As companies grow and expand, some start to lose focus on their core business, as focus is called to other areas. If these expanding companies want to keep a competitive edge on competitors, they will need to find an option that will allow them to regain focus on the core business. One of the requirements for this strategic growth of a company is intellectual outsourcing.
Companies have been outsourcing for a while now, but the next step in outsourcing is knowledge process outsourcing (intellectual outsourcing). These activities include market research, equity research, financial research, brand management, legal services, analytic services, pharmaceutical research, data mining, and animation services. A growing number of companies based in developed countries are outsourcing these types of jobs to developing economies including India, China, and the Philippines. Currently 70% of the global intellectual outsourcing industry is catered for by India and by 2015, the market for outsourcing knowledge-based activities to India is expected to reach $30 billion. This is definitely a growing market and if businesses can catch on quick, intellectual outsourcing has the potential to open a lot of doors in the future.
There are many benefits to companies practicing knowledge process outsourcing. One of the biggest benefits is businesses are able to improve profitability without having to compromise on quality. It is also granting these corporations access to global expertise, culturally diverse perspectives, and integrated knowledge flow across boundaries. One important thing for firms to keep in mind while considering intellectual outsourcing is the significance of developing collective partnerships with companies and not simply contractual arrangements that normally take place.
Intellectual outsourcing is a growing practice for businesses all over the world. In order to stay competitive in the market and win over customers, companies will have to consider options such as intellectual outsourcing.