Outsourcers Look at Knowledge Process Outsourcing to Take Them Beyond BPO

Ann All

In many ways, outsourcing is a microcosm of the larger business world. That's certainly true with regard to the value of certain skills. In outsourcing, as in the broader business universe, specialized skills are worth far more than general qualifications.


So it's no surprise, then, that Indian firms eager to compete head-to-head with companies like IBM and Accenture are trying to advance up the outsourcing food chain by offering knowledge process outsourcing. Unlike business process outsourcing, which focuses on mundane back-office functions like payroll, KPO demands more specialized knowledge in specific verticals like law and biotech.


One KPO vendor interviewed in a recent Reuters article thinks the market will quadruple in the next five years, reaching $10 billion to $12 billion by 2012. Outsourcing firms earn up to 50 percent more for KPO than for call center work, a market with such rapidly shrinking margins that some firms decline to provide it unless it is part of a broader and more profitable contract.


Legal outsourcing appears to be an especially fast-growing area of the KPO market, with companies like DuPont sending an increasing amount of legal work offshore. The attraction: experienced lawyers that can be employed at rates far lower than their American counterparts.

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May 22, 2007 7:49 AM Gayatri Ojha Gayatri Ojha  says:
There is no surprise that the KSO industry is set to grow leaps and bounds in the coming years. However, one needs to be vary fo the supply side limitations. The White Paper from RocSearch, a fast growing international professional services firm, reveals that only over 500,000 out of the over 3 million educated workers added to the labor pool in 2005 could be considered employable in a world-class company.With the supply of labor unlikely to exceed 100,000 skilled professionals by 2010, the knowledge services market size would be restricted to a mere US$5 billion: almost 60% smaller than the popular estimate of US$12 billion. In spite of rising wages in India, the cost gap with developed economies will still remain favorable for global companies to outsource Knowledge Services work to India over the next several years. As per the RocSearch report, in the medium- and longer-term perhaps, greater private-public partnerships between industry, government and universities is the key to improve both the quality and quantity of the labor pool. On a separate note, new trends in the outsourcing space have sprung up around IT application outsourcing, offshoring of software and back-office services, clinical trial outsourcing, creative services outsourcing, EPO, F&A outsourcing, legal & healthcare outsourcing, newspaper content writing outsourcing and RIMO (Remote Infrastructure Management Outsourcing). Reply
Jun 20, 2007 6:28 AM Outsource Back Office Outsource Back Office  says:
For outsourcing chat, email or back-office supportIf you are considering offshoring your processes, or would just like to know more about the various BPO / KPO services that can be outsourced to us in India, kindly contact us and our customer service representatives will get back to you soon.For outsourcing chat, email or back-office support, visit the website: http://www.outsourcebackoffice.com Reply
Nov 4, 2010 6:21 AM Sayuj Banerjee Sayuj Banerjee  says:

Even in the legal field, knowledge process outsourcing is becoming more and more significant. The key to this growth lies in quality service and cost reduction for the clients. At the best off-shore legal based knowledge outsourcing companies, the services they provide compare favorably with much of what attorneys produce at high-quality law firms in the West.  In at least one case, the off-shored services are managed on-site by a reputable American law firm, and supervised by a team of U.S.-licensed attorneys who have been practicing at the top of their fields. This gives clients both quality assurance and accountability. Also, when corporations and law firms outsource legal services to the best Legal KPO companies, the work is done by top law graduates, experienced lawyers, and/or former law professors from some of the best companies, law firms and law schools in India. And again, often those recruits in turn are trained and supervised by respected U.S. or U.K. attorneys.

Off-shore legal outsourcing can lead to savings of up to 50% or much more. As The New York Times reported: 'The reason for the shift echoes the reason companies are sending other work abroad: they save substantial amounts of money. Some companies say they can reduce certain legal costs by as much as 50 percent, and receive work that rivals what they can obtain in the United States. According to Dennis Archer, the President of the American Bar Association, The need to cut costs reaches across many departments, so it should be no surprise that it goes to the legal department as well.''

Sayuj Banerjee


high-end legal outsourcing


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