KpoWeb.com - KPO, Offshore Outsourcing Blog

Indian hand had an expertise over fields such as customer support, medical transcription, reading X-rays & preparing tax returns. Indians have been solving queries of customers overseas proficiently and tasks such as medical transcription were accomplished successfully here.

Now its’ time for developing a new skill & mastering it. Indian hands are becoming extremely popular in international online avocation: bolstering American children with Math & science.

American school students have now realized the importance of personal coaching to enhance their grades and SAT scores. Through the concept is a couple of years old, it has recently been honored by these students. Parents can now avail best coaching facilities for their children at cheaper rates as the Indian online tutors are available at $18-20 an hour; which is much cheaper as compared to the domestic alternatives that cost somewhere around $80-125 an hour.

The concept was started by a California company growing stars Inc. based in Fremont. They tapped Indians for the task of online tutoring.

The company now has around 400 students learning about 50 teachers based in Kochi.

An Indian software engineer Biju Mathew who was unable to afford tutors for his two children, teamed up with one of his friend based in New Jersey, Saji Philip to start growing stars Inc. the company was started successfully in January 2004 and assisted students with grades 3 to 12.

Studyloft.com is another Indian based company, in Chicago that provides coaching to college students. The founder Bikram Roy believes that this company is expert in offering 24×7 services by connecting to well-qualified e-tutors. All this is done in the privacy of the student’s room.

The concept is a great success now & hopes to create a niche for itself in the field of online tutors.

Knowledge process outsourcing has offered many businesses, the high-end knowledge required by the industries to bloom.

Since, this is a new invention in the outsourcing market, people are still preferring BPO services and are also unaware of the extensive benefits, associated to KPO. The benefits include cost savings, efficacies to execute a task and improved quality in off shoring high-end processes. However, the benefits do not end here.

Many professionals have experienced a high level of growth in their career with the help of KPO. It is a lucrative career option. KPO sector provides an excellent is apt to develop skills in a specialized field.

When it comes to remuneration, KPO offers the best possible deal to its employees.

A person who possesses good skills and about two years of experience in the field can easily take around Rs.6 lakh to Rs.8 lakh on yearly basis. The more the experience, the more a professional can expect in terms of remuneration. On an average, an experienced person can easily draw a pay packer of around Rs.15 lakh & Rs.20 lakh annually. Many professionals have experienced remarkable growth in their career due to KPO.

With the introduction of International Management program (IMP) by KPO in April 2003, has offered great opportunity to many professionals to enhance their managerial skills.

Standardized technical education is widely available to many aspirants in this field in the developing countries. The best part is that this trained manpower is available at a low cost. Hence, utilizing these services is more advantageous to an organization.

Given below are the benefits related to outsourcing to KPO firms.

a) Cost Savings: KPO offers valuable cost savings & the saving can be utilized anywhere.

b) Efficiency: Standard operational efficiency is one of the most powerful benefits offered by KPO.

c) Trained Professionals: Since the concept is new, the professionals trained well and equipped with best of technological & marketing skills.

d) Uninterrupted Services: KPO offers services without any interruption and hence an industry experience increase in profits.

The great economic success of BPO has given way to many industries to trigger off the process of high-end knowledge work. The main reason is that most companies are looking for access to specialized knowledge processes that are rare to possess.

The KPO market is currently estimated anywhere form $1.3 billion. The growth prospects in future are expected to reach USD 17 billion by the year 2010. The amount of 12 billion USD would be outsourced to India. There have been reports that India will capture more than 70 percent of the KPO sector by 2010.

The trend will be followed by many other countries such as Russia, China, the Czech Republic, Ireland & Israel.

The predictions also say that the cumulative Annual growth rate of low-end outsourcing services will reach up to 26% by 2010. in contrast to this estimation the global KPO market will experience a 46% growth in cumulative Annual growth Rate.

A KPO company cannot measure success in terms of the number of employees. The measurement is totally based on revenue per employee.

India possesses the wealth of highly proficient professionals who have perfect hold over English as an international language. This is the reason that the India KPO sector will reach the size of USD 121 billion by 2010. This amount is equivalent to a market share of about 70%.

UK and US have the biggest markets for KPO due to English language. The widespread NRI community and their expertise with off shoring services to countries like India & China also account for the largest share of KPO in US/UK. However, the shortage of talent in the US to offer KPO services has given India a room to offer these services.

More & more countries are relying on India for offshoring KPO serves as this means offering cost savings amounting to 40 to 50 percent in the areas of research & clinical trials in conjunction with quality work.

Outsourcing markets have contributed to the success of many businesses. In fact, these days, most businesses depend on outsourcing markets to enhance their profit prospects.

BPO has been one of the most famous and productive outsourcing method in the industry. It created many jobs, offered cost savings and long-term investment benefits to various industries.

The outsourcing industry has boomed with the advent of a new technique known as Knowledge Process Outsourcing. Knowledge Process Outsourcing (KPO) is a process wherein businesses outsource high-end knowledge or judgment services.

These services include investment banking research, sales & marketing research, IP/ Patent research, R&D, legal research & case writing & animation design. The provider in this field requires being well equipped team that possesses strategic skills, education and ability to think independently and utilize their creative & innovative thoughts to achieve productive output in any research criteria.

KPO also involves a great degree of execution risk as providers look forward to create and combine complex level of process, technology & services.

KPO is not an extension of BPO. It can be said that KPO is one step ahead of BPO. Knowledge process outsourcing offers domain-based processes in conjunction with business expertise that is a straight contrast to BPO as BPO is only expert in providing process skills.

Few countries have been very successful in offering KPO services such as India, Philippines & China. These countries enjoy the wealth of knowledge and this is exactly what requires attaining expertise in offering KPO services.

The future of KPO is very bright, as KPO expertise is not confined to information technology. KPO has widened its horizon to other services such as Intellectual Property related services, business Research & Analysis Legal Research, Clinical Research, Publishing, Market Research.

In the near future the global KPO sector is expected to grow at a CAGR of around 45%.

BPO sector has created a revolution in the business world. Most organizations have switched over to BPO to achieve desired results with a less investment on their part. The BPO industry has enjoyed a vast expansion and is still expecting great advancement and enhanced efficacies to offer its clients with best of services.

The eminence of outsourcing is such that multinational companies have bestowed great trust on the process to enhance their profit prospects.

Neson Hall, BPO analyst defines BPO as “the outsourcing of business functions or processes, such as procurement, to a third party”. If you are also in the process of considering business process management to enhance your business in various fields, outsourcing process is the best way to accomplish the task successfully.

There are several benefits associated with business process outsourcing. These advantages result from the BPO’s links to shareholder value. The main objective of business process outsourcing is to optimize business performance in order to achieve value creation. BPOs have been embraced with open arms by various countries because of their efficiency in reducing costs effectively and enhancing service quality at the same time.

The paragraph given below emphasizes on the various benefits that a BPO contributes to an organization.

a) Productivity Improvements: An organization strengthens with the presence of experienced and proficient corporate executives working for it. Traditionally these executives are supposed to spend 80 percent of their time in management of details. The rest 20 percent is spent on the most important process, formulating strategies. Business process outsourcing has relieved corporate executives from managing details of the organization. Now they can utilize their precious time & expertise in formulating strategies to improve profit prospects of the organization. The whole process results in the enhanced productivity of an organization.

b) Cost Savings: Cost savings is one of the most prominent benefits of outsourcing the business processes. Companies that outsource their work can enjoy the best of talent in the industry at very low wages. According to the studies conducted on the BPO sector, it has been made apartment that the value derived by the US economy on every on dollar invested in BPOs ranges between $12-$14.

c) Improved HR: HR outsourcing is the best medium to avail cost savings that ranges somewhere between 20-40 percent for customers, leading to improvised version of HR. More and more companies are now looking forward to outsourcing process & transactions so as to develop tactfully focused function of HR.

d) Focus on core business: Most often, organizations tend to neglect the important tasks and areas of the business functions. Adopting business process outsourcing offers excellent aid to the companies to focus on core areas of their business.

The internal processes of most companies have effectively shown an enhancement in the efficacy & competency of services offered.

Organizations can now focus their time & energy on building their core business. Cost reductions, concentration on core business, external expertise, effective catering to changing demands of the customer and increased revenues are the major benefits of business outsourcing.

All these advantages culminate into increased profits and productivity of an organization.

Browsing through the pages of history, we can see that the outsourcing concept dates back to 1962. The concept was the result of Ross Perot’s mastermind when he founded Electronic Data Systems. Electronic Data Systems facilitated the management of information technology to its clients. EDS was proficient in offering the adept information technology one requires to enhance the organization’s profit prospects.

If you want to offer IT/Business related services or product to an organization to keep yourself abreast of the latest technological advancement to improve business process, BPO is the best option.

The typical BPO contract, takes over a specific corporate function. Effective business process outsourcing circumscribes lots of other processes than just changing who is responsible for performing the process. The outside provider takes over the charge to regulate the function or business process, as well as re-devising the method by which the process has been originally conducted.

In the recent years, BPO has become a priority of most businesses. An organization aiming for perfection, niche identity, huge profits and great productivity is now opting for BPO.

Businesses have started achieving strategic and powerful benefits through the outsourcing process.

Call centers are the most demanded and common process that gets outsourced by various organizations these days. Call centers and customer care desks of many multinational companies are successfully being outsourced to low waged, English speaking countries including Philippines & India.

If we consider a country like India, it is equipped with vast IT human resources and has been successful in attracting outsourcing from American IT/Technology companies to outsource their IT Help Desks. Most of these help desks are equipped with latest customer care software and hardware in conjunction with technically proficient IT graduates behind them answering the queries of customers.

BPO stands for Business Process Outsourcing. The whole process can be referred to as the reorganization of a particular business’ functions to some other service providers. The arrangement is generally made in low cost locations. The service provider in this may be a third party or self-owned. The entire rearrangement is aimed towards an achievement of enhanced shareholder value.

Today there are several BPOs across the globe and these BPOs are offering their services to many eminent fields and organizations. Here is a list of some of the basic services offered by BPOs.

• Cash flow analysis
• Data Entry
• Quick Books accounting
• Accounting services
• Live Online/Personal/telephonic
• Enquiry handling
• Pay roll processing
• Web design/development
• Customer care
• Reconciliation
• Inventory management
• Receivable & Payable
• Business operations
• IT Management

The Business Process Outsourcing involves successful management of business processing and business outsourcing. The management and outsourcing are generally conducted through a technology that redesigns the process, eradicate redundancies & curtail extraneous steps.

This is possible with the help of expertise and productive resources of dedicated Foreign Service provider utilized by outsourcing. BPO performs these functions proficiently to promise enhanced benefits to the organization.

Globalization carries different meaning for different people. Some see it a medium to fill up their pockets with wealth at the expense of the poor and downtrodden, and for others it is a gateway to open up free trade between countries.

Whatever, Globalization means to the people across the globe, it has its own history and significance of existence for years.

History speaks out the reason of the evolution of globalization and the benefits and adverse effect it had on various races around the world.

Peep into the early years of history and one can easily view the outsourcing projects that were accomplished by the Americans. The US history endorses that the making of America’s covered wagon covers & clipper ship’s sails was actually a task outsourced to the works in Scotland, with raw material imported from India.

In the 1830s, the textile industry of England reached the peak of its efficiency and this resulted into the inability of Indian manufacturers to complete. Hence the work was outsourced to England.

During the 1970s, in the US computer companies exported their payrolls to outside service providers for processing. The trend continued in the 1980s. During this era accounting services, payroll, billing & word processing all became outsourced tasks. Most of these tasks were outsourced to service providers in the neighboring states. Service providers overseas were not even considered. The main motive for outsourcing was to sharper smaller skills than reshaping the economy.

However, the late 1980s recognized the true power of outsourcing and the process began to emerge as a potential powerful force in transforming global economies. In technological terms, the main focus of outsourcing shifted from its efficiency to its economy & productivity. Outsourcing in the late 1980s was offered to overseas providers by corporations like Kodak and American Standard. This started capturing attention of the public.

Outsourcing is a big business. The business generated a huge amount of global revenues $298.s billion back in 2003. The fact was further affirmed by Gartner Inc. These days many organizations like to outsource with call centers in India.

According to an estimate made by Forrester Research, around 33 million US jobs and $136 billion in wages are expected to move to India, Russia, China, Pakistan & Vietnam by 2015. Europe has taken the responsibility to outsource and is expected to reach nearly 25 percent of total global outsource spending. Carlos Watson, Political analyst for CNN sees a possibility of globalization affect where business set up shop.

He also observes that “while media attention has focused on the corporate exodus to India, three to four times as many jobs have moved to China in the last 15 years”. The reason like in the difference of the kinds of jobs. The majority of jobs outsourced to china are in Manufacturing.

There is more to outsourcing that just payrolls & call centers. You would find its traces in various other fields. A close look in your insurance company and your neighborhood medical clinic, would make you aware of the widespread eminence of outsourcing.

The question that arises in most people’s mind is whether globalization affect the public’s perception of job insecurity and if it does, how can it be resolved?

It may seem that globalization has an ability to make people jobless at the first glance, but a study reveals that these perceptions does not have any significance.

Outsourcing can enhance the world economies in future and with the change in technology one has to embrace new things in order to take a step forward in life.