Business Process Outsourcing (BPO) Services

Introduction

The success in offshoring Business Process Outsourcing services operations with respect to reducing costs and often improving quality has encouraged many firms to start offshoring their high-end knowledge work as well. Their underlying expectation is that offshoring high-end processes will result in additional cost savings and operational efficiencies, coupled with access to very good talent in the low-wage offshore countries. In this paper, we will refer to this offshoring of higher-end services as Knowledge Process Offshoring (KPO).

This paper analyzes the evolving KPO market, the opportunities it offers, the associated challenges, and the key drivers associated with the move from BPO to KPO.

According to our estimate, the KPO market is expected to grow from USD 1.2 billion in FY (Financial Year) 2003 to USD 16 billion in FY 2010. The sectors that are expected to 'shine' within the KPO industry include data search, integration and management services, financial and insurance research, biotech and pharmaceutical research and computer-aided simulation and engineering design.

In terms of challenges, this paper analyzes the impact of key parameters such as quality, precision, confidentiality and project management expertise in the KPO industry. This paper also forecasts the number of professionals that are likely to be employed by this industry and we also present some important drivers behind the movement from BPO to KPO.

Finally, this paper attempts to compare countries (such as China, India, the Philippines, Ireland, Israel and Russia) that can provide KPO services with respect to labor costs, geographic location, demographic factors and other miscellaneous factors. The paper also discusses the future outlook of the global offshoring industry.

* Free you're Resources and Work on Your Strategy - An important aspect of business process outsourcing is its ability to free corporate executives from some of their day-to-day process management responsibilities. Traditionally, executives spend 80 percent of their time managing details, and only 20 percent on strategy. Once a process is successfully outsourced, the ratio can be reversed.

* Improve Processes - Save Money - Companies that outsource business processes are often able to reengineer those processes and capture new efficiencies. Then they can reallocate resources to other important projects and leverage their investment in technology. For example, processes that are handled in a shared production environment for multiple companies save everyone money. In most cases, high-caliber subject-matter experts are brought in to design and manage these processes, bringing with them best practices, innovation, and years of experience that most companies don't have access to or can't afford on their own.

* Increase Your Capabilities - Companies that want to grow internationally must continuously invest in infrastructure and find talent around the world. Many outsourcing providers are already established globally and can help make the growth process run smoothly. For more details http://www.dynastyresources.com