Dear friends,
I think, a new business process is emerging, called knowledge process outsourcing.
Any information please?
Who are the experts who are likely to be benefitted?
Is India going to be benefitted?

From India, Delhi

Another BPO? Let me try and find out something more on this. We should be benefitted. Bala
From India, Madras

Hi Dr,

Here is an article on KPO which came in Eco Times:


The Knowledge Process Outsourcing industry (KPO) will grow 45% in size by 2010. The BPO industry , only 26%. Global KPO pie in 2010 will be around $17 billion of which $12 billion (70%) will be outsourced to India.

So, in future it’s KPO rather than BPO which will be the cutting edge for India.

Also, KPO will yield more revenue than BPO when it amounts to value per unit. India will have more than 2.5 lakh KPO professionals by 2010. At present, the figures stand at 25,000.

Moreover with countries like Ukraine, Hungary, Belgium, the Czech Republic and the Philippines offering BPO services at a lower rate, it’ll be in KPO that Indians will be leading the world.

KPO vs BPO: What’s the difference?

It’s not just a ‘B’ replaced by a ‘K’. KPO involves high-end processes like valuation research, investment research, patent filing, legal and insurance claims processing, etc.

Or as Pavan Bagai, vice president, strategic businesses, EXL puts it: “Imagine unsorted data going through a black box and coming out as useful information. In KPOs the black box is your mind. There is no pre-defined process to reach a conclusion.”

In BPOs there is a pre-defined way to solve a problem. BPOs will normally include transaction processing, setting up a bank account, selling an insurance policy, technical support, voice and email-based support .

Which will be Global KPO hotspots of the future?

India with its firepower of chartered accountants, doctors, MBAs , lawyers and research analysts is certainly going to have a big pie of the global KPO business.

Those battling with India will be Russia, China, the Czech Republic, Ireland and Israel.

China is likely to get a bigger share of the Japanese and Korean markets due to similarity in language and culture.

Russia with its third largest army of engineers and doctors in the world will make a bid to capture the European KPO markets. Close proximity and cultural compatibility will boost its proposition as an attractive nearshoring country for European businesses.

But, the Cold War and isolation from the US in the past will hamper its growth as a viable KPO base. KPO businesses involve high risk and confidentiality and most of the work would be outsourced from the US.

Russia will be open to competition from Ireland and the Czech Republic to takeover European markets. But the flip side for these countries is their small labour pool and high cost.

India with its knowledge base and lower costs will be leading the pack in the race for KPO businesses. According to a report by Evalueserve, India will capture more than 70% of the KPO territory by 2010.

Will your next door BPO guy benefit from the KPO boom?

Certainly yes. With more and more KPO business coming into India, BPOs will try to upgrade themselves as revenue per unit is more in a KPO than a BPO. And the first to benefit will be those already working in a BPO with some degree of specialisation.

There are significant cost benefits. Says Ashish Gupta, country manager, Evalueserve: “Drafting and filing of a patent application costs anywhere between $10,000 and $15,000. Offshoring even a small portion of the process to an agent in India can save up to 50% for the end-client.”

India is a hub for those willing to outsource their R&D ops - b e it chip design or pharma and biotech research. In fact, quite a few companies are locating their R&D divisions in India.

“All our research work is done from Gurgaon, where most of our staff is located. It’s only the sales and business development that’s done from outside India,” adds Gupta of Evalueserve. Microsoft has opened its R&D centre in Bangalore.

Some US law firms have set up their captive centres in India. Others are collaborating with Indian firms for the same.

What can the government do to boost KPO in India?

“The education system needs to be revamped. Courses on insurance underwriting and US GAAP need to be included,” says Gupta.

The major challenge in setting up a KPO will be to find talented workers. MBAs, CAs, Ph Ds and doctors with super specialisation will be in demand.

Proper framework for BPO taxation and data security laws is a must.

The future...

In contrast to BPOs, KPOs require understanding of how a client works. The contracts in the KPO industry will be of much shorter duration. They may range anywhere from three weeks to six months.

So, delivering high quality work will be a major challenge. Several Indian BPOs have recognised this opportunity and are in the process of developing KPO capability.

Over the last couple of years small Indian KPOs have emerged and are doing well. But these are mere “boutique shops” as Bagai of EXL puts it.

It’s MNCs like GE and Evalueserve, with their huge resources, w hich have been doing well. GE has been hugely successful with its 2,000 strong workforce at its research centre in Bangalore. Efunds has more than 80% of its work force in India.

The figure for Evalueserve is astonishing! Out of 650 employees globally, 600 are based in India itself.

Will KPO be able to drive out BPO?

The answer is a clear no.

Revenues in absolute terms will always be more from BPO. While KPO exports from India are projected at $12 billion by 2010, BPO exports will be much higher at $20 billion for the same year.

But India may start to lose its low-cost advantage in future. Low-end services may move to cheaper destinations like Ukraine, Belarus and Malaysia. Commoditisation of low-end services is likely to occur as potential barriers to entry are minimal. Today, one can open a small call centre within Rs 5 lakh.

For India to stay ahead in the global outsourcing market it will have to develop its KPO industry and maintain its leading edge.


Another article on


A new wave has lashed the Indian shores. But, unlike the tsunami, it promises to open up new avenues and change lives for the better. India has emerged as the most preferred KPO (Knowledge Process Outsourcing) destination of the world. The KPO wave aims to tap the Indian talent in the fields that require expertise and enhanced knowledge.

What is KPO?

So, what exactly is KPO and what is the big talk all about? KPO is essentially an offshoot of BPO. It is the high-end activity of the BPO industry and is estimated to have a magnificent growth in the next few years. It is estimated that the low-end work of BPOs’ will shift to destinations like Bangladesh and Philippines, while India moves over to KPO; which implies moving over from standardized routine processes and data entry kind of work in a BPO, to processes that demand advanced knowledge, analytical interpretation and technical skills. Understandably, the average KPO employee is expected to have better qualifications, skills and knowledge as compared to his/her BPO counterpart.

The kind of job it entails

Fields of work that the KPO industry focuses on include intellectual property or patent research, content development, R&D in pharmaceuticals and biotechnology, market research, equity research, data research, database creation, analytical services, financial modeling, design and development in automotive and aerospace industries, animation and simulation, medical content and services, remote education, publishing and legal support. MBAs, PhDs, engineers, doctors, lawyers and other specialists are expected to be much in demand. The hourly rates for KPO jobs are also higher and are estimated to be approximately thrice that of current BPO jobs.

How it can India a global player

Going by the current statistics, the KPO wave is here to stay and Indians can now benefit much more than before. Large talent pools and favorable government policies together make India the most conducive environment for KPO. Several global players such as McKinsey, Reuters, Harris Interactive and Ipsos among others are already investing in India. As with the BPO sector, India is cost-effective and provides a vast intellectual talent with expertise in areas such as research and analysis.

Outsourcing companies in India are now increasingly focusing on KPO strategies. India is gearing up; individuals and companies alike are now trying to harness this new wave – the KPO wave.


Also just spoke to couple om friends in software industry. They sat that KPO is the best thing that can happen to technically quialified in India. By technically qualified, it could mean Doctors, Finance wizards, engineers etc. No idea how many KPO's are there currently in the country. But this could be the next boom !!!



From India, Madras
if i tell about some ocmpanies in kpo business then evalue serve then tkws these are the two companies in delhi area which i known and i can mention.. ok see u have a nice time
From India, Vadodara
hi dr.JM,
ya jsut today came back t delhi and i have done my exams well and nw my placement has started.. just started to work for it.. i think placement will go fine
k see u some time in cell also
have a nice time

From India, Vadodara
Join a KPO, earn a fortune!

Manu A B in Mumbai | October 05, 2005

Knowledge Process Outsourcing, or KPO, is the latest wave to hit the outsourcing business in India. A booming sector with tremendous potential, the KPO sector in India employs around 25,000 people currently.

But experts say that KPO is set to be worth a $14 billion business employing 250,000 people in India by 2010.

Find out more about KPO, which is likely to surpass BPO (business process outsourcing) in India.

What is KPO?

KPO is Knowledge Process Outsourcing. It involves outsourcing for high-end knowledge work. This includes research and work on intellectual property, equity and finance, analytics, market research and data management, et cetera.

Why is India the preferred KPO destination?

India has a growing population of educated people capable of handling high-end knowledge-based work and research. With a huge talent pool, India could emerge as a global KPO hub as the sector requires specialised knowledge in respective verticals.

With the mushrooming of engineering and technical institutes in India, there will no shortage of skilled manpower in India. A Confederation of Indian Industry study states that India's transition from a BPO destination to a KPO destination is imminent.

Apart from India, countries such as Russia, China, the Czech Republic, Ireland and Israel are also expected to bag a lucrative pie of the KPO industry.

The cost advantage: More and more companies are turning to India for offshoring KPO work as quality work gets done at cheaper rates. India also offers significant cost advantages as much as 40 to 50 per cent in the areas of research and clinical trials.

For instance, drafting and filing of patent applications in the US is very expensive. A typical application costs about $10,000 to $15,000 to draft and file with the United States Patent and Trademark Office. Companies can save up to 50 per cent of the cost by offshoring the work to India.

KPO to surpass BPO

India's business process outsourcing industry will soon be edged out by the emerging KPO sector as the biggest revenue grosser, according to Kiran Karnik, President, National Association of Software and Services Companies. The global KPO industry is likely to become worth $17 billion by 2010, with the Indian industry capturing between $12-$14 billion of it.

KPO, a lucrative career option

KPO sector offers a good working atmosphere with global exposure and an opportunity to develop skill sets in a specialised field. The remuneration is high as a person with about two years experience can draw a pay packet of around Rs 6 lakh (Rs 600,000) to Rs 8 lakh (Rs 800,000) annually, while an experienced professional gets anywhere between Rs 15 lakh (Rs 1.5 million) and Rs 20 lakh (Rs 2 million).

What are KPO's focus areas?

Areas with significant potential for KPO include pharmaceuticals, biotechnology, data search, integration and management services, financial services, research and analytics, technology research, computer-aided simulation and engineering design and professional services, such as business research and legal services.

Offshoring research and development in pharmaceuticals and biotechnology also holds great potential for KPO.

More foreign firms head for India

Law firms such as Patent Metrix, Cantor-Colburn and Schwegman, Lundberg, and Woessner & Kluth have already set up offices in India. Offshoring R&D in pharmaceuticals and biotechnology also has enormous potential for KPO.

Pharma majors Astra Zeneca and GlaxoSmithKline have set up drug discovery centres at low-cost destinations to boost their research and development activities. Even for R&D in software and chip design, major telecom and IT companies opt for India.

Motorola, Intel, IBM, Cisco, Texas Instruments, Nokia and Philips have set up offshore design centres in India.

Challenges that face KPO

Like the BPO sector, KPO also faces attrition, as it is difficult for companies to retain talented and trained people. With higher pay packages and perks, people change jobs very frequently. Many people are still reluctant to join as they feel it is an unstable career.

Many are unaware of the potential of this sector and the scope of future prospects. There is a lot of scope for teachers as this sector offers a good pay package. The sector also requires higher level of control, confidentiality and enhanced risk management.

Who can join KPO?

Unlike BPO where knowledge of English is essential, KPO focuses on educational qualifications.

Educational qualification is important as the work involves specialised knowledge. People from diverse backgrounds can join this field. Teachers, engineers, MBAs, professionals with financial background and even journalists are qualified to work in KPO. People with science background have a better chance as some tasks require data analysis and programming.

KPO tasks require domain expertise for projects involving moderate to high levels of analysis, especially those related to industrial sectors. The kind of work employees have to do includes abstraction of technical patents, extraction of legacy technical data, cataloguing and indexing, taxonomy building and database creation and updating.

All this requires a basic interest and knowledge in specific domains besides an aptitude for working with data and information.

What is the recruitment procedure like?

Companies have a cut-off for marks (grades), depending on the kind of domain knowledge required for the particular project. The works also requires people to have a right aptitude and attitude for doing research-oriented work.

After recruitment, the candidates are trained in various skills. Besides this, the candidate should possess good communication skills, should have an aptitude towards programming, should be able to work in a team, under pressure and of course different shift timings.

More Specials

From India, Delhi

Dr Ji,
Yes, eternal hope prevails.
I am repeating my request below. Hopefully somebody would respond.
Thanks for the detailed info. Where can I find a KPO for automation professionals (process control instrumentation)?

From India, Madras

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