Gujarat BoardEnglish MediumSTD 11 CommerceOCMCommunication. E-Commerce and Outsourcing5 Marks
Question
What is Knowledge Process Outsourcing. $KPO$ ? Explain its importance.
✓
Answer
Introduction
Use of new technology is necessary to survive in business competition.
For this the cities, regions or foreign countries where technology is developed an d human resources having technical knowledge is available at cheaper rates, at those places knowledge based process should he allotted.
As a result the resources engaged with production can be utilized with maximum „wacky and business risks can he faced.
What is knowledge Process Outsourcing?
The process of knowledge is getting done outside when intellectual and skilled knowledge is expected m business is called Knowledge Process Outsourcing $(KPO)$. In short, the concept of $KPO$ concentrates mainly on outsourcing related to knowledge process.
Importance of $KPO$ :
Achievement of the best skill :
Companies, providing $KPO$ service provide highest and best technocrats, highly qualified human resources and invest in modern technology and provide high skilled labor at cheaper rate. Thus through $KPO$ highly qualified skilled persons' knowledge is obtain at less expense.
Solution of Complex Problem :
Technical knowledge is required for solution of complicated problems. Each business unit does not have technically qualified person. This problem can be solved through $KPO$.
Reduction of Expenditure :
Through $KPO$ the expenses of market research, medical services, research and development functions, etc. can be reduced.
Reduction in Risk :
Sometimes investment made by management fails because of new research, competition, and changes in policy. In this circumstances $KPO$ is useful to reduce risk.
Maximum utilization of human resources :
Due to $KPO$ the load of employees' work is reduced. Their energy is diverted to customers oriented work.
Maximum use of Money :
Due to outsourcing of main function of business, no investment is made. Management can use the money in the work of development.
Concentration on main Functions :
Through knowledge, process outsourcing surplus fund, management can reduce its work load and concentrate on development. e.g. If the company gets the work of market research, animation, design computer programming done through $KPO$ then their load of work reduces. $4$.
Conclusion :
Consideration of knowledge outsourcing is linked in knowledge process outsourcing day to day work, stationary store of goods, facility of i canteen, are routine It does not need technological knowledge. $KPO$ is considered only for high level intellectual function.
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