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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What is the difference between BPO and KPO

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. Let us first define both the terms.

Business Process Outsourcing or BPO is outsourcing of some of the business functions to a third party in order to save money. It usually consists of the back office or front office operations.


While front office services are related to client interaction and customer support, back office services are related to finance and HR.

If outsourcing is done to a company situated outside the parent company’s country, it is known as offshore outsourcing. KPO involves outsourcing of core functions which may or may not give cost benefit to the parent company but surely helps in value addition.

Companies usually outsource such processes to BPOs which are not directly linked to its value chain. And the motive behind such outsourcing is directly linked to cost reduction.

On the other hand, highly specialised and knowledge based services are outsourced to KPOs.

These activities are directly related to core offering of parent company. The motive behind such outsourcing is not only to reduce cost but to differenve specialised solutions for which availing in-house resources might be tough. 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.

Also, the training provided by the KPOs is more rigorous and sector specific.


Difference between BPO and KPO | BPO vs KPO

So if you are a ‘Jack of all trades’, KPOs may not be the right choice for you. Even businesses outsourcing their services to KPOs do a more extensive research before giving a contract to a particular KPO, as a ajd KPO can be the differentiating factor between a good market offering and a bad one. 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.

Why KPOs are emerging at a rapid pace now? Newer Betwden Older Post Home.

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