What is Outsourcing?
There are many reasons why organizations choose to outsource functions and services. The following is a list of common reasons why outsourcing is undertaken:
1. Lower costs
2. Specific supplier benefits. For example, better security, continuity, etc
3. Higher quality service due to focus of the supplier
4. Less dependency upon internal resources
5. Control of budget
6. Faster setup of the function or service
7. Lower ongoing investment required in internal infrastructure
8. Lack of internal expertise
9. Increase flexibility to meet changing business conditions
10.Improve Risk Management.
11.Acquire Innovative Ideas.
12.Turn fixed costs into variable cost.
13.And lots more…
After BPO it’s KPO!
KPO or Knowledge Process Outsourcing is the new Buzzword.
KPO promises to be the next big thing in the outsourcing sector. It’s an estimate according to a report by (Global Sourcing) KPO or Knowledge Process Outsourcing business is supposed to touch $17 billion by 2010 of which at least 70 per cent or $12 billion is to be outsourced to India. More then 300,000 new jobs are required from the current 25,000. Many companies are planning to develop KPO segment due to this. The impact of quality manpower and work helps India to receive this much of work. According to a report, for every one job created for a foreign language professional, two new jobs will be created for Indian English-speaking professionals.
What is a basic Difference between KPO and BPO?
The basic difference between KPO and BPO is that BPO mainly deals with technical support, transaction processing, customer care, telemarketing etc. and KPO is offshoring of knowledge intensive business processes that require specialized domain expertise. For such tasks KPO requires people with a good educational background and experts in a particular field. KPO employee is expected to have better qualifications, skills and knowledge as compared to his/her BPO counterpart.