Knowledge Resources Development Process In Business Process Outsourcing (BPO) Organizations

Abstract

The current situation on the market shows, that if companies want to stay competitive, they need to focus on their core activities and reduce non-value added operations to a minimum or even delegate them outside the company. This approach, called "Outsourcing" started in 1979 and is expanding the market rapidly. Nowadays, there are enormous Business Process Outsourcing (BPO) companies that specialize in providing all kinds of back-office services. Firms contract BPOs for some strictly defined operations and control the results by agreed metrics called Key Performance Indicators (KPIs). The biggest challenge for BPO is to properly manage available Knowledge Resources (KR). Whole knowledge management needs to be precisely planned and controlled to ensure that proper people are trained in right domain, on time, with highest possible quality and without losing any resource capability. In this article, authors discuss issues related to the development of Knowledge Resources in Business Process Outsourcing Organizations and propose some agent-based simulation model to describe development process.