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Knowledge Process Outsourcing (KPO) Services

Why Knowledge Process Outsourcing? Why KPO?

Why KPO?

If we look into any financial newspaper, magazine or any literature giving knowledge about the outsourcing business in India, what is found to be most referred word is KPO meaning thereby knowledge process outsourcing. Many new business concerns are coming day by day in Knowledge Processing Outsourcing Industry and KPO is emerging as a new sector that promises to provide long-term jobs for intellectual, analytical and knowledgeable people with a pay scales much higher than the BPO sector. The following are the few areas which are being associated with the KPO sector.

• Research & Development
• Financial Consultancy and Services

• Advanced Web Applications

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


Now, why should some company invest time and money in knowledge process outsourcing? The basic fundamentals of outsourcing apply equally to knowledge based services as well. A shortage of skilled professionals and availability thereof at higher costs increase the cost of maintaining such services in the host country whereas the same job can be got done with similar precision and quality and at much lesser costs abroad. The major KPO benefits which can be derived are described below.

Benefits of KPO

Standardized technical education is widely available to all in the developing countries especially in India. This skilled and trained manpower is accessible at very low cost as well. It, therefore, is always a wise decision and makes sense to utilize such services. Outsourcing of activities to KPO companies can provide the following benefits:


• Valuable cost savings that can be utilized elsewhere.
• Trained professionals at work.
• Standard operational efficiency.
• Increase in profits.
• Savings in time and management energy for maintaining in house services.
• Option to recruit a larger work force without raising costs.


What KPO can deliver to you?

Any company involved as service provider in the KPO industry works in close coordination and association with the client and provides services that are predefined in terms of quality and standard of work. While working with a KPO firm, the outsourcing company can expect to get the following:


• Good quality work.
• Lower costs.
• On time delivery of services.
• Uninterrupted services.
• Adaptability to changes in required quality.


Does it imply that with the rise of KPO entities, BPO (Business Process Outsourcing) become extinct. It is undoubtable that KPO is a step ahead of BPO but this does not mean the end of BPO. The BPO Industry will exist and continue to be successful in India . BPO has its own strengths and way to solve a particular problem and the BPO market is long term in nature as compared to the KPO market. With every passing day the BPO market expanding and so is the various systems and processes through it. The following are various areas in which the BPO presence shall not remain in existence but shall also keep growing.


• Data processing
• Basic data entry
• Department Outsourcing
• Provides technical support
• Provides email support to its customers


Even after the entry of KPO in the Indian market, the amount of total revenue earned in the outsourcing industry in BPO will be higher as compared to the KPO industry. The BPO exports will be as higher as $20 billion by the end of 2010 in comparison to KPO projections of $12 billion in the same period. As per a recent study done by experts the BPO industry is expected to grow globally at a CAGR of over 26 percent by 2010.

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