Human resource outsourcing (HRO) has fueled its astonishing growth on the strength
of cost savings and gains in operational efficiency. The next chapter of this
success story expands the focus of business process outsourcing from operations
to strategic, knowledge-based work.
Human Resource Outsourcing for the Information Age
Knowledge process outsourcing (KPO) allows companies to tap into an external
pool of highly-skilled workers to carry out specific business initiatives.
Since most human
resource outsourcing providers maintain worldwide networks
of knowledge workers, businesses can typically tap into precisely the expertise
they need, on demand.
KPO at a Glance
Knowledge process outsourcing expands the scope of human
resource outsourcing from the back office to high-value front office functions. Traditional HRO
focuses on operational necessities, such as customer service, call center
functions, and accounting services, while KPO features support directly related
to strategic decision-making such as research and intermediate-level Randamp;D.
Some of the high-demand knowledge processes subject to outsourcing include:
- Legal: patent and copyright functions, legal research
- Financial: financial
modeling and quantitative and fixed-income research, credit scoring loss
protection calculations, fraud analytics
- Randamp;D: pharmaceuticals, biotechnology
- Research: market research, equity
research, financial modeling
- Design: automotive and aerospace, animation
and simulation
- IT: database creation, programming
Benefits of Outsourcing Knowledge Processes
Outsourcing
human resources typically presents a cost and operational advantage.
KPO offers these benefits, and much more. The real payoff is the strategic
advantage: clients focus on their core abilities while accelerating the time
to completion of outsourced initiatives. Ritesh Idnani, sales manager at
human resource outsourcing provider Progeon, notes that KPO lets organizations
do fairly complex operations, while getting the added benefit of improved
time to market..
The Future of Human Resource Outsourcing
These benefits could play an increasingly important role as the global economy
evolves. KPO allows businesses to focus on their core competencies, reduce
product development lifecycles, and develop the flexibility to respond instantly
to global market trends. To realize these benefits in strategic human
resource outsourcing, its important to establish an ongoing relationship with a trusted
KPO service provider.
A 2008 KPMG International Report confirmed the critical role KPO could play
in the global economy. According to Network World, the financial services sector
alone, KPO services will account for $5 billion in revenue by 2010. Businesses
that partner with knowledge process outsourcing providers can get in on this
trend on the ground level, and build the talent pool they need to remain competitive
in tomorrows economy.
Sources
HRO Today
Network World
PhysOrg.com
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