As the business landscape continues to evolve, Knowledge Process Outsourcing has become the go-to strategy over Business Process Outsourcing. Over the past decade, KPO has grown significantly, and that growth isn’t expected to slow down any time soon. The projected CAGR is 20.59% by 2027.
What started out as just a tool in the BPO industry has gained so much traction that it has become the focus for businesses looking to expand their value. Let’s take a close look at the value provided by Knowledge Process Outsourcing to see why it’s a better choice than BPO.
Emerging Modes of Business Knowledge Process Outsourcing
Knowledge Process Outsourcing is a super-powered version of BPO that focuses on creativity rather than the repetitive, rule-based processes that have been used in the past.
As a result, we’re seeing key trends that point to business process outsourcing that create a higher demand for KPO services.
Increased Implementation of AI & ML
Knowledge Process Outsourcing is heavily influenced by the emergence of AI. Providers use this technology to boost their efficiency, thus allowing providers to deliver more value for their services.
High volume, repetitive tasks are handled by algorithms, so they are done faster and more accurately than many BPO processes can possibly deliver.
Cloud-based Solutions for Scalability
Another way that KPO providers add value to their services is by finding ways to create flexibility and scale to meet the ever-growing demand in the industry. KPO has allowed outsourcing to take on a whole new role in the business world.
In its infancy, outsourcing was limited to labor-intensive tasks. But now we’re seeing organizations outsource business & marketing services, as well as financial consultancy and services that add value to the business.
Rise in Adoption of Mobile Technologies
Mobile devices are engrained into our everyday lives now, so KPO providers can capitalize on this trend. This environment allows for easier, more convenient access, so providers can develop systems for workers to work remotely while still accessing data from any location.
Enhanced Use of Collaborative Tools
Social media is another game-changer. It has unparalleled collaboration tools that connect the business world unprecedentedly. As a result, KPO providers can use their power to boost communication and engagement with clients. This adds tremendous value to their services.
Key Drivers of the KPO Industry
Knowledge Process Outsourcing is heavily driven by certain factors that match business trends.
Need for Talent and Expertise
The business industry has shifted to a global market, so organizations must be able to access specialists from around the globe. As a result, outsourcing has become much more competitive over the past decade.
Providers must be able to provide top expertise to stand out in this highly competitive environment. That’s why top outsourcing providers spend millions hiring top talent.
Cost Affordability of Outsourcing
The appeal of outsourcing is that it saves organizations money while also guaranteeing them access to experts with specialized skill sets. Lower costs have driven the boom of KPOs, but providers have trouble finding a balance between remaining affordable while also partnering with highly skilled experts. Skilled specialists expect to be paid their worth.
Fortunately, Knowledge Process Outsourcing is much more efficient, allowing providers to maintain their affordable pricing even if they have to pay out higher rates to secure top talent.
Growth of the Professional Services Sector
KPO helps professionals improve their efficiency and stay competitive in their given industries. This has led to an even higher demand since organizations can no longer ignore the value that KPO adds to the equation.
Providers are experts in business process mapping so that smaller companies stay competitive with large corporations.
Increase in Complexity of Business Operations
The transition to a global market has presented many challenges to businesses. They are forced to implement complex business processes to keep up. These challenges were magnified by the pandemic. The result is that businesses have trouble filling in all of the required roles with experts.
Knowledge Process Outsourcing provides an easy and affordable solution to this problem by offering access to experts as they are needed.
Knowledge Process Outsourcing allows organizations to access highly specialized skills in areas like analytics, marketing, and research. These areas are highly valued, so businesses have shifted their approach away from outsourcing labor-intensive tasks since they no longer provide the same value. If you are looking into outsourcing business knowledge processes or other RPO services, then contact Research Optimus today to learn how we can help your business make insight-based decisions and make KPO work for you!