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The business organizations
all over the world have been
emphasizing on cost
reduction with quality being
maintained at the highest
level of standard. This has
led to the birth of
outsourcing concept. This
started with outsourcing of
manufacturing of activities
by the leading manufacturing
groups as they had to reduce
the prices of goods due to
increase in market
competitiveness. The
developing countries have
been the target to outsource
the activities.
This led to
setting up of manufacturing
units of major companies in
China and India. The concept
become popular and got
extended to Service Sector.
This led to the emergence of
BPO Companies that handled
those jobs which were of non
core category and at the
same time reduced costs that
too by employing skilled
people which led to
improvement of qualitative
standards. This concept of
Business Process Outsourcing
due to its benefits and
success led to emergence of
Knowledge of Process
Outsourcing (KPO).
The
service sector organizations
have also been under
pressure of cost reduction
as they can no more afford
to price their services
using the Cost plus Pricing.
Their customers have been
demanding cost reductions a
part of which happened
because of outsourcing those
operations that were not
knowledge based. But this
did not suffice to the
customer requirements and
hence Non Key but still
knowledge based activities
started getting outsourced
gradually. Hence, the KPO
sector started emerging
which is still in its
infancy stage. It is
expected that by 2015 KPO
sector would emerge fully. |
