talent with expertise in areas such as research andanalysis.

These companies outsource their processes to India for:

Cost savingsOperational efficiencies

Access to highly skilled workforce

Improved quality


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Why KPO ?

KPO is a quick-money sectorprovides long-term career option

good performers have tremendous opportunity for growth insalary package,favorable business environmentGovernments Policy decision encourage this sectorStrong requirement of Well-educated, knowledgeable,

analytical candidates

HISTORY of KPO Sector in INDIA

KPOs have evolved from BPOs.KPO

s were introduced in India by McK

insey when it first setup a knowledge center in India in 1987.But KPOs actually started coming up in India in 2000 whenmany companies like OfficeTiger, GE, Gartner, etc openedtheir research centers here. From 2000 to 2005, KPOs were in

their growing stage. And during this duration, India became a


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Skills KPOs are looking for:

Analytical skills for analyzing data.

Usage of resources for information researchMaking presentable reports from raw dataTheoretical and conceptualization knowledgeComputer proficiency (software and hardware devices)English Speaking/writing skills

To collate, synthesis, analyze interpret Data and InformationTo Search for advance informationTo Generate various scenarios, judgments and decision MakingHigh level of ConceptualizationTeam Work


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The following are the areas associated with the KPO sector.

Business and Technical Analysis

Business & Market, Equity ResearchData Analytics

Financial Consultancy and Services

Intellectual Property (IP) Research

Learning Solutions

Legal Services

Database Creation

Network Management

Financial Modelling

Research & DevelopmentTraining & Consultancy

Writing & Content Development


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Strengths

yLarge talented poolyQuality IT trainingyLow labour costsySuccess of BPOsyGood knowledge of projectmanagement skillsySupportive government policiesyMany new areas of specialization are

being covered making KPO sectorspreading its wingsyConsideration to quality standardslike ISO 900x and Six SigmayBilling rates are lower as compared tobilling rates in other countries

Weaknesses

Immoral and unethical practicesrelated to handling of crucial data

Rising wages The inability to uniformly develop andprovide infrastructural requirements asreal estate prices are rising in majorcities. Inadequate Intellectual Property

Rights (IPR) protection regime in India Billing rates are higher as comparedto billing rates in BPOs

OpportunitiesyIncreasing domain expertiseyMore areas of specialization can beadded to KPOsyAmple opportunities for SMEs

ThreatsyNon retention of talentyExpected labour supply gap as jobsgrow faster than the workforce.

SWOT ANALYSIS


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KPO OPPURTUNITIES IN THE FOLLOWING SECTORS

RETAIL

E-MARKETING

BUSINESS & TECHNICAL ANALYSIS

LEARNING SOLUTION

DATA ANALYTICS

INTELLECTUAL PROPERTY RIGHTSINVESTMENT RESEARCH

LEGAL & INSURANCE CLAIMS

PATENT FILINGS


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HIGHEST PAYING KPO FIRMSGold mans sachs bangalore

Deutsche bank bombay

UBS hyderabad

SBI capital

JP morgan chase bombay

Kotak bank bombay

ICICI bombayEvalueserve delhi

Genpact

WNS

Copal partners

Lehman brothers bombayLozenge Consultancy Services

Patni Computer Systems

Hutchison Essar

Hector & Streak


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Unlike conventional BPO where the focus is on process expertise, in KPO,the focus is on knowledge expertise.

KPO involves business processes requiring domain expertise and high-endqualifications such as the MBA and/or the engineering, medical, law,accountant degree or other highly skilled professional qualifications.

KPO requires moving away from the simple execution of standardisedprocesses to the implementation of processes that demand advanced

analytical and technical skills together with some decision-making.

India, China, Russia, Canada, Israel and the Philippines are some of

the major KPO service providers today.

A BPO executive in a developing nation earns about $6,000 a year whereashis KPO counterpart can earn over $8,800 annually a huge 46 per centdifference.


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REQUIREMENT FROM AN M.B.A STUDENTDomain Knowledge, I.T, E.R.P, Business Applications, E-commerce

Qualifications :

MBAs (HR, IT, Finance, Marketing, IB, etc )

Doctors ( MBBS)

Engineers (B. E., B. Tech, M. Tech)

Lawyers (LLB)

Teachers (B. Ed)

Chartered Accountants

Economists

Architects

So basically, the key competencies required are :

Domain knowledge

Basic interest in the field of work

Aptitude for working with data and information

Good communication skills

Team work


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In 2003, the market share of Indian KPO sector in global KPO marketwas 56%. And it is expected to reach 71% in 2010, which shows a

decent growth of the sector in the coming years.

According to NASSCOM,

KPO sector worldwide is expected to reach USD 17 billion by 2010.

Out of this, India will account for USD 12 billion.

Future Scenario


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Market potential for outsourced non-ITservices (2008)

Service Potential (In billion Dollars)

HR Service 44

Customer interaction services 33Data Search, integration andManagement 18Finance and accounting 15Remote education 15Other including pharmaceutical andresearch and development 8Engineering and design 5Medical Content and services 1Legal Content and services 1Translation, transportation etc. 1


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Financial Services : These include financial determining, insurance, risk assessment,equity research, underwriting, fund management, actuarial analytics,debt collection and recovery, corporate & market research, etc.Some of the KPOs working in this area are Smart Analyst, Office Tiger, The Smart Cube.

Market Research and Analytics : These include services like writing & editing,secondary & primary research, formatting client reports, conversion of findings toknowledge, etc. Some of the KPOs working in this area are marketRx, Pipal Research,Evalueserve, Inductis, OfficeTiger, Copal Partners, CRISIL, etc.

CLASSIFICATION OF KPO SECTOR


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India is emerging as a leader in KPO marketWell established IT services and BPO sector

Excellent project management skills

Highly qualified professionalsProficiency in English

Supporting government policies

Challenges which KPO industry is facing are as following:

Expected dearth of domain expert professionalsHigh attrition rates

Talent retention

Data Security and confidentiality

Growth drivers of KPO sector:Shortage of knowledge professionals in countries like USA, UK, etc.

Low wages labour

BPOs moving up the value chain

Single vendor services

Talented workforce


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carry

out

th

e

work.

Therefor

e

many

companies

offer

their

employ

In the next 5 years India will employee more than 2.5 lac people

70% of the global KPO business.

India has the world's second highest number of engineers, scientists, managers.

Also, it has the largest talent pool in IT industry with approximately50% of them proficient in English.

If you are a fresh graduate and you want a high paying job

MBA's, CA's, law graduates etc.with a starting package of 4.2 to 4.8 lacs per

annum.

Exevo, Evalueserve or Pipal Research, the package can go upto 6 lacs per anum.

Salaries in Indian KPO are 25%-50% higher than in other KPOs around the world.

Salaries are bound to increase later on also as the work outsourced to Indian

KPOs is of high quality and of complex nature. It takes a lot of expertise and

skills to carry out the work.Therefore many companies offer their employees 6 monthly salary hikes

anywhere between 15%-20%.

And in the future also, the salaries are going to rise in the Indian KPO sector.

This trend will last at least upto next 10-15 years.

The reason being India's demography and the young talent pool available here.

Why KPOs


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Top Players

in

KPO

Sector

S. No. Companies

1. Evalueserve (EVS)

2. McKinsey & Company

3. RocSearch

4. Pangea3

5. OfficeTiger

6 Copal Partners

7. Gevity8. Pipal Research

9. Grail Research

10. Inductis, EXL Service

11. WNS GLOBAL SERVICES

12. ACCENTURE

13. APTARA (TECHBOOKS)

14. 24/7 Customer

15. ICICI OneSource

16. Ugam Solutions

17. Convergys


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NEWS FROM THE KPO INDUSTRY

yYES Bank setting up a KPOYES Bank, a famous name in private sector banks, is all set to open up aknowledge processing outsourcing (KPO) unit. It is a stand alone project andit will be named as Project TOPS (technology, operations, payments andservices). As estimated by Rana Kapoor, MD and CEO, YES Bank, the unitwill start operating in FY 2008-09. Initially it will provide services inbanking sector. The pilot project presently is being run at YES Bank's

offices at DLF Cyber City in Gurgaon and in Mahalakshmi in Mumbai. Around500 people are working on the pilot project as of now. Till now applicationslike audit and compliance are being outsourced to the unit. But later on itwill move on to other financial services as well.

India to be preferred location for globalKPO industry: KPMGThe financial services sector will account for amajor proportion of the KPO industry and itsworth will be in excess of $5 billion by 2010.


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India top outsourcing hubs, says survey

India remains the most favoured outsourcing destination,according to CyberMedia's Global Services survey onemerging outsourcing destinations in 2007.

Even as fears that the rupee appreciation and rising wage

costs would blunt its edge,India still boasts of the largest number of cities (6),which figure among the top-50 emerging cities,followed by China (5), Brazil (3), the Philippines (3) andthe US (3),among others.


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The last word:It would not be very wrong to state that KPO

do offer an alternate and fruitful careerpath for our young minds.

Going by the current statistics, the KPO wave

is here to stay and Indians can now benefitmuch more than before.

Knowledge Process Outsourcing May Be

The Next Boom Business

5210566 Knowledge Process Outsourcing

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