presentation on kpo for icfai - feb 08(compatibility mode)

8/2/2019 Presentation on KPO for ICFAI - Feb 08(Compatibility Mode)

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Knowledge ProcessOutsourcing

…a very brief

overview…

J Raghunathan

Chief Executive Officer

SuperKnowa India



KPO – Initiative today….Imperative tomorrow

Mr. Rajan Mani– after mypresentation

Myself now….

You all– aftermypresentation

Our State – Present and after 25 minutes…

Wow! I thought weCould finish in 25Minutes..!!




Digvijay’s initiatives…

Rs. 20 every Friday…..




KPO – AnOverview




• KPO cuts into the traditional “core competencies” of many

organizations.

• While cost reduction was the prime motivator of the ITO and BPOwaves, “intellectual arbitrage” will be the key driver for KPOservices.

• Knowledge Process Outsourcing (KPO) enables clients to unlock theirtop-line growth by outsourcing their core work to locations that havea highly skilled and relatively cheaper talent pool.

• Today we have a mix of both third-party and captive structures inthe KPO industry. In the coming days, hybrid multi-sourcing modelsof KPO will emerge - They will consist of captive units managingrelationships with third-party KPO providers.

• Acquiring the necessary skill sets, attracting talent, protecting

intellectual property and managing conflicts-of-interest will be themajor challenges facing the KPO industry over the next three years.

KPO – Industry Overview




• India is currently the leading country providing KPO services.

• Various sources of market research predict the KPO industry to beworth anywhere between US$10 billion to US$17 billion by the year2010.

• Examples of KPO services– Equity, Financial, Insurance Research

– Market Research and Competitive Intelligence and General Business Research

– Data Analytics, Integration and Management

– Research and Information Services in HR

– Intellectual Property, Paralegal Content and Services

– Engineering and Design Services

– Animation and Simulation Services

– Medical Content and Services

KPO – Industry Overview


http://slidepdf.com/reader/full/presentation-on-kpo-for-icfai-feb-08compatibility-mode 7/20KPO – Initiative today….Imperative tomorrow

Infancy

Mid 80s 1990 - 1994 1995 - 1999 2000 - 2004 2004 - 2007 2008 - 2010

Cost ArbitrageITO

BPO

KPO

Growth Maturity

Success of Global

Delivery Models

via robust

Telecom

facilities

Emergence of

Quality

accreditations –

ISO, CMM

Focus on business

domains &

emergence of

business-facing IT

systems

Geo expansion

with multi

national delivery

centers

Growing stature

to provide end to

end consulting

services

Cost Arbitrage Emergence of

Quality

accreditations – CPOC

Focus on business

domains & robust

KMmethodologies

started emerging

Multi geography

expansion

Intellectual

arbitrage enablesoutsourcing of

core processes

Repeat initial

success bydeveloping robust

KM

methodologies

ITO - BPO - KPO – The Road Map



– Internal Challenge:Recruiting and Retaining theRight Talent

– Customer Challenge:Demand for Quality, DataSecurity and Compliance

– Competitor Challenge: OtherCountries and Global KPOs

Operating in India

– Industry Challenge:Information Infrastructureand Branding

Key challenges faced



A KPO that provides :

• Necessary expertise andskills

• Depth of knowledge andunderstanding

• Experience in focused areas

• Customized solutions for theclient

• Flexibility

What does a Customer Want…?



KPO versus BPO



Skill Requirement overview



Key Drivers for the rise of KPO

• KPO significantly enhancesthe client serviceorganization’s ability to

generate top-line revenue.• Vendors’ demonstrated

capabilities

• A seemingly unstoppable

push towards globalsourcing strategies at mostmajor banking andinsurance organizations

•




Future Directions

• A significant shift in the boundariesbetween “outsourceable” and “non-outsourceable” activities

• Off shoring strategies are expected toembrace new locations

• Large number of global banks andinsurers are likely to adopt KPOstrategies

• “Boutique” providers are likely toleverage KPO to create new services

and offerings• More rigorous regulatory and

compliance control will likely bedemanded, as KPO providers delivermore complex services




Future of KPO– New areas of focus

»Healthcare / Clinical Research»Animation»Remote Education»SOX Compliance related work

–Growth Areas

»Shift towards Value added work»Multi-lingual work»Mew markets ( Japan, China ) - for IP»SME’s - a large potential-yet to be tap

- Challenges

» Building credibility around expertise /knowledge

» Delivering highest quality consistently

» Heavy investment in training people,developing high talent and hence retainingthem

» Complying with standards and regulations» Sales and marketing effort-to keep the




KPO in 2010…• India to Account for a major

chunk of Global KPO

Revenues

• The global KPO market isexpected to grow in excess of 30 percent per annum, fromUSD 1.29 billion in FY 2003to USD 17 billion

• Increase in the number of jobs,from 25,000 in 2003 toapproximately 250,000

• Revenues in the Indian servicesector are expected to rise by12 percent per annum

• KPO in India will contributearound 1.8 percent to theIndian service sector




Knowledge…

" Knowledge has been the singlemost important aspect - be itsmelting of bronze 5000 yearsago or assessing a problem for

decision today "

At no other time, as now,

That “knowledge” has become a resourcecritical for survival

KPO is only a logical evolution…..




How is an office today ?

..there are onlytwo employees...

A Man and a Dog…..




How will it be in 2020 ?

..there will still betwo employees...

A Man and a Dog…..




Man, Wife and the Car….

Accord KPO its due respect…

IT is the Next happening Wave…




Thank you

Acknowledgement:

KPMG Research and findings Report

presentation on kpo for icfai - feb 08(compatibility mode)

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