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

Subset

  • 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

Categories

  • 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

Functions

  • 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.

Investment

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

Qualification Required

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

Training

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

Research before contract

  • BPO: Less
  • KPO: More extensive

Challenge

  • BPO: Less
  • KPO: More

Period

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

Overall Revenue

  • BPO: High as compared to KPO

Result

  • KPO: better than BPO

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