Knowledge Process Outsourcing
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Transcript of Knowledge Process Outsourcing
Contracting with another company or person to do a particular function.Almost every organization outsources in some wayTypically, the function being outsourced is considered non-core to the business
For example:Most of the Banks are outsourcing security by doing contract with a company who manage “security Services”Another example, Some companies such as Insurance, schools, supermarkets outsource its janitorial and landscaping operations to firms that specialized in those types of work.Thus, the outside firms that are providing outsourcing services are third-party providers or “Service providers”
No longer a business, buzzword or jargonOutsourcing is nothing but a useful business toolGlobally outsourcing is seen as a viable solution to many operational issues in small and big companies.
Doing outsourcing right gives you maximum flexibility to focus on your core competence. You also get
to use your in-house resources to address priorities. Essentially
this allows your organization to more effectively and
efficiently use your resources (e.g., financial,
human and management). Outsourcing your non-core functions clears your path to address mission critical issues vital to your operational success.
1.OUTSOURCING ALLOWS TO FOCUS ON CORE VALUES
Startups and small businesses do not immediately have
access to skilled workforce. Or when the company is
big, shortage of skilled and experienced staff as a
problem is not remote. Even if staff may be existing, however,
the workforce do not always have the required skills
to keep pace with a rapidly evolving technology.Outsourcing offers the best solution to access skills and recruit staff that are difficult to recruit and retain. With tactical
outsourcing, there is an immediate solution available to fill the need for new staff when opening up
new services.
2.OUTSOURCING GIVES YOU ACCESS TO HIGH VALUE TALENTS & SKILLS
When budget is short, your company may not be able to broaden your market, expand, and focus on
core competencies to the fullest. With outsourcing, your
company get the flexibility to decide which of
your functions or operations you can perform in-house and
which ones to outsource. With outsourcing,
you also reap the benefit of capital and recurring cost reduction.
3.OUTSOURCING GIVES YOU ABILITY TO CUT COST
Outsourcing gives you the ability to make sound decisions about how to conduct your business, even on
how best to approach your delivery of your company’s services to all your stakeholders.
During peak loads, outsourcing is highly helpful in filling in the gaps to the level of equipment and
needed staff. Meeting normal demand but still maintaining
good customer service can be supplied by
outsourcing staff during peak periods. Outsourcing
comes in handy in such situations, when demand for flexibility is needed.
4.OUTSOURCING IMPROVES SERVICE QUALITY
To keep up with fast pace changes in technology, start-ups and small companies can
lookup to outsourcing for help. Besides the cost of
outsourcing, it is your outsourcing partner who
usually invest and required new technological
resources to match clientele's operational needs. Sometimes too it is the outsourcing partner who even surpasses his customers in keeping pace with and implementing new technology.
5.OUTSOURCING GIVES ACCESS TO TECHNOLOGY
Just five benefits are not all, there is to inspect new sign. An outsourcing contract, when done right, successful
outsourcing can be an effective resource savingand jouous endeavor .
Together we can help make you become that prompted
and hope to see you become that happy and satisfied Partner.
JUST 5 BENEFITS OF OUTSOURCING?
BUSINESS PROCESSOUTSOURCING
BPO
In BPO (Business Process Outsourcing), a particular process task is outsourced. An example would be payroll. BPO work could be either back office related or front office work. By front office functions we mean customer oriented work like marketing, answering calls, technical support and so on, whereas internal work like billing and purchase come in the back office category.
Multimedia/ animation, book keeping, business consultancy, CAD/ CAM, call center, DTP, data entry, proof reading and editing, typesetting, handwriting services, marketing, medical billing and transcription, web design and development etcare all services that could be put under the BPO category.
KNOWLEDGE PROCESSOUTSOURCING
KPOAs is evident from the description, BPO activities involve carrying out standardized processes for the client. KPO or Knowledge Process Outsourcing typically calls for work that needs higher levels of involvement from the worker. The worker has to employ advanced levels of research, analytical and technical skills and has to make decisions of a higher order than BPO work. Examples are pharmaceutical research and development, patent/ intellectual property research, animation and simulation. Data research and analysis, legal services, content writing and development and database development services. KPO industry is less older and mature than the BPO sector.
Apart from BPO and KPO, ITO or Information Technology Outsourcing is another major category. ITO is usually overseen by the CIO of an organization. However the CIO is often called in to manage BPO and KPO operations where no significant IT skills are involved. This is due to the expertise the CIOs would have developed in outsourcing negotiations.
KPO Segments
Legal Services
Financial Services
Engineering and R&D
Market Research and
Analytics
Writing and Content
Development
Pharma and Biotech R&D
Healthcare Services
Education and Training
SEGMENTS OF KPOOUTSOURCING
TOPOUTSOURCING DESTINATIONS
Rank2014
Rank 2013 Movement Region Country City
1 1 - South Asia India Bangalore
2 3 +1 Southeast Asia Philippines Manila (NCR)
3 2 -1 South Asia India Mumbai
4 4 - South Asia India Delhi (NCR)
5 5 - South Asia India Chennai
6 6 - South Asia India Hyderabad
7 7 - South Asia India Pune
8 8 - Southeast Asia Philippines Cebu City
9 10 +1 Eastern Europe Poland Kraków
10 9 -1 Western Europe Ireland Dublin
11 11 - East Asia China Shanghai
12 12 - East Asia China Beijing
13 13 - Central America Costa Rica San José
14 15 +1 East Asia China Dalian (Dairen)
15 14 -1 East Asia China Shenzhen
16 17 +1 Eastern Europe Czech Republic Prague
17 16 -1 Southeast Asia Vietnam Ho Chi Minh City
18 19 +1 Southeast Asia Malaysia Kuala Lumpur
19 20 +1 South Asia Sri Lanka Colombo
20 18 -2 South America Brazil São Paulo
21 22 +1 Middle East and Africa South Africa Johannesburg
22 23 +1 Southeast Asia Vietnam Hanoi
23 25 +2 South Asia India Chandigarh
24 21 -3 South America Chile Santiago
25 26 +1 South Asia India KolkataSource: 1.http://www.tholons.com/Whitepaper_December_2013.pdf
2. http://www.ranker.com/list/the-top-ten-countries-for-outsourcing-business/mcorn310
3. https://clutch.co/top-outsourcing-countries
The global services market is highly dynamic environment and selecting the best outsourcing location for your operation can have a significant long-term impact on your business growth. From various sources, we can summarize top 5 destinations( cities).
1.India Bangalore2.Philippines Manila (NCR)3.India Mumbai4.India Delhi (NCR)5.India Chennai
Key statistics Areas for ranking considerationCost CompetitivenessResources & Skills Business & Economic Environment.