What Is KPO?

KPO is also known as the Knowledge process outsourcing. We have already discussed in our previous article about BPO or business process outsourcing. We will now discuss about KPO which is again a very popular form of outsourcing.  Although they both seem the same there is a basic difference between the two. We will now discuss this difference in more detail.

What is KPO?

What is KPO?

When we say BPO it is basically the out sourcing of the back end process. The job is a routine one and can also be termed as a data entry job. However, when we say KPO it is a process outsourcing the required good level of analytical thinking. The KPO is more of a technical and specialised job unlike that of a BPO. For example let’s take Insurance industry as an example. If the insurance company outsources the process of entering the policy details in a system this is a typical BPO job as this is a clerical job that is being assigned to another outsourced company.

Similarly if the insurance company decides to outsource its underwriting process then the outsourcing will be a KPO. This is because underwriting is a very critical process in insurance. It is the underwriter who decides if the insurance company should take up the policy or not. It is the underwriter who also decides what will be the premium amount f or the risk covered. This needs knowledge. This is exactly why this outsourcing is called the Knowledge process outsourcing.

A KPO requires more qualification unlike a BPO. The individuals working for a KPO need to have a solid academic background as the job that they do required more analytical and calculation skill that not everyone will have. Unlike BPO getting into a KPO is comparatively tougher. The training given in a KPO is much rigorous that a BPO. The training period can even go up to six months depending on the criticality of the process. Some KPO’s have a set guidelines for the students that they will hire. The person must have scored at least a first class. The student must have a good knowledge of the subject. Engineers and graduates from reputed institutes are recruited in a KPO.

After the training period is over the employee has to clear some exams. Only when they clear the tests are they taken into live processes. The ones who fare better are taken for the more complex process and the ones who have not performed so well in the tests are taken into the process that does not require much knowledge. These employees can learn slowly and then move on to the critical process.

It is good to mention here that every outsourcing company will do jobs that are related to both KPO and BPO. You can ask during the hiring process itself what it exactly that you will be recruited for is. You can specify that you want to get into a KPO and you want your assessment to be accordingly. If the recruiter feels during the aptitude test that you can be hired for a KPO they will take your interview accordingly. I hope we have been able to explain to you the basic difference between a BPO and a KPO. This will definitely help you to make a decision accordingly.

There are many companies that have outsourced their KPO processes into India and other countries in Asia. However, we must mention here that India remains to be the leader in the KPO industry. This is because Indian population has the skill and the academic background to handle a KPO better. In the future too many more KPO processes will come to India. If you want to make a career in KPO then this is the time. The KPO industry is growing every day. They are in need for skilled individuals who can take up the challenge. The companies who have spent millions in outsourcing their knowledge processes do admit that Indians have given them a good value for money service. They are happy and are all set to send in more such critical processes to India.

Like all other business process outsourcing even in the KPO sector you will have chance to go abroad and get trained. You will get an international exposure. In some cases you might be trained on international languages and also in quality as the requirement of the client would be. If you perform well you can climb the ladder in the organisation faster and get recognition. All you need to have apart from knowledge is to understand the client requirement, you should be good with communication both written and oral, and last but not the least you should be hard working. Another unique aspect about KPO is that you might not have to work on shifts as you are not directly supporting the client. A KPO will generally have a normal nine to six shifts unless there is an emergency and a special request from the client.

If you always thought that business process outsourcing is all about taking calls and doing data entry jobs. Then this article will make you think again. There is more to business process outsourcing than routine work. Knowledge process outsourcing is definitely far more challenging and the work is such that it requires high skill and analytical thinking. We hope we have answered all your queries regarding knowledge process outsourcing. Have a great career ahead.


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