The Role of Knowledge Process Outsourcing in Creating National Competitiveness in Global Economy
The Role of Knowledge Process Outsourcing in Creating National Competitiveness in Global Economy

Summary/Abstract: The article deals with the qualitative new direction in achieving competitive advantage and/or core competence – outsourcing of knowledge process. Knowledge economy uses data as a raw material and transforms it using tech-nology, analysis tools and human intelligence into knowl-edge and competence. Furthermore an aspect of national economy has been taken into the consideration and ex-posed as a background for the topic. In most cases knowledge work is coupled with the work which resides in the area of corporate core compe-tence or – at least – competitive advantages. Whereas to find and sustain the way to remain competitive versus the rivals has always been undoubted priority of business strategy. Thus the new prospect – knowledge outsourcing (KO) – emerges. Recently KO is seen as the highest growing business in the coming decade. Knowledge services themselves fall into continuously expanding area with constantly growing demand. Knowl-edge outsourcing, unlike business process outsourcing that deals with executing standardized (“back-office”) processes, involves higher-end services which require advanced analytical and technical skills. Embracing technology as a driving force, knowledge outsourcing is changing the way businesses conduct themselves in the global marketplace. With an Internet connection and spe-cialized skills, individuals and companies in the remotest ends of the earth are able to compete and collaborate in today’s global economy. The constantly higher need for flexibility, significant reduction in time required to “go to the market”, in-creased competition in the global market and cost pres-sure have all been driving forces to move towards KO as to a wellspring for innovation of ability to manage the recourses. That is based on notion that knowledge crea-tion is the raw material of innovation and is thus a major driver of competitive advantage. Taking advantage of using the knowledge process outsourcing, national economy gets a highway leading to creation of better competitive position in the global arena. The comparative advantage model was taken into the consideration in exploiting the case. Furthermore, theoretical models concerning outcomes of knowledge process outsourcing were explored and sustaining em-pirical studies were employed to promote the topic. Thus the article reveals new prospects for national economies to take advantage of new competition ways in increasing its own competitive skills in the global scene. Several different aspects of knowledge process out-sourcing subject have been taken into account in the article. Theoretical approach concerning the subject, gains from the process, backlashes and possible difficulty have been analyzed.

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