Knowledge Process Outsourcing (KPO) is back in the news with estimates ranging from $10-17 Billion/year volume by 2010. I ran the first ever MBA elective on "Global Outsourcing of Knowledge Based Services" in Fall 2005 – and a CAPM seminar in April 2006, with the same title. While well attended, I think KPO classes and seminars were rather early for 2005.
During those early years "outsourcing" was a scary word associated only with layoffs. Globalization and its opportunities was something that was not clearly apparent.
It was nice therefore to read the KPMG report that explains the difference between "BPO" (Business Process Outsourcing ) and Knowledge Process Outsourcing particularly for the financial sector. The report is well written though I would disagree with the rather provocative subheading …."outsourcing the core". You really cannot outsource your core competence but you can certainly re-define what your firm’s core competence is when you can get a knowledge task like equity research done overseas at a low cost. But all in all a great report !