Knowledge process outsourcing (KPO) is a type of outsourcing where data- and knowledge-related work are moved to a different company in an identical nation or in an offshore location. Popularly outsourced KPO features are business research, technical research, analysis and development, and monetary consultancy companies amongst others.
Firms mainly outsource KPO companies to cut back on value and save on different assets. Over the past ten years, the Philippines is one of the most popular KPO sources. It is a good idea for organizations lacking in expert professionals to rent cost-efficient and expert companies and expert KPO consultants from third-world countries.
How is KPO different from BPO?
Compared with BPO (Business process outsourcing), KPO tasks are more intellectual and analytical in nature, requiring the skills of educated professionals. While BPO services may only require a good command of the English language and some basic computer skills, the same cannot be said about KPO.
KPO work is often built-in with the core competencies of a company. This kind of work is advanced in nature and often carried out by licensed professionals who finished graduate degrees. Accounting, legal research, market analysis, web design, and content development are some examples of services offered by KPO companies.
Top 4 reasons why companies outsource KPO
Over the years, the KPO outsourcing industry has grown by leaps and bounds. This is because this industry are found to be in demand by most businesses. After all, their service of information-based business actions are an integral part of a company’s business chain.
Here are 4 major reasons why firms outsource KPO services:
- Outsourcing KPO helps companies to drastically cut down on cost;
- Professional KPO companies provide a company with additional value creation;
- Outsourcing gives easy entry to specialized knowledge and expertise; and
- By outsourcing KPO companies to the Philippines, firms don’t need to search, hire, recruit, train, and pay for in-house KPO professionals
Types of KPO Services
Almost all kinds of analysis and data gathering services fall under KPO. Here’s a list of some examples of KPO services:
- Intellectual property research;
- Equity research;
- Business research;
- Market research;
- Legal research;
- Medical research; and
- Research and development (R&D)
- in fields related to Biotechnology, Pharmaceuticals, Design, and Animation among others
The Philippines – A leading KPO destination
In 2016, KPO made up approximately 34% of the country’s outsourcing industry. The ITBPAP (Information Technology and Business Process Association of the Philippines)sees that this will increase further in the coming years. Highly educated professionals with experience in research, fluency in English, relatively low labor cost, and a favorable time zone are a few reasons why companies all over the world have chosen the Philippines as their KPO service provider.
Have you ever outsourced KPO companies before? Which KPO service would you like to outsource? Share your ideas, views, and questions on outsourcing with us. We, at Qadra, would love to hear from you!