The Global Knowledge Process Outsourcing Market size is expected to reach $165 billion by 2028, rising at a market growth of 14.8% CAGR during the forecast period.
Knowledge Process Outsourcing (KPO) is a method of outsourcing key data-related information that involves the management, gathering, analysis, and delivery of business-relevant insights. When there is a shortage of trained workers or when specific knowledge and skills are needed, businesses turn to KPOs. KPO can assist businesses in lowering operational expenses and the demand for specialized workers. Organizations can concentrate on their core duties and increase productivity and outcomes by outsourcing certain of their procedures.
Research and analytics, contract search, data management, remote education, contract research & biotech, market research, and content publication are just a few of the services that are currently being outsourced. The KPO business is predicted to grow faster than other industries due to the rising demand for better flexibility in Service Level Agreements (SLAs) and convenience in change management procedures together with cost-cutting.
Industries can save a substantial amount of time as well as money by outsourcing key system processes. Another factor boosting the market’s growth is the increased demand for professional services like research, training, managed services, and maintenance. Highly skilled professionals, including lawyers, engineers, and architects, are available in developing nations like China, India, and the Philippines to offer professional services at lesser prices than their western countries.
It is challenging to extract valuable information from the sources accessible due to the volume of data present. In such a situation, businesses turn to KPO organizations that employ knowledge specialists in a variety of sectors and use numerous tools for analyzing company processes and streamlining decision-making. Customers desire high-quality services, therefore firms must adopt procedures and organizational structures that not only boost productivity but also provide their goods and services a strategic boost.
The knowledge process outsourcing market has been negatively impacted due to the outbreak of COVID-19. This is because the COVID-19 outbreak has reduced overall IT spending as a result of businesses temporarily closing and layoffs. The organizations in the various regions are changing their work-from-home policies as a response to the problem. Companies that outsource are moving toward cloud-based work platforms that reduce manual labor and enable work automation, increasing worker productivity. However, the IT sector will soon recover after the pandemic period, so outsourcing firms are required to concentrate on long-term investments and retain contact with customers and partners.
In the modern world, practically all organizations are driven by data or information, which enables them to develop new goods and provide services to clients more effectively. The need for knowledge process outsourcing in the retail industry is rising as the value of data in firms grows. To help retail businesses discover solutions to their complicated issues, KPO service providers are providing KPO services to them. KPO service providers offer retail businesses with comprehensive analytics solutions that include research on consumer behavior and shopping preferences.
In an effort to fill both known and unidentified gaps in their team's knowledge and skills, companies frequently hire KPO services providers to essentially build an organizational knowledge map. There are occasions when having a third-party provider is a necessity. In this situation, the businesses may hire a provider to fix a specific internal process or to fill a talent shortage on the staff. In other cases, though, the company might hire a specialized outsider since they are unsure of what should be improved within the company.
Giving a third-party organization access to the company's information is not possible without danger for a variety of reasons. One must have faith in the KPO suppliers to keep the data as secure as possible, even if that means at times adhering to compliance rules. Transferring data between parties will also inevitably increase the chances of data loss or theft. The businesses will almost certainly be transmitting or receiving data of some kind from the KPO partners at all times, so the team would always be facing the danger of data security.
Based on service type, the knowledge process outsourcing market is segmented into analytics & market research; engineering & design; financial process outsourcing; legal process outsourcing; publishing outsourcing; research & development outsourcing and others. The research & development outsourcing segment garnered a promising revenue share in the knowledge process outsourcing market in 2021. Businesses are increasingly hiring KPO firms to handle their research and development tasks. Along with that, businesses can access a pool of highly qualified people who can offer creative solutions to challenges and hasten the launch of new goods and services to the market by outsourcing research and development work.
On the basis of application, the knowledge process outsourcing is classified into BFSI, healthcare & pharmaceutical, IT & telecom, manufacturing, retail and others. The healthcare & pharmaceutical segment covered a significant revenue share in the knowledge process outsourcing market in 2021. Diagnostic or administrative projects could be part of a medical KPO. The most successful industry for outsourcing administrative jobs, such as medical coding, is the healthcare sector. To identify the correct billing codes that may be applied to a specific diagnosis of a patient, coding requires a skilled specialist.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 63.4 Billion |
| Market size forecast in 2028 | USD 165 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 14.8% from 2022 to 2028 |
| Number of Pages | 278 |
| Number of Tables | 420 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Service Type, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the knowledge process outsourcing market is analyzed across North America, Europe, Asia Pacific and LAMEA. In 2021, the Asia Pacific region led the knowledge process outsourcing market by generating the largest revenue share. This is a result of the quick offshoring of crucial procedures and expert services. Because of the advancement of technology and the growth of knowledge-based businesses, new business opportunities have emerged.
Free Valuable Insights: Global Knowledge Process Outsourcing Market size to reach USD 165 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Accenture PLC, Wipro Limited, Genpact Limited, HCL Technologies Ltd. (HCL Enterprises), ExlService Holdings, Inc., McKinsey & Company, Moody’s Corporation, Mphasis Limited (Blackstone, Inc.), Ernst & Young Global Limited, and R. R. Donnelley & Sons Company.
By Service Type
By Application
By Geography
The Knowledge Process Outsourcing Market size is projected to reach USD 165 billion by 2028.
Rising Adoption Of Kpo In The Retail Sector are driving the market in coming years, however, Problems With Data Security Among Enterprises restraints the growth of the market.
Accenture PLC, Wipro Limited, Genpact Limited, HCL Technologies Ltd. (HCL Enterprises), ExlService Holdings, Inc., McKinsey & Company, Moody’s Corporation, Mphasis Limited (Blackstone, Inc.), Ernst & Young Global Limited, and R. R. Donnelley & Sons Company.
The expected CAGR of the Knowledge Process Outsourcing Market is 14.8% from 2022 to 2028.
The BFSI segment acquired maximum revenue share in the Global Knowledge Process Outsourcing Market by Application in 2021 thereby, achieving a market value of $48.7 billion by 2028.
The Asia Pacific market dominated the Global Knowledge Process Outsourcing Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $63.4 billion by 2028.
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