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HR Challenges in KPO Industry

Knowledge Process Outsourcing


y Knowledge Process Outsourcing (KPO) is a form of

outsourcing, in which knowledge-related and informationrelated work is carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost.
y KPO

business entities provide typical domain-based processes, advanced analytical skills and business expertise.

y KPO emphasizes on business expertise. KPO indicates a

major industry shift, away from execution of standardized processes to carrying out highly complex and customized processes that demand advanced analytical and technical skills as well as decisive judgement

Types of KPO Services


y Investment Research Services y Business Research Services y Market Research Services y Legal Process Outsourcing y Content Development Services y Financial Services Research

KPO Industry in India


y KPO services industry is estimated to be around USD5.7

billion
y There are around 2,50,000 people are employed in KPO

Industry
y Indian KPO industry is facing stiff competition from

Philippines, Russia, China, Poland and Hungary

y Indian KPOs have their own competitive advantages in terms

of low-cost offerings, skilled manpower with sales and marketing capabilities and domain expertise and knowledge of regulatory compliances, etc.
y The Indian KPO providers offer a range of solutions to

diverse industry segments such as FMCG, engineering, automobile, telecom, R&D, banking and financial services, insurance, etc
y Tremendous growth in future.

Why India becoming a Suitable Destination for KPO Services?


y Cost advantage

India gets advantage in terms of cost as more and more companies are turning to India for off shoring KPO work as quality work gets done at cheaper rates.
y Talent Pool

With a large number of students graduating every year in India, a significant percentage are suitable as knowledge workers

y Favorable Government Policies

The Indian government has recognized the potential of knowledge processes and has taken measures towards liberalization and deregulation. Recent reforms have reduced licensing requirements, made foreign technology accessible, removed restrictions on investment and made the process of investment much easier.
y Indian Education System

The education system in India promotes higher education that encourages students to specialize in subjects and courses that will have a demand in the KPO industry globally.

y English Language Skills

Knowledge of the English language is a key differentiator for India when compared to other outsourcing destinations such as China & Russia

HR Challenges
y Poor Education System and Curriculum

Though the education system has promoted higher education, the current curriculum needs to be revised and developed to enable scope for applicability by students.
y Low Employability

Though India produces a large number of graduates, only a small percentage of them are found suitable for knowledgeoriented projects.

y Acquisition & Retention

One of the major challenges in Indias KPO sector is to acquire the right kind of talent & retain it.
y Training & Development

Knowledge processes requires a high degree of specialization. In addition to the required degree & qualifications, professionals also need to be familiar with the laws & methodologies governing the process in the client destination.

y Increase in Attrition Levels

With the increase in competition and difference in salary levels, the attrition rate in the industry is rising

Future Strategy
y Attract better quality professionals y Creating more awareness about the nature of work KPO

involves y Bring in more investment y Upgrading skills y Reforming Training

Conclusion
y The Indian KPO industry is having rich experience in

offering many services by adding all advantages of best HR, cost savings, language skills, infrastructure, etc. y Even though so many educational institutions are developing manpower requirements for the KPO industry still the employable skills not upto the expectation of the industry. y KPO industry should try to discover the right talent & train them as per the requirements to make the difference in the future requirements

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