In recent times, the market has witnessed an increasing shift in traditional concepts and beliefs of businesses. Since companies have understood this basic fact that they cannot outsource their core business functions to some third party vendors, they have started outsourcing the competitive knowledge to the KPO industry. The two broad benefits of process outsourcing include great gains concerning efficiency and cost savings. Therefore, processes like hiring, payroll management, account payables, etc. should be outsourced to the business process outsourcing firms.
Some Facts about the KPO Industry:
In recent times, the KPO sector has grown in an explosive manner, and the predictive production rate is somewhere about $10 to $17 billion (USD). The shift has indicated the adoption of international standards in professional qualifications, information pooling, labor pooling, and expertise acquisition. KPO is becoming the center of excellence in various disciplines of legal, data management, finance management, consultation and life sciences. From project management to data search, integration, market analysis, fraud monitoring, remote learning, R&D, radio sciences, legal matters, medical field, etc.- you can find the outsourcing solutions almost everywhere.
4 Categories of KPO vendors:
Knowledge process outsourcing providers can be broadly divided into four main categories:
1. Off-shore vendors: These are the one who have located abroad and are generally preferred because of the location/time availability, cheap labor, and language proximity.
2. Near-shore vendors: Near-shore vendors are generally located in the same city, and the advantage of visiting them anytime is the best feature. They offer culture similarity and political stability to businesses.
3. Captive vendors: Captive outsourcing takes place between two companies that are situated abroad. You can take the typical example of multinational consulting firms that provides centralized support to global offices all around.
4. On-shore vendors: Off-shore outsourcing companies that choose to open local offices at multiple locations are regarded as on-shore vendors. They appoint local resources and professional support to help their business solution.
Quick Benefits of Knowledge Business Outsourcing:
• Efficiency: Enhancing the integral effectiveness of a business is the primary function and benefit of KPO services.
• Cost Reduction: Outsourcing solutions can provide the best dose of services at a much affordable price. It is all about getting the best solution at best prices.
• Tangible: KPO solutions are concrete in results. You can easily measure their rate of efficiency through the performance index. With ample of options available these days, you can quickly switch to services that suit your set of requirements.
• Expertise: Generally, people who are part of the outsourcing process are professionals having a reasonable amount of experience and qualification to deliver best results. In such a situation, it is quite easy and reliable to depend on their expert advice and solutions.
• Conversion: With the help of a KPO service, you can easily convert the fixed cost into a variable cost, providing the comfort of flexibility to companies. The accessibility of different time zones can enable a business to work round the clock.