The continuing growth of the business process outsourcing (BPO) sector has led to the evolution of new business processes such as knowledge process outsourcing (KPO). KPO is seen to outpace BPO, having been coined as the next big thing in the industry.

1. Knowledge Process Outsourcing Basics
The continuing growth of the business process outsourcing (BPO) sector has led to the evolution of new business
processes such as knowledge process outsourcing (KPO). KPO is seen to outpace BPO, having been coined as the next big
thing in the industry.
Business process outsourcing focuses on the expertise of third party service providers in back-office work functions such
as data processing and transcription of audio or video data as well as other business processes. In contrast, knowledge
process outsourcing focuses on specialized knowledge skills of employees from third party service providers. Typical KPO
segments include education and training, legal services, market research and analytics, health care services, writing and
content development, engineering research and development, as well as pharmaceutical research and development.
In order to provide knowledge process outsourcing services, manpower must be highly educated. The Philippines and
India are among the major players in the KPO industry and both countries have a large pool of highly skilled and
educated manpower.
The service expansion of traditional BPO companies makes recruitment of top caliber individuals a priority. When it
comes to KPO, and outsourcing in general, the most valuable asset of the service provider is its human capital. The
Philippines is among the top choices of Western companies when it comes to knowledge process outsourcing. There is a
large population of Filipinos who are highly skilled in the following technical processes: IT, engineering, actuarial
services, web development, graphic design, web development, and allied medical services.
A client company that engages in knowledge process outsourcing can benefit from it immensely. Operational expenses
are greatly reduced because the costs of hiring individuals from other countries such as the Philippines are generally
lower. Finally, the management load of the company is reduced as they utilize the expertise and infrastructure of
outsourcing firms.
MicroSourcing is an offshore outsourcing solutions provider based in Manila, Philippines. The company offers a wide
range of delivery models: project outsourcing, offshore staff leasing, and virtual captives.