Knowledge pool of the developing economies, high-tech networking facilities and cost advantages are the major driving forces for the success of this sector. KPOs (http://www.guiresresearch.com/
When the companies outsource their services in North America and Europe they need to spend a lot whereas the outsourcing cost is comparatively lower in the case of developing countries such as India and China.
As a result, the developing countries have started to outsource professionals from such countries if there is a shortage of manpower in their countries. In addition KPOs can help their clients in changing fixed costs into variable costs. As a result of this benefit, the client companies can decide the number of staffs based on existing business environment.
In addition, KPOs can improve their efficiency by utilizing the time zone differences across the world. For example, the client company can collect the data in one day and send them to KPO partners by the end of the day for analysis and instruct them to do within a day so that it can view the analyzed data on next morning itself. In addition, the time-to-market can be compressed by a KPO while designing a new product so that the clients can adapt themselves if there is any change in the demands of the customers.