Knowledge Process Outsourcing (KPO) & Instruments of Selection in HRM

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Meaning of KPO
Knowledge Process Outsourcing (KPO) is a form of outsourcing, in which knowledge-related and information-related 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. KPO business entities provide typical domain-based processes, advanced analytical skills and business expertise.

Overview of KPO
Process transparency is a major barrier to using KPO services "KPO is merely a continuation of BPO, though with rather more business complexity. The defining difference is that KPO is usually focused on knowledge-intensive business processes that require significant domain The profile of people being hired to serve within KPO service companies are more diverse than just being drawn from technical IT services these are people with MBAs, and medical, engineering, design or other specialist business skills

Contd
The central theme of KPO is to create value for the client by providing business expertise rather than process expertise KPO is 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 decesive judgement

Types of KPO services

Investment research services (equity, fixed income and credit, and quantitative research) Business research services Data Analytics Market research services Valuation and fairness opinions Legal process outsourcing Patent research services Business operations support, analytics & management Editorial process outsourcing

Risk & Benefits of KPO

Benefits
Cost reduction - companies can save significantly as much as 40-50% by offshoring work to low wage countries Shortage of Skilled employees Provide a large pool of engineers and even PhDs at a substantially lower cost Boost employment and help their economies Provide flexibility in terms of HRM & time management

Contd
Risks
Security - confidential company data, intellectual property and knowledge in general Other forms of control can be lost as well. The quality of personnel and work cannot be guaranteed Idealized expectations regarding the return on investment and time will it take Legal, language and culture barriers can be serious problems

Strategic importance of KPO

A better assessment of the capabilities needed for an organization to become world-class in sourcing. A predictable but flexible way to build these capabilities through strategic level agreements on various parameters. Year-on-year improvements in many of these Strategic Agreements in productivity and efficiency, quality and goal orientation, cost savings and reinvestments. The simplification, standardization, re-engineering and transformation of processes and activities. Vendor investments and the sharing of business risks/rewards.

Top Five KPO companies in India

1. Genpact: Formerly GECIS, Genpact had revenues of US$ 493 million in 2005. Genpacts KPO specializes in competitive intelligence, campaign management, program tracking, customer relationship management etc. 2. Evalueserve: Based in Gurgaon, it has 650 people engaged in market research and business intelligence. Nearly 45% of the companys revenues come from math related projects. 3. Ugam Solutions: Ugam Solutions entered the area of market research analytics in 2001, much before the term KPO was coined. Their business involves the study of consumer minds, their behaviour and habits, for evolving a basis for business development initiatives of global companies.

Contd
4. 24/7 Customer: This BPO was listed in the Leaders category of IAOPs (International Association of Outsourcing Professionals) Global 100 list. Its KPO focuses on customer analytics, where it studies consumer behaviour and analyses data pertaining to related activities such as campaigns and marketing activities. 5. WNS: Web Notification Service is a Mumbai-based BPO, WNS has just started its KPO division for market research with 300 people. It operates in the knowledge services business segment and offers high-end services such as market, investment and business research.

Selection Instruments of HR

Introduction
Selection is the process by which a company chooses candidates from among the many who apply for an advertised job opening. Getting the right candidate for the right job at the right time. Getting the right candidate for strengthening the existing culture or for creating a new one.

Selection Instruments
1. Blank Application Forms
This is a pre-formatted blank application form which is sent to the prospective candidates with the aim to collect certain set of basic information about their education, work, and other relevant personal details.

2. Application Letter or Resume

The application letter is an unstructured essay about the candidate. In this letter a candidate writes about his/her work experience, academic qualification, personal likes and dislikes, strengths and weaknesses.

Contd
3. Education Qualification
It shows his/her capabilities to acquire information in an organized and structured form and apply them in many real life situations. Technical competency and expertise.

4.Work experience
It is often used as a proxy for capability and skill. Actual job experience allows an individual to get exposure on all those areas that are essential to do the job.

Contd 5. Interview
Its an face to face conversation between the interviewee and interviewer. Unstructured interview
i. Similarity effect ii.Contrast effect iii.The first impression error iv.Halo or horn error v.Race, gender, or ethnics bias

Contd
Structured interview
i. Use critical incidents to generate questions ii. Use situational questions iii. Use questions on candidates past behaviour iv. Background questions v. Use questions in the area of job knowledge vi. Use anchored rating scales vii. Use multiple interviewers viii. Provide extensive training to interviewers

Cont
6. Assessment centre
It is a set of test, behavioural exercise, case discussion, and games that helps in assessing a candidates knowledge and competencies to work under conditions similar to what he/she is expected to experience in actual work situation.

Selection criteria of MNCs

1. 2. 3. 4. 5. Technical ability Cross cultural suitability Family requirement Language Country/cultural requirement