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Knowledge Process Outsourcing (KPO) Knowledge Process Outsourcing (KPO) has now come of age, with the market for KPO services in the Financial Services sector alone expected to be worth US$5billion by 2010, claims this new KPMG report. KPO – seen as the third generation of the outsourcing process – may now be considered a bona fide, mainstream outsourcing option.
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KPO focuses on the high-end activities which were traditionally considered part of a company’s competitive advantage. This marks a major stepping stone for the outsourcing industry; moving from being at the periphery of the enterprise to the very heart of it.
KPO involves outsourcing more highly skilled processes than has previously been the case with other outsourcing methods, basing its appeal on intellectual arbitrage rather than the cost reduction potential of its counterparts.
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