KPO Full Form- What is the Full Form of KPO?

Knowledge Process Outsourcing (KPO) is the process of outsourcing the essential information-related to corporate functions. KPO deals with assigning tasks to people who often have advanced knowledge, skill and competence in a specialized field. Workers from a different company or a division of the same company may perform certain information-related work. However, the subsidiary could be located overseas to preserve money or other resources, or it could be in the same nation.

What is KPO Full Form?

KPO full form is Knowledge Process Outsourcing. Knowledge process outsourcing is the systematic assignment of relatively complex tasks requiring in-depth knowledge or problem-solving skills to an external organization or third party. The employee requires a high level of specialized knowledge to deal with the organization frequently situated in a different geographic area than the company itself. KPO maintains the outsourcing of basic business operations related to information that is competitively relevant or that forms an essential part of the value chain of a specific corporation. KPO requires advanced technological and analytical skills along with a high standard of professional experience.

Various Reasons For Knowledge Process Outsourcing

Many companies use KPO services when they need certain and specific knowledge and expertise but cannot find those knowledge bases or skills internally within the company. Moreover, the organizations who outsource KPO often do so in order to cut the costs by recruiting talented people in a different place who are paid a lesser salary rather than hiring one directly as an employee. Many businesses go to KPO in the ideal scenario to simultaneously acquire highly skilled and talented personnel at a cheaper cost. The main reasons behind the origin of KPO include increased technical knowledge and skills, adding value production, cost-saving opportunities and a lack of skilled labor. The territories that are especially existent in outsourcing the information process involve India, Eastern Europe and Sri Lanka, considerably Romania, Poland and the Baltic States. KPO is undoubtedly a continuation of the outsourcing of business processes, but with much greater complexity of the industry.

Importance of KPO

KPO is famous for the increased value of its products and services and also for its operational proficiency in different spheres. It is a very efficient process that helps in reducing the complexity of the company and helps the human resources in the process of hiring. India is known and considered to be the most preferred destination for Knowledge Process Outsourcing. It has many different favorable factors of hiring like friendly government policies, availability of skilled, cheap labor and English speaking workforce. The service of KPO provides intellectual property, all types of research in detail, equity research, information gathering, training and consultancy, business and market research and medical services which are conducted in depth. These are also considered to be the different types of KPO and play a crucial role in the field of business.

In this field, it is also important to note that KPO has many advantages and it is an important aspect of the working process. Like Knowledge Process Outsourcing helps in reducing costs and also helps to increase operational efficiency. The utilization and application of it can be seen in the expertise field and it also requires a less number of skilled employees. In this field, availability of an educated workforce can be seen easily and at a nominal cost. The process is very helpful for decreasing unemployment and also helps in the growth and development of the economy. Therefore, KPO is the process that provides flexible time management and efficient Human Resource Management.

Types of KPO Services

There are various types of KPO service provided in the industry both in the domestic and in the international sphere. Major examples of typical KPO outsourcing industries include:

• Financial consultants
• Research and development
• Business operations (management consulting)
• Technical analysis
• Investments
• Legal
• Medical and healthcare

Major Advantages of KPO

KPO has proved to be effective in various sources. Major Advantages of KPO are:

• Cut costs
• Using knowledge Enhanced
• Operational effectiveness
• There are many higher degree graduates (educated workers) available for low prices
• Less skilled workers are needed
• Favorable to the economy and helps to lower unemployment.
• Provides human resource management and flexible time management.

The Disadvantages of KPO

• Less job security exists
• It is impossible to guarantee the existence of integrity of the workers or the caliber of the work
• Due to the existence of linguistic, cultural and legal barriers, there may be complications caused by the lack of communication between the parties
• Sometimes key talent gets hidden

What is the Purpose Behind Knowledge Process Outsourcing?

The Organizations use KPO when they are looking for particular information and aptitude and when they have a lack of expert employees. The organizations that participate in KPO are normally taking an enterprise to decrease costs by recruiting gifted specialists winning lower compensation in another area. In a perfect world, organizations look to KPO for acquiring an exceptionally talented workforce at a lower cost.

For example, a producer may utilize the crude materials, increase the value of those materials through different procedures and afterwards sell the outcome as the last item. The organization may look to KPO to decide how to improve proficiency in its process of creation with the mission that it can convey the greatest incentive for the most minimal expense. However, the aftereffect of KPO may likewise enable the organization to take an upper hand.