Due to an increased demand for analytics tools and business intelligence, market research and analytics services have managed to capture the KPO industry. Owing to the efficiency of services and reduced cost, the demand for KPO companies has been increased. Considering the effectiveness of Knowledge Process Outsourcing, companies are ready to invest in outsourcing critical processes instead of hiring full-time workers.
KPO is outsourcing core tasks, knowledge-based work, and information-based business activities to a third-party service provider. Since KPO is a knowledge-based work, it requires specialized technical skills.
What is KPO?
KPO is distributing a higher level of tasks to a different team or an organization in a different location. These may include jobs for analytical people in industries including financial consultancy & services, business & technical analysis, research & development, and more.
Reasons for Knowledge Process Outsourcing
Companies generally consider KPO in situations when:
- they are looking for specialized skills and knowledge
- they have a shortage of skilled personnel in the team
- they have the opportunity to decrease costs by employing skilled workers earning lower wages in a different location
The main reason why companies seek outsourcing partners when they feel they need to improve their value chain.
These days, companies put serious effort into getting raw material and adding value to it through different processes and selling it as a final product. They also seek various ways to perk up the effectiveness in their production process, delivering the maximum value for the product. IT outsourcing is one of the efficient ways to do that.
They are often seen to hire KPO companies in Kolkata when they see it is lucrative to them in terms of finance and human resources.
Also Read: 4 Emerging Trends You Should Know About in India’s KPO Industry
Types of KPO
The different types of KPO are discussed below:
- Offshore KPO: In Offshore KPO, the outsourcing service provider is located in a foreign land, generally a developing one, with a highly skilled workforce
- Near-shore KPO: As the name suggests, near-shore KPO is the outsourcing organization located in the neighboring country where the client’s business is situated. It reduces travel time.
- Captive KPO: Captive outsourcing is what in which an organization has operational plants in a different country. Hence the company controls the management. However, the workforce is employed from a foreign country.
- Onshore KPO: Onshore KPOs are situated in the same country in which the client’s business is situated. It is often known as onshoring.
- Pure play KPO: It includes specialists offering a broad spectrum of knowledge-related services.
Scope of Knowledge Process Outsourcing (KPO)
KPO is the advanced version of Business Process Outsourcing (BPO). The outsourcing of the knowledge-based work by separate companies is due to the unmatched results provided by KPO companies. It helps businesses in gaining access to the talented pool of the workforce.
KPO agencies offer domain-based services and expertise involving small business decisions. It involves high value-added business activities where the achievement of objectives is purely based on the workforce’s skills, experience, and domain knowledge.
Met Technologies is one of the leading knowledge process outsourcing partners dedicated to catering custom-tailored services to our potential clients. If you have been looking for a reliable outsourcing partner, feel free to contact us.