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Maturity And Competency In KPOs

By Tara Estacaan, The Hubport Group
October 13, 2009
Traditionally, outsourcing has been totally driven by the need for arbitrage on cost and the demand for efficiencies in business processes. However, the rise of knowledge process outsourcing has changed how offshoring services are given. Outsourced jobs requiring a higher level of analysis and in depth solutions have pushed companies to upgrade on their services. This has led to produce a migration from low-end business process offshoring to high-end knowledge process outsourcing.

Eligible for these jobs are professionals who possess an extensive knowledge like doctors, lawyers, engineers, financial and research analysts. KPO careers are seen to call for a greater level of commitment. Thus, personnel can be tasked to hold responsibilities that will need them to use their experience in their chosen field of knowledge. Those with MBA, PhD and CA degrees are best qualified to handle KPO jobs because knowledge workers can be expected to provide deliveries on knowledge-intense processes aside from being highly trainable and tech savvy. But to gain growth, these workers must also know how to perform their responsibilities well.

One of the main concerns of the outsourcing market is on the maturity of KPO organizations to handle projects from multinational firms. Another concern is also placed on how these providers can get the right human resource that can be considered competent with world standards. As KPO involves more complex processes low-wage destination like the Philippines becomes attractive for offshore companies.

In pursuit of adding value to services, organizations must work towards adopting systems and better business models to improve efficiency in operations. The times call for proactive strategies and more refined results. However, threats to growth have been seen in the KPO labor market since newer companies are establishing themselves, making the competition tighter for existing KPOs.

Hence, companies create measures to better their service offers and rates. The pressure of dedicated outsource staff retention also brings these companies to provide better wages. Increase their cost projection if they want to give more complex training programs for workers, which is a way of mitigating risk.

Graduates from the country get exposure to multiple disciplines from schools and are ready to man the seats of KPO firms. This young workforce is still aggressive to take on tasks from offshore projects and if given the right training they are well qualified to become the frontliners of the KPO industry. Young professionals possess top-caliber credentials and are willing give extra effort in knowledge processes as they are out to prove themselves of their capability. So when asked if Philippine KPOs are maturing, it would be safe to say a hearty “Yes.”.

Thus, there is a good chance for KPOs in the country to corner a large part of the market. The available manpower potential can be tapped to provide high-value services. Driven by a competent labor force, the Filipino knowledge process outsourcing industry can become more efficient and more adept to accept more opportunities.


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