Knowledge process outsourcing is the transfer of highly skilled jobs to low-wage countries such as India. Dr Amrita Dass highlights the sectors in which this is happening.
In this millennium of the mind, an emerging career opportunity is "knowledge process outsourcing". It is the next step up from business process outsourcing that has grown so rapidly in recent years.
Knowledge Process Outsourcing (KPO) refers to knowledge-intensive work that involves specialised domain expertise. High value processes that fall into this realm are: valuation, scientific research, investment research, patent filing and legal and insurance claim analysis.
Knowledge outsourcing activities, especially those located in India, have been in the news for quite some time.
Although the US outsourcing debate has focused on call centres and other relatively low-skilled work in India, the truth is Indian companies have been developing their software services capacity for more than a decade.
General Electric began working with Indian firms in the early 1990s and opened a large technology centre in Bangalore in 2000.
"India has the potential to become the number one knowledge producing centre in the world by 2025 going by the way things are moving," says R.A. Mashelkar, director-general of the Council for Scientific and Industrial Research.
WHAT COMPANIES ARE LOOKING FOR
Sectors being outsourced
India has a large pool of knowledge workers in various sectors ranging from pharmacy, medicine, law, biotechnology, education and training, engineering, analytics, design and animation, research and development, paralegal content and even intelligence services.
This talent is being discovered and tapped by leading businesses across the globe resulting in the outsourcing of high-end processes to low-wage destinations.
The cost savings in KPO is enormous.
For example, data-mining services companies can save as much as 60 to 70 per cent on analytics and inventory management costs by outsourcing them.
What next?
Knowledge process offshoring is expected to grow faster over the next six years than general business process outsourcing or BPO, a term used to refer to the outsourcing of a complete business function such as human resources.
KPO opportunities, where outsourcers do high-end "knowledge-based" work, are immense for Indian firms.
The success in outsourcing business process operations to India has encouraged many firms to start outsourcing their high-end knowledge work as well.
Cost savings, operational efficiencies, access to a highly-talented workforce and improved quality are among the advantages of offshoring high-end processes to India.
Among the companies exploring this new sector are GE Capital, Motorola, Intel, IBM, Cisco, Nokia, Astra Zeneca and GlaxoSmithKline.
Where should I study ?
It is advisable to study in a campus renowned for your field of specialisation. In addition, you should be well informed about the latest developments relating to your subject and continuously upgrade your knowledge and skills. Some KPO services being outsourced:
- Research and development
- Business and technical analysis
- Learning solutions
- Animation and design
- Business and market research
- Pharmaceuticals and biotechnology
- Medical services
- Writing and content development
- Legal services
- Intellectual property (IP) research
- Data analytics
- Network management
- Training and consultancy What do you need?
The ideal KPO employee possesses domain specialisation, computer skills and English proficiency.
As the Indian education system places great emphasis on higher education and specialisation, a talent pool with specialised knowledge in any field is readily available.
There is also tremendous emphasis on mathematics and science, resulting in a large number of science and engineering graduates.
You could be an engineer, chartered accountant, doctor, MBA, lawyer, research analyst, scientific researcher or a PhD.
Fresh recruits are put through training programmes. These include sessions on valuation, US GAAP (Generally Accepted Accounting Principles), building familiarity with the functioning of I-banks or investment banks and Wall Street, and cross-cultural training.
- The writer is the Director of the Institute for Career Studies based in Lucknow, India
HAVE YOUR SAY! Would you look at knowledge outsourcing as a career option? Would you be happy in a job of this nature? Do you think people, especially parents need to be more accepting of varied career options? What is your opinion on the subject? Let us know at education@gulfnews.com We are listening. Talk to us at anytime and about anything that matters to you.
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