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What is Knowledge Process Outsourcing (KPO)?

KPO or Knowledge Process Outsourcing involves outsourcing of knowledge intensive business processes to other companies or locations.

Since outsourcing offers several advantages like cost savings, access to skilled resource pool and better quality, many global companies are outsourcing their knowledge based processes.

KPO and BPO (Business Process Outsourcing) are closely related sectors. The major difference is that BPO is labor intensive and requires low level of expertise, while KPO requires in-depth knowledge in the area that is outsourced. Also, BPOs are more process based while KPOs are knowledge based

The major areas that are outsourced under KPO
Knowledge Process Outsourcing (KPO) means information related business task or knowledge-based processes such as research, analysis, consultancy or any other high-level task are outsourced

The major processes outsourced are:

  • Data Analytics and Insights
  • Designing
  • Web applications
  • Business and market research and analysis
  • Data management
  • Financial and legal services
  • Research and development
  • Medical, pharmaceuticals and biotechnology related services
  • Training
  • Publishing
  • Content development
  • Remote education
  • Accounting, Tax returns
  • Financial services

The biggest segment is however, data search integration and management which holds 29% of the KPO sector revenue. Next is biotech and

pharmaceuticals, followed by engineering and design, R&D, education and publishing, and animation.

Important Advantages of KPO

  • Productivity improvement
  • Optimum utilization of the resources
  • Reduction in cost
  • Improved Human Resource
  • Focus on core business areas
  • Cater to changing customer demands
  • Sophisticated technology at lower cost

Career scope in KPO
KPO is creating a huge number of career opportunities for educated and talented professionals including engineers, doctors, lawyers, accountants, designers, teachers, consultants, etc. It is also estimated that the salaries in KPO sector would be 25-50% higher than in other fields.

KPO companies look for a diverse range of professionals who have a certain level of expertise in some domain. This sector is also great for fresher’s or beginners as it offers better opportunities and salaries to more qualified and experienced candidates.

If a person is armed with right qualifications, experience, managerial skills, and client interaction skills, then there are endless possibilities of growth in KPO sector. You need in-depth domain knowledge, passion and aptitude for that field of work, and great communication skills, to soar high in this sector.

Knowledge process outsourcing (KPO) is the outsourcing of core, information-related business activities. KPO involves outsourcing work to individuals that typically have advanced degrees and expertise in a specialized area.

Companies utilize KPO when they are looking for specialized knowledge and expertise and when they have a shortage of skilled professionals. However, companies that engage in KPO offshore are typically doing so to reduce costs by hiring skilled workers earning lower wages in another location.

Ideally, companies look to KPO to simultaneously obtain a highly-skilled workforce at a lower cost.

Knowledge Process Outsourcing (KPO) will continue to grow rapidly as it benefits companies by providing cost-effectiveness, access to the best talent and thereby leading to better utilization of the resources.