KPO refers to outsourcing core information-related business activities that require advanced analytical skills and expertise. As competition increases, clients demand higher quality and shorter timelines, forcing companies to improve efficiency and value. KPO allows companies to reduce costs and complexity by outsourcing to skilled graduates at low costs while gaining flexibility. However, KPO also carries risks like security issues, key talent retention, lack of quick results, and communication challenges due to cultural differences. KPO differs from BPO in that it requires highly skilled personnel who continuously learn, provides high-end services, and involves customers more in the execution process compared to lower-skilled BPO. Common KPO segments include analytics, research, design, finance,

2. What is KPO
Knowledge process outsourcing (KPO)
describes the outsourcing of core
information-related business activities which
are competitively important or form an
integral part of a company's value chain.
 KPO requires advanced analytical and
technical skills as well as a high degree of
specialist expertise.

3. Importance of KPO
The developing rivalry has brought about shorter
time to market cycles, and clients are getting to
be more requesting regarding quality. This has
constrained the firms to give operational
proficiency and increase the value of their
products and services.
A company can lessen the complexities included
in overseeing and constantly constructing
information in an extensive pool of human

4. Risks and Benefits of
KPOBenefits
- Cost reduction
- Shortage of skilled employees
- Provides many graduates at very low cost
- High end services are provided at a lower cost to
decrease unemployment and benefit
their economy
- Provide flexibility in terms of HRM & time
management

5. Risks
- Security- Classified information about the
company can be lost
- Key talent retention
- KPO is time consuming and cannot
provide a quick fix to the company
seeking immediate results.
- Lack of communication between partners
due to legal, language and cultural

6. Differentiating KPO
from BPOKPO
A KPO firm requires considerably more
skilled personnel.
Experts working in KPO keep on learning
and accomplished.
 KPO firms additionally provides their
customers with high end services.

7. BPO
A BPO firm is that in a KPO firm, the
customer is included amid the whole
execution process.
The pay of BPO is lower than KPO.
Person working in BPO are not highly
qualified.
BPO, short for Business Processing
Outsourcing, is the business that focuses on
tasks, ranging from manufacturing products to

8. Analytics
Business Research
Design & Animation
Financial Research Outsourcing (FRO)
 Legal Process
Outsourcing (LPO)
 Marketing Services
 Market Research
Outsourcing
(MRO)
 Publishing Outsourcing
KPO
segments
are: