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WITH the rise of globalization and the rapid spread of ICT, many companies have been turning to 'Offshore outsourcing'
WITH the rise of globalization and the rapid spread of ICT, many companies have been turning to 'Offshore outsourcing'. This has led to massive redistribution of work around the world. The offshoring of service sector work such as software programming and back-office functions has raised the possibility that new swathes of the economy will become internationally tradable.
Until recently, global service outsourcing has largely evolved into two forms; namely Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO). After ITO and BPO, Knowledge Process Outsourcing (KPO) has now emerged as a new player in the global outsourcing scenario.
The growth and maturity of the BPO sector has given birth to this new wave in the outsourcing landscape. The unprecedented expansion in BPO to India in particular and the developing world in general has prompted many firms to initiate outsourcing their high-end knowledge-based services. Unlike BPO, KPO requires significant domain expertise and the prime goal of offshoring of knowledge-intensive business processes is to generate value for the client by providing business expertise rather than process expertise. Hence, KPO entails the shifting from simple execution of standardized processes to carrying out processes that demand advanced analytical and technical skills as well as decisive judgement. KPO services can enable enterprises to reduce design-to-market lead times; manage critical hardware efficiency; provide research on markets, competition, products and services; enhance organizational effectiveness in business administration; and help in dealing with rapidly evolving business scenarios.
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