Knowledge Process Outsourcing

(KPO)&

Instruments of Selection in HRM

Prepared By:Rakesh V. Bambhania (50)Jignesh P. Parmar (45)

Meaning of KPO

• Knowledge Process Outsourcing (KPO) is a form of outsourcing, in which knowledge-related and information-related work is carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost.

• KPO business entities provide typical domain-based processes, advanced analytical skills and business expertise.

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

• "KPO is merely a continuation of BPO, though with rather more business complexity.

• The defining difference is that KPO is usually focused on knowledge-intensive business processes that require significant domain

• The profile of people being hired to serve within KPO service companies are more diverse than just being drawn from technical IT services – these are people with MBAs, and medical, engineering, design or other specialist business skills

Cont’d…•The central theme of KPO is to create value

for the client by providing business expertise rather than process expertise

•KPO is emphasizes on business expertise. KPO indicates a major industry shift, away from execution of standardized processes to carrying out highly complex and customized processes that demand advanced analytical and technical skills as well as decesive judgement

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

Risk & Benefits of KPO• Benefits

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

▫ Shortage of Skilled employees

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

▫ Boost employment and help their economies

▫ Provide flexibility in terms of HRM & time management

Cont’d…• Risks

▫Security - confidential company data, intellectual property and knowledge in general

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

▫ Idealized expectations regarding the return on investment and time will it take

▫Legal, language and culture barriers can be serious problems

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 – through strategic level agreements on various parameters.

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

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

• Vendor investments and the sharing of business risks/rewards.

Top Five KPO companies in India

• 1. Genpact: Formerly GECIS, Genpact had revenues of US$ 493 million in 2005. Genpact’s KPO specializes in competitive intelligence, campaign management, program tracking, customer relationship management etc.

• 2. Evalueserve: Based in Gurgaon, it has 650 people engaged in market research and business intelligence. Nearly 45% of the company’s revenues come from math related projects.

• 3. Ugam Solutions: Ugam Solutions entered the area of market research analytics in 2001, much before the term KPO was coined. Their business involves the study of consumer minds, their behaviour and habits, for evolving a basis for business development initiatives of global companies.

Cont’d…• 4. 24/7 Customer: This BPO was listed in the Leaders

category of IAOP’s (International Association of Outsourcing Professionals) Global 100 list. Its KPO focuses on customer analytics, where it studies consumer behaviour and analyses data pertaining to related activities such as campaigns and marketing activities.

• 5. WNS: Web Notification Service is a Mumbai-based BPO, WNS has just started its KPO division for market research with 300 people. It operates in the knowledge services business segment and offers high-end services such as market, investment and business research.

Selection Instruments of

HR

Introduction

•Selection is the process by which a company chooses candidates from among the many who apply for an advertised job opening.

•Getting the right candidate for the right job at the right time.

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

Selection Instruments1. Blank Application Forms

▫This is a pre-formatted blank application form which is sent to the prospective candidates with the aim to collect certain set of basic information about their education, 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 about his/her work experience, academic qualification, personal likes and dislikes, strengths and weaknesses.

Cont’d3. Education Qualification

▫It shows his/her capabilities to acquire information in an organized and structured form and apply them 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 get exposure on all those areas that are essential to do the job.

Cont’d

5. InterviewIts an face to face conversation between the interviewee and interviewer.

•Unstructured interviewi. Similarity effectii. Contrast effectiii. The first impression erroriv. Halo or horn errorv. Race, gender, or ethnics bias

Cont’d

•Structured interviewi. Use critical incidents to generate

questionsii. Use situational questionsiii. Use questions on candidate’s past

behaviouriv. Background questionsv. Use questions in the area of job

knowledgevi. Use anchored rating scalesvii. Use multiple interviewersviii.Provide extensive training to

interviewers

Con’t

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

discussion, and games that helps in assessing a candidate’s knowledge and competencies to work under conditions similar to what he/she is expected to experience in actual work situation.

Selection criteria of MNC’s

1. Technical ability2. Cross cultural suitability3. Family requirement4. Language5. Country/cultural requirement