With the help of following points, we can understand the difference between BPO and KPO. BPO and KPO are the important buzzwords in the world of business. BPO stands for Business Process Outsourcing. KPO stands for Knowledge Process Outsourcing. KPO is more specific, specialized, skilled and knowledge-based system as compared to BPO.

    BPO Vs. KPO: Difference between BPO and KPO

    We can differentiate between these two terms with the help of following points to find which one is better.

    Full Form

    • BPO: Business Process Outsourcing
    • KPO: Knowledge Process Outsourcing


    • BPO: subset of outsourcing
    • KPO: subset of BPO

    Work Nature

    • BPO: Contract of the responsibilities of some specific business processes or services to the third party
    • KPO: outsourcing of core information-related business activities

    Skills required

    • BPO: Communication Skills, Basic knowledge & language
    • KPO: advanced analytical skills, technical skills, high degree of specialist expertise


    • BPO:
      • Front Office – client interaction and customer support, Call centre services
      • Back Office – internal business functions i.e. finance, accounting and HR
      • other categories – Offshore and nearshore outsourcing
    • KPO: intellectual property research for patent applications; equity research, business and market research, legal and medical services; training, consultancy, and research and development in fields such as pharmaceuticals and biotechnology; and animation and design

    Focus/ Motive

    • BPO: Cost Reduction or Cost Saving
    • KPO: To get specialized Knowledge-based solutions, R & D etc. Not just Cost Reduction

    Business processes

    • BPO: Information technology-based (ITES-BPO)
    • KPO: Not just IT based, Also includes specialized knowledge


    • BPO:
      • Document processing
      • Data entry, Data analytic – Data/market/IP research
      • Customer Service, Customer Support, Helpdesk
      • Billing, verification
      • Transcriptions
      • Outbound/Inbound Calling, Market /Competitor research
    • KPO:
      • Engineering Designing, Drafting and Rendering – Mechanical, Structural, Architectural and Civil
      • Legal Process Outsourcing (LPO)
      • Technical Writing & Communications
      • Remote IT infrastructure Management – Helpdesk, OS, Applications, Database Administration, Maintenance & support etc.
      • Animation, 2D, 3D modelling etc.


    • BPO: Low to Medium
    • KPO: Medium to High

    Qualification Required

    • BPO: Basic Education is enough
    • KPO: Competent & Specialised


    • BPO: Less Rigorous
    • KPO: More Rigorous  & sector based

    Research before contract

    • BPO: Less
    • KPO: More extensive


    • BPO: Less
    • KPO: More


    • BPO: Long-term
    • KPO: Short-term nature as compared to BPO

    Overall Revenue

    • BPO: High as compared to KPO


    • KPO: better than BPO

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