Knowledge Process Outsourcing - KPO

What is 'Knowledge Process Outsourcing - KPO'

Knowledge process outsourcing (KPO) is a form of outsourcing in which 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. Companies resort to knowledge process outsourcing when they have a shortage of skilled professionals and have the opportunity to hire skilled workers earning lower wages in another location for a lower overall cost.

BREAKING DOWN 'Knowledge Process Outsourcing - KPO'

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.



RELATED TERMS
  1. Business Process Outsourcing - ...

    A method of subcontracting various business-related operations ...
  2. Knowledge Economy

    A system of consumption and production that is based on intellectual ...
  3. Insourcing

    Assigning a project to a person or department within the company ...
  4. Knowledge Capital

    An intangible asset that comprises the information and skills ...
  5. Subsidiary

    A company whose voting stock is more than 50% controlled by another ...
  6. Capacity Cost

    A fixed expense incurred by a company or organization in order ...
Related Articles
  1. Entrepreneurship

    The Unintended Consequences of Outsourcing

    The outsourcing of labor overseas is a natural result of globalization of world markets and the drive for businesses to cut costs in order to maximize profits.
  2. Stock Analysis

    India's Outsourcers Losing Steam

    Reduced business volumes and falling prices spell tough times for India's IT outsourcing companies.
  3. Personal Finance

    10 Jobs to Avoid Right Now

    These jobs may never recover to pre-recession highs, can easily be outsourced overseas or may disappear altogether as technology intervenes.
  4. Investing

    What's a Subsidiary?

    A subsidiary is a corporation owned 50% or more by another corporation. The owning corporation is usually called the parent or holding company. A company that is 100% owned and controlled by ...
  5. Stock Analysis

    Healthier IT Markets Helping Accenture

    Accenture's bookings numbers support the idea that overall market conditions are still pretty healthy.
  6. Economics

    Globalization: Progress Or Profiteering?

    Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ...
  7. Economics

    What is a Wholly Owned Subsidiary?

    A company whose common stock is 100% owned by another company, called the parent company.
  8. Mutual Funds & ETFs

    The Knowledge-Experience Continuum: Where Do You Fall?

    Theory and practice are worlds apart, but problems arise when people treat them as one and the same.
  9. Your Clients

    Fiduciary Rule: How Advisors Should Outsource Risk

    The impending fiduciary rule will lead to increased liability for many advisors but there are ways to outsource some of the risk that they take on.
  10. Investing Basics

    Explaining Affiliate, Associate And Subsidiary

    Affiliate, associate and subsidiary are all terms referring to the degree of ownership a parent company holds in another company.
RELATED FAQS
  1. Is there a benefit to outsourcing internationally over outsourcing within the country?

    Understand the benefits of outsourcing internationally and locally for business. Learn why many businesses choose to outsource ... Read Answer >>
  2. When is outsourcing a bad alternative to vertical integration?

    There are many things to examine when considering outsourcing versus vertical integration. One reason to not outsource is ... Read Answer >>
  3. What's the difference between outsourcing and insourcing?

    Discover that costs, resources, control and location are some of the major differences for an organization when deciding ... Read Answer >>
  4. What's the difference between outsourcing and subcontracting?

    Is outsourcing the best choice for your business? Understand the differences between outsourcing and subcontracting to make ... Read Answer >>
  5. When is outsourcing preferable to vertical integration?

    Deciding between outsourcing and vertical integration can be challenging. Understand the benefits of each to make the most ... Read Answer >>
  6. Are there any downsides to globalization?

    Understand the commonly cited detriments of the globalization process and its impact on the work force, environment and costs ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center