Businesses are now collaborating with outsourcing companies to boost productivity and strengthen their decision-making capacity. Since many of today’s business decisions are driven by thorough market data, hiring third-party vendors has become more in demand than ever in various industries around the world.
Outsourcing connects businesses and professionals to fill the need for innovation, data gathering, and research development within the company. Find out in this post why the knowledge process outsourcing market is important in many sectors as businesses adapt to digital transformation.
Knowledge Process Outsourcing Market: An Overview
Businesses are constantly finding ways to cut down on overall operational costs, particularly on knowledge-based tasks. Some business people opt to outsource essential functions to BPO and KPO firms. This includes business activities such as back office, customer support, client-facing tasks, marketing, legal services, engineering design, and research.
Let’s zero in on . It’s a process involving data gathering, data analytics, legal documentation, and management to help organizations gain valuable insights about their current market. Organizations hire KPO companies to establish connections with qualified talent while encouraging cost-cutting measures and work efficiency.
Moreover, these firms are able to deploy highly skilled professionals to help businesses improve their functions. This is a wise move instead of burdening your in-house staff with tasks that they’re not good at.
Hiring KPO Companies
Outsourcing critical business functions enables businesses to save on resources without sacrificing solid expertise or management skills. You can hire remote education, market research, content publishing, system maintenance, and contract search services, among others. Then, third-party vendors will source professionals in countries such as the Philippines, China, and India. These service providers hire professionals at more affordable rates.
Knowledge Process Outsourcing Market: Statistics
According to a report by Grand View Research, the knowledge process outsourcing market size is expected to generate USD 124.9 billion in revenue by 2025. Another report claims that KPO market is projected to reach USD 165 billion by 2028. Flexibility and service customization are considered contributing factors to the continuous growth of the KPO industry.
Despite being one of the largest industries today, the KPO market encounters many challenges, including increased client demands, intense business competition, and a shortage of workforce.
In some instances, professionals deliver subpar performances due to high work demand, yet they only receive average wages. This results in a high attrition rate. Nevertheless, the market projection for this industry is still expected to rise over the next few years as digital businesses and methodologies continue to evolve.
Impact of COVID-19 Pandemic Outbreak on Knowledge Process Outsourcing Market
The COVID-19 pandemic has brought severe economic turmoil and business loss to almost all sectors around the world. For example, the growth of the IT sector fell by 8% between the first and second quarters of 2020. No wonder, due to the pandemic, many companies are forced to close, as well as employees are laid off.
In order to alleviate its impact, many organizations, including retail businesses and manufacturers, have switched to working remotely. Apart from this, corporate businesses have shifted to cloud-based management systems for better interconnectivity. This aims to automate business processes and improve work productivity.
Even though they shifted to work-from-home setup, some businesses were forced to shut down, as they couldn’t sustain the expenses from in-house production. This gave the knowledge process outsourcing market an opportunity to boom.
Professionals can still provide technical expertise and quality business solutions with the help of KPO firms. However, a business continuity plan is needed to maintain the partnership with existing clients while looking for new prospects. Since companies often consider cutting down on expenses for rental space, taxes, and utilities, offshoring will continue to be in demand in the coming years.
Key Players of Knowledge Process Outsourcing Market
The value of the global market for KPO was USD 53.9 billion in the year 2020. The market share may potentially reach USD 156.5 billion in revenues if it grows at the Compound Annual Growth Rate (CAGR) of 16.5% between 2020-2027. Here are some key KPO firms that can stand out in delivering high-level business services to various organizations.
- Oracle Corporation
- IBM Corporation
- Moody’s Investors Service
- JPMorgan Chase & Co.
- Telus International
What Knowledge and Skills Can Fill in Gaps in Your Organization?
There are many benefits of outsourcing that businesses can get from KPO firms. One is gaining high-level information from contractual professionals. Organizations are able to save more since information-related activities are carried out by another company in an offshore location.
KPO companies provide the necessary skilled workforce for a special project without incurring additional costs for onboarding and training. Through KPO, a professional can be deployed right away and deliver results in the shortest possible time.
Top KPO Services
- Technical analysis
- Research and development
- Financial consultation
- Business management
- Creative design
- Software development and testing
- Legal processes
- Healthcare management
- Data analysis (projection and interpretation)
- Digital marketing
KPO is about evolving current processes and streamlining efficiency to help businesses expand market coverage. However, they need to give KPO providers full autonomy over what needs to be done to achieve results. With the help of subject matter experts, they can help improve production processes to reach maximum value.
This business solution also helps companies create a brand identity that’s aligned with their goals and vision. In addition, service providers conduct in-depth research on your organization, customers, and industry. This is to identify exactly which aspects of the business processes should be given attention. Furthermore, companies can lower their production costs while allowing them to reduce or increase their workforce based on actual needs.
What is the KPO Market Growth Trajectory?
As mentioned earlier, Grand View Research reported that the knowledge process outsourcing market worldwide is anticipated to reach USD 124.9 billion by 2025 and over USD 156 billion by the end of the forecast period. The report also showed the growth potential of legal process outsourcing alongside industries such as IT, telecom, pharmaceuticals, and healthcare.
The presence of a huge number of talent resources from emerging economies has resulted in the continuous growth of KPO providers. Undeniably, businesses now prefer to outsource critical processes and data management tasks to third-party vendors in order to focus on other revenue-generating activities.
Here are some KPO market growth figures:
- IT and telecom segment forecasts 20.8% CAGR
- Engineering and design industries increase their market share, which is valued at USD 5.53 billion
- Due to the demand for extracting valuable information using data gathering tools, the analytics and market research segment anticipates a gain of over USD 45.18 billion by 2025
- The finance sector expects to generate USD 37.9 billion by 2025
- Legal process outsourcing projects a 21.5% CAGR
Outsourcing KPO Functions to the Philippines
Many organizations consider the Philippines as one of the best outsourcing destinations. Because of this, the KPO sector in the country is continuously growing. The outsourcing companies in the Philippines are targeting progressive nations such as the US, Europe, and China. Hence, businesses across the globe can access a large pool of professionals in the country who are capable of performing comprehensive business services. These services include advanced research, legal processing, marketing, and healthcare data management.
In a Nutshell
KPO facilitates numerous crucial business processes by maximizing professional skills or areas of expertise. The knowledge process outsourcing market doesn’t only fill the need for industry-specific functions; the capability of businesses to make informed decisions is also enhanced. Outsourcing complex job functions allows companies to focus on core functions while improving business productivity and efficiency.
Optimize Your Knowledge Processes with Outsource-Philippines
As previously stated, the Philippines is known as a reliable source of top-rated KPO professionals who can deliver outstanding services at a lower cost. If you want to experience the impact of your long-term business goals, make sure to only work with top-notch KPO firms in the Philippines. Good news! We have the right team for your KPO needs.
We at Outsource-Philippines provide result-driven KPO solutions to help you achieve business success. With our years of significant business experience in collaborating with organizations toward a shared vision, we guarantee quality services. Contact us today and learn how to optimize your work processes with the help of our dependable and dedicated outsourcing team.