Knowledge process outsourcing

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Knowledge process outsourcing (KPO) describes the outsourcing of core information-related business activities[1] which are competitively important or form an integral part of a company's value chain.[2] KPO requires advanced analytical and technical skills as well as a high degree of specialist expertise.[3][4]
Reasons behind KPO include an increase in specialized knowledge and expertise,[1] additional value creation,[3] the potential for cost reductions, and a shortage of skilled labor.[1] Regions which are particularly prominent in Knowledge Process Outsourcing include India and Eastern Europe.

Types of KPO[edit]

KPO (Knowledge Process Outsourcing) services include all kinds of research and information gathering, e.g. intellectual property research for patent applications; equity research, business and market research, legal and medical services; training, consultancy, and research and development in fields such as pharmaceuticals and biotechnology; and animation and design.[5]

In India[edit]

The Indian National Association of Software and Service Companies (NASSCOM) estimated the total market size of the KPO sector in India in 2006 to be $1.5 billions.[6] The year before, 2005, it had been $1.3 billions, with Evalueserve predicting that by 2010 it would be some $10 to $15 billions.[7] The Indian government was predicting that by 2010 India would have 15% of the global KPO market.[8] However, the global financial crisis, coupled with domestic economic problems such as the IPO of Reliance Power in 2008, caused people to re-evaluate these predictions, incurring worries that India's IT, BPO, and KPO sectors — which by then, combined, were $8.4 billions in export revenues — would be greatly affected by these factors.[9]

In Eastern Europe[edit]

Although India has traditionally been a KPO destination for North American companies, an increasing number of European companies are looking to Eastern Europe to satisfy their KPO needs. [10]


  1. ^ a b c "The benefits and risks of knowledge process outsourcing". Ivey Business Journal. May/June 2010. Retrieved 2012-03-20. 
  2. ^ "Sourcing cheaper staff the new groth industry". The Sidney Morning Herald. 2012-01-28. Retrieved 2012-03-20. 
  3. ^ a b Mierau, Alexander (2007-01-17). "Strategic Importance of Knowledge Process Outsourcing". Technical University of Kaiserslautern. Retrieved 2012-03-20. 
  4. ^ "Now, BPO moves up the value chain". The Economic Times. 2005-08-17. Retrieved 2012-03-20. 
  5. ^ Sornarajah & Wang 2010, p. 280.
  6. ^ Contractor, Kumar & Kundu 2010, p. 53.
  7. ^ Mehrotra 2005, p. 46.
  8. ^ Basu 2009, p. 80.
  9. ^ Varadarajan 2010, p. 145–146.
  10. ^ "Outsourcing market in Eastern Europe heats up" Oct. 17, 2012.


  • Basu, Sudip Ranjan (2009). "The economic growth story in India: past, present, and prospects for the future". In Klein, Lawrence Robert. The making of national economic forecasts. Edward Elgar Publishing. ISBN 978-1-84720-489-9. 
  • Mehrotra, Nitin (2005). Business Process Outsourcing — The Indian Experience. ICFAI books. ISBN 978-81-7881-576-3. 
  • Sornarajah, Muthucumaraswamy; Wang, Jiangyu (2010). China, India and the International Economic Order. Cambridge University Press. ISBN 978-0-521-11057-0. 
  • Contractor, Farok J.; Kumar, Vikas; Kundu, Sumit K. (2010). Global Outsourcing and Offshoring: An Integrated Approach to Theory and Corporate Strategy. Cambridge University Press. ISBN 978-0-521-19353-5. 
  • Varadarajan, Latha (2010). The Domestic Abroad: Diasporas in International Relations. Oxford University Press. ISBN 978-0-19-988987-7. 

Further reading[edit]