KNOWLEDGE PROCESS OUTSOURCING MARKET Size and trends

Knowledge Process Outsourcing Market Size and Trends

The Global Knowledge Process Outsourcing Market is estimated to be valued at US$ 36.19 Bn in 2025 and is expected to reach US$ 103.58 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 16% from 2025 to 2032.

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Rising need to improve operational efficiency and reduce costs is propelling the growth of the knowledge process outsourcing market. Focus towards enhancing customer experience and streamlining business processes are also fueling the market growth. Furthermore, advancement in technologies such as artificial intelligence and machine learning are enabling outsourcing companies to offer enhanced analytical solutions. Adoption of these new technologies allow for improved data-driven decision making. However, data security and privacy concern may hinder the market growth to some extent going forward.

Rise of digitalization and advanced analytics

With digital disruption transforming businesses across all industries, companies are increasingly leveraging digital technologies and advanced analytics to drive innovation, gain competitive advantage and optimize business processes. Knowledge process outsourcing helps businesses stay ahead of the curve by providing access to skilled talent and capabilities in areas such as data analytics, artificial intelligence, machine learning, cloud computing, Internet of Things and more. KPO vendors assist clients in gaining insights from vast amounts of data through techniques such as predictive modelling, cluster analysis and big data analytics. They also help design and develop digital strategies, platforms and solutions that enhance customer experience and make business processes more efficient. Outsourcing knowledge functions allows companies to focus on their core businesses while leveraging the specialized digital expertise and infrastructure available with KPO providers.

For instance, in May 2022, Informatica Inc., an American software development company and Wipro, an Indian multinational corporation that provides information technology, consulting, and business process services announced a strategic collaboration to jointly offer cloud-based data analytics solutions to the market. This partnership will leverage Wipro's renowned expertise in analytics, data, and artificial intelligence (AI), combined with Informatica's robust AI-powered data management solution, to deliver the Wipro Fullstride cloud data platform.