Business Process outsourcing involving highly skilled workers is called as_________________.
Answer & explanation
Correct answer: option 2
The correct answer is option 2: Knowledge Processing outsourcing
The Knowledge Processing outsourcing (KPO) industry is distinct from Business Process Outsourcing (BPO) as it involves highly skilled workers.
While standard Business Process Outsourcing (BPO) typically focuses on operational or clerical tasks (like customer support or data entry), KPO is a specialized subset that requires advanced analytical skills and technical expertise.
KPO involves tasks like:
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Legal services
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Market research
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Financial analysis
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Intellectual property research
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Technical content writing
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Data analytics
These require domain expertise, specialized skills, and decision-making abilities — unlike typical BPO tasks which are more process-oriented.
Option 1: Home shoring – Refers to outsourcing work to remote workers within the same country, not necessarily involving high skills.
Option 3: Off-sourcing (Offshoring): This is the practice of moving business processes to a different country to reduce costs, regardless of the skill level involved.