KPO refers to the process of outsourcing your vital activities related to information and business, to another company. You may think of knowledge process outsourcing as a BPO extension. It requires individuals who are part of the process to have advanced analytical, specialized, and technical expertise. Each of them should have much knowledge and be a subject-matter expert in their area. This will allow them to decide on certain problems that may come about in the KPO process. Keep reading to learn more about it.
Pros Of KPO
Shared below is a list of KPO’s main advantages.
- Easy Way To Tap Into Experienced Professionals
KPO companies provide a convenient way of accessing talent and experience without having to undergo the hassles of hiring and training people.
- It Reduces Asset Investment
With the assistance of KPO companies, you can have a full reduction of desk space for each person and of resource needs. This way, you can reduce money put into not just real estate but also technology. It can lower operational costs too.
- It Causes A Rise In Competitiveness
Access to fresh ideas and talent, plus freeing up of internal resources, can make your business more competitive in the target market.
How It Differs From BPO
While KPO and business process outsourcing appear similar, there exist several differences between both, including the following.
- BPO is not all that complicated, requires the process expertise from the parties involved in it, and volumes drive it. Conversely, knowledge process outsourcing (KPO) is much more complicated, plus it needs more expertise, experience and insights.
- BPO companies recruit people with basic education, general knowledge of using computers, and solid communication skills. Conversely, KPOs seek those who are professionally qualified and are very skilled.
- BPO work is usually quite monotonous, with set targets. Conversely, KPO staff offers insights, speculates, forecasts and might even have to report straight to their clientele.
• BPO companies pay special attention to secondary organizational activities and low-level procedures. In contrast, KPOs handle high-level procedures, plus knowledge and information.
The Challenges In KPO
The main challenge in it is to acquire and keep business, management, finance, legal, medical, and engineering professionals. Another challenge here is the increasing competition from nations like Russia, Ireland, Israel, and China, which enter the outsourcing field. For one thing, KPO companies should keep spending on the latest technology and infrastructure to always be ahead of the curve.