KNOWLEDGE PROCESS OUTSOURCING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Security risks related to data leakage pose significant restraints on the growth of the global knowledge process outsourcing market. Knowledge process outsourcing deals involve handling large volumes of sensitive client data, whether it is personal information of customers, financial records, healthcare records, intellectual property or other confidential data. Any incident of data breach erodes client trust in the outsourcing vendor and discourages other prospective clients from engaging in such arrangements.

Data leakage can occur through various means such as unauthorized access of data by insiders within the outsourcing firm, hacking or cyberattacks targeting the vendor's IT infrastructure, loss or theft of hardware storing the data, or careless handling of data that results in it being publicly exposed. Even a single moderate incident can affect an outsourcing vendor's reputation for a long time. Clients fear legal liabilities and public backlash in case their users' data is compromised due to inadequate security at the outsourcing partner. They may face penalties and lawsuits under strict data privacy rules like GDPR in Europe.

Market Opportunities: Digitization and automation

Digitization and automation could provide significant opportunities for the global knowledge process outsourcing market going forward. As business processes continue to be digitized around the world, there will be increased scope for knowledge process services that leverage digital technologies. Processes such as research and analytics, content creation, legal services which have traditionally required human involvement can now be supported by automation.

Automation is also helping create customized digital solutions and self-service models for specific industry verticals or business functions. The growing adoption of cloud and AI technologies will make it possible to develop scalable digital platforms that can address unique process requirements of organizations.