Knowledge Process Outsourcing (KPO) Market

The Global

Knowledge Process Outsourcing (KPO)

Market

was valued at

USD 33.9 Billion

in 2021 and is projected to reach a value of

USD 51.7 Billion

by 2028 at a CAGR of

7.00%

over the forecast period.

Premium Insights

Knowledge Process Outsourcing (KPO) is outsourcing core information-related business activities. KPO further involves contracting work to individuals with advanced skills and educational backgrounds within a specialized area. The global Knowledge Process Outsourcing (KPO) market is expected to rise during the forecast period owing to the rising adoption of service level agreements (SLA) and easing change management practices. Additionally, these services are expected to be offered cost-effectively. IT firms have begun realizing the advantages of outsourcing, such as saving time and money. These factors will contribute to the global market demand.

Additionally, the rising demand for professional services, including training, services, managed services, and maintenance, will accelerate the global Knowledge Process Outsourcing (KPO) market growth during the forecast period. The rising adoption of such outsourcing practices among emerging economies, including China, India, and Japan, will help with an increased market footprint. The rising number of engineering, medicine, and law professionals is expected to create incremental opportunities for the market to flourish. Integrating KPO services cost-effectively will fuel the global Knowledge Process Outsourcing (KPO) market during the forecast period.

The utilization of big data in many end-use verticals, such as BSFI and IT & telecom, has made it extremely difficult to extract useful information from the available source. In such cases, many companies outsource their data extraction tasks to KPOs. Since KPO firms hire numerous experts in various fields, they can apply a wide range of tools to analyze different requirements, which can help simplify decision-making. However, rising regulations in various regions about unemployment and a severe lack of talent are expected to hamper the growth of the global Knowledge Process Outsourcing (KPO) market during the forecast period. Also, the skilled workforce is being paid a median salary, which leads to KPO firms facing higher attrition rates. This will further cause hindrances to market growth.

Top Market Trends

1. Effect of the COVID-19 Pandemic:

The pandemic forced many employees to work from home to curb the spread of the virus. Impending work from IT and the banking sector forced many organizations to outsource their responsibilities during the initial stages of the pandemic. During the pandemic, it took a certain amount of time for the workforce to adjust to a change in environment and work from home. This impacted the forecast periods global Knowledge Process Outsourcing (KPO) market.

2. Increased Competition:

The rising competitive level among global businesses has resulted in shorter product and service introduction cycles. Consumers require high-quality services, which prompts businesses to perform at an optimal rate. While this translates into value to their services, numerous employees must make a functional business transaction. This will give rise to global market demand.

3. Data-Driven Business Practices:

Almost all organizations worldwide work on a data-driven product cycle. This data aims for firms to develop new goods and hence translates into providing a better service to consumers. With the growing relevance of data-driven organizations, many industries are increasing their budgets toward hiring professionals from the Knowledge Process Outsourcing (KPO) market.

4. Predictive Maintenance and Machine Learning:

KPO services have begun integrating a wide range of predictive modeling for creating actionable intelligence into consumer behavior. OEMs, retail, and manufacturing companies provide innovative solutions in the form of competitive intelligence that can track competitors’ pricing strategies and upcoming launches.

5. Decreasing Cycle Time for Introduction of New Products:

Recent studies have indicated that the cycle time for launching new products is decreasing. This is due to the result of expanding competition among global businesses. One advantage of KPOs is the ability to develop new products and provide better customer services due to the increasing significance of data within enterprises.

Market Segmentation

The global Knowledge Process Outsourcing (KPO) Market can be categorized into

Services, Industries,

and

Region

. Based on Services, the market can be categorized into Market Research & Data Analysis, Legal Services, Financial Process Outsourcing, Publishing Outsourcing, Engineering & Design, and Other Services. Based on the Industries, the market can be segmented into BFSI, IT & Telecom, Manufacturing, Retail, Healthcare, Energy & Power, and Other Industries. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Services

Legal Services to Account for Largest Market Share Owing to Rising Adoption of Cost-Effective Services

The Legal Service segment is expected to witness the largest Knowledge Process Outsourcing (KPO) market share during the forecast period owing to a wide range of services, including legal analytics, contract management, and litigation management. Additionally, these services are being provided more cost-effectively than their counterparts. Rising demand for business information and analytical tools to lessen employee strain will contribute to segmental revenue growth. Market research and data analysis will grow with the fastest-growing CAGR during the forecast period owing to the rising implementation of new tools that provide knowledge-based services to a wide range of clients.

Based on Industries

IT & Telecom to Register the Largest Market Share During Forecast Owing to Extensive Database Usage

The rising adoption of knowledge process outsourcing services within the IT and telecom sector is expected to contribute to segmental growth during the forecast period. IT and telecom sectors use a wide range of extensive databases. These databases are expected to integrate several KPO support and services heavily. The BSFI segment will grow with the fastest-growing CAGR during the forecast period owing to many applicable areas within the segment. BSFI includes exchanging sensitive information and linking financial analytics of numerous banks. Services such as financial analytics, equity research, and data management will lead to the growth of the global Knowledge Process Outsourcing (KPO) market during the forecast period.

Based on Region

Asia Pacific to Witness Surge in KPO Services Owing to Rapid Off-Shoring of Critical Processes

The Knowledge Process Outsourcing (KPO) market in Asia is expected to account for the largest market share during the forecast period. The rising number of KPO firms and consultancies in the region and the rising presence of skilled professionals, including engineers, architects, and lawyers among emerging economies such as India, China, and the Philippines, will boost sales. China, the worlds second-largest economy, will contribute the largest growth share to the Asia Pacific market. Integration of service level agreements (SLAs) and ease of change management practices within the region will further increase the footprint of the Knowledge Process Outsourcing (KPO) market during the forecast period.

Latin America is expected to grow with the fastest-growing CAGR during the forecast period. Factors such as the growing number of regional enterprises are growing incrementally. Additionally, regional players are focused on increasing their research and development departments and developing their analytical insights, which will propel the market growth during the forecast period.

Competitive Landscape

The prominent leaders in the global Knowledge Process Outsourcing (KPO) Market have focused on exploring opportunities for developing a wider range of products and techniques. These players offer clients their services to maintain their strong presence in the market. Additionally, these players are investing heavily in their research and development departments.

The key players in the global Knowledge Process Outsourcing (KPO) market are Accenture (Ireland) among others.

Recent Market Developments

·

April 2022:

HealthPartners chose ExlService Holdings, Inc. as their official care management platform. HealthPartners can link their population with the health data that can lead to more targeted actions in a higher member-involved manner.

·

July 2021:

Accenture announced that they acquired HRC Retail to increase their retail strategy capabilities. Accenture states that HRC Retail has a long history of assisting large retailers across North America to improve profitability and working capital while satisfying expanding customer, employee, and investor expectations.

·

May 2022:

Wipro Limited and Informatica announced they could sell cloud-based data analytics with Wipros full stride cloud data platform. With the aid of Informaticas complete AI-based powdered data management solution and Wipros well-known analytics, data, and artificial intelligence (AI) capabilities.

·

October 2020:

Contour, a worldwide leader in the decentralized platform, announced that they collaborated with Mphasis. This cooperation was aimed at fastening the widespread adoption of the Contour network. Through this partnership, Mphasis can implement Contours network among various industry verticals, such as banks, corporations, and ecosystem partners.

Segmentation of the Global Knowledge Process Outsourcing (KPO) Market