Thinking Outside the BPO: Knowledge Process Outsourcing to India

A new wave of global outsourcing to India known as knowledge process offshoring, or “KPO,” is following on the heels of the remarkably successful Indian market for information technology outsourcing (ITO) and business process outsourcing (BPO). Like ITO and BPO, KPO allows companies to realize substantial cost reductions by offshoring domestic business functions to lower cost foreign venues. KPO differs, however, in also helping companies gain strategic advantage over competitors by virtue of the type of offshored processes and functions it involves. KPO offers significant potential benefits, but with possible greater reward comes risk, and KPO involves a number of key issues and risks that must be carefully evaluated when considering a KPO transaction in India.