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IT ADVISORY - KPMG

IT A D V I SO R Y. Knowledge Process Outsourcing Unlocking top-line growth by outsourcing the core . A DV I S O R Y. At a glance Knowledge Process Outsourcing (KPO) enables clients to unlock their top-line growth by outsourcing their core work to locations that have a highly skilled and relatively cheap talent pool. 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.

4 Knowledge Process Outsourcing This is a research-based briefing paper written by KPMG that looks at the KPO phenomenon in the context of the global financial services industry.

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