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Challenges to KPO

KPO delivers high value to organizations by providing domain-based processes and business expertise rather than just process expertise. These processes demand advanced analytical and specialized skill of knowledge workers that have domain experience to their credit.
Therefore, outsourcing of knowledge processes face more challenges than BPO (Business Process Outsourcing). Some of the challenges involved in KPO will be maintaining higher quality standards, investment in KPO infrastructure, the lack of talent pool, requirement of higher level of control, confidentiality and enhanced risk management.

Comparing these challenges with the Indian IT and ITES service providers, it is not surprising that India has been ranked the most preferred KPO destination owing to the country's large talent pool, quality IT training, friendly government policies and low labor costs.

Nevertheless, according to National Association of Software Services Companies (NASSCOM), the IT industry lobby, online tutoring forms just a small market of India's KPO business; the financial process outsourcing is in fact witnessing explosive growth within the Indian KPO sector. "Already the top 12 investment banks of the world have captive operations doing high-end analysis work in India, employing 1,200 people that is expected to go up to about 6000 in the next few years."

A recent Nasscom-McKinsey report predicts a shortfall of 500,000 knowledge workers by 2010. While quantum CAGRs defines growth patterns and revenues for India, the grim reality is the dearth of employable talent. There is no dearth of youngsters gearing up for employment. But the number that can actually be seen as an asset to a BPO or KPO is pitiful.

References

This White Paper has used data and reports from NASSCOM Studies, McKinsey, AT Kearney, Delhi Institute of Advanced Studies, Articles in Economic Times, Business Standard, and Business India. However, the information has been suitably analyzed, updated and revised to incorporate the current trends.

Concluded.

* Contributed by: -
Deepak Bisht,
Senior Business Analyst,
marketRx^® (Website: www.marketrx.com).