Read the passage and answer the questions:
Outsourcing
Outsourcing has resulted in the opening up of a large number of call centres in India, China, Eastern Europe, Israel, Philippines and Costa Rica. It has created new jobs in these destination 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/home 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 of the following is not an example of Knowledge Processing Outsourcing?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Aviation and water transport
KPO is information driven knowledge outsourcing that needs highly skilled workers. Its examples are research and development, e-learning, business research, intellectual property research, the legal profession and banking.
Option (1) e-learning — An example of KPO (Incorrect). Preparing and delivering courses online is knowledge work.
Option (2) Intellectual property research — An example of KPO (Incorrect). Research on patents and other intellectual property needs highly skilled experts.
Option (3) Research and development activities — An example of KPO (Incorrect). R and D is the first example of KPO in the passage.
Option (4) Aviation and water transport — Not an example of KPO (Correct). Aviation and water transport carry people and goods; they are transport services, not the processing of knowledge or information.
NCERT (2025-26): “QUINARY ACTIVITIES … Outsourcing has resulted in the opening up of a large number of call centres in India, China, Eastern Europe, Israel, 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 though 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.” |