There is more to outsourcing than what was witnessed in the formative years of this global corporate phenomenon. Outsourcing in the present age does not just mean entering data on excel sheets or answering customer calls on phone.

Outsourcing knowledge related work or information processing work is known as knowledge process outsourcing. Knowledge related work needed in sectors like research, e business, medical services, research and development, content development, data analysis etc is processed by knowledge processing firms.

Major research firms outsource their subsidiary processes to KPO firms based in India, Philippines etc. These firms take care of all the intellectual work, and disseminate useful information to the knowledge driven industry, at a cost, far less than what these companies would have spent.

Outsourcing IT or ITES (IT-enabled services) also falls under the purview of KPO firms. IT consultants equipped with specific technical prowess give their services to clients based abroad. KPO firms outsource IT work like web development, web design, animation and design, content development, SEO (Search Engine Optimization) and so on.

Knowledge Process Outsourcing differs with Business Process Outsourcing in the sense that they require higher skills and more proficient human resource to do the job. So it can be inferred that KPO is an extension Of BPO and many firms, which had established themselves as BPOs are finding it easier to transform into KPOs.

Over the last few years, India has become the most favoured KPO destination. Owing to the intellectual and technological prowess of the Indian labor, many firms in developed countries around the world have starting outsourcing these knowledge driven processes. Indian human resources have knowledge and expertise in varied sectors like intellectual services, market research and engineering. So the world is caching on the comparatively cheaper resources that these KPOs offer.