Abstract

Technological progress and rise of knowledge industries have created new business opportunities in the global scenario. After low end business processing, global corporations have started outsourcing high-value added forms of business process outsourcing. This has given rise to a new trend in outsourcing, Knowledge Process Outsourcing, KPO. This includes research and work on intellectual property, equity and finance, analytics, market research and data management, etc. After achieving success in BPOs, India is now gearing towards KPO’s. This sector is expected to employ 250,000 persons by 2010.This paper examines issues of Knowledge process outsourcing in terms of Hecksher Ohlin Model. It looks at emerging trends of KPO sector in India. It gives a perspective on India‘s advantages in KPO and its emerging potential for the economy. It also highlights challenges faced by the upcoming KPO sector. Policy implementations regarding challenges are also discussed.

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