Business Process Outsourcing vs Knowledge Process Outsourcing

On July 12, 2011, in FAQ, Outsourcing, by Business Development Group

A surprising business development takes place as outsourcing and offshoring(O&O) industries eyes growth and expansion through Knowledge Process Outsourcing(KPO).A SURPRISING business development takes place as outsourcing and offshoring(O&O) industries eyes growth and expansion through knowledge process outsourcing(KPO).

Citing more advantages from which aside from the expected standard business processes the defining difference is emphasis on knowledge-related work carried out by workers.

Unlike outsourcing, (Read related article:Outsourcing Risks and How to Avoid Such) this typically involves higher standard of work defined by highly skilled staff.

“KPO is merely the continuation of BPO, though with more business complexity. The defining difference is that KPO is usually focused on knowledge-intensive business processes that require significant domain expertise”, as cited in the British Computer Society book ‘Global Services: Moving to a Level Playing Field’ by Mark Kobayashi-Hillary and Dr. Richard Sykes. 

Setting the difference.

As business process outsourcing (BPO) involves the contracting of the operations to a third-party service provider. The offshore team servicing a KPO contract cannot be easily hired overnight as they will be highly educated and trained, and thrusted to make decisions on behalf of the client.

A KPO often make many low-level business decisions.

Oftenly KPO aims in providing business expertise over standard production processes. From standardized processes to advanced analytical thinking, technical skills and decisive judgment based on experience.

The big picture.

Many organizations and companies have seen an improved efficiencies resulting from outsourcing because their focus is now more geared towards areas for growth of their business.

As BPO speaks in efficiency, volume and size; KPO thrives by intelligence, experience and balance judgment.  

 
 

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See related review: Global Services – Moving to a Level Playing Field by Mark Kobayashi-Hillary & Dr Richard Sykes

Publisher:BCS, ISBN:978-1-902505-83-1

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