Knowledge Process Outsourcing - KPO

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DEFINITION of 'Knowledge Process Outsourcing - KPO'

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.



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