Knowledge process outsourcing (KPO) is the outsourcing of core, information-related business activities, meaning that knowledge and information-related work is carried out by workers in a different company or by a subsidiary of the same organization. This subsidiary may be in the same country or in an offshore location to save costs or other resources.
Knowledge process outsourcing (KPO) is the allocation of relatively high-level tasks, to an outside organization or a different group in a different geographic location. Examples of KPO include long-term jobs for intellectual, analytical and knowledgeable people within industries such as research and development, financial consultancy and services, business and technical analysis, and many others.
Companies resort to KPO when they are looking for specialized knowledge and expertise, when they have a shortage of skilled professionals, and when they have the opportunity to reduce costs by hiring skilled workers earning lower wages in another location. In other words, companies do it when they feel they can improve their value chain.
The outsourcing of service work also lends itself positively to the overall development of a U.S. business. Workers can focus more on specialized areas and precious resources can be freed up to further these. In turn, more specialized and focused businesses have a chance of creating additional jobs for more skilled workers by branching off into areas that require a special skill set. On a more macro level, the overall wealth of a nation like the U.S. can improve if companies are focusing on developing core businesses. It goes without saying that the LPO trend offers great benefits. India’s legal services are affordable, efficient, and above all, skilled. Outsourcing legal work to India costs up to 80% less than the cost of using the services of American law firms. Because it is far less expensive to hire talent in countries such as India, an outsourcing company is in the enviable position of being able to commit larger teams of talented workers to more specific areas of concentration. An LPO, for instance, can afford the luxury of dedicating an entire team to register trademarks or process immigration visas.
Aavula Business Consultant provides comprehensive litigation consulting and process outsourcing services to law firms, in-house legal counsels, individual attorneys, advisory and consultancy firms around the world.