Introduction
Many diverse businesses demand knowledge process outsourcing. It is especially prevalent in industries like engineering, law, finance, healthcare, and technology. People frequently mix up business process outsourcing and knowledge process outsourcing. The main difference between the two is that BPO is about generating and following a process whereas, the core focus of KPO is to impart specialized knowledge set along with their services. Companies generally opt for KPO when they have a shortage of skilled labour or staff. The entire procedure is intricate and data-driven. It entails a wide range of tasks, from locating data points for collecting to processing the data for meaningful insights.
Understanding KPO
While trying to figure out the importance of KPO and its demand in the market, it’s crucial to understand-what is Knowledge process outsourcing? In simple words, KPO means to outsource the core information-related business activities. KPO includes the focused allocation of high-level tasks that require problem-solving and specialized knowledge to a third-party organization. This third-party vendor possesses immense subject matter expertise and may or may not be in the same geographic region of the company. The job done by KPOs is significantly more analytical, specialized, and knowledge-based.
Advantages of KPO
KPO has myriad advantages. It helps the organizations to minimize production and operational costs by streamlining efficiency and creating new procedures. KPO eliminates the requirement for skilled workers in a certain industry. KPO drastically reduces the work for the existing staff and management. It enables them to focus on other work thus boosting productivity and efficiency. KPO is flexible in terms of increasing or decreasing the employees swiftly. KPO facilitates the organization to be more agile and adaptive to various changes in its competitive landscape.
How to increase demand for KPO
India is the most preferred location for KPO players. This is due to the country’s enormous knowledge pool, the quantum of specialized domain experts such as lawyers, Chartered Accountants, Economists, MBA’s, architects, CAD experts, biotechnologists, PhD’s, and statisticians. Taking advantage of this talent pool, overseas companies gain enhanced quality KPO services at cost-effective prices. The KPO industry is dynamic and is constantly evolving with highly complex tasks. The KPO sector foresees consolidation and launch of several offshore delivery centres by big organizations.
Researches show that India will soon acquire around 70% share in the emerging KPO industry. Indian KPO market is growing at a compounded annual growth rate-CAGR of approx 30% and will be higher in coming years. Considering these figures, we can gauge that the future of the Indian KPO industry is going to be affluent.
Conclusion
One of the challenging tasks for a company is to choose the right KPO firm, especially when the company’s most valuable and confidential data is at stake. Many multinational corporations have moved their knowledge-based services to India. It provides them with enhanced analytical skills, domain-based processes, and subject matter expertise. As a result, one of the most important aspects for a KPO is to have employees with strong academic credentials and technical knowledge.
The quantity and quality of skilled employees are directly related to the KPO’s strength. Because the KPO market is robust and dynamic, employees must stay up-to-date on the latest technologies, trends, and advances. This is why professionals in the KPO business must constantly improve their abilities through rigorous training programs. Particularly for KPOs focused on the financial sector, candidates trained by reputable institutes such as Legacy Academy are preferred. Legacy Academy students learn about taxation and accounting and gain advanced training and certification for the United Kingdom and the United States. Know more about the courses in detail by reaching out to them at [email protected] or contact at +91 76003 60920.
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