Graduate School of Management
Pamantasan ng Lungsod ng Maynila
GRADUATE SCHOOL OF MANAGEMENT
EFFECTS OF KPO STRATEGIES ON FINANCIAL SERVICES INDUSTRY IN THE PHILIPPINES
Submitted to: Dr. Pescadera
Submitted by: Oliver A. Javier
TABLE OF CONTENTS
CHAPTER 1 3
Background of the Study 3
Statement of the Problem 7
Significance of the Study 8
Scope and Limitation 9
CHAPTER 2 10
Review of Related Literature 10
Benefits and Risks of KPO 13
Conceptual Framework 18
CHAPTER 3 20
Research Locale 21
Samples and Sampling Techniques Used 22 ...view middle of the document...
It includes legal process outsourcing. These are both high-end-value-added forms of business process outsourcing (BPO). KPO firms provide domain-based process and business expertise, rather than just expertise. Firms gradually move from low end to high outsourcing.
The evolution and maturity of the Philippine BPO sector has given birth to KPO or Knowledge Process Outsourcing. BPO is getting differentiated into strata based on the level of skill and knowledge required for the job. As global business is becoming more competitive, the cycle time for introducing products and services has become smaller. Customers demand high quality of services provided. In response, business enterprises adopted systems and business models that provide operational efficiency. Also, these business models also add strategic value to their products and services. Hence, many firms have started outsourcing their high-end knowledge work to low-wage destinations. This phenomenon is known as knowledge process outsourcing or KPO. Knowledge Process Outsourcing involves off shoring of knowledge intensive business processes that require specialized domain expertise (Evalueserve 2005, Sengupta 2005, Sen and Sheil 2006 ).
The outsourcing industry has been extensively researched in the past decade. Business Process outsourcing (BPO) in particular has been the topic of many analyses. Outsourcing first appeared in the IT industry in the 1980s. This was the time when companies recognized the benefits of having IT service partners in order to develop complex systems, and enhance the way that a business process or service is managed. Since then, the outsourcing industry has gone through its introduction and growth stages, with growth rates of around 50%, and has reached its transformation stage. Increasing globalization and high pressure to innovate have substantially shortened the product and service life cycles. Industry life cycles have therefore become shorter and shorter - outsourcing is no exception. Over the past five years a new form of outsourcing has become popular and promises, as BPO once did, huge growth and profit potential.
Knowledge Process Outsourcing ((KPO) is the next step up the outsourcing value chain. While BPO provides extensive 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 decisive judgment. The major strength of this approach is not the cost-saving aspect but it is more the value that these services provide. They offer a sustainable competitive advantage to its customers in all knowledge-intensive industries by pricing market and industry research, data and statistical analysis, competitive analysis, and support in legal and administration process. This and similar forms of outsourcing have forced...