Nowadays, business blogs frequently mention KPO along with BPO. What is KPO, then? How does it differ from BPO? Perhaps you’ve seen or heard these terms in advertisements as well. Others may see it as a fresh concept and relate it to business process outsourcing. They may wonder, “Is KPO better than BPO? And, why do middle- and large-sized firms choose it?” Let’s dive in further and learn about this thriving industry through this blog.
What Is KPO or Knowledge Process Outsourcing?
As a subset of business process outsourcing (BPO), KPO focuses on completing core services connected to information-related business activities in order to increase the value of the firm and its products or services. Hence, KPO companies use their staff capabilities to offer business solutions to partner companies. This is why hiring the right personnel is critical for every KPO services provider.
According to The Philippine Board of Investments (BOI) for the Philippine Information Technology Business Process Management (IT-BPM) sector data, the Philippines is the leading destination for IT-BPM in Southeast Asia, ranking second on the list. Furthermore, it is stated that the need for KPO services in the Philippines is continuously increasing. This means KPO services linked to data research and data entry could provide a competitive advantage for a KPO service company.
The government expects the demand to be more than double in 2022, with an estimated worth of US $250 billion. If this happens, the IT-BPO sector needs to employ over 1.3 million direct staff, thus putting up almost 17% of GDP. In turn, it will be the second largest source of the country’s foreign exchange.
What are the Differences between KPO and BPO?
Although KPO is a subset of BPO, the distinction between the two is that BPO is all about developing and following processes. It entails contracting out labor and other administrative tasks to a third party. KPO, on the other hand, focuses on offering a particular knowledge set in addition to their services, which include considerably more specialized, analytical, and knowledge-based labor.
What are the Types of KPO Services?
If you’re looking for dependable KPO services, you can always receive the assistance you require by hiring someone from the Philippines. Further, we’ve compiled a list of KPO services for you to consider:
– Bookkeeping and Accounting
– Business and Market Research and Analytics
– Computer-Aided Simulation
– Data Search
– Engineering Design
– Financial Consultancy
– Fraud Analytics
– Intellectual Property and Patent-Related Services
– Legal Processes
– Medical Transcript Preparation
– Project Management
– Research and Development
– Technology Research
– Web development Application
Knowledge process outsourcing encompasses a broad scope. Hence, a company in need of particular services must choose the finest source carefully. Others consider the Philippines to be an excellent location for outsourcing work for a variety of reasons. Continue reading to see why you should consider outsourcing to this country’s KPO services.
Advantages of KPO
Hiring a KPO firm has a lot of advantages. Here are the top advantages in considering a KPO services provider:
- Cost-saving – majority of KPO services are conducted at a lower cost. Outsourcing KPO services lowers corporate costs such as staffing and training.
- Productivity improvement – it improves process efficiency by sourcing unique talent. It saves your existing staff from additional work and enhances their efficiency and productivity.
- Focus on core business functions – KPO services can help businesses save time and focus on their core processes. That way, it can increase satisfied customers while generating profits.
- Cutting-edge practices and tech – outsourcing companies have advanced tech tools and solutions that other companies can take advantage from.
- Better results – employing experts who are knowledgeable in certain processes you need assistance from will yield better results.
Disadvantages of KPO
Hiring other companies to manage a portion of your business’s processes, of course, has its own share of drawbacks. Here are some of the disadvantages of using KPO service providers:
- Security and compliance issues – sharing data with a third party is always risky. In the process, data might be stolen, sold, or even lost.
- Challenge in finding the right fit – KPO provides a wide range of services; the challenge is determining which service is ideal for your firm.
- Data confidentiality risk – intellectual property privacy and corporate security might be jeopardized if classified or confidential material is duplicated or given to a rival.
- Less control in hiring talents – because you’re collaborating with a different KPO business, it’s tough to confirm that the team you’re recruiting is capable of producing high-quality results.
- Communication concerns – outsourcing can lead to difficult communication due largely to linguistic and cultural issues.
What are the Benefits and Risks of Knowledge Process Outsourcing?
Hiring KPO firms is beneficial and a good business strategy. To add to that, the KPO sector can assist firms, particularly startups, in lowering operating costs and filling the gap or need for experts. It also frees up existing staff to focus on other tasks, maximizing their efficiency.
In contrast, choosing the wrong firm can put your business’ privacy and security at risk. They may misplace, copy, or transmit your sensitive business information to your competitors. This illustrates why you should be cautious while selecting a KPO service.
Can You Trust the KPO Industry in the Philippines?
Despite the challenges, the Philippines’ BPO and KPO sectors have remained strong for many years. So, yes, you can definitely trust the Philippines’ KPO industry. Also, it can provide the outsourcing solutions you require. Outsource-Philippines, a prominent BPO-KPO service provider, offers comprehensive outsourcing services. For a variety of reasons, it is a top choice for both foreign and domestic firms.
– Bright young pros
– Cheaper labor costs
– Country’s high literacy rate
– Cultural rapport with Western countries
– Fast economic growth
– Grasp of the English language
– Highly skilled workforce
– Local talents’ language skills (written and verbal)
– Long and thorough lists of successful outsourced tasks
– Neutral accent
– Readily available labor force
– Time difference is not a cause for concern
Hire Outsource-Philippines for Your KPO Services Needs Today!
Outsource-Philippines provides KPO services such as research and writing. We also offer data conversion, search engine marketing, and graphic design. Do you need web developers and designers? Outsource-Philippines is the best option for you! We also provide logo design, bookkeeping, SEO, and other services.
We guarantee that you will receive the outsourcing services you paid for and more. You can now lessen your worries about the future of your company and the Philippine KPO industry. So, if you require these services or want to learn more about what a KPO is from the best provider, contact us!