relevance of knowledge process outsourcing in present scenario

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Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (1), January (2013) Online available at indianresearchjournals.com CHALLENGES OF KPO I Organizational Challenge II Environmental Challenge I.a Skill Acquisition & Retention. A B C D I.b Shortage of analytical & specialized skill I.c Feeling of unstable career. I.d Training and Development. I.e. Unawareness of potential of this sector and the scope of future prospects. Customer Challenges A1 Maintaining higher quality standards. A2 IP Management and data security A3 Client confidentiality A4 Compliance of CG Industry Challenges B1 Investment in Information Infrastructure. B2 Low Cost low quality image or branding image challenge. B3 Impact of public C1 Competition from version of dealing other countries. company. C2 Competition B4 from Language and global KPO units cultural barrier. operating in India Competitors’ Challenges Political and Legal Challenges 86
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (1), January (2013) Online available at indianresearchjournals.com MAIN ENVIRONMENTAL CHALLENGES MAY BE:- A. Customer challenges B. Industry challenges C. Competitor challenges D. Political and legal challenges. A. CUSTOMER CHALLENGES A1. Maintaining higher quality standards:- Maintaining higher quality standards is of great concern. KPOs require keen understanding of how a client works and what his exact needs are for each assignment. No pre-defined process can be created and replicated each time there is an assignment since every project is unique. As a result of this, defining an ideal metrics to measure the quality of work can be quite a difficult task. A2. IP Management & Data Security:- Outsourcing high-end functions to an offshore location involves the exchange of confidential information, especially in segments such as financial services and biotech. In such a situation, vendors need to have stringent internal measures to prevent any misuse or trading of sensitive information. In an opinion poll conducted by NASSCOM and the Information Technology Association of America (ITAA) in 2004, greater than 75 per cent of respondents agreed that offering sophisticated information security provisions and practices provide a competitive advantage because security has become a critical selling point. A3. Clients Confidentiality:- A big challenge is to convince clients that their confidential data will be treated with extreme caution and will not fall into the hands of unscrupulous or unauthorized individuals. To keep up with the increasing demand from clients to maintain information security, KPOs will need to balance the escalating costs of maintaining global security standards while staying competitive in a cost – driven market. A4 Compliance of Corporate Governance:- A greater emphasis on governance and greater direct control of finance processes is acting as a barrier in the way of a decision to outsource finance functions. The client concern is that outsourcing might lead to a loss of control, which might in turn lead to a weakening of corporate governance and subsequent breaches of compliance with regulatory requirements. B.INDUSTRY CHALLENGES. B1. Information Infrastructure:- According to the Telecom Regulatory Authority of India (TRAI) internet bandwidth prices account for almost 40 per cent of a KPO‟s total cost as internet connection is required 24x7 to collect data, perform secondary research and transmit data back and so on either within India or internationally, thus being a critical success factor for its survival. Although, major reforms have been undertaken by the government to spur the growth 87
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relevance of knowledge process outsourcing in present scenario

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