Are Business Process Outsourcing (BPO) & Knowledge Process Outsourcing (KPO) Different?

Given the present context where businesses from different industries outsource tasks and work facets, “outsourcing” has somewhat become a common term which generally describes these kinds of activities.   BPO (business process outsourcing) and KPO (knowledge process outsourcing) have also been treated as one and the same. However, as similar as these may seem, both are actually coming from different streams.  How are these words different? Here are the basic elements which differentiate them:

Focus

As the terms imply, KPO focuses on the application of knowledge, while BPO is on the execution of processes or tasks.  KPO is comprised of knowledge-intensive activities which require collection and analysis of information, while BPO focuses on completion of specific tasks to boost up businesses.

KPOs Deliver Knowledge-Intensive Activities

Activities

Among the work that KPO companies provide are investment research, financial analysis, legal issues, patent filing and analytics. On the other hand, BPO companies focus on the delivery and completion of specific tasks which range from transaction processing to providing technical support and customer care.

Completion of Specific Tasks and Processes is BPO’s Focus

 

 

Workers’ Specialization

Given the differences in focus and activities, most BPO workers are not required to have vast knowledge and experience in any specific area. The usual primary requirements are above-average communication skills (specifically, in English) and computer & internet skills. On the other hand, KPO workers are expected to be highly skilled and experienced in their respective fields. For instance, if a KPO company delivers legal research and recommendations, then they must hire someone who has a law degree and experience in dealing with legal issues.

These differences allow these industries to complement and supplement each other, in order to deliver more quality services to businesses. If you are thinking of outsourcing, but still unsure whether you need the help of a KPO or BPO guy, we can help you. Feel free to contact us today and we’ll help you determine which service plan is appropriate and suitable for your business needs.