Question

Statement I: Outsourcing helps in reducing costs and increasing efficiency.
Statement II: KPO (Knowledge Process Outsourcing) involves more high-end tasks than BPO.

• A. Both are correct.
• B. Both are incorrect.
• C. Only I is correct.
• D. Only II is correct.

Hint:

\[ \mathrm{BPO} \rightarrow \mathrm{Routine\ Services} \] \[ \mathrm{KPO} \rightarrow \mathrm{Knowledge\ Based\ High\ End\ Services} \]

Answer 1

The Correct Option is A

Concept: Outsourcing refers to obtaining services or business operations from external sources to improve efficiency and reduce operational costs. KPO and BPO are important forms of outsourcing.

Step 1: Analyze Statement I.
Outsourcing:
• Reduces operational costs
• Improves productivity
• Increases efficiency Thus: \[ \mathrm{Statement\ I\ is\ Correct} \]

Step 2: Analyze Statement II.
KPO: \[ \mathrm{Knowledge\ Process\ Outsourcing} \] involves specialised and knowledge-based work such as:
• Research
• Data analysis
• Financial consultancy These are more advanced than routine BPO services. Thus: \[ \mathrm{Statement\ II\ is\ Correct} \]

Step 3: Identify the correct option.
Since both statements are correct: \[ \boxed{\mathrm{Both\ are\ correct}} \] Hence, the correct answer is: \[ \boxed{\mathrm{(A)}} \]