Knowledge process outsourcing (KPO) is also a form of outsourcing, in which knowledge-related and information-related work is processed and stored for the wider application and use by internet users. Unlike the outsourcing of manufacturing, this typically involves high-value work carried out by highly skilled staff having innovative expertise. The profile of people being hired to serve within KPO service companies are more diverse than just being drawn from technical IT services – these are people with MBAs, and medical, biotechnology, commerce, engineering, design or other specialist business skills.
KPO delivers higher value to organizations that offshore their domain-based processes, thereby enhancing the traditional cost– quality paradigm of BPO. The central theme of KPO is therefore to create value for the client by providing business expertise rather than process expertise. So KPO involves a shift from standardized processes to advanced analytical thinking, technical skills and decisive judgement based on experience.
KPO also calls for the application of specialized domain pertinent knowledge of a high level. KPO typically involves a component of Business Processing Outsourcing (BPO), Research Process Outsourcing (RPO) and Analysis Process Outsourcing (APO) which means that KPO provides a blend of business, research and analysis. KPO if seen as a business entity provides typical domain-based processes, advanced analytical skills and business expertise, rather than just process expertise. |
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