KPO, Knowledge Process Outsourcing, is a new wave in global outsourcing, which has evolved as an intellectual cousin of BPO, or Business Process Outsourcing in India. KPO deals with off shoring of high-end jobs in order to save costs and increase operational efficiencies. India has a huge amount of intellectual resources and specialized expertise, which makes it a one of the most favorite destinations. According to a report by GlobalSourcingNow, the Global Process Outsourcing industry is expected to employ more than 250,000 people by 2010 and India it is expected that a business of around $12 billion would be outsourced to India till 2010.
Knowledge process outsourcing (KPO) describes the outsourcing of core information-related business activities which are competitively important or form an integral part of a company’s value chain.KPO requires advanced analytical and technical skills as well as a high degree of specialist expertise.
Reasons behind KPO include an increase in specialized knowledge and expertise, additional value creation, the potential for cost reductions, and a shortage of skilled labor. Regions which are particularly prominent in Knowledge Process Outsourcing include India, Sri Lanka, and Eastern Europe, especially Poland, Romania, and the Baltic States.
KPO is a continuation of Business process outsourcing, yet with rather more of business complexity. To be successful in Knowledge process outsourcing, a lot of guide is required from interorganizational system.