Knowledge Process Outsourcing (KPO) is the process of outsourcing knowledge intensive activities that are data driven and encompass the process of gathering, managing, analysing and delivering objective insights into businesses.
What Is Knowledge Process Outsourcing (KPO)
Knowledge process outsourcing (KPO) is the outsourcing of core, information-related business activities. KPO involves contracting out work to individuals that typically have advanced degrees and expertise in a specialised area.
The information-related work can be carried out by workers in a different company or by a subsidiary of the same organisation. The subsidiary may be in the same country or in an offshore location to save costs or other resources.
KPO : Knowledge Process Outsourcing is a form of outsourcing in which knowledge and information related work is carried out by workers in a different company or by a subsidiary of the same organisation in the same country or in an offshore location to save cost.
Flexibility
The flexibility that comes with KPO allows a company to increase or reduce staff easily. For example, if economic conditions worsen, a company can easily reduce its KPO staff to cut costs. Conversely, a company can quickly hire specialized staff to boost profits or revenue. KPO helps a company to be more nimble and adapt to the changes in its industry and competitive landscape.
Cost Effective
KPO can help companies reduce operational or production costs by creating new processes or streamlining efficiency. KPO also fills the gap or need for skilled employees in a particular field. KPO also frees up existing staff, including management, to do other work, boosting efficiency and productivity.
Data Analytics and Interpretation
KPO companies offer cutting-edge knowledge and processes to collect and analyze data for your business. They can then provide actionable insight that you can use to improve your business.
For example, a KPO company can perform data analysis to determine the efficacy of your supply chain in terms of factors like:
- Procurement
- Shipping and transportation management
- Inventory management
Their actionable insights can help you make your supply chain more efficient and profitable.
Market Research
Market research, also known as business research, can provide firms with in-depth knowledge about:
- Customer experience, demographics, and needs.
- Changes in the market.
- Potential unexplored markets and verticals (market niches).
The KPO research process includes surveying techniques, statistics, and analytics of the above factors to help you better understand your customers and grow your business.