Globalization of business has brought forth newer ways of conducting business. At the genesis of industrialization, all companies focussed on performing all their operations by themselves, be it core or non-core. As the market evolved with time, newer companies established themselves as professionals at handling non-core operations for different industries. This was the introduction of outsourcing to the world. In this knowledge-powered world, the trend of outsourcing soon spread in the service industry and came to be known as Knowledge Process Outsourcing; popularly called KPO. Let’s understand the meaning and working of KPO and how can this work experience help you in your study abroad applications.
This Blog Includes:
- What is Knowledge Process Outsourcing?
- Types of KPO Services
- Higher Education Options After Gaining Work Experience from KPOs
- Advantages of KPO
- Difference between KPO and BPO
- Top 4 Key Emerging Trends in the KPO Industry
- Top Recruiting KPO Companies
- Tips for Getting Hired in a KPO
- Payroll Package
What is Knowledge Process Outsourcing?
As discussed above, outsourcing is the process of contracting out work to specialist companies, usually for non-core or specialized activities. Knowledge Process Outsourcing is relatively newer in the field of outsourcing. Knowledge Process Outsourcing is when a company dedicates itself to hire some other organization to manage its knowledge-intensive areas on a contractual basis. This mostly relates to large-scale businesses, who prefer third-party business research, data collection and financial management, and other such non-core activities as it saves them a lot of resources and allows better focus on critical areas. On the other hand, certain small businesses which lack the requisite skills and resources to house professionals for non-core tasks opt for knowledge outsourcing. This dual demand for application-based knowledge makes KPO organizations the need of the hour. Let us elaborate more on some of their characteristics:
List of Data Analytics Courses to upscale your career after working in KPOs!
Types of KPO Services
Knowledge Process Outsourcing companies offer a variety of services to diverse companies. These services are generally skill-intensive, requiring an understanding of data analytics, management, and research. Here are some of the prominent KPO services:
- Financial Consultancy
- Research and Development
- Business Operations
- Technical Analysis
- Legal Advice
- Medical Support
- Data Analysis and Interpretation
Higher Education Options After Gaining Work Experience from KPOs
Knowledge Process Outsourcing is a diversified career option, with numerous disciplines leading into KPO jobs. As a result, the number and variety of KPO diplomas are quite high. Along with the popular career fields listed above, here are some of the top KPO courses available at various institutes in the form of a short-term diploma or vocational course:
- Post Graduate Diploma in Machine Learning and AI
- Cupping Therapy Diploma course
- Post Graduate Diploma in Clinical Research
- Post Graduate Diploma in Financial Engineering and Risk Management
- Diploma in Strategic Management
- Post Graduate Diploma in Data Science
- Post Graduate Diploma in Systems Analysis
- Professional Diploma in Public Procurement
Also Read: Career in Financial Markets
Advantages of KPO
In today’s era where time is money, Knowledge Process Outsourcing firms offer much-required assistance to their customer firms. Their services are not just cost-saving, but often better in quality as well. Here are some of the key advantages of Knowledge Process Outsourcing:
A primary reason to avail of KPO services is their cost-effectiveness. As training in-house staff for carrying out specialized non-core tasks is generally expensive, companies choose to outsource these services to specialist organizations. This saves a lot of time and resources for the customer company, which are in turn better utilized for core operations.
Employees and managers at Large Scale companies end up saving a lot of their time when they opt for KPO. As knowledge outsourcing works on a contractual basis, all the functional decisions are taken by the managers at KPO firms. This allows customer companies more time to focus on their core areas, and often an opportunity to grow horizontally or vertically.
Companies that offer KPO services house highly skilled individuals, who are adept in their domain. This domain may be non-core for customer companies, but it is the basic operation for KPO firms. This makes KPO employees much more efficient at non-core tasks when compared to an employee of the customer organization. These services would not only be more efficient but of higher overall quality.
Difference between KPO and BPO[optin-monster-shortcode id=”xf2mlnjiouddzrshykdb”]
Although the above-mentioned information must have made the difference between KPO and BPO quite clear, here are some concrete points of distinction between KPO and BPO:
- KPO deals with highly specialized tasks, hence it requires highly skilled individuals for specific projects. On the other hand, a BPO service requires semi-skilled personnel who would perform non-core activities for customer firms.
- While a BPO service generally reports to its customer firm about work status and task completion, a KPO firm works in synergy with its customer firms. They perform specialised tasks as per the core objectives of their customer firms, hence work closely with their operational team.
- Individuals working in KPO firms have to provide business solutions to multiple customers, hence they have to be dynamic in terms of acquiring new skills. BPO employees on the other hand, generally work on fixed operational lines with minimal changes in tasks and skill requirement.
Want to know more about KPO for educational purposes?
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Top 4 Key Emerging Trends in the KPO Industry
For many years, India has seen consistent outsourcing as it positions itself as the go-to location for establishing IT service centers. The recent decade has seen the rise and expansion of Knowledge Process Outsourcing (KPO). India has thrived with exceptional KPO trends that continue to grow, from delivering a unique blend of appealing qualities to dominating the outsourced business. Given the rapid growth of the KPO business in India, the following are the major themes that will likely determine its future.
1. Mergers and Acquisitions
The KPO sector’s exponential development pace is likely to result in a number of mergers and acquisitions. This tendency is largely driven by the desire to gain new clients, subject expertise, and entry into a highly competitive industry. BPO firms looking to enter the realm of KPO will gain greatly from this approach since it will add white-collar services to their portfolios. Whether the transaction is large or little, the outcomes are expected to be beneficial to the Indian KPO business.
2. Establishing Offshore Delivery Centers
Several Indian KPO firms are looking to create offshore sites and grow their operations in countries like China, Eastern Europe, Middle-East Countries, and Latin America. Two major causes are driving the trend. For starters, the clients of these KPO firms want localized services. To satisfy this need, firms are utilizing local people that are fluent in the relevant native languages. Second, various time zones in different geographical areas allow for round-the-clock services.
3. Tier-II Cities are Taking the Center Stage
Tier-I cities have traditionally been the torchbearers of India’s IT boom since they provided greater infrastructure, connection, and talent. However, while seeing incredible development,
KPO firms in India confront significant challenges such as rising real estate prices and increasing rates of attrition. To overcome these challenges, KPO firms are aggressively expanding their operations to tier-II locations. Pune, Chandigarh, and Jaipur have emerged as viable options for addressing the aforementioned issues. This rising trend of corporations choosing Tier-II cities as alternate locations is anticipated to gain traction over time.
4. Captive Centers will be Closed Down Gradually
During the development of the outsourcing wave, global businesses established captive centers in India. Today’s market dynamics, however, are different. Captive centers have tough competition from local suppliers, who frequently outperform the former, particularly in product development and services. Captive centers are failing as a result of rising expenses and attrition, a lack of managerial support, and a lack of flexibility. Local vendors are also considerably better at managing security concerns. As a result, the phase-out of captive centers is a significant developing trend in India’s KPO business.
Top Recruiting KPO Companies
According to NASSCOM, a well-known regulatory organization in India, the top ten BPO companies to date are:
- WNS Global
- IBM Daksh
- Aditya Birla Minacs Worldwide
- TCS BPO
- Wipro BPO
- First Source
- Infosys BPO
- HCL BPO
- EXL Service Holding
Tips for Getting Hired in a KPO
To begin working in an outsourcing firm, you must be aware of three fundamental principles:
- Be available to work at any time of day or night, and be prepared to work extra hours.
- Focus on developing as a team leader and then as an Operations Manager for the first few years so that you may shift jobs if better chances arise in the future!
- Accept a salary of around Rs. 9,000 to Rs. 12,000 at first, and then progress from there.
- You may be able to demand more if you are highly qualified and have good communication skills.
KPO employees earn between Rs 7,000 and Rs 25,000 per month. The compensation is totally determined by the job’s intricacy and shift needs. Nonetheless, professional advancement in this field is rapid, and it is feasible to become a team leader or a group leader in a few years. All that matters is that you do well.
KPO call centers are a subset of BPO contact centers that are frequently used when a company demands a high degree of specialized knowledge. Here is all you need to know about BPO and KPO call centers.
KPO entails the outsourcing of core operations, which may or may not result in cost savings for the parent business but certainly aids in value creation. When compared to BPOs, the processes that are outsourced to KPOs are often more specialized and knowledge-based.
Accounting, market and legal research, Web design, and content development are all examples of KPO. KPO and BPO are frequently carried out through offshore outsourcing, as businesses looking to get the most bang for their buck to send projects to nations with cheaper wages.
The KPO sector is a lucrative area to work if a person has a desire to learn, problem-solving abilities, the ability to work on time, a dedication to a project, and a good attitude. A candidate in the KPO business might make decent pay based on their performance and the nature of the task.
Outsourcing of fundamental, information-related corporate operations is known as knowledge process outsourcing (KPO). KPO entails contracting out work to persons with advanced degrees and experience in a certain field.
When compared to BPO, the fundamental criteria for a KPO are significantly greater. For example, typical BPO services include data input, processing, department outsourcing, technical assistance, and customer support. A KPO, on the other hand, operates on the following principles: Advanced Web Applications; Business and Technical Analysis; Learning Solutions; Animation and Design; Business and Market Research; Pharmaceuticals and Biotechnology; Medical Services; Writing and Content Development; Legal Services; Intellectual Property (IP) Research; Data Analytics; Network Management; and Training and Consultancy. Thus, to join a KPO, you need to have the relevant skill set and knowledge.
Hope this article was successful in providing you with an insight into the world of outsourcing and completed your quest to know about KPO. If you are interested in this career field and want to pursue it as a profession, connect with us at Leverage Edu. At Leverage Edu, have dedicated career experts who can not only enlighten the academic pathway to be followed to pursue a successful career but also help you know the insides of the trade. Book a free e-meeting to avail of this service today!