What is KPO?
If you are looking for KPO meaning, you are in the right place. KPO full form is Knowledge Process Outsourcing which is the process of outsourcing the core and other information-related activities of a business to other companies and out of company bodies. A company located in a different country or company's subsidiary can carry out information related work by its employee force, it is called a KPO business.
The main reason why companies prefer KPO in the first place is due to the purposeful allocation of many complex tasks that require special knowledge or problem-solving ability. This could be creating an application, writing a Press release for the new product launch or creating an ad campaign for the company's anniversary. A KPO can do all these tasks.
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(Infosys one of the leading Indian KPO’s Mysore campus, India)
One thing you should know is that a KPO is different from BPO, which stands for Business Process Outsourcing. In BPO, the outsourcing of labour and other operational work is given out to a third party to reduce the cost. KPO, in general, is a subset of BPO which requires far more specialised and analytical knowledge of a given task. This is the KPO full form and meaning described thoroughly.
KPO Services in India
There are several KPO companies in India, one of the most prominent and well-known KPO in India is Infosys. It is one of the first KPO in India which was founded in 1981, and now it is a billion-dollar company having its headquarters located in Bengaluru, India. Other KPO companies are Deloitte, Eclerx, Boston Analytics etc.
Things to Keep in mind when starting a KPO business
If you want to build a successful KPO, you first need to understand the requirements of your clients and think according to your client's perspective. Its working is one of the essential parts of someone's business strategy, so before you start working on the project, you should know what the requirements of your client are.
Also, when you are running a KPO, you should be developing a product keeping in mind that the end goal is to build a better relationship with end-users. You can build a better reputation for your business when you can drive strong integration and communication with individual business end-users.
When selecting employees for a job, you should be picking up people who are best in the business. One of the critical factors that decide the success of KPO is the right choice of team members. In KPO, each individual is in direct contact with the client and is responsible for the quality and the output of his or her product. If there's been any mistake, it could lead to frustration from both the ends.
Lastly, there is a need for a culture and specialised ecosystem that makes a KPO successful in the long term. If these two are present in your company, you will be able to get hold of a disproportionate share in the market.
KPOs in India
A KPO business is an answer to all your worries from the capital crunch to the inability of skilled personnel. KPO is a one-stop for all your complex technical problems. India is one of the best destinations to search for a KPO.
Most of the well established KPOs in India have a long history of providing services to international clients from all over the world. You can partner up with any of the top 10 KPO companies in India for your offshore work requirements. Many international brands and companies are now able to see the benefit of working with Indian KPOs.
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(A meeting is underway in a KPO conference room)
India has the highest youth population and every year more than 2 million students graduate with a technical bachelor's degree such as Be.tech and B.E. As a result, there is no shortage of brilliant technical minds.
Advantages of KPO
Now that you know the meaning of KPO, let's discuss its benefits.
First, a company chooses KPO instead of hiring an in-house team because it is cost-effective. With KPO services from nations such as India, you can save up to half of your current operating cost.
KPO requires technical mastery, so it's not in the hands of anyone to provide you quality.
For quality KPO services, you need to work with highly qualified professionals who have all the knowledge in their field.
When you are outsourcing, you have more time to concentrate on the business side of things.
KPO providers are some of the most advanced companies in the world as they are using all the latest technology and software to get their work done in a short time while maintaining quality.
FAQs on Knowledge Process Outsourcing (KPO) Explained
1. What is the full form of KPO, and what does it fundamentally mean?
KPO stands for Knowledge Process Outsourcing. It refers to the practice where a company outsources its core, information-related business activities to a third-party service provider. Unlike other forms of outsourcing, KPO involves tasks that require a high degree of specialised knowledge, analytical interpretation, and technical expertise.
2. What is the primary difference between Knowledge Process Outsourcing (KPO) and Business Process Outsourcing (BPO)?
The primary difference lies in the nature and complexity of the tasks outsourced. BPO focuses on standardised, transactional business processes, while KPO deals with high-value, knowledge-intensive tasks. Here’s a quick comparison:
Focus: BPO is process-driven (e.g., customer support, data entry), whereas KPO is knowledge-driven (e.g., research, financial analysis).
Skills Required: BPO requires good communication and basic process skills. KPO demands advanced analytical skills and domain expertise.
Complexity: BPO tasks are typically low-level and repetitive. KPO tasks are high-level, complex, and require judgement.
3. What are some common examples of services offered under KPO?
KPO services involve specialised expertise across various domains. Common examples include:
Research and Development (R&D): Outsourcing specific parts of a research project, like pharmaceutical or market research.
Financial and Investment Research: Equity research, financial modelling, and analysis for investment banks.
Legal Process Outsourcing (LPO): Legal research, documentation review, and patent filing support.
Business Analytics: Analysing company data to provide strategic insights and improve decision-making.
Engineering and Design: Outsourcing specific design and analysis tasks in engineering fields.
4. What is the main purpose of using KPO services for a business?
The main purpose of using KPO is to gain access to a pool of highly skilled specialists and domain experts without having to hire them full-time. This helps a business to increase its efficiency, reduce operational costs, innovate faster, and make better-informed strategic decisions by leveraging external knowledge and expertise that is not available internally.
5. Why might a company prefer outsourcing to a KPO instead of developing its own in-house team of experts?
A company might prefer a KPO for several strategic reasons. Firstly, it provides immediate access to specialised talent and advanced technology without the long and costly process of recruitment, training, and infrastructure development. Secondly, it allows the company to focus on its core business functions while experts handle complex analytical tasks. Lastly, it offers flexibility and scalability, enabling the business to scale its knowledge-based operations up or down based on project requirements.
6. What are the major risks involved for a company when it outsources its core knowledge-based activities?
Outsourcing core knowledge activities carries significant risks. The primary risk is the loss of confidentiality, as sensitive company data and intellectual property are shared with a third party. Another risk is an over-dependence on the KPO provider, which can be problematic if their service quality declines. There is also the challenge of ensuring the KPO provider fully understands the company's culture and strategic goals, as a misalignment can lead to poor outcomes.
7. What kind of skills are essential for a career in the KPO sector?
A career in the KPO sector requires a combination of technical and soft skills. The most crucial requirement is deep domain knowledge in a specific field like finance, law, medicine, or engineering. Beyond this, other essential skills include:
Strong analytical and problem-solving abilities.
Excellent research and interpretation skills.
Proficiency in relevant software and analytical tools.
Effective communication skills to present complex findings clearly.
