KPO: The Challenge of Measuring Quality and Productivity

KPO creates the need for a new business and engagement models, where measurement of quality and productivity vary from those associated with other types of outsourcing. Value-based measurements around service provider specialization, competency, scope of innovation, and impact on client business objectives replace the pure cost-based measurements associated with traditional outsourcing. Successful KPO engagements require more partnering and sharing of responsibilities and knowledge in order to improve performance versus rote compliance-to-process standards and automation structures alone.

KPO holds great promise for global organizations seeking to leverage the productivity and economies of scale that a strategic outsourcing relationship can provide. The service provider's best positioned to deliver the value that KPO promises have deep analytics skill, BI process excellence, vertical market expertise, high intellectual property assets and solid global infrastructure allowing for ongoing computing and storage of high volumes of data.