UNDERSTANDING KNOWLEDGE PROCESS OUTSOURCING
KPO is a new phenomenon that is picking pace in the world exceptionally in India. As from the heading you must have guessed that KPO stands for Knowledge Process Outsourcing. KPO can be seen as the upward shift of BPO in the value chain. To be seen both are the same things but there is a basic but significant difference. "Unlike Conventional BPO where the focus is on process expertise, in KPO, the focus is on knowledge expertise."
KPO Involves of shoring of knowledge intensive business process that requires specialised domain expertise, thus delivering high value to two organisations by providing business expertise rather than just process expertise.
|
Knowledge Process Outsourcing Explained |
BPO is slowly revolutionizing into Knowledge Process Outsourcing because of its beneficial advantageous and subsequent scope.
But let's not treat it only as 'B' renewed as 'K'. In point of fact, knowledge process can be defined as higher added value processing chain where the the achievement of objectives is highly dependent on the skills, knowledge and experience of the people performing the activity, unlike BPO which only requires some good communication skills and basic computer knowledge.
KPO involves much deeper knowledge and expertise and the people involved in this sectors are business experts and professionals having long experience.
KPO is involved in services like valuation and investment research, patent filling, legal and insurance etc.
KPO employees engage with international clients often, whereas BPO workers rarely deal with international clients. When outsourcing is done through developing nations, profit to developed nations are double than that of BPO.
KPO involves dealing of more complex and relatively high level tasks to an outside organisation or a different group (possibly in a different geographic location) within the same organisation
Examples of KPO include accounting, market and legal research. Web design and content creation.
KPO and BPO are mainly administered off-shore (through off-shore outsourcing) as companies searching the most value for the least money source projects to countries where the wages are lower. Because KPO jobs generally bring more money to the economy as compared to BPO.
|
Advantages of BPO |
Benefits of KPO
1. Access to Top Class Capabilities: Good and competent providers make considerable investments in technology, people, and methodologies. They obtain mastery by working with many clients facing similar challenges. This combination of specialisation and expertise ensures the customers a competitive advantage and helps them avoid the cost of obtaining technology and training.
2. Cash Infusion: Outsourcing often involves the the transfer of assets from customer to the provider. Equipment, vehicles, facilities, and licenses used in the current operations contain value and are sold to the vendor.
The vendor uses this acids to provide services back to the client. Depending on value of the assets involved the sale may result in in a significant cash payment to the customer.
3. Optimal use of resources: every organisation has limitations to the resources available to it. Outsourcing allows an organisation to redirect its resources, mostly human resources from non core activities towards activities which serve the core need of the customers
4. Focus on main business: Outsourcing allows a company to focus on its core business by having operational non core functions assumed by an outside expert. Released from applying energy to this non core areas, the company can focus on its resources on meeting its customers' needs.
5. Cost Reduction: Companies which exam to do everything themselves generally bring upon higher research, development, marketing and deployment expenses, and all of these are passed on to the customer.
The outsourcing can help company to reduce its cost as an outside providers low cost structure, normally as a result of a greater economy of scale or other advantage based on specialisation, reduces a company's operating costs and increases its competitive advantage.
6. Minimum risk: Huge risks are associated with the investments made by the organisation. Markets, competition, financial conditions, Government regulations and technology all change quickly. order it is very to keep up with these changes, especially those in which the next generation requires a significant investment. However, in outsourcing providers make investments on behalf of many clients, not just one and shared investments spreads risk, and significantly reduces the risk born by a single company.
THANK YOU FOR VISITING MY PAGE, I TRUST YOU LIKED IT. PLEASE COMMENT WHAT MORE YOU WANT TO LEARN ABOUT.
Comments
Post a Comment