what is knowledge process outsourcing kpo 
knowledge process outsourcing kpo is the outsourcing of core information related business activities kpo involves contracting out work to individuals that typically have advanced degrees and expertise in a specialized area the information related work can be carried out by workers in a different company or by a subsidiary of the same organization the subsidiary may be in the same country or in an offshore location to save costs or other resources understanding knowledge process outsourcingknowledge process outsourcing is the purposeful allocation of relatively high level tasks involving specialized knowledge or problem solving to an outside organization or third party that has a high level of subject matter expertise often located in a different geographic region than the company itself kpo is different from business process outsourcing bpo which involves the outsourcing of labor and other operational work to a third party to save money although kpo is a subset of bpo kpo involves far more specialized analytical and knowledge based work companies that engage in kpo look to obtain highly educated and skilled individuals without having the cost of training and developing those workers to execute one off or special projects that are not part of recurring activities through kpo a company can quickly add experts in specific fields to boost competitiveness and increase earnings or to accomplish special tasks for which there is no need to internally hire subject matter experts for permanent roles on a full time basis types of kpo servicessome common example of kpo outsourcing domains include reasons for knowledge process outsourcingcompanies utilize kpo when they are looking for specialized knowledge and expertise where that knowledge base or skills cannot be found in house however companies that engage in kpo offshore also typically do so in order to reduce costs by hiring skilled workers earning lower wages in another location instead of hiring one directly as an employee ideally companies look to kpo to simultaneously obtain a highly skilled workforce at a lower cost for example a manufacturer might use raw materials add value to those materials through various processes and then sell the result as a final product the company might look to kpo to determine how to improve efficiency in its production process so that it can deliver maximum value for the lowest possible total cost the result of kpo might also help the company create a competitive advantage advantages and disadvantages of kpokpo can help companies reduce operational or production costs by creating new processes or streamlining efficiency kpo also fills the gap or need for skilled employees in a particular field kpo also frees up existing staff including management to do other work boosting efficiency and productivity the flexibility that comes with kpo allows a company to increase or reduce staff easily for example if economic conditions worsen a company can easily reduce its kpo staff to cut costs conversely a company can quickly hire specialized staff to boost profits or revenue kpo helps a company to be more nimble and adapt to the changes in its industry and competitive landscape however disadvantages do exist with kpo privacy of intellectual property and business security can be compromised if classified or proprietary information is lost copied or brought to a competitor companies have less control over the hiring process of outsourced workers as a result a company might not be able to ensure the character of its outsourced employees or the quality of their work implementing kpo can be time and resource intensive to establish a successful operation moreover communication can be a concern and a challenge due to legal language and cultural barriers another disadvantage might be that existing employees might feel threatened by the hiring of outsourced workers and feel their jobs are at risk 