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Knowledge Process Outsourcing

Knowledge Process Outsourcing. Ashish Gupta Country Head and COO India-Europe and Outsourcing: How to create a Win-Win Game? IIT Delhi - 24 November 2008. Presentation Plan. KPO: An Introduction What KPO means to European Firms ‘KPO Transform’.

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Knowledge Process Outsourcing

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  1. Knowledge Process Outsourcing Ashish Gupta Country Head and COO India-Europe and Outsourcing: How to create a Win-Win Game? IIT Delhi - 24 November 2008

  2. Presentation Plan KPO: An Introduction What KPO means to European Firms ‘KPO Transform’

  3. KPO: A strategic move to manage knowledge cycle from an outsourced location Emerging Client Issues Solutions • Shortage of talent pool • High set-up costs and higher wages • 24 X 7 services • Focus on core competence • Vast talent pool • 20-30% cost as compared to the rest of the world • Deliveries from multiple time zones Example - Global Delivery Platform

  4. KPO rapidly following IT and BPO…and gaining Embryonic Growth Mature Aging IT Outsourcing Call Centers • KPO initially lagging IT by 10 yrs; now only 3-5 yrs • Specialized players emerging • Complexity quickly increasing • From captives to third-party Engineering Maturity Accounting HR Admin Insurance Claims Tech Support KPO Time

  5. KPO provides significant and sustainable cost savings > 70 40 - 60 20 - 50 25 - 50 15 - 40 10 - 25 On-shore Near-shore Off-shore

  6. Synthesized Reports Equities Research IP Portfolio Analytics CRM Analytics Under-Writing KPO Claims Processing Global Research Financial Analytics Patent Drafting CRM Database Customer Support Data Acquisition Data Management Patent Searches Customer Support BPO Insurance Consulting I-Banking IP Telecom KPO spans a spectrum across several domains

  7. India will continue to lead with approximately 69% of the global market MARKET SIZE OF KPO INDUSTRY Source: Evalueserve Analysis

  8. KPO in India is distributed across many segments Source: Evalueserve Analysis

  9. Presentation Plan KPO: An Introduction What KPO means to European Firms ‘KPO Transform’

  10. European Firms have been adopting KPO increasingly, yet cautiously • Preference for near-shoring over off-shoring • Language capabilities • Geographical proximity • Cultural understanding • Key evaluation criteria for choosing a vendor • Quality of services • Domain expertise • Key concerns and how they are addressed • Drop in service quality: Effective service level agreements (SLA) • Loss of control: Proven to be a myth • Security issues: Stringent information security standards (e.g. ISO27001)

  11. Firms across the spectrum can derive competitive advantage through KPO • Focus on core competence • Process expertise • Advantage of ‘Buy’ over ‘Make’ • 24X7 support Fortune 500 • Leverage additional resources • Cost advantage • Domain and process expertise SME • Research support • Peak load absorption • Partnership across the globe • Domain expertise • Cost advantage Research and Consulting

  12. Case Study:Evalueserve – YourGlobalKnowledgePartner Quality Global Coverage Cost Effective Evalueserve - KPO company providing custom research worldwide Evalueserve Network and Language Capabilities Evalueserve Value Proposition • Robust research infrastructure • 24x5 time-zone coverage • 100% customised • 13,000+ projects • 2,500+ professionals Sales Offices & Client Executives Research Centres & Sales Offices • European research center in Romania • Client Executives across Europe • 50+ language service offerings • Time-zone coverage, multi-location operations

  13. Presentation Plan KPO: An Introduction What KPO means to European Firms ‘KPO Transform’

  14. ‘KPO Transform’: A Program to generate ROI • ‘KPO Transform’ is a free top-down bottom-up program to identify and implement outsourcing opportunities in high-knowledge areas across the whole business system • Objective: Reduce cost, improve productivity and service, and support growth initiatives in identified areas, within 1-3 months What • Can save USD 30k+ (within 1-3 months) per full-time position identified • Examples of process redesign, consolidation and automation have led to productivity improvements of up to 100% in specific areas • Examples of growth support have generated revenues of several USD million pa for specific new client products Business Case

  15. KPO Transform: Phases and Objectives Identify Redesign Transition Operate Productivity ROI ServiceLevels Growth

  16. Consolidating KPO opportunities across business system R&D Ops Marketing Sales After- Sales Support (Strategy, Finance, HR, IT, Legal) EVS ORC Manager Teams Rom. Teams India Teams China Teams Chile Steering Committee Project Office • High-potential client team members • Senior Evalueserve team with consulting experience and operations managers

  17. Thank You…

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