Knowledge Process Outsourcing (KPO)


Knowledge process outsourcing (KPO) is the allocation of relatively high-level tasks to an outside organization or a different group in a different geographic location. Examples of KPO include long-term jobs for intellectual, analytical and knowledgeable people within industries such as research and development, financial consultancy and services, business and technical analysis and many others.

While the main attraction of BPO was improved efficiency and cost reduction, the main attraction to KPO is increased revenue and improved competitive advantages as a result of having access to a large pool of skilled professionals in knowledge intensive industries. Other benefits of KPO include cost savings, converting fixed costs into variable costs, flexibility for companies to add or reduce personnel based on business cycles and the continuous execution of work by taking advantage of different time zones.