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Essay text:
We consider this to be the single most important
factor that differentiates Knowledge Process Outsourcing from its predecessor,
Business Process Outsourcing (BPO).
• KPO is about “intellectual arbitrage”. This differentiates KPO from IT Outsourcing
(ITO) or Business Process Outsourcing (BPO), both of which emphasize cost
arbitrage. KPO is characterized by niche offerings, highly skilled staff and a
relatively small scale. It cuts into the traditional “core competencies” of many
organizations.
• Knowledge processes are fundamentally different from business processes, with
clear differences in process complexity, skill sets and scalability...
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