Business Process Outsourcing (BPO) & Knowledge Process Outsourcing (KPO)

Group 5 : 1. Kanishka Jain 2. Advika Daga 3. Aayushi Maniar 4. Ruchita Mehta 5. Parth Sheth

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Introduction - BPO

What is BPO? Process of hiring a company to handle business activities for you. It is implemented as a cost saving measure to allow focus on core business processes. This was originally associated with manufacturing firms.

Functions Of BPO

BPO is typically categorized into:Back office outsourcing - which includes internal business functions Front office outsourcing- which includes customer related services

Evolution of BPO in India

Evolved to present higher end services that require judgment based analysis and domain expertise. A variety of services are offered under one roof which makes it convenient. At the same time certain industries such as health care and insurance have specific vendors to cater to their needs.

Benefits of BPO
Concentrate on core business Skilled manpower at lower rates Advance technology at lower rates Increase productivity Beat competition

Limitations of BPO
Loss of control Rising labour costs

Employers lack of interest

Data security

Financial instability of vendor

Loss of expertise

Introduction - KPO

Knowledge Process Outsourcing (KPO) is a form of Outsourcing. It involves High Value work. A fully developed service enables KPO by treating all functions as services. It is at the high end of Business Processing Outsourcing (BPO).

Evolution of KPO
The evolution of the Indian BPO sector has given birth to KPO or Knowledge Process Outsourcing The success in outsourcing business has encouraged many firms to start high end outsourcing through KPO Intellectual Potential the key factor in India

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Major Factors In Evolution Of KPO

Developed Economies facing a shortage of highly trained professionals High Quality specialized vendors emerged as role models and created awareness for the growth of KPO

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Popular KPO areas

Law Pharmaceuticals Bio technology Data analysis Management services Financial services Technology research Computer aided simulation Engineering design Other professional services

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Benefits of KPO
Valuable cost savings that can be utilized elsewhere.

Trained professionals at work. Standard operational efficiency. Increase in profits. Savings in time and management energy for maintaining in house services. Option to recruit a larger work force without raising costs.

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Challenges of KPO

INTERNAL

CUSTOMER

Recruiting and retaining the right talent. Incorrect perception of the KPO profession as low grade

Data security and confidentiality Corporate governance Better quality

Successful players attract better people High attrition rates Lack of domain expertise High competition for access to a

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COMPETITOR

INDUSTRY

Other Countries and Global KPOs Operating.

Creating value for clients

High entry fee for Internet Service providers (ISP) who provide Virtual

Low cost low quality image

Branding and infratructure

Private Network services (VPN)

Indias high international bandwidth prices

Competition from Global KPO Units Operating in India

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Types of KPO services provided by CAs

Business and Technical Analysis Preparations and filing various forms with legal authorities Assets record keeping and verification Financial Consultancy and Services Data Search and Data Analyst Business Analyst Training and consultancy.

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Other KPO services

Engineering services

Legal Services Education and e-learning Solutions

Animation
Outsourcing

Medical content Outsourcing

Journalism and Content Development

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Difference between BPO and KPO

The activities undertaken by each & the process

Focus Specialisation

Driving force Communicating with the clients Degree of Complexity Scale up based on Skills or Infrastructure

KPO Next
Global Collaborative Business Environment Fundamental Shifts in Consumer behavior & Business eco-systems High-value strategic partnerships

Cost Focus Labor Intensive Low-end Activity Low Risks Low Investments Highly Competitive

1990 - 2000 Traditional BPO Cost focus Generic Services Customer Care A/C & Fin HR & Benefit Admin Transaction Processing Data Entry/Conversion/Composition Miscellaneous

2001 - 2005 Business Attractiveness/Timeline of evolution Knowledge Process Outsourcing (KPO) Business Analytics SCM Integration Remote Education & Publishing Animation & Simulation Engineering & Design

2006 - 2010

Business Transformational Outsourcing (BTO) Services Global Sourcing Global Delivery Global Biz Eco-system

Value/Entry Barrier

Resource & efficiency focus Process Reengineering Judgment Driven Domain Expertise Needed More Strategic processes Low Risk, Good Returns Existing traditional players Moving-up the value chain

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THANKYOU