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KPO ( KNOWLEDGE PROCESS OUTSOURCING ) The next big opportunity Presented By Sanjeev Prasad Akhilesh Mishra. Paradigm shifts taking place in various facets of MBA education. THE VALUE CHAIN. Difference between KPOs and BPOs: We can say that KPOs emerged from BPOs.
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KPO (KNOWLEDGE PROCESS OUTSOURCING) The next big opportunity Presented By Sanjeev Prasad Akhilesh Mishra
Paradigm shifts taking place in various facets of MBA education.
Difference between KPOs and BPOs: We can say that KPOs emerged from BPOs.
The kind of job it entails • content development • market research • equity research • data research • database creation • analytical services • financial modeling • design and development in industries • remote education • publishing and legal support
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 and analysis. These companies outsource their processes to India for: Cost savings Operational efficiencies Access to highly skilled workforce Improved quality
Why KPO ? KPO is a quick-money sector provides long-term career option good performers have tremendous opportunity for growth in salary package, favorable business environment Governments Policy decision encourage this sector Strong requirement of Well-educated, knowledgeable, analytical candidates HISTORY of KPO Sector in INDIA KPOs have evolved from BPOs. KPOs were introduced in India by McKinsey when it first set up a knowledge center in India in 1987. But KPOs actually started coming up in India in 2000 when many companies like OfficeTiger, GE, Gartner, etc opened their research centers here. From 2000 to 2005, KPOs were in their growing stage. And during this duration, India became a leading destination for KPOs.
Skills KPOs are looking for: • Analytical skills for analyzing data. • Usage of resources for information research • Making presentable reports from raw data • Theoretical and conceptualization knowledge • Computer proficiency (software and hardware devices) • English Speaking/writing skills • To collate, synthesis, analyze interpret Data and Information • To Search for advance information • To Generate various scenarios, judgments and decision Making • High level of Conceptualization • Team Work
The following are the areas associated with the KPO sector. • Business and Technical Analysis • Business & Market, Equity Research • Data Analytics • Financial Consultancy and Services • Intellectual Property (IP) Research • Learning Solutions • Legal Services • Database Creation • Network Management • Financial Modelling • Research & Development • Training & Consultancy • Writing & Content Development
KPO OPPURTUNITIES IN THE FOLLOWING SECTORS • RETAIL • E-MARKETING • BUSINESS & TECHNICAL ANALYSIS • LEARNING SOLUTION • DATA ANALYTICS • INTELLECTUAL PROPERTY RIGHTS • INVESTMENT RESEARCH • LEGAL & INSURANCE CLAIMS • PATENT FILINGS
HIGHEST PAYING KPO FIRMS • Gold mans sachs bangalore • Deutsche bank bombay • UBS hyderabad • SBI capital • JP morgan chase bombay • Kotak bank bombay • ICICI bombay • Evalueserve delhi • Genpact • WNS • Copal partners • Lehman brothers bombay • Lozenge Consultancy Services • Patni Computer Systems • Hutchison Essar • Hector & Streak
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-end qualifications 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 standardised processes 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 whereas his KPO counterpart can earn over $8,800 annually– a huge 46 per cent difference.
REQUIREMENT FROM AN M.B.A STUDENT Domain 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
Future Scenario In 2003, the market share of Indian KPO sector in global KPO market was 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.
Market potential for outsourced non-IT services (2008) Service Potential (In billion Dollars) HR Service 44 Customer interaction services 33 Data Search, integration and Management 18 Finance and accounting 15 Remote education 15 Other including pharmaceutical and research and development 8 Engineering and design 5 Medical Content and services 1 Legal Content and services 1 Translation, transportation etc. 1
CLASSIFICATION OF KPO SECTOR 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 to knowledge, etc. Some of the KPOs working in this area are marketRx, Pipal Research, Evalueserve, Inductis, OfficeTiger, Copal Partners, CRISIL, etc.
India is emerging as a leader in KPO market • Well established IT services and BPO sector • Excellent project management skills • Highly qualified professionals • Proficiency in English • Supporting government policies • Challenges which KPO industry is facing are as following: • Expected dearth of domain expert professionals • High 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
Why KPO’s 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 approximately 50% 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.
Top Players in KPO Sector
NEWS FROM THE KPO INDUSTRY • YES Bank setting up a KPO • YES Bank, a famous name in private sector banks, is all set to open up a knowledge processing outsourcing (KPO) unit. It is a stand alone project and it will be named as Project TOPS (technology, operations, payments and services). As estimated by Rana Kapoor, MD and CEO, YES Bank, the unit will start operating in FY 2008-09. Initially it will provide services in banking sector. The pilot project presently is being run at YES Bank's offices at DLF Cyber City in Gurgaon and in Mahalakshmi in Mumbai. Around 500 people are working on the pilot project as of now. Till now applications like audit and compliance are being outsourced to the unit. But later on it will move on to other financial services as well. • India to be preferred location for global KPO industry: KPMG • The financial services sector will account for a major proportion of the KPO industry and its worth will be in excess of $5 billion by 2010.
India top outsourcing hubs, says survey India remains the most favoured outsourcing destination, according to CyberMedia's Global Services survey on emerging 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) and the US (3), among others.
The last word: It would not be very wrong to state that KPO do offer an alternate and fruitful career path for our young minds. Going by the current statistics, the KPO wave is here to stay and Indians can now benefit much more than before. “Knowledge Process Outsourcing May Be The Next Boom Business”