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Fox Mandal. WHAT IS KPO PARTNERSHIP? A Model for Strategic Alliance: Companies can evaluate their own expertise and deficiencies in intellectual ...

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WHAT IS KPO PARTNERSHIP?

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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.: (80) 2559 5911Fax: (80) 2559 5844E-mail: pradeep.ghosh@foxmandal.com

Fox Mandal


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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 GOVERNMENT’S 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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Newness to the industry

Acceptance in the market

Competition Risks

Economic dynamics

RISKS INVOLVED DUE TO:

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Partnership Risks

Future Partnership Costs

Hidden Costs of doing business

Investors interest

Recognition/ Image

Acceptance

RISKS INVOLVED DUE TO:

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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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