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BPO vs KPO what’s the difference?29 Mar

iStock_000007937236XSmallAs 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.

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15 Responses to “BPO vs KPO what’s the difference?”

  1. Maximizing Management: Boosting Performance with Outsourcing | TryBPO.com Reply

    [...] tasks to accomplish and problems to solve, the modern manager can’t possibly get it all done. Business Process Outsourcing (BPO) is one way to free managers from time consuming tasks and allow them to achieve their full [...]

  2. David Reply

    Nice information about BPO and KPO.

  3. Transforming Philippines Business Process Outsourcing into Knowledge Outsourcing | TryBPO.com Philippines Outsourcing News and Information Reply

    [...] process outsourcing (KPO) is a new product in the business process outsourcing (BPO) field.  KPO involves much more than standard BPO, which focuses on providing very basic customer care and support.  KPO takes these simple [...]

  4. Outsourcing Tech Support Reply

    This is a pertinent post. A very interesting and well written article! KPO is essentially an offshoot of BPO. It is the high-end activity of the BPO industry and is estimated to have a magnificent growth in the next few years. It is estimated that the low-end work of BPOs’ will shift to destinations like Bangladesh and Philippines, while India moves over to KPO; which implies moving over from standardized routine processes and data entry kind of work in a BPO, to processes that demand advanced knowledge, analytical interpretation and technical skills. Understandably, the average KPO employee is expected to have better qualifications, skills and knowledge as compared to his/her BPO counterpart.

    - Jaime

  5. KPO Companies Reply

    Nice write-up! You bring up an interesting point. Points worth to note:

    1. KPO industry unlike BPO provides domain based processes and business expertise.

    2. KPO is more like a challenge as it demands advanced and expertise skills on part of its employees.

    3. BPO on the other hand is more or less like a commodity business which stretches more on information technology and its various sectors.

    4. The BPO market is long term in nature as compared to the KPO market. With every passing day the BPO market base is expanding and so is the various processes outsourced through it.

    Firms that are considering outsourcing should therefore be clear on what kind of outsourcing they really want. If they want to focus on their core business tasks, they should opt for BPO. If they want to have added help on their business then they should consider KPO.

  6. uberVU - social comments Reply

    Social comments and analytics for this post…

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  7. BPO vs KPO what’s the difference? | OutsourcingWorld.biz Reply

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  8. Peter Reply

    KPO, ellipsis of Knowledge Process Outsourcing, in factual stipulations means outsourcing a procedure which requires dispensation comprehension in one outline or another.
    BPO stands for Business Process Outsourcing, which means receiving a business progression, implemented via the strait of outsourcing

  9. rancho Reply

    this article is good. we can know difference between knowledge process outsourcing and business process outsourcing.but i think both are the compliment of each other.because knowledge can make to success to any business.

  10. syndtucho Reply

    “Business Process Outsourcing (BPO) is one way to free managers from time consuming tasks and allow them to achieve their full […”
    Intresting. I would like details!

  11. Difference Between BPO and KPO and RPO | Difference Between Reply

    [...] source from:http://www.trybpo.com/bpo-vs-kpo-whats-the-difference/ [...]

  12. arun Reply

    hi…are mechanical engineers involved in a kpo ??? is there a difference between engineering services and kpo….what sort of job can a fresher (mechanical engineer) get in a kpo ???

  13. MikeConstruction Reply

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