Read the passage and answer the questions:
The highest level of decision makers or policymakers perform quinary activities. These are subtly different from the knowledge-based industries that the quaternary sector in general deals with. Quinary activities are services that focus on the creation, re-arrangement and interpretation of new and existing ideas; data interpretation and the use and evaluation of new technologies. Often referred to as ‘gold collar’ professions, they represent another subdivision of the tertiary sector representing special and highly paid skills of senior business executives, government officials, research scientists, financial and legal consultants, etc. Their importance in the structure of advanced economies far outweighs their numbers. Outsourcing has resulted in the opening up of a large number of call centers in India, China, Eastern Europe, Israel, the Philippines and Costa Rica. It has created new jobs in these countries. Outsourcing is coming to those countries where cheap and skilled workers are available. These are also out migrating countries. With the work available through outsourcing, the migration in these countries may come down. Outsourcing countries are facing resistance from job-seeking youths in their respective countries. The comparative advantage is the main reason for continuing outsourcing. New trends in quinary services include knowledge processing outsourcing (KPO) and ‘home shoring’, the latter as an alternative to outsourcing. The KPO industry is distinct from Business Process Outsourcing (BPO) as it involves highly skilled workers. It is information-driven knowledge outsourcing. KPO enables companies to create additional business opportunities. Examples of KPOs include research and development (R and D) activities, e-learning, business research, intellectual property (IP) research, legal profession and the banking sector.
Which among the following are examples of Knowledge Processing Outsourcing (KPO)?
A. E-learning
B. Business Research
C. Research and development activities
D. Manufacturing activities
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A, B and C only
A. E-learning Correct. E-learning is part of KPO: it is knowledge work done by skilled people.
B. Business Research Correct. Business research is also part of KPO, as it rests on knowledge and information.
C. Research and development activities Correct. Research and development (R and D) activities are part of KPO too.
D. Manufacturing activities Incorrect. KPO is information-driven knowledge outsourcing by highly skilled workers; manufacturing is a secondary activity that makes goods, so it does not belong to KPO.
NCERT (2025-26): “Quinary Activities … New trends in quinary services include knowledge processing outsourcing (KPO) and ‘home shoring’, the latter as an alternative to outsourcing. The KPO industry is distinct from Business Process Outsourcing (BPO) as it involves highly skilled workers. It is information driven knowledge outsourcing. KPO enables companies to create additional business opportunities. Examples of KPOs include research and development (R and D) activities, e-learning, business research, intellectual property (IP) research, legal profession and the banking sector.” |