what is the Knowledge Process Outsourcing (KPO) ?

Knowledge Process Outsourcing (KPO)

           The Knowledge Process Outsourcing (KPO) that means the information related business challenge or knowledge-primarily based approaches together with research, analysis, consultancy or some other high-level undertaking are outsourced i.E. completed via the workers of another employer or allotted to the subsidiary of the equal organization.

           These subsidiaries can be in special countries or geographical location. This is done with a view to store resources and costs. KPO companies can take selections of companies at the behalf of the discern companies. KPO is nothing however the subset of Business Process Outsourcing (BPO).

           Cost-effectiveness, get admission to to the satisfactory talent, focus, higher usage of the assets are the blessings of Knowledge Process Outsourcing (KPO). Let us find out about KPO in greater detail.

What is Knowledge Process Outsourcing?

Knowledge Process Outsourcing (KPO) is when difficult, high-level duties get outsourced by way of a business enterprise to a vendor. So the activities which the organisation can be outsourcing are middle sports.

They require skills, technical knowledge, and expertise. So a corporation outsources those duties to another agency (vendor) or a subsidiary agency positioned within the equal u . S . or sometimes offshores for value purposes.

As we know, BPO offerings are also the outsourcing of sports, but non-center activities. So a KPO will be a subset of a BPO. However, KPO involves more middle sports with specialised and technical work.

The enterprise outsources to KPO’s for their skilled exertions and difficulty expertise, not to decrease their work burden. It is also an opportunity to lower costs because, in developing countries like India, skilled and educated labor is a lot cheaper.

So a KPO is like an umbrella, it covers numerous activities. So there are many varieties of KPO’s like marketplace research, legal discovery, economic research, pharma and biotech, facts analytics, innovative design, technical content writing etc.

As it occurs India is one of the leading carriers of many of these KPO services, specially within the technical and scientific fields. It is currently a $14 billion industry in India.

Some famous companies imparting such KPO services in India are Wipro, TCS, WNS Global, Aditya Birla Minacs etc. And still, this sector keeps to grow at a very fast pace. But in recent years India is facing massive opposition from countries like China, the Philippines, and the Czech Republic etc.

Knowledge Process Outsourcing

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List of KPO Companies in India

• Sutherland Global Services
• WNS
• Boston Analytics
• SG Analytic
• Eclerx
• Syntel
• CRISIL
• iGate
• McKc (Mckinsey Knowledge Centre)
• Deloitte

Advantages of KPO

Cost-effectiveness: One of the biggest benefits of a KPO is glaringly the value advantage. The corporation does now not must installation any infrastructure or undergo any operational or running expenses. And it receives effective, expertizes services at a fraction of the cost.

Access to the quality skills: KPO’s offer the business enterprise with the great, most informed and professional professionals to be had in the global talent pool. And if the KPO is in a growing u . S . like India or Philippines then the value of such skills is likewise particularly low.

Focus: Outsourcing some of the processes, allows the enterprise to cognizance on its center features. The KPO handles the peripheral capabilities, and the agency can better awareness on its center capabilities and improve their performance and results.

Better Utilization of Resources: If the company outsources the manner that is not at the middle of their commercial enterprise strategy, it is able to use the assets it saves in better places. Say a organization outsources its supply chain management. Then the resources it saves on this will be applied to streamline the manufacturing method, R&D sports, better advertising etc.

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Solved Question on Knowledge Process Outsourcing

Q: Are there any demerits of KPO’s? List a few.

Ans: KPO’s can have positive disadvantages no matter all their benefits. Some such demerits are,

Lack of confidentiality

Risk of leaking of sensitive information and private financial information

The possibility of hidden costs (particularly in offshore outsourcing)