KPO stands for Knowledge Process Outsourcing. This means hiring another company to do tasks that need special skills or require deep knowledge. For business owners, this saves time and reduces costs. Also, it frees up their time so that they can focus more on growing their business.
You can’t do everything! Yes, as a business owner there comes a time when you need to outsource some of your critical activities. This is where KPO outsourcing comes into play.
For example, say your startup needs help with market research and data analysis. Now, you can hire a popular KPO company, like Atidiv, to handle it. These companies have experts in specific fields who can do the job better and faster than a regular outsourcing company.
In this article, let’s gain more clarity and learn what is KPO. Also, we will understand the KPO process and look at various KPO services.
What Do You Mean by KPO? – KPO Meaning Explained!
KPO (Knowledge Process Outsourcing) means hiring experts from outside your company. These experts usually handle tasks that require deep knowledge and specialised skills. A recent study shows that delegating logical tasks to a third party can save you up to 30-40% in operational costs.
For example,
- Say you run a business but don’t have in-house experts for legal work. Instead of hiring full-time employees, you can outsource these tasks to a KPO company. This saves your payroll costs.
To find the best KPO firms, you can look for third-party vendors that specialise in the area of operation you are planning to outsource. Here you get two options:
- Choose a “domestic” KPO company that operates in India
- Do “offshoring” by hiring professionals from another country (often done for lower costs)
5 Major KPO Services
Till now, you must have understood the KPO definition. Now, please note that KPO covers a wide range of services that can help your business grow. Let’s check out five major types of KPO services:
1. Data Analytics and Interpretation
A data analytics KPO collects information about your:
- Supply chain
- Sales
- Customer behaviour
It analyses this information and offers you solutions. For example, say you are facing troubles with shipping delays or inventory shortages. Now, a KPO company can study your logistics and tell you where the bottlenecks are. They will particularly look at procurement, transportation, and inventory management to find ways that make your supply chain faster.
2. Market Research
If you want to grow your business, you need to understand your customers. A market research KPO helps you gather important details about your target audience, competitors, and industry trends.
For example,
- Say you are launching a new product. Now, you need to know:
- Who will buy it? (Age, gender, location, income
- What do they need? (Pain points and preferences)
- Who are your competitors? (How can you stand out?)
To give you these insights, a KPO company uses surveys and statistical tools. Most D2C companies operating in the US, UK, and Australia regions use KPO insights to craft better retention strategies and launch plans.
3. Financial Consulting
Do you find managing business finances tough? A financial KPO can help you handle:
- Accounting
- Budgeting
- Investments.
For example, say you’re unsure about how to manage cash flow. Now, a financial KPO can analyse your income and expenses and suggest ways to improve your financial health. With expert financial guidance, you can make better financial decisions and avoid losses.
4. Advanced Data Entry and Management
As a business owner, you must be dealing with huge amounts of data! A data management KPO helps you store, organise, and retrieve important information.
For example,
- Say you run a healthcare business. You need to keep track of patient records, invoices, and medical history. Now, a KPO company can set up a secure database. It can ensure easy access to this information while maintaining privacy and accuracy.
Such a management reduces errors and boosts business productivity. Nowadays, several US and UK-based D2C brands with lean backend teams outsource data management to leading KPOs.
5. Legal Process Outsourcing (LPO)
Instead of hiring an expensive law firm, you can outsource legal tasks to an LPO at a lower cost. Outsourcing legal work ensures compliance and protects you from legal risks.
For example,
- Say your business needs to draft contracts or handle legal disputes. Now, an LPO company can provide experienced lawyers who specialise in these areas.
LPOs usually help with:
- E-discovery: Collecting digital evidence for legal cases
- Litigation support: Assisting businesses with legal disputes
- Regulatory compliance: Ensuring your business follows all laws and industry rules.
Legal KPOs are highly recommended for D2C companies and consumer brands operating across the US, UK, and Australia regions with limited in-house legal bandwidth.
How Does the KPO Process Work?
If you decide to hire a KPO firm, here’s what the process looks like:
1. Understanding Your Needs (Client Requirement Analysis)
First, the KPO company will talk to you and understand exactly what you need help with:
- Do you need market research to find more customers?
- Do you need financial advice to manage your expenses?
- Do you need data analysis to improve your business operations?
The goal is to clearly define your business problem and how the KPO can solve it.
2. Collecting Information (Data Collection)
Once the KPO company understands your needs, they start gathering information:
- If it’s a financial KPO, they may collect data on your income and expenses.
- If it’s a market research KPO, they might conduct surveys or analyse customer behaviour.
- If it’s a legal KPO, they will review your contracts and legal documents.
This step is all about getting the right data for analysis. Nowadays, CX leaders, VPs, and directors at growing D2C brands (earning $5M+ revenue) often outsource analytics to leading KPOs.
3. Analysing the Data (Data Analysis)
Now, the KPO experts study the collected data. They try to find useful patterns and insights. For example,
- If you hired a data analytics KPO, they will check for trends, risks, and opportunities.
- If you hired a financial consulting KPO, they will look for ways to cut costs and increase profits.
This step helps turn raw data into valuable knowledge.
4. Finding Solutions (Knowledge Generation)
After analysing the data, the KPO company develops practical solutions:
- A market research KPO suggests new target markets for your business.
- A management consulting KPO recommends improving your team structure.
- A legal KPO helps you fix loopholes in your contracts.
At this stage, the real business value is created.
5. Creating Reports (Report Preparation)
All findings and recommendations are put into a report. This report summarises the key insights and explains the next steps. It might also include graphs, charts, and expert advice for easy understanding.
6. Ensuring Quality (Quality Control)
Before delivering the final report, the KPO team checks for errors and accuracy. They make sure that all calculations and insights are correct. This step ensures high-quality and reliable results.
7. Delivering the Results (Client Delivery)
The KPO team presents the final results to you. They explain the findings and how you can apply them to improve your business. Now, you have all the information you need to make smart business decisions!
8. Feedback and Improvements (Feedback and Improvement)
After receiving the results, you may have questions or need adjustments. If something isn’t clear, the KPO team can clarify and refine the results. Moreover, if needed, they update their recommendations based on your feedback.
Hire a KPO and Let Experts Perform Critical Tasks
As of 2023, the global KPO market was estimated at $121.2 billion (Rs. 10 lakh crores). The market is expected to grow to $347.3 billion (Rs. 28.80 lakh crores) by 2030. This widespread usage is because KPO outsourcing helps you to hire experts in various areas, such as:
- Data analysis
- Market research
- Finance
- Legal support, and more.
Instead of hiring full-time specialists, you can outsource critical tasks to professionals who have deep expertise. This saves time, reduces costs, and improves efficiency. It is highly useful for UK and US-based D2C companies earning $5M+ revenue as it helps them achieve more productivity with smaller internal teams.
Most KPO firms follow a structured KPO process (understanding your needs, collecting data, analysing information, and providing insights) to deliver high-value solutions that help your business grow.
If you’re looking for a trusted KPO provider, we at Atidiv can help. With skilled professionals and industry expertise, we offer the best KPO services. Get in touch today and take your business to the next level!
FAQs On KPO
1. How is KPO different from regular outsourcing?
KPO outsourcing focuses on tasks that need expert knowledge, like market research or financial analysis. In contrast, regular outsourcing handles simple tasks like customer experience support or data entry.
2. Is KPO only for big companies?
No! Startups and small businesses can also benefit from KPO. They can benefit from expert services without hiring full-time employees.
3. Will KPO outsourcing save me money in 2025?
Yes! Instead of hiring in-house specialists, you pay only for the services you need. This reduces your committed costs and lets you hire more qualified experts.
4. How do I choose the right KPO provider?
You can look for a provider with experience in your industry. Choose the one with positive reviews and clear pricing.
5. Will my business data remain safe with a KPO?
Most reputable KPO firms follow strict data security measures to protect your information. However, it is suggested to always check their security policies before hiring.