Knowledge Process Outsourcing (KPO)

OBS has years of experience in offering customized Knowledge process outsourcing services to clients around the world. Our extensive expertise covers a wide range of industry verticals and is based on your specific business requirements.

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What is Knowledge Process Outsourcing (KPO)

Knowledge process outsourcing (KPO) is the outsourcing of core, information-related business activities involving deep expertise in specialized functions to an outside organization. The knowledge-based work can be carried out by workers in a different company or a subsidiary of the same organization. The subsidiary may be in the same country or offshore to save costs or other resources. Businesses that need expertise in a particular field find it more cost-effective and faster to utilize a KPO, rather than hiring and training an in-house contact center.


    The Difference Between KPO vs BPO

    BPO: Business Process Outsourcing

    KPO: Knowledge Process Outsourcing

    • BPO is usually focused on maintaining the operational status quo, simply saving time, money, and other resources. Implementing BPO allows the team to further improve the picture over time, but the main goal is to streamline the status. 
    • BPO focuses only on basic tasks essential to running a business but does not necessarily distinguish one business from another.
    • BPO focuses on low-level routine tasks, so vendors typically follow the instructions of the company that hired them. BPO providers can make small changes to their workflows for efficiency, but they cannot make major changes that can impact business productivity and revenue. 
    • Relationships with KPO vendors are more hands-on and involved.  As these third parties are fully integrated into the organization, ongoing communication and relationship building will be required to maintain alignment and direction.
    • However, knowledge process outsourcing is about evolving processes and enabling an organization to reach the “next level” in a particular area. Companies implementing KPO want to do more, even if that means making drastic changes.
    • The focus of the  KPO is much ‘deeper’ than the superficial tasks of the BPO. Again, the point of KPO is to significantly enhance these core capabilities to differentiate your business in equally important ways.
    • On the other hand, KPO providers must be given autonomy to fulfill the purposes for which they are hired. They use their knowledge and expertise to intentionally improve the host company’s processes and make any changes they deem necessary.
    • Relationships with KPO vendors are more hands-on and involved.  As these third parties are fully integrated into the organization, ongoing communication and relationship building will be required to maintain alignment and direction.

    KPO: Knowledge Process Outsourcing Services We Offer

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    KPO assists organizations in data-driven, knowledge-based activities, including how to collect, manage, analyze, and provide objective insights into the organization. A wide range of Knowledge processing outsourcing solutions is essential to meet the needs of various industry segments such as: 

    • Financial consulting
    • Research and development
    • Management consulting
    • Technical analysis
    • Investments
    • Legal
    • Medical & Healthcare
    • Data analytics and management

    Benefits of Knowledge Process Outsorucing

    Optimizing and Evolving Critical Processes 

    The main benefit of implementing KPOs is the ability to decisively optimize your organization’s critical processes. Depending on the KPO vendor, they provide clear guidance to the team on the required backend research and even make radical changes to the entire process.

    Closing Organizational Knowledge and Skill Gaps

    Companies often consult with Knowledge process outsourcing providers to essentially create a knowledge map of their organization and fill known and unknown gaps in their teams’ own knowledge and skills. They conduct in-depth research on your company, competitors, customers, and industry to determine where your team is falling short and what needs to be improved to move forward.

    Remain Flexible and Responsive

    Outsourcing knowledge processes will allow your team to be more flexible and responsive to industry changes. With most industries dynamic and rapidly changing, getting new initiatives up and running quickly is critical to the survival of your business. Perhaps your team has acquired the ability to complete the task in question or maybe you’ve found a better provider and want to switch from your current partner. Either way, working with a KPO means that the relationship can grow or shrink based on needs and internal capabilities.

    Increase Productivity Across the Organization

    Outsourcing high-level processes in one area of the organization ultimately improve productivity across the organization. Having optimized productivity in the core areas gives you more time, money, manpower, and other resources to invest elsewhere in the business. Moreover, KPO partners can help foster more effective cross-team collaboration across your organization in a practical and impactful way.


    One of the biggest advantages of KPO is cost savings. The company does not need to set up any infrastructure and does not incur operational or running costs. You also get effective evaluation services at a nominal cost.


    1. What is KPO?

    Knowledge Process Outsourcing (KPO) is the process of outsourcing data-driven, knowledge-intensive activities that involve the process of gathering, managing, analyzing, and providing objective insights into an organization.

    2. Difference between business process outsourcing vs Knowledge process outsourcing?

    BPO is based on a set of processes and rules. KPO is based on staff knowledge, and experience. BPO is less complex, volume-driven, and requires process expertise, whereas KPO is more complex, requires knowledge expertise, and deals with insight, and experience.

    3. What are the types of KPO?

    Types of KPO Services
    • Financial consultants.
    • Research and development (R&D)
    • Business operations (management consulting)
    • Technical analysis.
    • Investments.
    • Legal.
    • Medical & healthcare.
    • Data analysis and interpretation.

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