What is KPO (Knowledge Process Outsourcing)?

Knowledge process outsourcing or KPO for short is a form of outsourcing where information and knowledge related work are outsourced to a different company in the same country or in an offshore location. Popularly outsourced KPO functions include business analysis, technical analysis, research and development and financial consultancy services amongst others.

Companies mainly outsource KPO services to reduce cost and save on other resources. Over the past ten years India and Eastern Europe have been the two most prominent KPO outsourcing locations. Knowledge process outsourcing is a great way for a company with a shortage of skilled professionals to hire the services of low-cost but skilled KPO experts from another country.

How is KPO different from BPO?

When compared with BPO (Business process outsourcing), KPO tasks are more intellectual, knowledgeable and analytical in nature, requiring the skills of trained professionals.  While BPO services only require a good command of the English language and a few basic computer skills, the same cannot be said about KPO.

Knowledge process outsourcing work is usually integrated with the core competencies of an organization.  KPO related work is complex in nature and is usually carried out by certified professionals who have more than one advanced degree. Accounting, legal research, market research, web design and content development are some examples of KPO services.

Top 4 reasons why companies outsource KPO

Over the years, the KPO outsourcing industry has grown by leaps and bounds, as KPO includes information-based business activities that form an integral part of an organization’s business chain. Here are four reasons why companies outsource KPO services:

  • Outsourcing KPO helps companies to drastically cut down on cost
  • Professional KPO services provide a company with additional value creation
  • Outsourcing provides easy access to specialized knowledge and expertise
  • By outsourcing KPO services to India, companies need not hire or train in-house KPO professionals

Types of KPO services

Almost any kind of research and information gathering service falls under the category KPO. Here is a list of some popular knowledge process outsourcing services:

  • Intellectual property research
  • Equity research
  • Business research
  • Market research
  • Legal research
  • Medical research
  • Research and development (R&D) in fields related to Biotechnology, Pharmaceuticals, Design and Animation amongst others

India – the world’s leading KPO destination

In the year of 2006, the NASSCOM (National Association of Software and Service Companies) estimated that the total market size of the KPO sector in India was around $1.5 billion. By the year of 2010, Evalueserve estimated that India had taken over 15% of the global KPO market. Ever, since then, there has been no looking back for the KPO sector in India. Highly educated professionals, experience in research, fluency in English, low labor cost and a favorable time zone are some of the factors that have lead to India’s success in providing KPO services.

Have you outsourced KPO services before? Which KPO service would you like to outsource? Share your thoughts, views and questions on outsourcing with us. We, at Outsource2india love to hear from you!

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