Knowledge Process Outsourcing : The Next Wave of Outsourcing - By: Dr. Joe Greco

Knowledge Process Outsourcing (KPO) refers to the offshore movement of knowledge-intensive business processes that require specialized expertise. Tasks that are suited to KPO include value-added services like data search, research and analytics and editorial services like copy editing, abstracting and content creation.

The basic difference between the KPO and Business Process Outsourcing (BPO) is that in KPO to do the job, employees must have advanced expertise in a specific subject matter, whereas BPO is more of a commodity business, one that’s primarily driven by the extension of information technology and other business functions from one region of the world to another.

According to a Confederation of Indian Industry (CII) study, KPO will grow at a compounded annual growth rate of 46% to be worth $17 billion by 2010. Ability of qualified manpower, infrastructure, political stability, data security, low wages, and proven delivery capabilities are some of the factors that influence buyer’s decision in choosing the KPO provider.

Some examples of KPO are: -
Legal Services: Reviewing transactional & litigation documents; drafting contracts; research memoranda & due diligence reports; prosecuting patents; negotiations. Skill sets required: Knowledge of US/UK laws; legal application; ability to reason & research

Engineering R&D: 3D modeling; conversion: 2D to 3D; finite analysis; computational fluid dynamics analysis; technical specifications for tenders; value engineering. Skill sets required: CAD/CAM; drafting & modeling; product design

Market research & analytics: Secondary & primary research; conversion of findings to accessible knowledge; writing & editing; formatting client reports. Skill sets required: Statistical tools; research techniques; report writing & presentations; database research

Writing & content development: Editorial; content delivery; digitalization of content; data enrichment & warehousing; pre-press work; proofreading; template designing; text composition. Skill sets required: English communication skills; journalism; experience in writing

Pharmacy R&D: Research & development; drug discovery; clinical research. Skill sets required: master's degree in science, PhDs, and MDs

Healthcare services: Diagnostic; genetic profiling; oncology tests; HIV & allergy. Skill sets required: Medical degree; specialized subject knowledge

Sources for this article can be referenced by contacting the author or by accessing the links found in the bio section of this article.

About the Author

Dr. Joe Greco is Director for the Center for the Study of Emerging Markets (CSEM) located in Fullerton, California. As part of the Mihaylo College of Business and Economics at California State University, Fullerton, CSEM was established to promote the flow of global information and technology between the academic and business communities. In particular, CSEM studies the economic and cultural impact of offshore outsourcing on emerging markets. You may contact Dr. Joe Greco at 714-278-4125 or csem@fullerton.edu Sources for this article: 1. Sathe, Deepali. “Knowledge Process Outsourcing: The Big Game”. www.outsourcingmag.com retrieved from http://www.sourcingmag.com/content/c060503a.asp 2. Chattergee, Surojit. “ India Set to Ride KPO Wave”. International Business Times. February 17, 2008. Retrieved from http://www.ibtimes.com/articles/20080217/kpo-bpo-ito-knowledge-process-outsourcing-information-and-technology-business-kpmg.htm command=viewArticleBasic&articleId=9113755&intsrc=hm_list

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