Since BPO is volume-driven, its service scope is mostly based on cost arbitrage. However, there are a few types of outsourcing services that distinctly fall under one of the two categories.
Since KPO is a subset of BPO, most of the common KPO services come under business processing outsourcing. For example, businesses will typically hire an expert corporate lawyer to handle all their legal issues. On the contrary, KPO is insight-driven and businesses usually have a smaller team of domain specialists to outsource their core processes. For example, it’s common for businesses to outsource their customer service or call center operations to BPOs with massive teams to handle large call volumes. These processes tend to be volume-driven, and as a result, require a larger workforce. Driving forceīusiness process outsourcing companies are adept at handling routine front and back-end operations. Let’s find out some of the key differences between BPO and KPO to understand what works best for you and your business: 1. 7 key differences between BPO vs KPOīusiness Process Outsourcing and Knowledge Process Outsourcing may sound similar, but they have quite a few distinguishing features that make them useful for different business needs. We’ll also look at what both terms mean and their six common benefits. In this article, we’ll explore the seven key aspects of BPO vs KPO that set them apart from each other. KPO also differs quite a bit from BPO in terms of its services and complexity. To start with, KPO is a targeted industry that focuses on the outsourcing of knowledge-based services while BPO is the general outsourcing of non-core activities to a third party service provider. Business Process Outsourcing and Knowledge Process Outsourcing share many common benefits.īut did you know the primary differences between BPO vs KPO?
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