KPO-Knowledge Process Outsourcing

Knowledge process outsourcing (KPO) is outsourcing of work which requires special skills, experience, education and qualification. Few examples are Finance and accounting (F&A), Investment banking (IB), market research, data services related projects.

It is considered to be an extension of BPO. Initially BPO was thought to be ‘call centers’ only however that perception has changed with the increase in knowledge services related projects. Knowledge services industry is high revenue earning as it requires special skills. Most of the BPO companies have knowledge service projects and are planning to increase revenue and growth in this industry.

Who can join?

  • MBAs
  • Lawyers
  • Chartered Accountant
  • B Com/M Com
  • Civil Engineers or architects
  • Doctors
  • BSc/MSc
  • PhDs

India is the preferred destination for knowledge services due to availability of large pool of professionals with required qualifications apart from other reasons like low costs and quality services.


Companies provide following services through Knowledge service unit:

  • Financial accounting
  • Payroll processing
  • Financial statements
  • Research on Investment
  • Financial analysis
  • Market research data analysis
  • Website designing
  • Content management
  • Search engine optimization


Nasscom published a report – ‘India Knowledge Services Industry’ in Aug 2011 with details on the performance of Indian BPO industry in FY 2011. The report also highlighted facts about India’s Knowledge services business.

  • $2 billion industry in 2010; fastest growing segment
  • Employs ~70,000 people in over 100 firms in India
  • Robust growth of 18.7% CAGR over 2007-2010
  • 70% share of the global market
  • Hub for Analytics and Legal Services


Supply gap: Even though India has captured 70% market share in this industry, it could have been much bigger if there were more employable quality graduates. There is gap between the requirement and supply of employees in the knowledge services industry.

Un-employability of graduates is due to lack of communication skills, soft skills, teamwork etc. Companies are investing more time in making graduates employable by training them on these skills.

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