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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You Might Also Like: BPO refers to the outsourcing of non-primary activities of the organization to an external organization to minimize cost and increase efficiency.

KPO on the other hand is related to specified professional fields, like Law, taxation, accounting and technical and IT support. Posted on Friday, January 10, Bookmark the permalink.

Let us first define both the terms. KPO involves outsourcing of core functions which may or may not give cost benefit to the parent company but surely helps in value addition. BPO depends on upon cost arbitrage. The organization may be a different entity or the subsidiary of the main organization that can be located in the same country or overseas to diffrrence cost.

A BPO is capable of handling both front end and back end operations of an entity. BPO provides services like customer care, technical support through voice processes, tele-marketing, sales, etc.

So if you compare the functionalities and expertise kpoo, KPOs are far better than BPOs, but both of them help businesses to streamline their operations and making them cost effective. Also, the training provided by the KPOs is more rigorous and sector specific. It is a process where a number of people are working for a specific business.

What is the difference between BPO and KPO

Ans to our mailing list. Most Famous Advertising Slogans of all times bpl times Mailed. This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. BPO – anybody who have passed 10th or 12th with average communication skills with computer knowledge can work for any process whether it could be of Data entry related for Telecomm process, Bank process, Insurance process, Mortgage process, and Mediclaim process etc.


The different types of BPO are explained below:. BPO requires good communication skills and basic computer knowledge in employees. KPOs are usually more specialized and knowledge based.

If you will be outsourcing key tasks, make sure you find an outsourcing and offshoring service provider that has the expertise and knowledge needed to write your story of success instead of a bad outsourcing experience.

Outsourcing of routine or peripheral business functions is in vogue. On the other hand, highly specialised and knowledge based services are difefrence to KPOs. Focus on Low level process High level process.

Business Process Outsourcing or BPO is outsourcing of some of the business functions to a third party in order to save money.

In spite of its popularity, however, understanding the two concepts can be a little tricky, especially for companies who are new to the outsourcing and offshoring scene. BPO is volume driven. These activities are directly related to core offering of parent company. Because of BPO and KPO’s key differences and requirements, it is imperative for investors and companies looking to outsource or offshore services in the Philippines to perform due diligence before choosing any service provider.

It usually consists of the back office or front office operations. If you take a service organisation e. Both forms of outsourcing work in a B2B environment where the service provider and buyer of services both are business organizations.

BPO is the general term for the outsourcing of business functions to a provider outside the company called offshore outsourcing when done overseas to cut costs. Even businesses outsourcing their services to KPOs do a more extensive research before giving a contract to a particular KPO, as a good KPO can be the differentiating factor between a good market offering and a bad one.


An organisation is made up of various processes. It is helpful for those who are under-graduate or graduate and are not able to be employed in any company. If required, refer to the URL of this page in your new post. Math Question Source Space Requirements Be specific in skills required, number of employees, and timeline.

Difference Between BPO and KPO (with Comparison Chart) – Key Differences

Based on a work at www. Over the time, Business Process Outsourcing BPO has gained ample importance, by providing services related to marketing, human resources, customer support, technical support, etc.

Add new comment Your name. And the motive behind such differenxe is directly linked to differecne reduction. Some functions include animation, designresearch and development, digital marketingand legal services. Companies usually outsource such processes to BPOs which are not directly linked to its value chain.

More or less they are both process outsourcing. Key to Inclusive Growth in PH? Business Process Outsourcingknowledge process Outsourcing Philippines. For a layman, both seem to be the same, but in reality there is a profound difference.

On the other hand, KPO is insights driven. Both, Differece and KPO, help businesses to streamline their operations, making them cost effective, but the six elements that separate these two processes are focus, process, specialization, driving force, activities, and client contacts. You must Sign In to post a response.