How do KPO and BPO are Two Different Aspects of Outsourcing Services? | DK Business Patron
Before going any further you should know what both, KPO and BPO means. Because first, you need to understand what both do and what sectors they are used in.
What is Knowledge Process Outsourcing (KPO)?
Knowledge Process Outsourcing is popularly known as KPO. KPO companies involve outsourcing knowledge-based and information-related tasks such as research and analysis to a third-party provider.
What is Business Process Outsourcing (BPO)?
Business Process Outsourcing is popularly known as BPO, which involves outsourcing specific business functions, such as customer service, payroll processing, or accounting, to a third-party provider.
KPO And BPO:
KPO and BPO are two types of outsourcing services commonly used by businesses. KPO, or Knowledge Process Outsourcing, is a type of outsourcing that focuses on outsourcing knowledge-based and information-related tasks. These tasks typically require advanced analytical skills, specialized expertise, and industry-specific knowledge. KPO services can include things like market research, data analytics, and intellectual property research.
BPO, or Business Process Outsourcing, is a type of outsourcing that focuses on outsourcing specific business functions, such as customer service, accounting, and human resources. BPO services can be categorized into two main types – front-office and back-office outsourcing. Front-office outsourcing typically involves customer-facing services like technical support, customer service, and sales, while back-office outsourcing involves tasks like data entry, payroll processing, and accounting.
Difference Between KPO And BPO:
Different Type Of Employees Being Hired: KPOs have to hire people with expertise and knowledge but on the other hand, when we talk about BPOs you really don’t need any skilled employees, you just require basic ability and skills for the process.
Both Aims Different: KPOs is a process outsourcing in which they aim to outsource knowledge and information to a third party. But on the other hand, BPO is a process outsourcing that aims to outsource non-primary activities, as the main aim of BPO is to increase productivity and efficiency and decrease the cost of the business.
Requirement of Activities: KPO activities mainly involve research support and analytics and legal support as well as they provide knowledge, so the main agenda for them is to provide the right information, so they require research support. On the other hand, BPO requires many activities support which involves HR support, data entry, customer support, and accounting.
Different Kind of Tasks: When talking about tasks, BPO serves predefined tasks but on the hand, when you are working with KPO, you need proper study of business, if you want to understand the business because you can not simply work with such business without having a solid understanding of their businesses.
Coordination and Collaboration: You don’t really need collaboration or coordination when working with BPO but at the same time when talking about KPO, you need quite high collaboration and coordination because the information that is provided is a combined effort of every individual.
The Difference in Complexity: One of the major differences between both process outsourcing is that KPO tasks are very complex as compared to BPO. As BPO depends totally on cost arbitrage, and on the other hand, KPO depends on knowledge arbitrage. So as both processes depend on different things so both the complexity differs.
KPO and BPO are two totally different process outsourcing but both KPO and BPO can help businesses improve efficiency, reduce costs, and free up resources to focus on core business functions. There are many different services that can help your business in improving its efficiency such as catalog services for e-commerce. However, businesses need to carefully evaluate their needs and choose the right outsourcing provider to ensure success.