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Difference between BPO and KPO
Businesses like to outsource different processes so that the efficiency of the employees and the companies can be increased. Outsourcing also helps in reducing the cost of hiring and training employees and giving them salaries. The process of outsourcing is available for business and knowledge processes and in this article, we will discuss the difference between BPO and KPO.
What is KPO?
The full form of KPO is Knowledge Process Outsourcing. It is a type of outsourcing in which different processes are outsourced. Some of them are listed below ?
- Research and development
- Engineering services
- Data analysis
- Healthcare services
There are many other processes besides this list that are outsourced to KPOs. Legal services also come in KPO and it is known as Legal Process Outsourcing.
KPOs help organizations to fill the vacancies with skilled and trained employees. The other benefits that organizations get through the KPO are ?
- Efficient management of hardware
- Researching the markets
- Products and service details
- Competition
KPO Segments
There are many segments of KPO listed below ?
- Data Management, Search, and Analytics
- Banking, Securities, and Insurance
- Market Research and Competitive Intelligence
- Engineering Design
What is BPO?
The full form of BPO is Business Process Outsourcing. This is a type of outsourcing in which non-core business processes are assigned. Businesses outsource the tasks to BPOs as they are efficient and they charge less fees. The services provided by a BPO are ?
- Call center operations
- Customer service
- Front office functions
- Human resources
As all these processes are outsourced so businesses get an opportunity to focus on other critical things.
Types of BPOs
BPOs are of different types and we will discuss them here.
- Onshore BPO ? This is a type of BPO in which businesses outsource the business tasks to the BPO vendors available in their own country.
- Offshore BPO ? This is a type of BPO in which businesses have the option of outsourcing the tasks to the BPO vendors available in other countries. Businesses do so because the cost is low in comparison to outsourcing in their own countries.
- Nearshore BPO ? This is a type of BPO in which the tasks are assigned to those BPO vendors who are available in nearby countries and can understand the language easily. Communication constraints are reduced and work can be done easily and efficiently.
Difference between BPO and KPO
Here is a table which shows the difference between BPO and KPO.
| BPO | KPO |
|---|---|
BPO deals with the operations related to the back office and front office. Some of these operations are ?
|
KPO deals with the following operations ?
|
| BPO depends on size and efficiency. | KPO deals with the depth of knowledge, judgment, and experience. |
| The services provided by the BPO is low-end. | KPO provides high-end services. |
| Employees working in a BPO should have experience in different processes. | Employees working in a KPO should be skilled and should have good knowledge of one or more subjects. |
| BPO is based on rules. | KPO is based on judgment. |
| BPO depends on cost. | KPO depends on knowledge. |
| The process of BPO is less complex comparatively. | The process of KPO is more complicated comparatively. |
| BPOs focus on saving costs and completing all the tasks efficiently. | KPOs focus on sharing knowledge and making decisions through planning and strategies. |
| BPO companies can be of any size. | KPO companies are usually very large. |
Conclusion
BPOs and KPOs are the companies to which different businesses outsource their processes. BPOs provide services like call center operations, customer service, front office functions, and human resources. KPOs provide services like market research, medical content and services, education, publishing, equity research, and legal process management.
FAQs on BPS Vs. KPO
1. On which aspects do BPOs and KPOs focus
BPOs focus on completing the task efficiently and also reduce the cost. KPOs focus on sharing knowledge. They also make decisions by proper planning.
2. The process of which outsourcing is complex?
The process of KPO is more complex than BPO as KPOs deal with knowledge. Employees working in a KPO should be skilled in their field of knowledge. The processes of KPOs are more complex than BPOs.
3. Which outsourcing system is less costly?
BPO is less costly in comparison to KPO. It is so because the operational and labor costs of BPO is less than KPO.
4. What is the primary difference between BPO and KPO?
BPO companies deal with daily routine tasks which include customer support, payroll processing, data entry, and many more. KPO is used for knowledge sharing and the processes are handled by the experts.
5. What skills are needed to work in BPO and KPO
Individuals who want to work in a BPO should have basic training skills and knowledge. They just have to follow the guidelines given to them by the company. Individuals who want to work in a KPO should be expert in their field as they have to share knowledge. These individuals should also have advanced analytical capabilities.
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