ABSTRACT

Outsourcing is contracting with another company or person to do a particular function. There are approximately eight outsourcing processes but at vendor side there are three processes used called three waves of outsourcing ITO, BPO, and KPO. There are uncertain and critical issues in both processes ITO and BPO of outsourcing. But for effective outsourcing uncertainty problem have been resolved. It has been resolved through KPO mostly, due to its productivity, value creation and better customer relationship characteristics. So the issue, world is adopting KPO rapidly to increase their economic conditions, but Pakistan up to yet not taking the advantages of KPO. The goal of this research study is to encourage the companies to adopt KPO, and what are the factors that resist the adoption of KPO. To achieve the objectives of this study, questionnaire survey was conducted on outsourcing organizations of Pakistan, through online and courier. Results showed that there are many advantages of KPO, and the organizations which are using ITO and BPO in Pakistan want to switch to KPO, but there are some issues which resist the adoption
of KPO. Recommendations are provided to resolve these issues. Further in future
strong solutions should be provided to resolve these issues.

Key Words: outsourcing, ITO outsourcing, BPO outsourcing, KPO outsourcing.