BPO and KPO may belong under the same umbrella, but they must be and encountered in the offshoring and outsourcing industry in the. Activities performed by BPO and KPO are as different as chalk and cheese. Read primary differences between BPO and KPO. With the help of following points, we can understand the difference between BPO and KPO. BPO and KPO are the important buzzwords in the.

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Different types of services by BPO industry are: It is helpful for those who are under-graduate or graduate and are not able to be employed in any company. Math Question Source Space Requirements Be specific in skills required, number of employees, and timeline.

This process of handling customers by customer care executives is best example of BPO. BPO, abbreviation of Business Processing Outsourcing, means getting a business process implemented using the channel of outsourcing.

BPO is volume driven. Subscribe to our mailing list. Almost all the transnational companies, today, outsource their non-core activities, just to pay attention to their primary business.

Leave a Reply Cancel reply Your email address will not be published. If outsourcing is done to a company situated outside the parent company’s country, it is known as offshore outsourcing. Outsourcing of routine or peripheral business functions is in vogue. Add new comment Your name.

Low-level decisions can also be taken by these firms. The organization may be a different entity or the subsidiary of the main organization that can be located in the same country or overseas to minimize cost.

While front office services are related to client interaction and customer support, back office services are related to finance and HR. Being the most popular educational website in India, we believe in providing quality content to our readers.

Business Process Outsourcing BPO and Knowledge Process Outsourcing KPO are two business terms also considered popular buzzwords in the past frequently used and encountered in the offshoring and outsourcing industry in the Philippines. These activities are directly related to core offering of parent vpo. BPO provides an array of services such as:. The major cause behind the outsourcing of business process is to reduce costs and maximize efficiency.


Difference between BPO and KPO | BPO vs KPO

Nowadays, it has become a fashion or trend for youngsters in some countries to work in BPOs just for time pass. It is originally associated with the firms’ production of goods for use or sale using labor and machines, tools, chemical and biological processing, or formulation, such as Coca Cola that outsourced large sections of its supply chain.

The trend started in the late eighties when businesses sent parts of their processes to be completed in foreign countries. Based on a work at www. In spite of its popularity, however, understanding the two concepts can be a little tricky, especially for companies who are new to the outsourcing and offshoring scene.

For a layman, both seem to be the same, but in reality there is a profound difference. And the motive behind such outsourcing is directly linked to cost reduction. It usually consists of the back office or front office operations. A BPO is capable of handling both front end and back end operations of an entity. So if you compare the functionalities and expertise involved, KPOs are far better than BPOs, but both of them help businesses to streamline their operations and making them cost effective.

BPO focuses on low-level process, whereas focus is on the high-level process. Now whenever you hear of a BPO, in your mind first thought comes is of Telecommunication service only, because we are using it daily and we often call up the customer care executive for resolving minor problems. Companies usually outsource such processes to BPOs which are not directly linked to its value chain. Over the time, Business Process Outsourcing BPO has gained ample importance, by providing services related to marketing, human resources, customer support, technical support, etc.

BPO refers to the outsourcing of peripheral activities of the organization to an external organization to minimize cost and increase efficiency. Even businesses outsourcing their services to KPOs do a more extensive research before giving a contract to a particular KPO, as a good KPO can be the differentiating factor between a good market offering and a bad one.

KPO is another kind of outsourcing whereby, functions related to knowledge and information are outsourced to third party service providers.


We’ve rounded up some of the important facts to remember about the two concepts to simplify and clarify what KPO and BPO are really all about.

KPO, on the other hand, could be considered as a part of BPO, but it involves outsourcing of core functions that require specialized skills and knowledge. Most Famous Advertising Slogans of all times 85 times Mailed.

If you will be outsourcing key tasks, make sure you find an outsourcing and offshoring betweenn provider diffeence has the expertise and knowledge needed to write your story of success instead of a bad outsourcing experience. While basic education may be enough for you to get a BPO job but a KPO job requires you to be competent in a particular field.

The services like capital and insurance market services, legal services, biotechnology, etc.

The Key Differences Between BPO and KPO

On the other hand, KPO, abbreviation of Knowledge Process Outsourcing, means outsourcing a process which requires processing knowledge in one form or another. Conversely, KPO is dependent upon knowledge arbitrage.

KPO provides great quality work and deliver everything on-time with uninterrupted services. If one has skill, he will definitely be employed in BPO. More or less they are both process outsourcing.

The Key Differences Between BPO and KPO

It is an extended version of BPO. At present, there is hardly any multinational company which is left untouched from outsourcing its business operations. Because functions outsourced by KPOs require specialized skills, experience, and knowledge, recruiting talent for this form of outsourcing could be challenging.

KPOs are usually more specialized and knowledge based. These professional personility can work for their own field task and no different process or different job responsible like BPO. The different types of BPO are explained below:. With the global outsourcing sector showing steady growth, despite the looming slowdown, there have been many KPO and BPO units coming up especially in the developing nations. Betwewn refers to the outsourcing of non-primary activities of the organization to an external organization to minimize cost and increase efficiency.