KPO: A New Level of Outsourcing Serving High-End Financial Research
*Mr. SUNIL KUMAR RAI **Prof. SHANKAR NATH JHA
ABSTRACT
“Do whatever you can do the best, and outsource the rest” the statement itself indicates the need for outsourcing in today’s global economy. Outsourcing have become a very fascinating and productive term as well in today’s era and it is changing the face of global economy by introducing its benefits. It was born overnight and as it ingress, it brings the visions of untold success, and therefore the growth and development pains that comes from an industry formed out of opportunity instead of founded as a profession. Since those early sourcing engagements, about 20 years have been passed, and even we are still challenged
…show more content…
The KPO that is one step ahead extension of BPO is the high value; high growth business which is independent of the coexistence of the BPO. The KPO industry is formed around the requirement for business intelligence and expertise and is anticipated to grow from a $1.2 billion industry (at a compounded annual growth rate of 46%).As per the reports of global sourcing the knowledge process outsourcing is forecasted to reach $ 17 billion by 2010 out of which India’s share would be $ 12 billion, predicted by Evalueserve in 2005. Similarly, the National Association of Software and Service Companies of India (NASSCOM), speculated the KPO sector in India to attain $15.5billion by 2010 (Sathe, 2006). Other countries such as Mexico, Russia, China, and Israel are also expected to become large players in this growing market (Larkey, …show more content…
These companies outsource their processes to India for: Cost Savings Operational efficiencies Access to highly skilled workforce improved quality. Knowledge Process Outsourcing(KPO) focus on knowledge expertise. KPO delivers high value to the organizations by providing them business expertise instead of just process expertise. It involves offshoring of knowledge intensive business processes that entail specialized domain expertise.
The need for KPO is not restricted to only IT-enabled services sectors, however it needs knowledge from other domains too. Some of the few examples are legal processes, intellectual property and patent related services, legal research, CAD/CAM applications, clinical research, Web development application, engineering services, and business research and analytics, publishing and market research for KPO.
2. Knowledge Process
But First, Training Foreign Replacements” reveal the importance of the article to an international marketer. Outsourcing and offshoring prove to be the few topics one can learn in this article. An international marketer gains a better understanding of outsourcing and offshoring by recognizing the effects on the company, business, and economy. An important aspect of an international marketer’s career is to assess the market from a global perspective. An international marketer needs to know whether a company is outsourcing it’s employees incase they do not and need to market and appeal to potential employees for the company. An international marketer needs to understand the effects and how the topics outsourcing and offshoring work to gain a better grasp the company or business as a
Globalisation is a growing phenomenon that is the result of various developments in the global environment, each of which merits an individual analysis of its social impacts. For the purpose of this analysis, the focus will be placed upon arguably its most controversial aspect, offshore outsourcing. Offshore outsourcing, or offshoring, is becoming an increasingly common business practice as a result of a combination of the recent technological advancements in the areas of transportation and communication, and the increased competitiveness of the business world. From the perspective of firms, tapping into cheap labor from less developed countries is a very logical business decision to reduce costs and maximize profits. This has not only motivated businesses to engage in offshoring, it has sometimes been critical to their survival in fiercely competitive environments. Before making judgments regarding the righteousness of offshoring from different perspectives, its impact on stakeholders must first be evaluated.
For advocates of global business, the hope is that outsourcing will help lift the United State’s economic growth and development by lowering the input cost of services (i.e. labor and materials) and by opening new markets abroad. Mainstream economists believe that outsourcing will have ...
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Since the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
Global outsourcing first became popular in the apparel and textile manufacturing industries during the late 1960’s and 1970’s. Then it continued with automotive, computers, electronics, and other forms of assembly work during the 1980’s. Most recently, during the 1990’s, now and also in the future the outsourcing is focused on ‘knowledge’ work such as work in software design, technical support, telemarketing, call centers, and back office work. By the end of 2009 Information Technology outsourcing (ITO) revenues were over US $250 Billion while for Business Process Outsourcing (BPO) were more than US$ 140 billion. By 2006, over 200 firms from the Forbes 2000 companies and almost half of the Top Global 250 had offshored IT and business process activities. By 2008 India was managing 65% of the ITO and 43% of the BPO market. In general, India, China, Latin America, Philippines and Mexico have been the top locations for offshoring. The United States is a major player in the offshoring of IT and business process, however, Europe is also catching up. The growth of global sourcing sparked due to the technological advances in the telecommunications industry and the internet w...
Kesavan, R., Mascarenhas, O. A., & Bernacchi, M. D. (2013). Outsourcing Services to India: A Review and New Evidences. International Management Review, 36-44.
The competitive advantage that can be gained by the companies through IS/IT outsourcing is Improved business processes. IT outsourcing an identification method and rigor of IT resources that can help the business run smoothly. It can control the development of the project budget and expenditures. It also can promote information technology investment proposals from outside and provide skilled individuals in managing IT resources available in the company. Through these companies are able to provide appropriate information and report to the company. This can give competitive advantage to the company. For example, expenditures, progress, and issues the company can be viewed and controlled.
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
In the late 1980's the rise of India outsourcing had its start. During this phase, India provided skilled contract workers for the US. Efforts to outsource projects to India arose in the late 1990's. This was driven by a combination of rapidly changing technologies and shrinking IT budgets Little by little the small offshore development projects started to multiply. In the beginning it was trial and error because there wasn't much focus on a repeatable and process driven model. During this time offshore outsourcing led to several failures. The big outsourcing force during the late 1990's came with Y2K. Work needed to get done quick and outsourcing to Indian companies was a solution to this. Indian companies had the ability to scale rapidly.
With today’s rate of development in technology, there has also been an immense increase in global information sharing. Innovations in technology and design seem to be emerging in the market almost every month. One of the key aspects of any business is to gather, organize and efficiently apply this information. According to Antonic (2005), economic assets are fast becoming of secondary importance in the market as companies ascribe more importance to intellectual capital. With the right application of Knowledge Management methods, companies can achieve a competitive advantage through managing the immense amount of information available (Balanced Scorecard Institute, 2002).
manpower and a large base of FDA approved plants, positions India high on the outsourcing
Success of Knowledge Transfer in an organization is dependent on the efficient transfer and use of knowledge. Employees need specific skills and knowledge to effectively perform their functions.
They were going to need the best technologies that were available to them. With the constant growth, Bharti needs a way to be competitive in the growing industry. Akhil Gupta, the former CFO and current managing director, recognized that the company was not able to handle its growth and maintain high customer service along with having to manage its ever-changing IT and network services. His proposed idea to handle the challenges Bharti was faced with in their IT and network services was to outsource those areas in which Bharti was not completely competent in. Could outsourcing be the way of the future for Bharti?
Furthermore, outsourcing is the other concept that will be beneficial for my business. Business process outsourcing (BPO) helps the bank to improve efficiency and cut the cost. I would like to outsource the need associated with technology that will help to be more flexible, proficient and more rapidly market. It helps to get cheap labor, better quality standard and to get new ideas to grow my business successfully and to exchange technologies.