Q.Which one out of the following statements is not true?
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Start your 14-day free trial to unlock the full solution →Statement (c) is not true: KPOs typically have better business opportunities than BPOs because they handle higher-value, knowledge-intensive work that commands premium pricing and margins.
Business Process Outsourcing has transformed the global economy over the past few decades, allowing companies to delegate specific functions to external service providers, often in countries with lower labor costs. The practice rests on a simple economic logic: focus internal resources on core competencies while farming out routine or specialized tasks to vendors who can perform them more efficiently.
When we examine the four statements, three describe well-established realities of the outsourcing landscape. Cost reduction and efficiency gains are the primary drivers—companies save on salaries, infrastructure, and overhead while tapping into round-the-clock operations across time zones. The claim that only low-skill jobs get outsourced is outdated; engineering firms routinely outsource CAD design, product development, and even R&D functions, while manufacturers contract out component production and assembly. The dissatisfaction among domestic job seekers in outsourcing countries is real and politically charged—workers in developed economies often see their positions migrate overseas, fueling debates about protectionism and fair trade.
The problematic statement is (c), which inverts the actual hierarchy of outsourcing services. Business Process Outsourcing typically involves standardized, high-volume tasks: call centers, data entry, payroll processing, customer support. These operations compete largely on cost, with thin margins and intense price pressure. Knowledge Process Outsourcing, by contrast, encompasses high-value analytical and technical work—legal research, financial analysis, pharmaceutical research, patent services, market intelligence. KPO clients pay premium rates for specialized expertise and intellectual output. …
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