As a small business owner you may be asking yourself “What’s the difference between BPO and KPO?”. The important thing to remember in any outsourcing situation is not what you call it, but what you are getting.

BPO is a great place for small and medium sized businesses just getting started in outsourcing. Tasks that have yet to be automated by engineering or internet research to provide leads to your sales team are good examples of BPO. Classic BPO is usually customer support or helpdesk related. Here are some others:

1. Business Process Outsourcing (BPO): All Business Domains & Functions
- Document processing
- Data entry, Data analytics – Data/market/IP research
- Customer Service, Customer Support, Helpdesk
- Billing, verifications
- Transcriptions
- Outbound/Inbound Calling, Market /Competitor research

KPO tends to be more technical in nature. This may be something you find too expensive to do in-house or just do not have the expertise to manage properly. Here are some typically successful, technical processes that can be outsourced:

2. Knowledge Process Outsourcing (KPO) Services:
- 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 modeling etc.

Lastly, I should mention RPO which is basically outsourced human resources. Although you will still need an in-house HR person to run the department, some administrative duties can be outsourced. For example:

3. Recruitment Process Outsourcing (RPO): Human Resources
- Worldwide Contractor staffing – Offshore/Remotely working resources/Onsite resources
- Online/Remote/onsite Training & Development -Technology & non Technology training
- e-learning courses development & Administration, Monitoring & Managing Training needs etc.
- Payroll Processing, Employees records, Employees Compensation & Benefits
- Performance Appraisals processing, Administration & Management

At TryBPO.com, we promise to work with you to find the best ROI for the service you need. Whether it is BPO, KPO or RPO we can provide a solution to fit you needs. Visit us today.

Debbie Uy wrote an interested post on the state of outsourcing in Davao City which you can view here. In it she goes on to explain that many outsourcing companies are benefiting from the cost-cutting that is happening with the global financial crisis. BPO in the Philippines grew 45% in 2007, 30%-35% in 2008, and they’re estimating a cautious growth of 35% again in 2009. Rather than cutting back on workforce, most offices are currently hiring to support the needs of their corporate partners.

What’s particularly interesting is the “talent scarcity” she refers to. One of the problems with Davao is that most of the outsourcing jobs pay 25% to 35% less than the same jobs in Manila or Cebu. Until now, most of the talent ends up in the capital looking for a job at one of the larger outsourcing companies. What we’ve found is that by offering a competitive salary and allowing those migrating employees to hang their hat closer to home, we’re still able to pick up the talent right out of university. As more and more outsourcers look at Davao as a viable alternative, the competition will grow, but less employees will feel the need to go to Manila to look for work.

As more and more BPO companies settle down in Davao, I believe we’ll see an increase in call center finishing courses available. These classes will better prepare the employees for the call center environment in terms of language, business etiquette, etc. I look forward to the expecting BPO growth in Davao and am interested to see how it plays out.

Thank you for taking the time to review our outsource blog…welcome to the site. Over the next few weeks we will continue to make adjustments and updates to site in an effort to provide better service and functionality. Let us start with a bit of background on this outsourcing company.

TryBPO.com was founded as an outsourcing solution by Justin Cooke and Joe Magnotti in 2006 as a way to cut costs for their mortgage company. As the sun soon set on the Real Estate Industry in the US, they found that quite a few companies were looking to cut costs in preparation for the economic downturn we were facing. Partnering with Mae Kristine Cordenillo in Davao, they found that Business Processing Outsourcing allowed them to decrease costs and maximize revenue through lead management support.

In 2007, TryBPO partnered with a local SEO internet marketing company. TryBPO began by offering outsourced internet research and quickly expanded to over 18 reps on 5 different projects. It was quickly becoming apparent that our “virtual solution” for the company was becoming unscalable…we needed an office to further support their growth. In 2008 we began searching for an office that would meet our outsource needs and found the perfect spot in Davao City, Philippines.

TryBPO chose outsourcing to the Philippines carefully. While the outsourcing opportunities were better established in India, the costs were quickly becoming prohibitive for the small and medium sized businesses. Manila and Cebu offer strong outsourcing opportunities, but the talent pool as compared to price was outstanding in Davao. Davao is also a high growth area and quickly becoming a choice location for large companies looking at outsourcing options.

As we continue to grow and expand our operation, we’re particularly interested in talking to small to medium businesses that have never outsourced before. We’re a boutique outsourcing company in Davao that will tailor our abilities to your in-house processes. We’d like to work with you to develop a team…a family overseas that works seamlessly with your business. We look forward to working with you!