Knowledge Process Outsourcing (KPO)

Knowledge Process Outsourcing (KPO):


Knowledge process outsourcing (KPO) is the allocation of relatively high-level tasks to an outside organization or a different group (possibly in a different geographic location) within the same organization. KPO is, essentially, high-end business process outsourcing (BPO).


Most low-level BPO jobs provide support for an organization's core competencies and entry-level prerequisites are simply a command of English (or applicable language) and basic computer skills. Knowledge process outsourcing jobs, in comparison, are typically integrated with an organization's core competencies. The jobs involve more complex tasks and may require an advanced degree and/or certification. Examples of KPO include accounting, market and legal research, Web design and content creation.


KPO and BPO are often conducted through offshore outsourcing as corporations seeking the most value for the least money source projects to countries where wages are lower. Because KPO jobs may bring in twice as much money to the economy as BPO, countries such as India are actively promoting development of that industry.


Knowledge Processing Outsourcing (popularly known as a KPO), calls for the application of specialized domain pertinent knowledge of a high level. The KPO typically involves a component of Business Processing Outsourcing (BPO), Research Process Outsourcing (RPO) and Analysis Proves Outsourcing (APO). KPO business entities provide typical domain-based processes, advanced analytical skills and business expertise, rather than just process expertise. KPO Industry is handling more amount of high skilled work other than the BPO Industry. While KPO derives its strength from the depth of knowledge, experience and judgment factor; BPO in contrast is more about size, volume and efficiency.


Scope and Future of KPO:


According to a report of National Association of Software and Services Companies (NASSCOM), the Indian chamber of commerce that serves as an interface to the Indian Software industry, Knowledge Process Outsourcing industry (KPO) is expected to reach USD 17 billion by 2010, of which USD 12 billion would be outsourced to India. Another report predicts that India will capture more than 70 percent of the KPO sector by 2010. Apart from India, countries such as Russia, China, the Czech Republic, Ireland, and Israel are also expected to join the KPO industry.


In the future, it is envisaged that KPO has a high potential as it is not restricted only to Information Technology (IT) or Information Technology Enabled Services (ITES) sectors, and includes other sectors like Intellectual Property related services, Business Research and Analytics, Legal Research, Clinical Research, Publishing, Market Research (Market research KPO), etc.


Enterprises are increasingly looking to create value through high quality business expertise and superior productivity. Knowledge Process Outsourcing (KPO) can help them on this front by improving the time-to-market, give access to special skills and enhance organizational effectiveness.


Growing at a rapid pace, the global KPO industry encompasses areas like data search, integration and management services, financial services, research and analytics, technology research, computer aided simulation and engineering design, and professional services such as business research and legal services. Unlike conventional BPO, where the focus is on process expertise, the focus in KPO is on knowledge expertise and requires service providers to possess advanced technical and analytical skills.