KPO in the Philippines: Are we ready?

Knowledge process outsourcing (KPO) is a form of outsourcing wherein knowledge and information related work is carried out by a different company to save costs or resources. It usually involves high-value work by highly skilled staff. The most common work this company handles are research, development, analysis, consultancy, engineering services and even legal processes. Knowledge serves as capital.

To some, differentiating KPO and BPO might be tricky. Basically, KPO is a subset of BPO. It deals with more specific knowledge-based and skill-based tasks. It also involves domain processes with advanced and analytical skills and business expertise. It is focused on the core processes of the business while BPO involves services that encompasses support for various field of IT. Unlike KPO, it may or may not affect core processes in the company.

Other differences include: KPO is focused on a more particular type of customer with more customized tools and more predictive response modeling while BPO is less exclusive and more encompassing with the types of customers they handle; The former looks for specialized and highly skilled individuals with higher qualifications and willing to undergo rigorous training while while the latter looks for individuals who are close to being the “jack-of-all-trades”. BPO companies are also said to provide more opportunities for expansion.

The knowledge process outsourcing industry gained attention in India back in the 1980’s. From that, it has now dispersed into other parts of the globe including Europe. It is expected to grow exponentially in the next few years at a compounded annual growth rate of 23.12% from 2013-2018. Growth of the industry is mainly due to the demand from western economies like US and UK where the availability of highly trained and specialized professionals is diminishing.

The Philippines in the year 2016 has evolved so much from what it was in the past years. BPO industry has definitely reached a certain level of maturity in the country. Now, the shift into the KPO industry is slowly taking place.

An article by featured the opening of a San Franciso-based KPO company in the Philippines. Chief Executive, Christopher Carrington, says that the company decided to open an office in the country because “great talents exists in the Philippines.” Furthermore, he says, “The people here have great educational background, great interaction ability. We just want to leverage that to our global company to serve more than 80 clients around the world in the technology industry.”

In the 2015, ServiceSource’s 3,000 employees in 1 global centers sold $8.4 billion worth of services on behalf of the clients. Carrington, in behalf of the company, thinks that the Philippines can represent a significant percentage of that in the future.”

Indeed, Philippines has gone past of being a top BPO destination in the whole world. Statistical data predicts that this success can go up to the year 2020. The question is, is the Philippines now ready for the KPO shift?

Looking at the future of the many educated professionals and the relevant support provided by the government, Philippines is very well prepared to a new goal of being a top KPO destination.

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