Knowledge Process Outsourcing is the full form of KPO. It defines the outsourcing of core business operations related to information that is competitively relevant or that forms a substantial part of a corporation's value chain. KPO requires advanced technological and analytical skills and a high level of professional experience.
The main reasons for KPO include increased technical knowledge and skills, value-added production, cost-saving opportunities, and shortage of skilled labor. Territories that are particularly prevalent in information process outsourcing include India, Eastern Europe and Sri Lanka, particularly Romania, Poland and the Baltic states. KPO is a continuation of business process outsourcing, but with much greater industry complexity.
Types of KPO
KPO facilities cover all methods of analysis and collection of information; examples are:
- IPR (intellectual property survey) for patent applications.
- Stock research, trade and market analysis.
- Legal and medical services.
- Training, consultancy and research and development (R&D) in areas such as biotechnology and pharmaceuticals and design and animation etc.
Advantages of KPO
- Reduced costs.
- Lack of qualified workers.
- It offers most graduates at very minimal prices.
- KPO helps minimize unemployment and supports their economy and superior services are provided at a reduced cost.
- Offer flexibility in time management and human resource management skills.
Limitation of KPO
- Company security information may be lost.
- The integrity of the employee and the quality of his work cannot be guaranteed.
- KPO is time-consuming, so it cannot offer a client requiring immediate results with a quick fix.
- Lack of coordination between partners can lead to complications caused by language, legal and cultural barriers.
- The quality of staff and work cannot be guaranteed.
- Lack of qualified employees.
- Interaction is reduced due to the language gap.
- Lack of the ability to defend the organization's intellectual property.