KPO and Its Challenges

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Among the trends today in the outsourcing industry is knowledge process outsourcing (KPO). KPO is truly gaining massive recognition and appreciation all over the world. It is continuously being patronized by every business, regardless of industry and size, because it brings basic business processing a notch higher by providing knowledge-based solutions and sound decision-making for outsourced tasks.

On the other hand, like many other outsourced services, KPO also faces several challenges:

  • Achieving effective scale

Although it may seem irrelevant at first, achieving effective scale in knowledge process outsourcing is undeniably necessary regarding the analysis of data and facts. Specific scales that hinder effective analysis in KPO basically include, among others, geographic scale and demographic scale of target market.

  • Coordinating with individual and separate departments

Effective knowledge process outsourcing is generally obtained through continuous collaboration with all involved departments of the client organization. This is not a problem for small client organizations; however, it becomes a difficulty for large organizations that have separate and individual departments. Things get much worse if communication within those separate departments is already poor; thus, translating to an uncoordinated knowledge processing service.

  • Working around cultural barriers

Although it is already widely recognized and accepted, there are still organizational executives who are less keen with the transition to knowledge-based decision making supported by outsourced knowledge processes. This is more likely to serve as an obstacle in serving large organizations with several, and less coordinated, executives and directors.

  • Dealing with various standards

Since knowledge processing is gradually developed by outsourcing companies and is improved and/or used by various different individuals, presumably by the executives of all the individual and separate departments of a client organization, final knowledge process is therefore hardly organized. This is because individuals who use knowledge process outsourcing may have and/or follow different standards. Thus, vague results are produced and instead of a sound decision, destructive decisions are made from the cluttered knowledge processes.

Fortunately, KPO is currently at its peak in the outsourcing industry. So, even with these challenges, KPO is continuously providing effective business solutions to all types of business all over the world.

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