More commonly known as KPO, knowledge process outsourcing is gradually replacing business process outsourcing (BPO) in the front lines of the outsourcing industry. Basically, KPO refers to business process services that are knowledge-based requiring a more in depth analysis, review, and research than regular business processes.
Numerous business owners and corporations are already gaining benefits from KPOs. On the other hand, as with other outsourced services, there are certain risks that business owners and entrepreneurs courageously take with regard to outsourced knowledge processes. Among these risks are:
The primary and utmost risk faced by entrepreneurs looking to consider and venture into KPO is information security. Upon partnering with a specific KPO, an entrepreneur will have to share all necessary information about his business including confidential company data, intellectual property, and knowledge in general. This is most evident when outsourcing contract drafting and patent writing services.
KPO firms exist in almost any geographic location in any country. A business owner seeking KPO services has an endless list of KPO firms to choose from. On the other hand, even if he does his responsibility of conducting background check and research to the KPO firm he is planning to work with, there are still instances that he risks low quality work. This is because control of the knowledge process services is no longer in his hands; thus, increasing the risks of having completed work that did not efficiently passed through quality analysis.
- Public opinion
Even at its birth and initiation, the public has varying perceptions toward KPO. Until now, people have different opinion on outsourcing services. For them, outsourcing firms are only tolerating other countries to keep on using minorities who provide outsourcing services. They look at the idea of outsourcing services as sending jobs overseas and are transporting individuals to work abroad. Due to this, KPO is oftentimes faced by boycotts and protests.
Because of the extensive promotions and marketing of KPO services, most business owners and entrepreneurs expect specific results upon outsourcing knowledge processes. Most business owners sincerely believe in the amount of savings they’ll generate through KPO. And, when they receive less than what they expect, they’ll trash KPO at once and, worse, create a negative publicity for KPO firms.
On the other hand, despite all these risks, more business owners and entrepreneurs continue patronizing and advocating for outsourced knowledge processing. For these individuals, they wouldn’t have arrived at where they are today if it were not for KPO.