Knowledge process outsourcing originated as a critical concept when organizations around the world believed that core business activities could also be outsourced.
The massive success of the business process outsourcing approach and enhancements in vendor offerings built credibility in organizations, making them more inclined to outsource their competitive knowledge and core processes as well. KPOs have created a paradigm shift, enabling clients to think beyond outsourcing of back-end processes, with a move to outsourcing activities that involve analytical thinking and judgment. Long term amicable relationships further strengthen KPO deals.
Need for Knowledge Process Outsourcing
KPOs today specialize in niche areas that can contribute to quick and pertinent decision-making, cutting down costs and ensuring faster delivery. Organizations now have access to a large pool of skilled and experienced professionals who can enhance project management capabilities remotely. This sector is expected to burgeon in the coming years, with forecasts of growth running up to $15 billion globally. Advancement in the fields of telecommunication and technology further strengthens such outsourcing deals to ensure the delivery of quick and timely services. Some of the industries that are now using KPO services include, but are not limited to, financial services, legal, life sciences and management consulting. A lot of core processes such as market research, fraud analytics, remote education, R&D, data search and integration, project management, and legal processes are outsourced.
Benefits of Knowledge Process Outsourcing
The benefits of BPOs are very apparent in the market today. Similarly, KPOs offer a range of benefits that predominantly include increased revenues and better competitive advantage. Such outsourcing deals enable organizations to convert their fixed costs to variable costs. This kind of flexibility is largely beneficial in the hiring of personnel, wherein recruitment can be managed according to the need and business cycle. Off-shore KPO that involves outsourcing work to other destinations like India, Mexico, Chile, or Philippines involves working across different time- zones and therefore ensures continuous execution of work, regardless of night or day. Outsourcing partners help in filling in skilled personnel gaps in organizations, to meet any specified line of work, as they are staffed with domain or technology-specific skilled human resources. High end services are provided at low costs, thereby creating substantial impact on business’ bottom line. Organizations can focus on other tasks and activities, while other outsourced elements of core and non-core processes can be infused seamlessly.
However, knowledge process outsourcing involves internal and external risks that are best mitigated by partnering with credible professionals who have years of quality experience and skills pertinent to the line of work or domain involved.