Knowledge Process Outsourcing Some Key Challenges

Knowledge process outsourcing has proved to be one of the most phenomenal concepts of the recent times

. Instead of hiring of simple business processing help, KPO goes a level higher and provides businesses with knowledge based solutions for their business support as well as administrative tasks.

However, it is not without its share of challenges:

Here are some common challenges faced by the KPO industry:

Scale Challenges

When businesses seek to create and utilize knowledge for a specific purpose i.e. in a department-to-department fashion, it becomes terribly difficult to achieve effective scale. This is because the analytical capabilities

are very closely linked to certain geographies, departments and processes. And quite obviously resources would stay loyal to their respective managers as a result of which their capabilities remain latent. This further

results in limiting the capabilities of the enterprise as a whole. Moreover, companies that rely on individual contributions instead of team work to generate knowledge often find it more difficult to do so.

Organizational Challenges

Knowledge processes generally require collaboration across the various departments and work processes in oder to achieve better results. However, the status of different departments are at different levels i.e. their

research stages may be at different levels or their analytics capabilities might be different. In addition, the various departments may have different leaders and thus adopt conflicting aspirations and objectives. All these

differences make it quite challenging for the company as a whole to function seamlessly.

Cultural Challenges

This is perhaps the most complacent of changes in the offshore outsourcing industry. Knowledge processes are fully integrated in all the functions of a company and all decisions of the business. However, the shift

from traditional processes to knowledge driven decision making might not go well with some executives and this might create cultural issues in the project.

Standardization Challenges

knowledge processes are developed gradually and used in pockets by transient resources that have high specialties. This camouflages the fact that the processes may themselves lack standardization across product

divisions, geographies or business units. Dues to this, the analytic processes with the same objective are run with inconsistent data definitions.

Solution

An effective knowledge process outsourcing strategy ensures that all these challenges are overcome and the with effective communication, there is not only clarity within the organization but also between the client

and the service provider. This way both the parties can benefit from the knowledge process outsourcing industry and enhance their work processes as well as revenue.

by: Maneet Puri

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