Outsourcing, from being a fad to a standard in the corporate world, is a common word in most businesses today. Even most experts view it as a cost-cutting and productivity-boosting strategy; considering that this strategy means hiring a party outside a company to perform services traditionally performed in-house by the company’s own employees and staff.
This kind of game plan has steadily benefited multiple businesses around the world. For instance, outsourcing non-core tasks can dodge extra operating cost as well as equipment and technology expenses. These are done by allowing firms to collaborate with business process outsourcing (BPO) or knowledge process outsourcing (KPO) companies. It simply depends on the sort of outsourcing you require for your business. Hence, through this article, we’ll help you understand the basics of KPO and why you should utilize outsourcing for your business.
What is Knowledge Process Outsourcing?
Knowledge process outsourcing is the process of outsourcing information-related and essential business functions. With this type of outsourcing, businesses outsource high-level jobs that require technical knowledge, skills, and expertise. It involves meticulous data-driven operations that consist of obtaining, managing, evaluating, and presenting objective insights into businesses.
Moreover, KPO entails shifting away from conventional executions of standardized procedures and toward the application of processes requiring in-depth knowledge and skill, as well as decision-making.
Difference Between Business Process Outsourcing and Knowledge Process Outsourcing
Although KPO is a subset of BPO, the difference between the two is that BPO handles peripheral activities and procedures, which include customer service and data entry, among others. KPO, on the other hand, is focused on knowledge and information-related tasks, namely data analytics, research, and legal process.
To further simplify, KPO is judgment-based, highly complex, insight-driven, and needs knowledge expertise. BPO, on the other hand, is rule-based, less complicated, volume-driven, and requires process expertise.
Types of KPO Services
Some of the typical examples of KPO work include accounting, computer programming, content writing, engineering design, marketing, and research and development. All these require extensive knowledge of specific activities and fields.
The truth is that KPO services are broad. And it is for this reason we’ve listed down its four main types for further reference:
Data Analytics
This type of knowledge process outsourcing service focuses on sorting, filtering, evaluating, and modifying an organization’s data in order to distinguish relevant information. For example, analyzing supplier, customer, financial, and staff data might assist find important trends that can aid in making pre-calculated business choices.
Data Management
It is the process of compiling, storing, and utilizing data in an efficient, cost-effective, and secure manner. Digital data management offers effective solutions and is critical in sustaining comprehensive company reporting and analytics as required by various investors in a company.
Reporting and Performance Management
This type’s purpose is to provide efficient reporting and performance management in order to guarantee that outputs successfully meet the firm’s goals.
Market or Business Research
Vital to any enterprise, market research gives access to a thorough study of what business techniques work and which do not. This is necessary for further development of a company.
Advantages of Knowledge Process Outsourcing
The strength of KPO is gained through the availability of well trained and highly educated manpower capable of completing KPO-based activities. This ensures that the services provided by these well-informed individuals are of the highest quality.
Aside from the high performance and efficiency obtained from knowledge process outsourcing companies, the skills and manpower provided by these companies are obtained at a lower cost. Benefits gained from outsourcing include the following:
1. Access to a Pool of Talent
As mentioned earlier, companies have the opportunity to collaborate with highly skilled and knowledgeable talent. You no longer have to think about how much time it will cost to train new hires.
Skills and knowledge are the main assets of a business. Thus, you must secure an array of expert staff to perform certain tasks in your company. This allows your firm to gain an edge over your rivals and maintain the quality of your services.
2. Reduction of Incurred Cost
Firms do not have to worry about setting up additional budgets for new or separate manpower. Since keeping an area for seasonal workers is not ideal, it is practical to opt for outsourcing. Hiring KPO can definitely save resources such as facilities and equipment.
3. Focus on Key Tasks
Your current staff can focus on their primary functions, thereby increasing efficiency and providing better outputs for your clients and stakeholders. Companies can focus on their key competencies while outsourcing non-core business activities.
4. Speed and Advancement
In business, time is money. Thus, to profit from your investments, products, and services, you must consider your production rate. When your staff consumes too much time doing a single task, it stalls them from completing other tasks they need to finish. Farming out non-core duties helps in finishing more vital tasks in lesser time and assuring quality service.
Why It is Best to Choose Knowledge Process Outsourcing in the Philippines
Ever since the dawn of the KPO industry in the 1990s, leading players of knowledge process outsourcing have been India, China, and the Philippines, which produce a huge turnover of highly educated professionals every year. The major lifeblood of this industry is huge knowledge banks and enough professionals in various fields that have high analytical, theoretical, and conceptual skills needed in fulfilling knowledge process activities required by the market.
The growth of knowledge process outsourcing industries can be attributed to the increasing shortage of highly trained and skilled professionals in various fields, for instance, financial management and engineering design. Manpower needed in these fields can now be easily obtained with the variety of expertise found in the Philippines. Also, you can rest assured that high-end services are done efficiently by qualified and trained individuals residing in the Philippines.
Outsource Key Business Functions to a Trusted Partner, FilWeb Asia Inc.
We are all aware of how important outsourcing is in today’s fast-paced environment. And as technologies continue to advance, it is essential to safeguard your firm with top-skilled staff in order to be a great contender in the industry.
Knowledge process outsourcing in the Philippines may readily improve the services of any firm. FilWeb Asia Inc. and its team of specialists can help you optimize resources and cut costs without sacrificing quality outputs and services. Reap the benefits of outsourcing by partnering with us now! Check our incredible line of KPO and BPO services for further references. You may also contact us if you have inquiries and even get a free quote!
