The evolution and maturity of BPO sector has facilitated the emergence of another industry in global out sourcing scene: kpo (knowledge process out sourcing). The success in out sourcing business process operations to India has given many organizations the confidence to outsource high end knowledge process to India cost savings, operational effiencies, access to highly talented work force and improved quality are all underlying expectations in off shoring high end processes to India.

THE CHALLENGES IN KPO

KPO delivers high value to the organizations by providing domain based processes and business expertise rather than just process expertise. These processes demand advanced analytical and specialized skill of knowledge workers that have domain experience to their credit. Some of other challenges involved in KPO will be maintaining higher quality standards, investment in KPO infrastructure, lack of talent pool, requirement of higher level of control, confidentiality and enhanced risk management.

THE FUTURE OF KPO

The global knowledge process outsourcing industry is expected to reach about usd 17 billion by 2010,of which usd 12 billion would be out sourced to India. In addition, the India KPO sector is also expected to employ more than 250000 KPO professionals by 2010.apart from India countries such as Russia, china, Ireland and Israel are also expected to join KPO industry.

Comparison of opportunity in BPO and kpo markets

Low end out sourcing services have an expected cumulative annual growth (cagar) of 26% by 2010. In contrast, the global KPO market is poised for an expected cagar of 46% by 2010 .the following figure demonstrates the expected growth in the BPO and KPO markets over the next seven years.

KPO SERVICES: