Fox Mandal

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KNOWLEDGE PROCESS OUTSOURCING (KPO)AN EFFECTIVE
GLOBAL PARTNERSHIP Pradeep Ghosh, J.D., Ph.D.,
M.B.A. Associate DirectorIntellectual Property
Technology TransferFox MandalSolicitors
AdvocatesFM House6/12 Primrose Road, Bangalore
560025Tel. [phone]Fax (80) 2559
5844E-mail pradeep.ghosh_at_foxmandal.com
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WHAT IS KPO PARTNERSHIP?
A Model for Strategic Alliance Companies can
evaluate their own expertise and deficiencies in
intellectual and other needed KNOWLEDGE domains
and then strategize efficient KNOWLEDGE PROCESS
SHARING in order to maximize the efficient
utilization of available resources to develop
cost-effective affordable technologies for public
benefits.
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INTRODUCTION

• International Business environment continues to
  change in this era of globalization.
• A significant change in management thinking is
  taking place.
• Recognition of knowledge as a major factor in
  international competitiveness.
• Alliance capitalism as a business strategy has
  been recognized.

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INTRODUCTION

• Liberalization of trade policies gave rise to
  KPO.
• KPO relates to issues related to intellectual
  property and proprietary interests.
• Why KPO?
• Businesses seek global opportunities
• An efficient utilization of available resources
• A tool to reduce costs
• A road to become more competitive
• An improved financial status

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FORMS OF TRANSFERABLE

• Knowledge implies understanding
• Knowledge is Information
• Information denotes facts and data
• Knowledge is multidimensional
• Knowledge is somewhat abstract
• Knowledge is a combination of wisdom, learning,
  intelligence and know-how

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OUTSOURCING

• Do we have all what is needed?
• Do we have required human expertise?
• Do we have infrastructure to get the work done?
• Do we have infrastructure to produce needed human
  expertise?
• Should we utilize all we have access to?
• Are we ready to make changes in our way of
  thinking?
• Are there better alternatives to the current
  system?

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KNOWLEDGE PROCESS OUTSOURCING

• KPO IS A DYNAMIC PROCESS of GLOBAL VALUE CHAIN
  PARTNERING
• Adaptable when transferred
• Compatible for sharing
• Absorbed by the recipient
• Potential of further advancement
• Utilization by the Outsourcer
• Needs control and monitoring
• Time efficient and cost-effective

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GLOBAL VALUE CHAIN PARTNERING

• Refers to the process by which leading
  corporations, institutions and knowledge clusters
  and economies strategically capitalize on their
  assets including people, capabilities, resources
  and networks to maximize value creation for both
  stakeholders and consumers.

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WHO IS THE OUTSOURCER?

• The ENTITY with a vision and idea but may not
  want to execute it itself, because of
  Adaptable when transferred
• Lack of infrastructure
• Unavailability, un-accessibility and
  non-affordability of Human resources
• Financial constraint
• Time constraints
• Regulatory hurdles
• Lack of competency

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WHO IS THE OUTSOURCEE?

• Needed quality human capital is accessible and
  available
• Proven record of strong support for effective
  management and training
• Legislative and strong political support for
  partnership
• Developed infrastructure for collaborative
  knowledge sharing
• Minimal trade restrictions on foreign ventures
• Guaranteed Protection of IP rights of domestic
  and international inventors

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POSSIBLE KPO TYPES BETWEEN THE OUTSOURCER AND THE
OUTSOURCEE

• Research development joint or independent
• Cooperative Research And Development Agreement
  (CRADA) Partnerships
• Collaborations
• Document production and reviews
• Specialized Development Services
• Training Programs

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KPO Few Examples

• The Outsourcer makes a drug discovery, wants to
  file a patent, outsources the work of patent
  drafting to a Outsourcee (IPR)
• The Outsourcer designs a system of electronic
  banking, outsources the work of testing to a
  outsourcee (proprietary)
• A law firm Outsourcer has to conduct a research
  for patentability of an invention and outsources
  the research activity with guidelines to a
  outsourcee (IPR)
• A company frames its operational policies,
  including hiring and administrative policies and
  asks an outsourcee to produce a company manual
  (non-IPR).

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WHY INDIA AS THE KPO HUB?

• Political and Economic landscape continues to
  change
• New and changed IPR policies
• Liberal policies on money transfer
• Adequate infrastructure in terms of facilities
• The most important asset Well Qualified and
  Available Human Work Force

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KPO ALLIANCING

• Action area 1 Capacity building
• Goals
• Establish net works
• Establish sustainable technology development
  facilities
• Assess and develop tools and interventions to
  achieve these goals
• Establish a network to enable the development and
  strengthening of local capacities to meet these
  needs

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KPO ALLIANCING

• Action area 2 Building Management Relationship
• Goals
• Design a low hierarchy and strong leadership on
  both sides
• Efficient working relationship Operational
  efficiency
• Establish direct and continued communications
• Establish a network to enable the development and
  strengthening of local capacities to meet these
  needs
• Assess and develop tools and interventions to
  achieve these goals
• Establish tools for periodic evaluation and
  improvements

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CHANGES IN GOVERNMENTS POLICIES

• Action area 3 Legal and Regulatory Affairs
• Goals
• Investigate regulatory and legal strategies to
  facilitate and stimulate KPO
• Analyze the current legal and regulatory
  obstacles to KPO
• Propose alternative regulatory guidelines
• Develop arguments and strategies to influence
  legislation and regulations on a political level

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PRIVATE CORPORATIONS AND INVESTORS PARTICIPATION

• Action area 4 Finance and market access
• Goals
• Develop strategies for reducing costs of
  operations
• Identify sources to finance technology
  developments
• Identify key issues or conditions for securing
  the market
• Develop strategies to secure availability,
  accessibility, distribution and rational use of
  knowledge and knowledge based technologies
• Get the support and approval of KPO operations

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BENEFITS OF THE STRATEGY

• Feasible strategy partnerships work and so will
  the KPO
• Efficient infrastructure of development of needed
  technologies
• Increased efficiency and cost reduction
• Utilization of all available human and non-human
  capital
• Access to Knowledge and knowledge based
  technologies
• Shared Goals
• Team Approach
• Legal Framework
• Market Reality
• Credit

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RISKS INVOLVED DUE TO

• Newness to the industry
• Acceptance in the market
• Competition Risks
• Economic dynamics

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RISKS INVOLVED DUE TO

• Partnership Risks
• Future Partnership Costs
• Hidden Costs of doing business
• Investors interest
• Recognition/ Image
• Acceptance

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PROBLEMS WITH KPO

• Limited opportunities beyond the scope of work
• Restricted control for the Outsourcer
• Undesirable competition can create serious
  problems for the donor
• Unforeseeable risk of bad quality work
• Unforeseen commercialization problems
• High cost of court expense for both Donor and
  Recipient over disagreements on intellectual
  property and other legal issues

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