The business process outsourcing (BPO) has become a corporate trend in many countries. This is a process of hiring third-party service providers either for cost-reduction purposes or to address staffing shortages. Process-based services like customer care, technical support, data entry, and information technology (IT) are among the BPO expertise. But along with its continued expansion is a new segment that requires in-depth knowledge and understanding of specialized fields.
The Advent of Knowledge Process Outsourcing
The evolving BPO industry led to a new trend of highly-specialized form of services called knowledge process outsourcing (KPO). This new BPO subset requires in-depth expertise on specialized fields like healthcare, law, and research. That’s why KPO employees should be academically qualified and extensively trained to keep up with the demands.
KPO companies offer healthcare, digital marketing, banking, finance, publishing, legal services, and several creative jobs like content creation, music, animation, and designing. In the Philippines, healthcare is one of the most robust sectors, driven by the increasing demand for virtual medical assistants. Healthcare outsourcing firms offer medical transcription, coding, billing, and other related services to major clienteles from the US, Middle East, and Europe.
The KPO Employment Trend
According to Forbes, businesses in the US and UK will continue to rely on outsourcing partners to address the persisting skill shortages. The Meticulous Research projection shows healthcare virtual assistant market is expected to grow by 24.7% in 2025, fueled by rising medical costs and shortage of healthcare professionals. Furthermore, startups are a growing consumer group in the BPO scene as they look for more cost-effective measures in establishing their companies.
Despite the looming threat of automation, the KPO industry is confident in high-skilled jobs that require extensively trained and experienced individuals to deliver quality services. In fact, more companies are expected to hire remote employees despite the doubts. The US Department of Labor projects a 5% growth in customer service representative (CSR) employment by 2026. Outlooks in the KPO industry remain positive for top destinations like India and the Philippines. Outside the Asia region, more countries are added to the list of potential offshore operations centers like Bulgaria, Romania, Egypt, Mexico, and Colombia.
In the following years, KPO will continue to thrive and remain as one of the most lucrative businesses worldwide. It is also becoming a top employment-generating industries in the US and abroad. A tighter competition among KPO companies is anticipated in the next few years. Thus, it’s only expected that higher quality skills and services to improve customer experience will be showcased.