The knowledge process outsourcing market involves the outsourcing of knowledge-based work or work that requires analytical and critical thinking skills and technical expertise. This includes research and development, analytics and consulting, publishing, information research, and content development. The knowledge process outsourcing helps companies improve their operational efficiency while focusing on their core competencies. The growing need to analyze data and gain insights is driving several companies to outsource these tasks to KPO vendors.
The global knowledge process outsourcing market is estimated to be valued at US$ 88.12 billion in 2024 and is expected to exhibit a CAGR of 16% over the forecast period of 2024 to 2031.
Rising adoption of analytics and automation tools is anticipated to boost market growth. The increasing digital transformation initiatives worldwide are also propelling the demand for knowledge process outsourcing.
Key Takeaways
Key players operating in the knowledge process outsourcing market are A3logics, Accenture PLC, Boston Consulting Group, Inc., Capgemini SE, Cognizant Technology Solutions Corporation, Concentrix Corporation, Deloitte Touche Tohmatsu Limited, ExlService Holdings, Inc., Firstsource Solutions Limited, Genpact Limited, HCL Technologies Ltd, Hewlett Packard Enterprise Company, Infosys Limited, KPMG International Limited, and Tata Consultancy Services Limited. These players focus on expanding their global footprint and enhancing their service portfolios through acquisitions and partnerships.
The major growth opportunities in the Knowledge Process Outsourcing Market Demand increasing for data analytics services from various industries. Several companies in sectors such as banking, insurance, healthcare, and retail are outsourcing knowledge-intensive processes like data analytics to gain deeper insights. There is also an opportunity for market players in content writing, publishing, and information research services.
The market players are expanding their operations globally by establishing nearshore and offshore delivery centers. For example, major IT firms like Infosys, Genpact, and WNS have set up KPO divisions in Asia Pacific and Latin America to leverage low-cost skilled workforce. Global expansion allows these players to efficiently serve multinational clients across different time zones.
Market Drivers
The rising demand for automation across various business processes is a major growth driver for the knowledge process outsourcing market. Automating manual tasks through KPO services helps companies improve productivity and reallocate resources to focus on strategic goals. Furthermore, the growing digital transformation initiatives worldwide are compelling organizations to leverage external expertise through outsourcing.
Market Restraints
Lack of control and visibility over outsourced processes can emerge as a key restraint. This makes it challenging for companies to track progress and monitor quality. In addition, cultural and linguistic barriers may arise while managing globally distributed teams. This can hamper effective communication and timely response times. However, market players are continuously enhancing their digital tools and project management capabilities to overcome such restraints.
Segment Analysis
The Knowledge Process Outsourcing Market Analysis can be segmented based on the type, industry vertical, location and others. The IT and telecommunications segment dominates the overall market currently owing to growing IT infrastructure and digitization. This segment require data analytics, research and insights which are mainly outsourced to KPO vendors. The healthcare segment is expected to grow at a significant rate during the forecast period. Rising need of analytics and clinical data processing in healthcare sector is driving the growth of this segment.
Global Analysis
North America region holds the major share in the overall knowledge process outsourcing market currently owing to presence of key players and increased adoption rate of outsourcing services. Asia Pacific is predicted to be the fastest growing regional market due to availability of low cost skilled workforce. Countries like India and Philippines are dominating in this region due to presence of well established KPO vendors. Major companies are expanding their operations in Asia Pacific to leverage economical skilled resources and better serve global clientele. Western Europe is also considered as a prominent regional market however high labor cost may hamper the market growth over the coming years.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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