(1) KPO stands for Knowledge Process Outsourcing. In KPO, the important functions related to knowledge and information are outsourced (assigned to perform) to third party service providers. KPO is the sub-part (Section) of BPO in which services of outside or third party service provider are hired not only for its ability to do particular business process or function but also to provide expertise it has.
(2) KPO is nothing but the allotment of more important or relatively high level tasks or functions to an outside organisation or to a different group specially in a different geographic location. KPO is a subset of Business Process Outsourcing (BPO). KPO implies outsource of more important or core functions or business process to third party service provider or organisation to perform which may or may not reduce its cost of the parent company but surely assists in value addition.
(3) Thus, in KPO the business processes which are outsourced are exceptionally more specialised and knowledge based in comparison to Business Process Outsourcings. In brief, KPO is a form of outsourcing in which knowledge related and information related work is done or carried out by the workers working in different company or by a subsidiary of the some organisation which may be in the same country or on off shore location to save cost.
(4) In KPO, both core as well as non-core activities are performed. It requires advanced analytical and technical skills and high degree of specialist expertise. Margarent Rouse defines KPO as, “KPO is the allocation of relatively high- level tasks to an outside organisation or a different group within the same organisation’’
