Knowledge Process Outsourcing
Ashish Gupta
Country Head and COO
India-Europe and Outsourcing:
How to create a Win-Win Game?
IIT Delhi - 24 November 2008
© Evalueserve, 2008. All Rights Reserved - Privileged and Confidential
Presentation Plan
KPO: An Introduction
What KPO means to European Firms
‘KPO Transform’
© Evalueserve, 2008. All Rights Reserved - Privileged and Confidential
KPO: A strategic move to manage knowledge cycle
from an outsourced location
Emerging Client Issues
 Shortage of talent pool
 Vast talent pool
 High set-up costs and higher
wages
 20-30% cost as compared
to the rest of the world
 24 X 7 services
 Deliveries from multiple
time zones
 Focus on core competence
Solutions
Example Global Delivery
Platform
Slide 3
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KPO rapidly following IT and BPO…and gaining
Embryonic
Growth
Mature
Call Centers
Maturity
Engineering
Accounting
HR Admin
Insurance
Claims
Aging
IT
Outsourcing
 KPO initially lagging
IT by 10 yrs;
now only 3-5 yrs
 Specialized players
emerging
 Complexity quickly
increasing
Tech Support
 From captives to
third-party
KPO
Time
Slide 4
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KPO provides significant and sustainable
cost savings
100
> 70
USD per hour
80
60
40 - 60
40
20 - 50
25 - 50
15 - 40
20
10 - 25
0
BPO
KPO
On-shore
BPO
KPO
Near-shore
BPO
KPO
Off-shore
Slide 5
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KPO spans a spectrum across several domains
KPO
BPO
Synthesized
Equities
IP Portfolio
CRM
Reports
Research
Analytics
Analytics
Claims
Processing
Global
Research
Financial
Analytics
Patent
Drafting
CRM
Database
Customer
Support
Data
Acquisition
Data
Management
Patent
Searches
Customer
Support
Insurance
Consulting
I-Banking
IP
Telecom
UnderWriting
Slide 6
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India will continue to lead with approximately 69%
of the global market
MARKET SIZE OF KPO INDUSTRY
20
400
Market Size
(USD billions)
15
300
255
10
200
16.7
5
106
4.5
11.2
100
75
3.1
0
Number of Professionals
(in thousands)
350
0
2006-07
2011-12E
Worldwide
India
Professionals (Worldwide)
Professionals (India)
Source: Evalueserve Analysis
Slide 7
© Evalueserve, 2008. All Rights Reserved - Privileged and Confidential
KPO in India is distributed across many segments
Indian KPO: Revenues by Services Segment (2006–07)
Network
Optimisation
and Analytics
4%
Others
5%
Contract
Research and
Biotech
19%
Banking,
Securities and
Insurance
Data
Research
Management,
6%
Search and
Analytics
19%
Business and
Consulting
Research
4%
Remote
Education and
Publishing
10%
Scientific and
Medical Content
Publishing
6%
Source: Evalueserve Analysis
MR and
Competitive
Intelligence
6%
Legal Research
and IP
3%
Engineering
Design
Animation and
10%
Gaming
Services
8%
Slide 8
© Evalueserve, 2008. All Rights Reserved - Privileged and Confidential
Presentation Plan
KPO: An Introduction
What KPO means to European Firms
‘KPO Transform’
© Evalueserve, 2008. All Rights Reserved - Privileged and Confidential
European Firms have been adopting KPO
increasingly, yet cautiously
 Preference for near-shoring over off-shoring
 Language capabilities
 Geographical proximity
 Cultural understanding
 Key evaluation criteria for choosing a vendor
 Quality of services
 Domain expertise
 Key concerns and how they are addressed
 Drop in service quality: Effective service level agreements (SLA)
 Loss of control: Proven to be a myth
 Security issues: Stringent information security standards (e.g.
ISO27001)
Slide 10
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Firms across the spectrum can derive competitive
advantage through KPO
 Focus on core competence
Fortune 500
 Process expertise
 Advantage of ‘Buy’ over ‘Make’
 24X7 support
 Leverage additional resources
SME
 Cost advantage
 Domain and process expertise
 Research support
Research and
Consulting
 Peak load absorption
 Partnership across the globe
 Domain expertise
 Cost advantage
Slide 11
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Case Study:
Evalueserve – Your Global Knowledge Partner
Evalueserve - KPO company providing custom research worldwide
Evalueserve Network and Language
Capabilities
Evalueserve Value Proposition
Quality
Global
Coverage
Cost
Effective
 Robust research
infrastructure
Sales Offices & Client Executives
Research Centres & Sales Offices
 24x5 time-zone
coverage
 European research center in Romania
 100% customised
 Client Executives across Europe
 13,000+ projects
 50+ language service offerings
 Time-zone coverage, multi-location operations
 2,500+ professionals
Slide 12
© Evalueserve, 2008. All Rights Reserved - Privileged and Confidential
Presentation Plan
KPO: An Introduction
What KPO means to European Firms
‘KPO Transform’
© Evalueserve, 2008. All Rights Reserved - Privileged and Confidential
‘KPO Transform’: A Program to generate ROI
What
 ‘KPO Transform’ is a free top-down bottom-up program
to identify and implement outsourcing opportunities in
high-knowledge areas across the whole business
system
 Objective: Reduce cost, improve productivity and
service, and support growth initiatives in identified areas,
within 1-3 months
Business Case
 Can save USD 30k+ (within 1-3 months) per full-time
position identified
 Examples of process redesign, consolidation and
automation have led to productivity improvements of up
to 100% in specific areas
 Examples of growth support have generated revenues of
several USD million pa for specific new client products
Slide 14
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KPO Transform: Phases and Objectives
Identify
Redesign
Transition
Operate
Productivity
ROI
Service Levels
Growth
Slide 15
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Consolidating KPO opportunities across business
system
R&D
Ops
Marketin
g
Sales
AfterSales
Support (Strategy, Finance, HR, IT, Legal)
Steering
Committee
Teams
India
EVS ORC
Manager
Teams
Chile
Project
Office
Teams
Teams Rom.
• High-potential client team
China
members
• Senior Evalueserve team
with consulting experience
and operations managers
Slide 16
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Thank You…
© Evalueserve, 2008. All Rights Reserved - Privileged and Confidential