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Knowledge Process Outsourcing(KPO)

&Instruments of Selection in HRM

Prepared By:

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Meaning of KPO

Knowledge Process Outsourcing (KPO) is a

form of outsourcing, in which knowledge-related andinformation-related work is carried out by workers ina different company or by a subsidiary of the sameorganization, which may be in the same country or in

an offshore location to save cost.

KPO business entities provide typical domain-basedprocesses, advanced analytical skills and businessexpertise.

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Overview of KPO Process transparency is a major barrier to using KPO services

"KPO is merely a continuation of BPO, though with rathermore business complexity.

The defining difference is that KPO is usually focused onknowledge-intensive business processes that requiresignificant domain

The profile of people being hired to serve within KPO servicecompanies are more diverse than just being drawn fromtechnical IT services these are people with MBAs, andmedical, engineering, design or other specialist business skills

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Contd

The central theme of KPO is to create value forthe client by providing business expertise rather

than process expertise

KPO is emphasizes on business expertise. KPOindicates a major industry shift, away from

execution of standardized processes to carryingout highly complex and customized processes thatdemand advanced analytical and technical skillsas well as decesive judgement

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Types of KPO services Investment research services (equity, fixed income and credit, and

quantitative research)

Business research services

Data Analytics

Market research services

Valuation and fairness opinions

Legal process outsourcing

Patent research services

Business operations support, analytics & management

Editorial process outsourcing

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Risk & Benefits of KPO Benefits

Cost reduction - companies can save significantly as muchas 40-50% by offshoring work to low wage countries

Shortage of Skilled employees

Provide a large pool of engineers and even PhDs at asubstantially lower cost

Boost employment and help their economies

Provide flexibility in terms of HRM & time management

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Contd Risks

Security - confidential company data, intellectual

property and knowledge in general

Other forms of control can be lost as well. The quality ofpersonnel and work cannot be guaranteed

Idealized expectations regarding the return oninvestment and time will it take

Legal, language and culture barriers can be seriousproblems

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Strategic importance of KPO A better assessment of the capabilities needed for an organization to

become world-class in sourcing.

A predictable but flexible way to build these capabilities throughstrategic level agreements on various parameters.

Year-on-year improvements in many of these Strategic Agreements in productivity and efficiency, quality and goal orientation, costsavings and reinvestments.

The simplification, standardization, re-engineering andtransformation of processes and activities.

Vendor investments and the sharing of business risks/rewards.

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Top Five KPO companies in India 1. Genpact: Formerly GECIS, Genpact had revenues of US$

493 million in 2005. Genpacts KPO specializes in competitiveintelligence, campaign management, program tracking,

customer relationship management etc.

2. Evalueserve: Based in Gurgaon, it has 650 peopleengaged in market research and business intelligence. Nearly45% of the companys revenues come from math related

projects.

3. Ugam Solutions: Ugam Solutions entered the area ofmarket research analytics in 2001, much before the term KPOwas coined. Their business involves the study of consumerminds, their behaviour and habits, for evolving a basis for

business development initiatives of global companies.

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Contd 4. 24/7 Customer: This BPO was listed in the Leaders

category of IAOPs (International Association of

Outsourcing Professionals) Global 100 list. Its KPOfocuses on customer analytics, where it studies consumerbehaviour and analyses data pertaining to relatedactivities such as campaigns and marketing activities.

5. WNS:Web Notification Service is a Mumbai-basedBPO, WNS has just started its KPO division for marketresearch with 300 people. It operates in the knowledgeservices business segment and offers high-end servicessuch as market, investment and business research.

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SelectionInstruments of HR

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Introduction

Selection is the process by which a companychooses candidates from among the many whoapply for an advertised job opening.

Getting the right candidate for the right job at the

right time.

Getting the right candidate for strengthening theexisting culture or for creating a new one.

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Selection Instruments1. Blank Application Forms

This is a pre-formatted blank application form which is

sent to the prospective candidates with the aim tocollect certain set of basic information about theireducation, work, and other relevant personal details.

2. Application Letter or Resume The application letter is an unstructured essay about

the candidate. In this letter a candidate writes abouthis/her work experience, academic qualification,personal likes and dislikes, strengths and weaknesses.

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Contd

3. Education Qualification It shows his/her capabilities to acquire information

in an organized and structured form and applythem in many real life situations.

Technical competency and expertise.

4.Work experience It is often used as a proxy for capability and skill.

Actual job experience allows an individual to getexposure on all those areas that are essential to do

the job.

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Contd

5. Interview

Its an face to face conversation between theinterviewee and interviewer.

Unstructured interview

i. Similarity effectii.Contrast effectiii.The first impression erroriv.Halo or horn error

v.Race, gender, or ethnics bias

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Contd

Structured interview

i. Use critical incidents to generate questions

ii. Use situational questions

iii. Use questions on candidates past behaviour

iv. Background questions

v. Use questions in the area of job knowledgevi. Use anchored rating scales

vii. Use multiple interviewers

viii.Provide extensive training to interviewers

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Cont

6. Assessment centre It is a set of test, behavioural exercise, case

discussion, and games that helps in assessing acandidates knowledge and competencies to workunder conditions similar to what he/she is expectedto experience in actual work situation.

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Selection criteria of MNCs1. Technical ability

2. Cross cultural suitability

3. Family requirement

4. Language

5. Country/cultural requirement