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The knowledge process outsourcing market size is estimated to grow by USD 141.26 billion at a CAGR of 19.51% between 2023 and 2028. The growing digital transformation, driven by the need for businesses to stay competitive and agile in a digital world, is driving market growth by increasing the adoption of digital technologies and solutions. Companies are increasingly leveraging Engineering Services Outsourcing (ESO), particularly in automobile design and other industries requiring specialized expertise. The focus on reducing operational costs, driven by economic pressures and the need for efficiency, is also boosting market expansion by creating demand for cost-effective solutions and services. Additionally, the increasing demand for specialized knowledge and expertise, driven by the complexity of modern business environments, is driving the development of specialized solutions and driving market growth. Overall, these factors are driving the growth of the market and driving innovations in digital transformation and operational efficiency.
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The market share growth by the legal process outsourcing segment will be significant during the forecast period. The segment involves outsourcing legal services to third-party service providers. These services generally include legal research, contract drafting and management, document review, patent drafting and filing, intellectual property management, and litigation support.
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The legal process outsourcing segment was valued at USD 20.85 billion in 2018. LPO services help companies save significant costs, as they do not have to establish an in-house legal processing department. Legal processes can be outsourced to LPO service providers in countries such as India, the Philippines, and South Africa, which have low labor costs. Moreover, LPO service providers have a pool of lawyers and legal experts with diverse backgrounds. The growth of the LPO segment is attributed to factors such as the increasing demand for legal services from businesses and law firms worldwide. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is a lucrative market, especially in the BFSI sector, as the region is an early adopter of advanced technologies. The presence of top companies fuels the market growth in the region. The KPO market in the region is expected to grow at a moderate rate during the forecast period, as the market is mature when compared with other regional markets. Various companies in the region are launching new technological platforms and are forming partnerships to ease business processes. For instance, In July 2021, Accenture acquired HRC Retail Advisory to strengthen its retail strategy capabilities. Thus, the increasing adoption of technologies, innovations with technological platforms, and partnerships across various industries are driving market growth in the region during the forecast period.
The market is witnessing significant growth driven by the need for operational efficiency and the use of third-party service providers for engineering design outsourcing. The rise of data-driven organizations has led to a focus on data security and the adoption of cloud-based work platforms. The IT industry is a key player in this market, offering business intelligence and analytical tools to enhance KPO services. The market is characterized by its role in cost reduction and the outsourcing of labor-intensive tasks such as contract drafting. Clients benefit from access to skilled professionals in various fields, including engineers and architects, while protecting sensitive information and reducing real estate costs. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing digital transformation is notably driving the KPO market growth. Various companies are adopting advanced technologies such as AI, machine learning (ML), and robotics process automation. Implementing advanced technologies like AI, machine learning (ML), and robotics process automation effectively requires specialized knowledge and expertise. They involve outsourcing labor-intensive tasks, such as contract drafting, to specialized service providers. These providers have the necessary expertise and resources to handle sensitive information and deliver high-quality results. By outsourcing these processes, companies can access a pool of highly skilled professionals and advanced technologies.
Moreover, many companies use KPO to support their digital transformation efforts. For example, in 2020, Wipro partnered with Marelli to provide engineering services. Similarly, Accenture has assisted a leading healthcare company in developing and implementing a digital transformation strategy, emphasizing the importance of data-driven organizations and data security. Therefore, the increasing digital transformation across industries is expected to drive the growth of the market in the forecast period.
The growing number of delivery centers is a key trend influencing the KPO market. The market has been growing in recent years due to the rising number of delivery centers. These centers provide cost-effective solutions to companies that are looking to outsource their back-office operations, R&D, and analytics activities. The availability of a skilled workforce drives the growth of delivery centers, especially in developing countries such as India, the Philippines, and China.
Moreover, the use of advanced technologies such as ML and AI is also contributing to the growth of delivery centers. Companies can outsource complex knowledge-based tasks to service providers globally with the advent of cloud computing, artificial intelligence, and machine learning. This helps companies lower their operational costs and increase productivity. For instance, in 2021, Tata Consultancy Services (TCS) announced the launch of its new delivery center in Texas, US. Therefore, the growing number of delivery centers is supporting the growth of the market during the forecast period.
The risk of data breaches may impede the KPO market growth. KPO involves the outsourcing of high-value, knowledge-intensive processes to specialized service providers. However, the outsourcing of knowledge processes can risk the confidentiality, integrity, and availability of sensitive data. Data breaches can lead to consequences such as financial loss, reputational damage, and legal issues.
However, the risk of data breaches can prevent companies from outsourcing critical processes, which can slow down the knowledge process outsourcing (KPO) market. For instance, in 2021, Wipro faced a data breach that impacted several clients. The breach enabled attackers to access sensitive information, including financial data, intellectual property, and personal information. Similarly, in 2020, a ransomware attack on Cognizant resulted in data theft and service disruption. Therefore, the risk of data breaches might hinder the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
HCL Technologies Ltd. - The company offers knowledge process outsourcing services, which serve industries such as insurance, healthcare, banking and financial services, media, retail, and others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing significant growth, driven by the demand for specialized talent in fields such as engineers, lawyers, and architects. KPO providers are focusing on reducing the product and service introduction cycle time and alleviating the employee burden by offering expertise in specific industries, particularly finance. This includes outsourcing financial processes, research & development, and leveraging technological advancements and new tools for knowledge-based services. Customers, including banks and financial analytics firms, benefit from improved data management and access to specialized expertise. The market is also seeing growth in off-shoring and professional services, attracting investors, consultants, and business strategists due to its promising Concentration Ratio.
Moreover, the Knowledge Process Outsourcing (KPO) industry is rapidly expanding, driven by the demand for specialized expertise across fields such as engineering, law, and architecture. This sector focuses on research & development outsourcing and leverages financial databases and equity research to support critical decision-making processes. The Market reflects significant growth as companies seek advanced analytical skills and industry-specific knowledge that go beyond the traditional scope of Business Process Outsourcing (BPO). In sectors like automotive, where passenger vehicle sales data is crucial, KPO provides valuable insights and strategic support. As KPO continues to evolve, it prioritizes high-level professional services and domain expertise, distinguishing itself from BPO by offering more complex and knowledge-intensive solutions.
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Market Scope |
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Report Coverage |
Details |
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Page number |
186 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19.51% |
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Market growth 2024-2028 |
USD 141.26 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
15.83 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 37% |
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Key countries |
US, China, Germany, India, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Capgemini Service SAS, Cognizant Technology Solutions Corp., CRISIL Ltd., Ernst and Young Global Ltd., ExlService Holdings Inc., Genpact Ltd., HCL Technologies Ltd., Hexaware Technologies Ltd., Infosys Ltd., International Business Machines Corp., McKinsey and Co., Moodys Corp., Mphasis Ltd., Oracle Corp., SAP SE, Sutherland Global Services Inc., Tata Consultancy Services Ltd., Wipro Ltd., and WNS Holdings Ltd. |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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