Knowledge Process Outsourcing or KPO is regarded as the higher evolution of Business Process Outsourcing or BPO. Individuals working in KPO produce high-value work with specialized skills, knowledge and business expertise. Unlike BPO, which handles large volumes of back-office processes, KPO involves higher skilled work requiring analytical skills, professional judgement, experience and in-depth knowledge.
BPO encompasses document processing, customer service, customer support, helpdesk, data entry, data analytics, transcriptions, billing and verifications as well as inbound and outbound calling. KPO comprise of services which are higher value and are often too expensive for in-house execution, so outsourcing becomes a sensible business decision. Legal Process Outsourcing (LPO), technical solutions, financial management, content creation, software architecture, remote IT infrastructure management such as database administration and maintenance as well as animation and 2D/3D modeling are examples of KPO.
KPO is a cost-effective solution, providing business expertise while BPO’s purpose is to provide process expertise to client companies.
Although KPO was pioneered in India in 1997, today, The Philippines has emerged as one of the world’s leading and most respected BPO and KPO centres. The country’s outsourcing industry is projected to reach a phenomenal $11.6 billion in 2011.
Core advantages of outsourcing to The Philippines includes lower costs of labor, real estate and operations, an educated talent pool, language diversity and the Filipinos’ affinity, exposure and understanding of Western social and business practices, which are all key factors in the daily momentum of knowledge and business process outsourcing.