Atos Consulting Look Out | Knowledge Process Outsourcing (KPO)

Concept

Unlike traditional business process outsourcing initiatives, Knowledge
Process Outsourcing (KPO) involves knowledge-intensive business
processes that require significant domain expertise, analytic skills and
judgment, and decision-making capabilities.
The goal is to deliver value by providing superior enterprise decisionmaking
as opposed to cost-saving alone.

Trajectory

Process transparency is a major barrier to using KPO services. Many
organizations don’t track carefully which decisions are made by whom
and rely extensively on informal social processes and soft skills that it is
unclear how much using KPO would disrupt existing operations.
However, requirements like Sarbanes-Oxley and radical transparency
movements like full-cost accounting, shareholder activism, eco-labels,
and moral purchasing have tended to require organizations to be more
explicit about when decisions are made, and by whom.
A fully developed service economy enables KPO by treating all functions
as services, as do more technical trends such as Service-Oriented
Architecture, enterprise application integration, and tele-work: it is easier
to outsource a job if it is already being performed outside the head office.
The KPO industry is projected to grow to about €12.5-13.5 billion by
2010, with India to account for approximately €9-10 billion.

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