Knowledge Process outsourcing or KPO refers to a type of outsourcing in which knowledge-related and information-related work is assigned to a different company or by a subsidiary of the same organization, generally to save cost and time spent on the project.
KPO involves components of Business Process Outsourcing (BPO), Research Process Outsourcing (RPO) and Analysis Proves Outsourcing (APO). Apart from outsourcing process expertise, KPO also entails providing domain based processes, analytical skills and business expertise. BPO derives its strength from quantity, size and efficiency, whereas, KPO is more about knowledge, experience and analytical factors.
The growth of the BPO sector in India has laid down the foundation for global outsourcing. The success achieved by many foreign companies in outsourcing business processes to India has encouraged them to outsource projects involving high-end knowledge as well.
Some of the benefits that foreign companies get after outsourcing their knowledge and analysis based tasks to India are reduced costs, efficiency in operations, access to skilled and talented workforce and improved quality results. Let’s discuss in detail these advantages and the scope of India as a global destination for KPO-
Skilled Labor force
An ideal KPO employee needs to possess the basic qualifications like domain specialization, language proficiency and computer skills. Indian education system lays stress on higher education and specialization that churn out a pool of talented and trained professionals in the field of IT, engineering, education, law, medicine, architecture, finance and science every year. Hence, individuals are able to perform any intricate task with ease with their advanced knowledge, analytical interpretation and technical skills.
Reduced costs
In order to keep up with the pace of competitive business world, IT companies all over the world are outsourcing projects to developing countries in Asia, Latin America and Middle East. India has become a favorite destination for foreign companies to invest, as it caters to their cost saving objective well, without any compromise in the quality of work delivered.
Increased efficiency
India has been adding value to KPO businesses all over the world with its hi-tech processes and talented manpower. It offers high quality services at much cheaper rates and companies save upto 50 percent of the total cost by outsourcing projects to India. The testimony of the fact that India is emerging as the preferred destination for KPO is evident as several global giants have set up their offices in the country.
