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KPO: An Overview

Knowledge Process Outsourcing (KPO) is one step ahead of Business Process Outsourcing (BPO). It started emerging in India around the turn of the century, when the global industries realized that apart from software development and technical support, knowledge work could also be outsourced. It involves transfer of business processes to other geographic locations; specialized domain specific knowledge and business expertise of a higher level rather than just process expertise.

The following are the areas associated with the KPO sector.

Animation & Design
Advanced Web Applications
Business and Technical Analysis
Business & Market Research
Data Analytics
Financial Consultancy and Services
Intellectual Property (IP) Research
Learning Solutions
Legal Services
Medical Services
Network Management
Pharmaceuticals and Biotechnology
Research & Development
Training & Consultancy
Writing & Content Development

Many companies have started outsourcing their high-end processes like Market Research (MR), Equity Research, Engineering Design, Intellectual Property Rights (IPR), Legal Services, Remote Education and Publishing Operations to India after the success of BPOs. These companies outsource their processes to India for:

Cost savings
Operational efficiencies
Access to highly skilled workforce
Improved quality

A KPO can provide quality work and on- time delivery with uninterrupted services. KPOs are the next big thing in the outsourcing sector. Initially, KPOs focused on data collection, updating financial models, patent searches and basic data mining. But now KPOs have also started focusing on sector insights, equity research, patent analytics, high end data mining, analysis and recommendation. Some of the hot destinations for KPOs other than India are Russia, China, Czech Republic, Ireland and Israel.

Difference between KPOs and BPOs: We can say that KPOs emerged from BPOs.

BPO

KPO

It provides services like customer care, technical support through voice processes, tele-marketing, sales, etc.
Low end services
Process expertise
Pre-defined processes
It employees not- so- qualified workers as it focuses on communication skills

KPO provides in-depth knowledge, expertise and analysis on complex areas like Legal Services, Business & Market Research, etc.

High end services
Knowledge expertise
Requires application, understanding of business and analytical bent of mind
It involves skill and expertise of knowledge workers with excellent educational background.

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KPO: An Overview