Do you know why the KPO Industry In India is increasing? If not, welcome to the club. Today you will learn about the reasons for companies to outsource knowledge-based services. Individuals with certifications and expertise in certain domains are critical resources for any business. However, not all companies are lucky enough to find such gems. This is why they reach out to outsourcing partners that provide information-related business activities. The employees who offer the best services for their clients may be in the same location or in a different location.
Knowledge Process Outsourcing (KPO)
Knowledge Process Outsourcing is a process of delegating the responsibility of carrying out knowledge-based activities to an external service provider who has the expertise and specialized skills in the operating industry.
One of the main reasons to avail of services from a third-party service provider is to improve efficiency. Business expansion is not an easy task as it requires you to understand and know the rules and regulations in a new location.
Learning about the potential pitfalls and risks in the location will allow you to make appropriate decisions. An expert can guide you on the same and smoothen your expansion journey.
The local partner will help you establish your company branch by providing his services that assist you to assess new markets and customers and thereby minimize risks.
Different Kinds of KPO
A range of KPO services are available based on their nature. They are briefly discussed below.
- Offshore KPO: The services offered by an expert located in a foreign country are categorized under Offshore KPO services. Most of the time, the foreign country is a developing nation.
- Near-shore KPO: An outsourcing entity located in the neighboring location of the client is a near-shore KPO provider. This is one of the beneficial services as the client can incur less travel costs to meet the service provider. The outsourcing partner possesses knowledge about the political ups and downs along with the culture.
- Captive KPO: In this kind of service, the company sets up branches in different countries. The workforce is hired from a foreign country. However, the company handles management on its own.
- Onshore KPO: When the outsourcing service partner and client are located in the nation, it is referred to as onshoring.
- Pure play KPO: This is a service where subject matter experts in the fields offer a range of knowledge-based services.
Also Read:
- Mergers and Acquisitions
- How To Start a KPO Business
- Treasure Management
- What is Cash Flow
- KPO Companies in Delhi
- Top Down Forecasting
- KPO Salary in India
Reasons for Companies to Avail of KPO Services
As discussed previously, one main reason for availing of KPO services is the improvement of efficiency. There are other reasons to choose a third party for outsourcing knowledge-based activities. Let’s look at a few of them for easier understanding.
- Lower overheads
- Consistency
- Focus on core competencies
- Latest processes and technology
- Globalization
- Expert Knowledge
- Improved quality
Lower Overheads:
KPO is a cost-effective tool to get business tasks done. Finding the right candidate to carry out business activities is a lengthy process and involves a lot of expenditure for various linked steps. Also, if the chosen candidate is new to the KPO Industry In India, he must be trained and that requires the company to spend money.
Signing up a contract with a KPO entity will increase efficiencies and reduce hiring costs. The organization can save money on maintaining its in-house staff as well.
Consistency:
Managing an in-house team is challenging at times. Outsourcing services to an agency also involves risks. However, the effort and expenditure required to maintain an in-house team are more compared to outsourcing the services.
When you outsource certain knowledge-linked tasks, you will have one point of contact for payroll administration and staff management. This means things will remain consistent for you and your employees.
Some knowledge-based processes come under non-core activities. When an outsourcing party takes care of non-core activities, you can completely focus on your core competencies. Attention to core competencies will lead to increased productivity, cost savings, and efficiency.
Once the non-essential tasks are delegated to an outsourcing partner, you can save some time and utilize it for strategic decision-making. This facility is a boon for businesses that consider expansion or the introduction of new products.
You can also read:
- Corporate Finance
- What is Equity Research
- Leveraged Buyout
- Portfolio Management
- Credit Research
- Sensitivity Analysis
- Offshore Finance
Latest Processes and Technology:
Outsourcing partners are at the forefront of process and technological innovations. This is another reason for businesses to get attracted to KPO Industry In India. Why would any business let go of an opportunity to avail of the latest technology and methods without having to incur an extra penny? No reason.
Globalization:
Handling the global workforce can be a complicated job. The businesses may not be familiar with their contractual and legal obligations. When a company is ignorant of certain laws, they are on the verge of committing mistakes to attract penalties.
This also sheds light on the limited networks and connections of businesses to hire the best staff for carrying out their business activities. This problem can trigger frustration and push the organization to spend more than required.
KPO will make the lives of businesses easy as they have the subject matter experts to deal with knowledge-linked tasks.
When a business has an outsourcing partner who has a grip on local laws and knows how things work, they will achieve efficiency and avail of the best staff for their activities.
Expert Knowledge:
This is a brainer: the employees who work for a KPO Industry In India have in-depth knowledge about the assigned tasks. In simple words, you get the opportunity to choose from a range of knowledge resources for performing the tasks of your business. Outsourcing entities are especially helpful to companies that do not have the best in-house teams.
Improved Quality:
The quality of your company’s activities can be improved with the assistance of KPO firms. That’s because experts handle your processes and utilize the best resources to effectively deliver the service. Not to forget the fact that they are keen on protecting their reputation so they will give their 100% at work.
Explore more about:
- Transaction Advisory Services
- Business Drivers in Finance
- KPO Interview Questions
- KPO Startup Companies
- Offshore Engagement Model
- Knowledge Process Outsourcing
- Business Valuation Methods
KPO Industry In India – Applications of KPO
Many fields use KPO services for the improvement of efficiency and a list of the above-mentioned benefits. Some of the domains in which KPO is active are shared below.
- Research and Customer Surveys
- Market Analysis
- Data Analysis
- Intellectual Property Research
- Financial Analysis
- Legal Research
- Web Research
- Social Media Monitoring
- SEO
- Copywriting
- Editing and Proofreading
- Design
If you are a customer-centric company, you need to constantly improve customer experience. For that, you need to conduct surveys to understand the customer’s needs and requirements. And this is not an easy process for in-house teams, it is a time-consuming activity.
Outsourcing this task is the best as it saves time for the company. Also, it has more to do with specialization for the creation of surveys to obtain accurate details.
Market Analysis:
Any organization that has a future plan of expanding into a new territory or entering a new market needs research. Research allows the business owner to get a glimpse of competition levels, potential opportunities, and actions to become successful.
It is rare for an in-house expert to guide you on shooting in a new territory or a new niche. The in-house expert may not have the required knowledge to handle unexpected situations.
A specialist will be required to gather and process information for the same. Outsourcing market analysis might be the best option for you.
Here is the detailed guide to:
- Stress Test in Finance
- What are IPO Models
- Playback Period
- Money Management Skills
- What is Advisory Management
- Freelance Financial Modeling
- Financial Analyst
Data Analysis:
Every company depends on data. Dealing with data can be hectic. Data analysis can be done by a specialist as they have the right amount of knowledge to understand the information at hand and thereby derive insights to direct management toward decision-making for the improvement of business performance.
This activity is time-consuming, which is why it is outsourced to KPO partners letting them handle it using their analytics knowledge/specialist coding skills. Specialist knowledge is required for all kinds of data analysis; financial, customer data, etc.,
Intellectual Property Research:
A business that relies on intellectual property needs a specialist in the area.
The expert can deal with almost everything be it, patent rights or copyrights.
Financial Analysis:
Tracking financial performance is crucial for a business to measure its success. Only an expert with in-depth knowledge of financial principles and concepts can perform financial analysis with ease.
This service is generally outsourced to a KPO partner if the business doesn’t have an in-house expert to effectively perform financial analysis.
Legal Research:
Businesses that understand their obligations and rights run smoothly without any legal interruptions. They need to know everything about the business-linked processes like contractual law, employment law, etc.,
Suppose your ex-employee wrongfully filed a case against you, you need an expert to explain your rights and obligations. If an in-house member doesn’t have sufficient knowledge to assist you, you may end up losing a lot of things. This is why outsourcing legal research is essential.
Web research is carried out by every organization for various reasons like market research, supplier details, and competitor analysis. An in-house team to carry out the same may have limited knowledge and thus result in offering partially correct suggestions and predictions.
Whereas an expert from an outsourcing partner will efficiently and easily conduct web research. It is to be noted that having an ineffective in-house team is a costly affair compared to utilizing an outsourcing party’s expertise.
Must Check:
- Purpose of Financial Modeling
- What is Option Pricing
- Financial Services Outsourcing
- Financial Advisory Services
- Jobs After Financial Modeling Courses
Social Media Monitoring:
Monitoring social media is an important element for a business. Because it has become an effective marketing tool. Performing sentiment analysis, checking your mentions, and other linked activities have to be taken care of by an expert like the one working in an outsourcing entity.
SEO:
Search engine ranking is crucial for every business and they should do everything to get a better ranking. Some of the activities that can improve search engine ranking are link building, content marketing, and keyword research.
Reaching out to a KPO provider with expertise in SEO for the improvement of search engine ranking is fruitful for many companies.
Copies are important for a business’s marketing material, website, and even basic aspects like general communication. Having an external copywriter to assist you in obtaining clicks is the best decision if your website doesn’t have enough traffic.
Editing and Proofreading:
Grammatically correct and relatable posts must be posted on the websites of the businesses. It means an expert must be at work editing and proofreading documents and content.
Only good and high-quality content will be published post-review by a proofreader. If you are a business dealing with other products and services instead of content creation, then you must hire a KPO provider so that they can offer more intelligent solutions compared to the ones provided by an in-house team.
Design:
KPO firms have the best design experts to create any kind of post. Having a high-quality design will make you stand out among the rest. Marketing materials, websites, and other company-linked content must have high-quality designs to attract potential customers.
Qualities Required To Excel in the KPO Industry In India
We have discussed the domains with a demand for the KPO Industry In India. Now, it is time to learn about the essential skills that can get you placed in the KPO Industry In India.
- Be articulate
- Creativity
- Clarity
- Adaptability
- Proactiveness
Be Articulate:
If the client is not in a position to interpret what you say, it is a waste of communication. There must not be any miscommunication. For that, you must have excellent verbal and written skills. You can pick programs or courses that can help you gain better soft skills.
Creativity:
Many people assume that creativity is only applicable to art-related activities. But the fact is every task, irrespective of its nature, requires creativity. Creativity leads to the identification of innovative solutions to complex problems.
Sharing fresh ideas and suggesting new processes for business growth will help you step up in the KPO industry In India or anywhere. This aspect not only allows you to thrive in the KPO field but also in any career choice.
Knowing your expertise is important. How well you can manage your day-to-day tasks determines your potential for the employer. Always close the urgent tickets first and then pick the ones with less importance. Never get lost between two activities. This also applies to the nature of the activities you are assigned to.
Be brave enough to request work that lets you use your knowledge and skills and not any random new processes. Don’t deviate from the actual tasks because of the peripheral ones.
Adaptability:
We have discussed priorities. Now it is time to learn about the importance of flexibility. You must be open to learning new processes if there is a business requirement. Being rigid doesn’t get you to reach the pinnacle of your career.
The advancements in technology are never-ending. New rules and changes in the old laws can be introduced anytime soon. You must be flexible enough to grasp the concepts and knowledge to survive in the KPO Industry In India.
Proactiveness:
Self-motivation is the most beneficial trait for a human. Being able to make decisions to efficiently handle situations gives you a competitive edge. Finishing off tasks before the deadline and picking up additional responsibilities will portray you as a remarkable employee in the eyes of your supervisor.
This quality will help your superiors gain trust and allow you to make decisions for process improvements. They may also consider you for promotion because of your productivity and dedication.
Drawbacks of KPO Services
It is convenient to assume that the KPO field only offers benefits. However, the other side of outsourcing has to be looked at to avoid making wrong decisions. Here are a few disadvantages of KPO services
- Loss of control
- Communication issues
- Security issues
Loss of Control:
When you choose a third party to carry out some of your functions, you are supposed to give them some control. When the other partner carries out work as per their standards and understanding without seeking your opinion, you may feel lost and pay a higher price for picking up the inappropriate service provider.
You must connect with professionals who are open to involving you in the decision-making process regarding the outsourced services to stay on the same page.
Communication Issues:
If there is a misunderstanding between you and the service provider due to cultural, linguistic, or legal barriers, you may not get what you asked for. This sheds light on time differences.
If you ever work with an expert in a different time zone, ensure to request them to work as per your time schedules to have clear communications. Also, cultural differences may arise if you outsource your work to a KPO firm in a different country.
Security Issues:
Any business that handovers a part of processes to a third party will indirectly share access to some of their sensitive data. Confidential data like financial records, proprietary business information, and customer information must be diligently handled by the outsourcing agency.
Any leak or loss of data to unauthorized people can damage the client’s overall reputation. This is why a business owner must consider security implications and then seek outsourcing services.
Conclusion on the KPO Industry In India :
Knowledge-based processes are as important as any business activity. Having the right staff to efficiently deal with knowledge-linked tasks is crucial for any company as it can depict its success. Many agencies and firms have established themselves to offer the same services with the help of experts in the industry.
They have people specialized in chosen domains to serve their clients as per their requirements. Letting another party take over some portion of your business services will allow you to breathe and concentrate on critical tasks as the experts will utilize their knowledge and skills to efficiently handle knowledge-based services
There Are Five Kinds of Kpo Services as Per the Location of the Agency. They Are:
- Offshore KPO
- Near-shore KPO
- Captive KPO
- Onshore KPO
- Pure play KPO
The Main Reasons for Companies to Choose a Third Party to Trust With Their Knowledge-based Services Are
- Lower overheads
- Consistency
- Focus on core competencies
- Latest processes and technology
- Globalization
- Expert Knowledge
- Improved quality
Many Industries and Domains Utilize KPO Services. Some of the Knowledge-linked Tasks That Are Commonly Outsourced Are:
- Research and Customer Surveys
- Market Analysis
- Data Analysis
- Intellectual Property Research
- Financial Analysis
- Legal Research
- Web Research
- Social Media Monitoring
- SEO
- Copywriting
- Editing and Proofreading
- Design
The experts from the KPO firm have knowledge about every aspect of the operating industry starting from cultural elements to laws. If you want to be part of the KPO Industry In India, you must be articulate, creative, clear about priorities, flexible, and proactive
Though the KPO field has many benefits, there are a few disadvantages. The business can experience loss of control, communication issues, and security issues.
FAQs on the KPO Industry In India
Q. Why should I opt for services from the KPO Industry In India?
Every business has a range of functions out of which a few require specialized knowledge and skills. Only an individual with expert knowledge can perform activities and help the company achieve the desired outcomes. Availing of services from KPO entities in India or anywhere will allow you to enjoy the below benefits.
- Lower overheads
- Consistency
- Focus on core competencies
- Latest processes and technology
- Globalization
- Expert Knowledge
- Improved quality
Q. What kind of qualities should I have to thrive in the KPO industry?
To begin with, you must obtain a degree or equivalent certification to carry out the knowledge-based activities. You may obtain the skills through a course from a reputed institution. The qualities that can help you get promoted in the KPO industry are proactiveness, clarity, flexibility, and creativity.
Q. Which fields mostly avail of KPO services?
Many organizations have requirements for knowledgeable individuals to perform activities like research and customer surveys, market analysis, data analysis, intellectual property research, financial analysis, legal research, web research, social media monitoring, SEO, copywriting, editing, proofreading, and designing. If you have the skills and expertise to effectively use your knowledge to serve the company for these needs, you are bound to have a flourishing career.
Varun
Are financial bottlenecks holding your business back? Here's how I can help you: With rich experience in advanced financial modeling and transaction support......
View Profile